The Reality of Technology Business Growth: Why Mindset Matters More Than You Think

For many technology businesses, particularly Technology Providers, growth is seen as the ultimate goal. Revenue targets dominate the conversation: a $1 million business wants to reach $5 million. At $5 million, the new ambition is $10 million. And on and on it goes. 

This focus on ever-increasing figures is so common, it’s almost expected. But in many cases, these numbers are arbitrary, without being backed by a clear strategy or purpose. They’re often plucked from the air, driven more by perception than intention or execution.  

There’s a crucial difference between saying, “We want to be a $5 million business,” vs. “We’re building towards becoming a $5 million business.” One is aspirational. The other is actionable. 

Without a vision or plan behind the numbers, execution tends to stall. Despite all the talk about scaling, many technology businesses aren’t truly prepared (or even genuinely motivated) to grow in a sustainable, intentional way. 

Table of Contents:

• Why Bigger isn't Always Better
• The 6 Owner Mindsets
• 4 Speeds of Business Growth
• What Happens if You Do Nothing
• How to Shift Your Mindset

Why Bigger Isn’t Always Better for TSPs

Many TSP’s say they want to grow, for example, from $1 million to $2–3 million. But when asked what that growth actually looks like, their vision doesn’t include expanding their team or adding complexity. They want to keep things lean, with a small staff count. There’s no appetite for becoming a 100-person operation, let alone a $100 million enterprise. 

This disconnect is common. The industry narrative tends to default to “more is better.” But the reality is, not every business owner wants, or needs to scale at all costs. 

Often, it takes an external voice to offer permission for them to think differently. The truth is, it’s okay to stay small. 

Some of the most successful technology services business owners have made a conscious decision to remain small and highly profitable. Instead of chasing top-line revenue, they prioritise extracting value from the business and investing it into personal wealth. 

That’s not to say TSP business growth isn’t a worthy goal. For some, scaling beyond $10 million (or even up to $30 million or $100 million) is the right path. But everyone’s definition of success is different and deeply personal. There’s no one-size-fits-all answer. 

As a business owner, the challenge might be that you haven’t yet taken the time to understand your own motivations. That’s why a framework around different owner mindsets can be helpful - it’s a way to clarify what kind of business you truly want to build. 

The 6 Owner Mindsets 

TSP business growth doesn’t just depend on market opportunity or operational capacity. It’s often shaped by your mindset. Seeing as not every technology business is on the same journey, understanding the mindset behind your business is key to making strategic decisions.  

Typically, there are six distinct owner mindsets. Each one shapes how a business operates and what growth looks like.  

1. Exit-Oriented 

These owners are working intentionally toward a sale or transition. Their focus is on building value, systemising operations and preparing for the next stage: stepping back or cashing out. 

2. Kingdom Builders 

Driven by ambition, these owners are building empires. They’re aiming for scale, pushing towards a $100 million business, large teams and industry dominance. Growth is the mission. 

3. Deliberate 

These are lifestyle business owners who are clear and intentional. They’ve chosen to stay small, run efficiently and generate strong profits, often extracting wealth for personal investment. They prioritise freedom, control and financial outcomes over headcount. 

4. Survival Mode 

For these technology business owners, the daily reality is about staying afloat. Owners are focused on meeting payroll, covering costs and making it through to the next month. Growth isn’t even on the radar; survival is the only priority. 

5. Startup Mindset 

Early-stage owners are building from the ground up. These businesses are still testing, iterating and finding product-market fit. Energy is high, but resources are stretched. 

6. Lost 

The most common (and limiting) mindset is being lost. Owners aren’t actively choosing a path, building anything new, working toward an exit or pursuing a deliberate lifestyle business. While they may be running a decent operation and better positioned than “survival mode”, they lack a clear direction or vision for the future. 

Being in the “lost” mindset can feel deceptively comfortable, as your business may be profitable, even stable. But it’s directionless. And this is where growth stalls.  

Without a clear decision to transform or exit, many TSPs drift. They react instead of lead. They plateau instead of scale. 

Recognising where a business owner falls within these mindsets is a powerful first step. It creates clarity. And clarity can drive action. 

Looking at broader industry benchmarks, Canalys is projecting 20% (average) year-on-year revenue growth across major technology categories for channel partners. 

While that number might seem ambitious (or potentially even out of reach) for many TSPs, it reflects the growth potential that still exists in the market. The challenge is that a large portion of the industry has stagnated. 

