Month: March 2016

Disaster Recovery Plan Errors To Shield Your Clients From

Posted on | Author Chris Crellin

Smart business owners know they need a disaster recovery plan. Some will even proactively approach their IT service provider about creating one to help protect their business. After all, you never know when a disaster could strike, whether it’s a fire, a flood or equipment failure, and that leaves critical information vulnerable to data loss.

Of course, not all small business customers will be this forward-thinking. Usually as an MSP, you will need to be the one to bring up disaster recovery planning with your customers. However, even if a customer or prospect tells you they already have a disaster recovery plan in place, it’s important to follow up and make sure they aren’t making any of these common mistakes that could mean their data isn’t as protected as they think it is.  

1. Never Testing The Plan

Testing is a vital step in creating a disaster recovery plan, and unfortunately, it’s a step that many businesses overlook. Having a disaster recovery plan on paper is good, but it will only take you so far. Testing the plan will uncover flaws and help you find ways to improve or clarify parts of the plan that may have been confusing. It’s always better to uncover these types of issues in a test environment instead of learning the hard way during a real-world disaster scenario. Testing does take extra time, but it will be well worth it in the end if it means being able to successfully restore a customer when the time comes.

2. Failing To Communicate The Plan

Another reason testing is crucial is that it gives the customer and their employees a chance to practice and make sure everyone knows what their responsibilities are in a disaster recovery situation. Many businesses make the mistake of not communicating their disaster recovery plan properly to everyone in the organization, and that can lead to failure when disaster does strike.

As an MSP, you can help customers communicate their plan clearly to all of the relevant stakeholders. Try holding a meeting with everyone involved to explain the overall plan and their specific responsibilities in it. It’s also a good idea to provide documentation to be shared with each person for review and reference.  

3. Overlooking Critical Data

Disaster recovery plans are only helpful if they’re complete, and it’s easy for businesses to forget about mission-critical data that isn’t stored locally. For example, if a customer has branch locations in addition to a central office, it’s important to make sure data stored at the branches are taken into account when you help the customer create a DR plan as well.

Bring-Your-Own-Device (BYOD) policies are also creating potential pitfalls for disaster recovery plans as more and more critical information is finding its way onto tablets, smartphones and laptops of employees working remotely. Remember to address BYOD with customers during the planning process to make sure this information is protected properly as well.

4. Skipping Regular Audits

Disaster recovery planning isn’t a fix-it-and-forget-it type of project. Business operations and IT environments can change over time, and disaster recovery plans need to keep up. That’s why it’s important to conduct regular audits of the DR plans you help your SMB clients create to make sure they continue to meet the business’s needs. I suggest holding annual DR audits for each of your customers, but it’s good to check in with them more frequently than that to see what’s changing in their IT environments and if there are any new applications or devices that will need to be protected and added to the plan as well.

If you can help your SMB customers avoid these four common disaster recovery plan mistakes, you’ll be well on your way to better protecting their IT environments, and you’ll be able to rest a little easier knowing their data is safe. Going through the disaster recovery planning process can also help you build deeper, more strategic relationships with your customers, which can help you grow your business in the end, too.  

By Chris Crellin, Senior Director of Product Management for Intronis

Senior Director of Product Management Chris Crellin leads product strategy and management for Intronis. Over the past 15 years, Chris has developed a strong record of successfully developing product strategy and driving execution from concept to delivery. Chris joined Intronis from Backupify/Datto, Inc., where he was responsible for product strategy and execution of their cloud backup SaaS portfolio. Prior to Datto, he spent 14 years with RSA, the Security Division of EMC. He was the lead product manager for the RSA SecurID portfolio after having started his career as a software engineer.

Top MSPs have nailed down their disaster recovery plans. Learn more about how to become a top MSP by reading the free e-book.

