It’s time to sell your MSP—or so you think. You mulled it over, talked it through with your family and did your research. You also determined the value of your business. You probably based your valuation on something you read online or heard on a webinar. While there’s lot of information about MSP valuations, not all of it applies to your MSP.
We all use standards. We use them to judge ourselves and others. We use them to evaluate products and services — and, most importantly, we use standards to predict results, for our own businesses and those we serve.
Every employee in your business plays a role in making your company profitable. Unlike your leadership team, your employees serve your business in a different capacity: They’re in the trenches. While you’re collaborating with your leadership team in an underground bunker somewhere, your employees are taking fire day in and day out. It’s vital you fully understand and leverage the importance of each role to ensure you’re maximizing every employee’s potential. Sometimes this means getting your hands dirty.
Always focus on value when you’re pricing IT services. Don’t worry about charging too much (potential clients aren’t always looking for the cheapest option). In fact, prospects are willing to pay much higher prices if they feel like you’re delivering value to them. Eliminating price as an objection is dependent on you being able to develop a value-based pricing model for your MSP. Show your value, and pricing will be secondary.
Hitting plateaus is part of life. We’ve all been there before, right? Things are going well, and then all of a sudden we’re coasting — awaiting the next climb. These natural places in business and life where people and businesses get stuck are what I call impact zones.
Without forward movement, your business plan is just a bunch of words, numbers and punctuation marks on paper. It’s practically meaningless when you think about it. It’s like having an outline for a book you’re never going to write. You need to keep yourself in check (in other words, hold yourself accountable). You can do this by developing a quarterly action plan and following through on new business goals every few months.
Increasing sales efficiency is just one of the many ways MSPs can grow monthly recurring revenue (MRR). Top-performing MSPs understand why streamlining the sales process can help salespeople with adding new MRR at the right price. If you’re unsure of how you can improve sales efficiency in your business, we at TruMethods are here to guide you.
There’s been a lot of discussion in the news about the impact of the new tax reform law on businesses, in particular — small businesses. Being that the majority of MSPs are small businesses, the legislation’s implications are of the utmost interest to many of us at the moment. The tax overhaul will impact every business — big or small. But if you learn anything at all from this blog post, it should be the following: MSPs should understand tax implications all time — not just when there’s a major change to the law.