Without a clear mindset or strategic direction, it’s easy to fall behind while the industry moves forward. 

Understanding growth potential starts with recognising how your mindset shapes the pace and trajectory of your business growth. 

The 4 Speeds of Business Growth 

How does mindset impact growth? Let’s discuss the four distinct speeds at which technology businesses typically grow, each with their own operational reality and strategic demands.  

1. Hyper-Growth (40%+ year-on-year) 

At this speed, businesses are scaling aggressively. Hyper-growth businesses are often scaling aggressively, capturing new markets or rapidly expanding offerings. 

2. Rapid Growth (20-40% year-on-year) 

These businesses are expanding quickly but more sustainably than in hyper-growth. They’re often building on strong foundations, such a proven business model, consistent demand and operational discipline, to accelerate growth. 

3. Standard Growth (1-20% year-on-year) 

This is where many stable, well-run businesses sit. Growth may be steady and incremental, fuelled by continuous improvement, retention and small-scale market gains. 

4. Negative or Static Growth (0% or less) 

In this category, businesses are either flatlining or declining. They may be stuck due to market shifts, internal inefficiencies or a lack of direction. Without intervention, this can lead to long-term erosion of value. 

When leading analysts point to a 20% growth opportunity, this aligns with what standard growth should look like: a solid, but achievable target. 

So why does hitting even standard growth feel so special, or so difficult for many TSPs? 

Even though 20% growth might seem substantial figuratively, the reality depends on your scale.  

For a $100 million business, for example, this might seem like a big leap. But for a $1 million TSP, 20% is only $200,000 in growth – which is the equivalent of a gaining few new clients, implementing a modest price increase or adding a few additional services. 

Yet, many businesses still struggle to achieve even this. 

That’s where mindset resurfaces as the limiting factor. If your business isn’t structured around profitability, creating a deliberate lifestyle, growth through acquisition or demand generation, or a pathway to exit, then it’s often drifting. It’s not stalled, but neither is it moving forward with purpose either. 

Rather, it’s a common state of “floating”. Owners haven’t taken the time to define what they truly want from their business. 

Growing a TSP business doesn’t always mean chasing hyper-growth. For many, sustainable growth comes from clarity, focus and aligning goals with the right mindset. 

So, the real question becomes: What do you want to be? What are you working toward? 

Because without a clear strategy or vision, even small growth targets can feel out of reach, and your business can end up reacting to the market, rather than leading within it. 

What Happens If You Do Nothing? 

As the market evolves, many of the core services offered by TSPs are becoming commoditised. Margins are tightening from all sides. Salaries are rising, inflation is pressuring overheads and SaaS margins continue to shrink as vendors push through price increases. 

These pressures aren’t isolated. They’re structural shifts that affect every technology service provider. 

So what happens if nothing changes? 

If your business is currently tracking at 10% year-on-year growth, you might think you’re on a steady path. But without proactive steps to adapt, that growth can evaporate, or even slip into decline. 

Client churn is also increasing – which is a trend that’s been widely observed and discussed. That creates dual pressure: protecting margins, while simultaneously improving retention. 

And the hard truth is that some churn factors are beyond your control, such as changing client needs, market consolidation and shifting budgets. 

So the real question becomes: If you can’t control what’s happening around you, what are you doing to take control of what’s happening within your business? 

Shifting Your Mindset Towards Growth 

Many technology solutions businesses today are finding themselves stuck in standard, or even negative growth. Despite the opportunities in the market, the needle isn’t moving. Or worse, it’s moving in the wrong direction. 

Why? 

In many cases, it’s not a lack of effort or capability. You may not be achieving your growth goals because you haven’t aligned your mindset with a clear strategy. It’s time to step back and ask: What do I really want? What does growth look like for me? 

There’s no one answer. And there shouldn’t be. The right path depends on your vision, individual circumstances, needs and the needs of your business.  

What matters is making a conscious choice. 

Take time to reflect. Develop a simple strategy. Build a plan you can deliver - doing so can be life-changing.  

If it feels hard to do alone, seek external support. But don’t stay stuck. Doing nothing is still a decision, and it often leads to drift. 

Ask yourself: Do you want to, or need to grow? Do you have the energy to transform? Or is it time to exit? 

Ready to shift your mindset and scale with clarity? Learn more about how The TSP Advisory can help your transform your business.