Become A Top Performing MSP: Learn How To Provide Profitable IT Solutions And Become World Class

Process-Driven Actions To Increase MSP Profitability

Posted on | Author Gary Pica

If you want to increase the profitability of your business and enhance the services you provide to clients, you must take time to focus on your MSP processes. When you look at this aspect of your business and work to optimize operations, you begin to adopt an important characteristic that all top MSPs possess.

Ask yourself: Would my business and my clients’ businesses be better if my MSP operated with well-defined and streamlined processes? The answer is probably an emphatic yes.

You need to have defined processes for every area of your business, and there are four main pillars that require the most attention.

After you’ve reviewed these areas, it’s time to start making real changes to your company’s view of processes. Unfortunately, you can’t do it alone.

It’s not just about outlining a process and implementing it. You have to develop and promote a process-driven culture in your company to see increased MSP profitability. To establish a culture of process, there are four actions to take.

How To Develop A Process-Driven Culture

  1. Take It To The Team. Getting your team focused is the first key to developing a culture of process. You never want your employees to feel like they’re just cogs in the machine of your company. They should be active participants in deciding what the best practices of your MSP are and what processes you should use to adhere to those practices.
  2. Optimize What You Already Have. A process that you’ve relied on since the beginning of your company may not be the best way to operate anymore. Don’t be afraid to take a hard look at your everyday MSP processes and make major changes. They should be living pieces of your company’s operations. To make that happen, you need a process for improving your processes. Over time, a current way of working may not be relevant anymore. Whether it’s every month, quarter or year, you should reevaluate your MSP processes. 
  3. Make It Routine. To really focus your team on improvement, discussion about your MSP processes should be a part of regular conversation. In daily huddles and team meetings, actively reference your processes. If someone has a new suggestion, ask them to test it out. If it’s successful, alter your process and communicate it to the team. When your team is mindful of processes on a regular basis, the impact on your company culture becomes evident. 
  4. Institutionalize. Through documentation and training, you’ll institutionalize the processes you’ve optimized and developed. Task a team member or a group with the important responsibility of recording processes and regularly updating those records when there are adjustments. And remember, training isn’t just for your new employees. Any time a new process is rolled out, train your team on how to follow it properly. You’ll see fewer variances in how employees work and a higher level of company-wide standardization.

Creating a company culture that’s process-driven is one of the keys to becoming a World Class MSP. With these optimized processes, you’re able to leverage your team’s efforts and achieve superior results. While defined processes may seem like a small aspect of your company, don’t underestimate the positive impact they have on your MSP’s profitability.

There’s more to learn about becoming a profitable MSP. Check out our free business calculator that can help you evaluate key profitability metrics.

New Call-to-action

HaaR: The Solution For Your Managed Service Hardware Needs

Posted on | Author Jackie Schmid

For many years, your customers had to decide whether or not they were going to use their own cash to buy new technology or if they needed to go to the bank. Today the landscape is much different and business owners are making technology decisions based on whether the solution is a capital expense or an operating expense.

The world of managed services and cloud is changing the industry, and companies are increasingly asking to consume all of their technology monthly. Billing the customer monthly for services makes a lot of sense, and it’s what many MSPs have been doing for years. The hardware is a different story.

As Expert Technology was making the transition to a hosted solution, they say they saw two options for selling the hardware, and neither was ideal.

1. Self-finance the hardware and rent it to the customer.

    • Pros: One invoice for the customer, higher margins, easier to upgrade customers
    • Cons: Restricted cash flow, administrative costs of invoicing and collections

2. Lease the hardware through a third-party finance company.

    • Pros: Easy to upgrade equipment, administrative costs covered by finance source, frees up cash flow
    • Cons: Customer receives two invoices, ownership options at end of term

Expert Tech thought there could be an easier way, and it just took some creative thinking for us find the best solution for them. Enter option 3: Hardware as a Rental (HaaR).

