“From the first engagement, Evolve was a powerful and meaningful experience that highlighted the need for better tools, strategies and tactics. More notably perhaps … it provided clarity and revealed our actual maturity level of our business.”
“With their [ConnectWise Evolve] support and guidance, we’ve improved our operations, financial management, and overall business strategy. Today, our business is thriving! We own our office building. My wife and I have our dream house on a farm. And … we have become best-in-class in almost every aspect of the business”
It doesn’t matter where you start.
It matters where you finish.
This is especially true for Robert Thomson, owner of Kaznetic.
What started as a small operation in 1999 was both humbling and defining. The early days were filled with serious challenges and adversity, setting a foundation for the business to flourish. It just took a few years to realise it.
“I was just running around, sorting out a few people and helping them out while still working at the other place. We started in the bedroom office, and it was like a side hustle. I was a one-man show, making money by providing IT support.”
Thomson credits his accountant (at the time) for the advice that got him off the bench and in the game. That advice: if he simply factored in the GST from the beginning, he could gain a significant advantage.
Kaznetic’s competitors were used to avoiding the 32% tax, would struggle to adapt to the new 10% GST. By being prepared and compliant from day one, Thomson could potentially outperform those who were not ready for the change.
“The introduction of the Goods and Services Tax (GST) really changed things in the region. Before the GST, there was a 32% wholesale sales tax, which many small IT companies avoided by operating in cash. When the GST was introduced at a flat rate of 10%, it meant that all businesses had to account for this new tax.”
The business crystalized and quickly became a family affair.
Thomson shared the story of Kaznetic, a company he co-founded with his wife, Karen. The name “Kaznetic” is a blend of Karen’s nickname, “Kaz,” and the word “kinetic,” symbolizing the dynamic nature of their business.
Opportunity ahead? Yep.
Time to go … and grow. Yep.
What could go wrong? Lots.
Opportunity Knocks
The impact of the GST on cash economies led to the failure of many competitors who didn’t adapt to the new tax regulations. This shift allowed Kaznetic to gain a foothold in the market. Inevitably though … with opportunity comes growing pains.
Thomson candidly discussed his early struggles with financial literacy and management.
“We lacked the necessary financial tools and insights, operating under the simplistic notion of having money in the bank without truly understanding our profitability.”
Kaznetic relied on in-house tools and an inferior product called Sysaid. System limitations hindered operations and growth, and Thomson admits they were unaware of better products available in the market.
“The solution was cheap but did very little for us. We made the wrong decision … buying based on price, not really knowing what the business needed.”
The decision to seek out a new partner was driven by the need for more efficient tools and solutions.
This shift in perspective was crucial for their business. Thomson attended an IT Nation [ConnectWise] event in Melbourne, where he explored more robust options. Thomson’s journey with ConnectWise began with onboarding ConnectWise PSATM to streamline operations.
A small issue arose … the staff trained on how to use ConnectWise PSA departed without notice, and Thomson didn’t know how to use it or where to begin.
Cue: panic.
Time for ConnectWise.
ConnectWise at The Right Time.
The years 2015-2017 were particularly challenging. In 2017, Thomson faced significant personal and professional challenges. He lost both his parents within a span of two years, with his mother passing away in December 2017. He couldn’t make payroll. He was invested in a system that he didn’t know how to use.
“During this period my business was struggling, almost on the verge of going broke. There was a lot of turmoil and toxicity within the company, partly due to having the wrong people in key training positions. This combination of personal loss and business instability made it an incredibly difficult year for me” Thomson explained.
Despite these hardships, Thomson and his family persevered.
“I had young kids. My wife and I were all-in on the business, but it was failing. I was under immense pressure. It all made me feel like I was standing on train tracks with no escape. I knew I had to motor on.”
The turning point for Thomson came through the support of ConnectWise EvolveTM community. ConnectWise Evolve [formerly known as HTG] is a comprehensive membership program designed to help IT solution providers, particularly managed service providers (MSPs), navigate their business journey through peer group interactions. The community’s empathy and guidance helped him, and his team gain a deeper understanding of finances, business operations, and the MSP (Managed Service Provider) model.
“From the first engagement, Evolve was a powerful and meaningful experience that highlighted the need for better tools, strategies and tactics. More notably perhaps … it provided clarity and revealed our actual maturity level of our business.”
The global program offers educational resources and group discussions let by members, focused on topics relevant to growth-mindset, revenue-driving solutions, mergers and acquisitions and more. Members also have access to financial and operational toolsets, including benchmarking toolsets, like Service Leadership Index (SLI), to help define and achieve measurable outcomes.
IT Nation Evolve aims to ignite transformation by providing a supportive environment for MSP leaders to collaborate, learn, and achieve success both personally and professionally. Members of IT Nation Evolve reportedly grow 20% faster than the industry average, highlighting the effectiveness of the program.
“With their [ConnectWise Evolve] support and guidance, we’ve improved our operations, financial management, and overall business strategy. Today, our business is thriving! We own our office building. My wife and I have our dream house on a farm. And … we have become best-in-class in almost every aspect of the business,” Thomson said.
Growth and Maturity
Over the past six years, Robert’s business has seen remarkable growth and maturity. They have developed a structured approach with clear strategies and goals, leading to significant profitability and recognition as best in class. Karen’s contributions, including helping new members with their SLI data entry, have been instrumental in this success.
Beyond the formal meetings and membership, Evolve provided a support system that helped Thomson navigate challenges but more importantly perhaps … it gave him a sense of belonging and access to shared experiences with other peers in the industry.
“There are intangible benefits of being part of the [HTG] Evolve community. I can’t say enough about the importance of seeking external support as it had such a profound impact on my business success and personal well-being.”
The ConnectWise partnership marked a new era for Kaznetic, where the end goal wasn’t just to finish but to finish stronger than where they started.
