With no shortage of demand and a broad array of services to offer, it’s a great time to be an MSP. Small- to medium-size businesses rely on IT services more than ever to deliver core business functions while struggling to manage their complexity and scope themselves
In such a hot market, there’s no excuse for MSPs to not only survive, but also to thrive and grow. But simply adding more customers, seats, and endpoints under management alone doesn’t guarantee success. MSPs need realistic, actionable business plans aligned with their capabilities and their owner’s own personal goals.
Working Backward from a Vision
Before beginning any journey, you should have a final destination in mind. MSP leaders need a vision for themselves and their business 10 years out into the future, encompassing both objectives for the business and themselves, since attaining personal financial, lifestyle, and retirement goals depends on how the business performs.
Owners should start with why they got into the MSP business to begin with, assessing if those expectations have changed. With this picture in mind, it’s time to put a price tag on it – how much money is needed to turn that vision into a reality?
Visions can be quantified in terms of after-tax dollars in your personal bank account. How much to buy that boat or vacation home, or send the kids to college, or retire at 55? This math first requires calculating current personal net worth and then determining how much more personal income you need to reach that goal.
With that objective in mind, a little more math identifies how much additional monthly recurring revenue the business must generate to have enough in the bank 10 years from now to realize that vision. Essentially, two major levers influence the increased profitability needed for that financial goal: boosting revenue and increasing efficiency.
Read the complete post at Channel Futures.