Managed Service

Through a customized version of HaaR, GreatAmerica is financing the equipment and allowing Expert Tech to put the equipment charge on their invoice and pass back the equipment charge to us monthly. Expert Tech tells us they are getting the best of options 1 and 2 while avoiding the multiple invoices and restricted cash flow.

By Jackie Schmid, Director of Strategic Marketing of the Unified Communications & IT Group at GreatAmerica Financial Services

Jackie Schmid is the Director of Strategic Marketing of the Unified Communications & IT Group at GreatAmerica Financial Services located in Cedar Rapids, Iowa. Jackie is responsible for building brand awareness and gaining strategic relationships through creative marketing. Prior to joining GreatAmerica, Jackie worked in the TV News industry as a producer and executive producer at the local CBS and FOX stations where she helped shape the programs delivered to the market. Jackie’s finance career began in 2011 when she joined GreatAmerica to support the sales team serving the Office Equipment space.

Want to learn more about packaging and pricing your IT services? Check out this tipsheet. 

Get Your MSP Packaging And Pricing Guide

MSP Smart Numbers: Profitability Metrics You Should Track

Posted on | Author Gary Pica

All World Class MSPs take special interest in their cost drivers. Where are the funds being spent, and what expenditures could be eliminated? This is a major part of gaining command over your business.

What does it mean to gain command? It’s about having a 360-degree view of your MSP profitability – how you package and price your offerings, the impact of your service delivery and the profit margins you generate. When you pay attention to these key aspects of your business, you gain the knowledge to improve your operations. And, by working to gain command of your business, you reap three important benefits.

The Benefits Of Gaining Command

  • Boost profit margins. Increasing your MSP profit margins is often easier said than done. Focusing on your service offering and delivery is an essential step toward bringing in more revenue.
  • Increase leverage. By gaining command and tightening up your processes, you also gain leverage. This is the relationship between the number of people you have and the amount of service revenue you generate. When you have complete visibility into how your company is working, improve your processes and capitalize on your Super Power (your competitive advantage), you’re able to charge more for your services. Determining the correlation between an hour worked and a dollar billed is sometimes difficult for MSPs.
  • Generate ATDIYPBA. Finally, gaining command helps you generate more ATDIYPBA, or After Tax Dollars In Your Personal Bank Account. This is one of the reasons why entrepreneurs go into business in the first place. You have a big idea or certain skills that you think have value and are going to make money.

Increasing profits, boosting leverage and generating more personal funds are all benefits you want to reap now, right? One step you should take today to start gaining command of your company is tracking key profitability indicators that impact your MSP’s revenue and using those metrics to make changes.

Get your calculators ready. We’re going to dive into your MSP Smart Numbers.

What Are MSP Smart Numbers?

Each quarter, there are important numbers you should follow to evaluate your MSP’s business growth. These are MSP Smart Numbers. What impact do they have on your profits? Smart Numbers are the key performance indicators (or KPIs) that enable you to manage the major cost drivers for your business.

These costs are based on five different values in your company:

  • Operations
  • Profit
  • Revenue
  • Leverage
  • Sales

MSP Smart Numbers You Should Follow

Based on these categories, there are 20 MSP Smart Numbers that you should be evaluating on a quarterly basis.

Operations

  • Reactive tickets/tech per month that you closed
  • Total close percentage
  • Reactive tickets per endpoint per month that are new
  • Average resolution time
  • Endpoints supported
  • Percentage of service that’s reactive

Profit

  • Quarterly net profit

Revenue

Leverage

  • Annualized service revenue per employee
  • Annualized service revenue per technical employee
  • Average all-in seat price
  • Average monthly recurring revenue

Sales

  • New monthly recurring revenue added
  • Lost monthly recurring revenue (or churn)
  • Net monthly recurring revenue gain
  • Number of sales appointments made
  • Number of first-time appointments
  • Sales call close rate

This is an important exercise, but many fail to follow these MSP numbers. When you look at your Smart Numbers, you’ll determine a few things, including where you should invest more resources and what areas of your business could be more profitable.

