The Superhero Mindset: Strengths and Limits
If you’re running an MSP, chances are you’ve played the superhero more than a few times. You jump in to fix things. You carry the load. When you start your business, it works. It’s probably what got you here. But over time, that mindset starts to wear thin.
When every decision, and every approval depends on you, the business stalls. You hit a ceiling. The worst part is when you doubt the business will ever run without you.
“I’m constantly being pulled into the weeds, how can I stop?”
The good news is that you’re not alone. The bad news is the fix isn’t easy. Many owners ask this exact question.
There are books and management consultants dedicated to this concept to help you get out of the daily grind. Traction by Gino Wickman is a popular book / system for managing your business moving you out of the daily tasks. While many others have taken a macro approach to delegation and management encompassing all the systems and processes of your business, Red Earth CPA takes a micro approach to only the finance component of your business.
Enter the Finance Flywheel
When it comes to managing the finance component of your MSP, the system is known, straight forward and repeatable. It should function with only limited involvement from the owner and needs to operate like a flywheel.
I call this the Finance Flywheel.
Think of building this system like spinning a very heavy, cast-iron flywheel . The weight of the flywheel is significant and it requires effort to move from a resting state to an active state. It’s like pushing a heavy merry-go-round. First, it takes serious effort. But once it’s spinning, the momentum carries it forward with a lot less push from you.
It’s not magic; it’s rhythm, system, and trust in the process.
When an MSP gets that flywheel moving, the financial back office stops being a source of stress and starts becoming a source of confidence. There are no more “surprise” invoices, forgotten bills, or missing reports. Just smooth, steady motion.
To explain this concept, I created the graphic below which include the five components of the flywheel:
Systems Create Freedom
Systems aren’t just for efficiency; they buy back your time. They turn your “hero” job into a business. If you have to do it, it’s a job. When your time isn’t required, it’s a business. Once it’s a business, it’s scalable.
You gain:
- Predictable cash flow
- Fewer last-minute scrambles
- Clean, clear reporting
- A team that runs without constant input
“How do I build systems that run without me?”
You start small. One process at a time.
Where to Start: Early Wins
Usually, the first win is a consistent accounts payable process. All vendors are being paid on time and electronically with an approval process and audit trail. That alone can ease so much tension.
One client, was writing checks for some clients, paying many by credit card and others were being automatically drafted through the checking account. The approval process was a shared spreadsheet the CEO needed to review daily after the controller duplicated the entry of each bill for a color coded approval. No audit trail was created.
Creating a system where all bills are captured and entered once and in one location streamlined the process.
That’s when the flywheel starts to move.
Are You Still Stuck in Hero Mode?
If you’re wondering whether you’re operating as the hero instead of building a flywheel, watch for these red flags:
- You can’t unplug for a weekend without chaos
- You’re answering team questions all day
- You handle every client escalation
- Your cash flow is unpredictable
“What’s the first thing I should fix in my financial back office?”
Start with daily bank reconciliations. Comparing and including the bank transactions into your register helps catch problems before they develop. Receiving payments and sending invoices daily provides a consistent, high touch approach that speeds your cash collections. It’s the first push that gets the flywheel going.
This Isn’t About Doing Less. It’s About Doing Better.
Getting out of hero mode doesn’t mean you care less. It means you’re building something that lasts. A business that works whether you’re at the desk or at the beach.
The transformation always starts with a decision: stop being the hero. Start building the flywheel.
Want to find out where your business stands? Take the Finance Flywheel Scorecard and get a clear picture of what’s working and what needs work in just a few minutes.