Put your Smart Numbers into a worksheet, and share the information with your team members during your quarterly business review.

MSP profitability

When you start recording these numbers on a quarterly basis, it becomes easy to see trends and track them over time. Once you’ve evaluated the data, look for gaps in your MSP profitability indicators and take steps to tighten up your processes. For example, if you see that you’re not bringing in enough monthly recurring revenue, focus your efforts and resources on improving sales.

By tracking these metrics, you’ll increase insight into your business operations and the overall command you have over your company.

Want to learn more about boosting your profitability and becoming a top MSP? Download our free MSP business planning worksheet.

New Call-to-action

Steps To Building A Growth-Powered MSP Business Plan

Posted on | Author Gary Pica

Growth is a constant concern for any business owner. Unfortunately, your MSP is not growing fast enough. Your revenue isn’t increasing. You’re plateauing.

To get results that differ from your past and current numbers, you have to build the foundation of your MSP on a strong, strategic business plan.

When you hear the phrase “business plan,” you might have a few immediate reservations.

  • I’m already working as hard as I can.
  • I’m buried in reactive work.
  • I don’t have the time or resources to take action on my plan.
  • I need to finish a few things first.
  • My company is small and doesn’t fit into a written plan.

These are common concerns among business owners in any industry, but they’re also critical reasons why you should have an MSP business plan. Don’t let your reservations keep you from investing time and energy into a business plan that facilitates MSP business growth.

Start By Looking Back

To create an MSP business plan that helps you achieve your growth goals, you have to evaluate where your company currently stands and where it’s been. Take a look at your MSP results and resources over the past few years.

Results

  • Revenue by categories – Recurring and nonrecurring revenue
  • Gross margins by revenue category – Recurring and nonrecurring revenue
  • Sales results – The amount of new monthly recurring revenue you’ve added
  • Churn – The amount of monthly recurring revenue you’ve lost

Resources

  • The people you employ
  • The capital you generate
  • The technology you offer to clients

Set Goals For Growth

What is the ideal state of your company? How much growth do you want to achieve? The next step in the business planning processis setting MSP goals.

Begin by defining four benchmarks that you want to reach.

10-Year Vision – What is the overarching plan for your company? Define big concepts for your business, like your purpose and core values. Establish a net worth goal that you want to achieve over the next ten years.

3-Year Targets – In the next three years, what big changes does your company need to undergo to make your 10-year vision a reality? Are there major structural shifts that would improve your profitability? Identify organization-wide changes that you need to implement, and set target profit margins for your team.

Annual Plan – Look at your company today and think about where you want to be one year from now. What annual sales goals do you need in order to meet your 3-year targets and make your overarching goals a reality? Are there growth targets that you want to reach over the next year? If so, outline a plan to achieve them.

Quarterly Actions – Take your annual plan and divide it into quarters. What actions should you take to reach both your sales and growth goals? Identify bite-sized actions your teams should take this quarter to keep your sales and growth initiatives on track.

At the end of each time period, check your progress and hold your team accountable. If you reach the end of the quarter and your sales goals haven’t been met, ascertain what went wrong or what impediments your team is facing.

Create A Success Pattern

Setting MSP goals is an important step in the business planning process, but making them a reality is the true key to optimizing your business and facilitating growth. Put your actions, plan, targets and vision in place.

To keep your team focused on reaching these MSP goals, employ the following tactics:

  • Communicate your quarterly, annual, 3-year and 10-year goals to your team.
  • Identify activities that employees should participate in to help achieve these goals.
  • Commit to the process and keep your team accountable.
  • Start today.

If you put off MSP business planning until you have more time or resources to focus on it, you’ll never get going. Take these actions immediately. Sit down and review your past, set goals for the future and create a pattern of successful habits for your MSP.

Every day that you delay creating an MSP business plan, you delay growth.

To learn more about business planning, download a free MSP business planning blueprint.

New Call-to-action