Many IT service providers mistakenly create a business plan and assume they’re done, failing to develop a process for implementation. They may believe their time is better spent catching up on reactive work than engaging in business planning.
If you’re eager to improve your business and reap the benefits of increased revenue and internal stability, your MSP business planning process is where you should start. With thorough and thoughtful business planning, you’re able to reduce your IT tickets significantly.
Begin by evaluating your business plan. Does it fulfill the following requirements?
It aligns with your company goals.
It establishes priorities for your team.
It’s easy to follow and adhere to.
If your plan falls short, or you don’t know how to start creating one, don’t worry. These three steps will help guide you in getting your business plan on track today.
Step 1: Prepare.
To figure out where your business plan is going to take your company, you must first know where your company currently stands. Start your MSP business planning process by determining whether your company has been providing services effectively over the past year or two. Focus specifically on your revenue, sales results and losses.
Once you’ve looked at these, gauge your resources by asking the following questions:
- Are your employees happy, dedicated and working productively?
- How is your capital being used?
- Is your technology up-to-date and serving you well?
Step 2: Create a structure.
Your business plan is your path to improvement. Author a detailed structure for how you’ll improve your company each decade, year and month, using the following keys to business planning succes:
The changes you make in your company today need to be in the context of your vision for your life and business.
- What is the ultimate goal for your company?
- What is the ideal size?
- What is your 10-year net worth target?
This is a time frame that goes far enough into the future to allow for setbacks and that’s short enough for you to set accurate goals.
- What strides do you need to make in the next three years to stay in step with your ultimate goals?
- What should your sales team achieve in three years?
- What should your company structure look like?
- What are your company’s priorities?
Now that you have a strong vision and three-year targets, you’re equipped to decide what your priorities need to be over the next year.
- What actions should you be taking yearly?
- How much should your profit margin increase in the next year?
- What are your annual sales goals?
- What are your annual hiring goals?
Your action plan takes your current business environment into account and allows you to make progress now rather than waiting for things to change.
- What immediate goals are you able to set and achieve in the next quarter?
- Are there problem areas within your company that could be improved on a quarterly basis?
- How many new clients or projects do you want to secure in the next month?
Step 3: Make the commitment.
With your structure outlined and in place, make sure you establish company-wide habits to ensure you’re able to achieve the goals you’ve set. Follow your MSP business plan and work toward these objectives. Be sure to evaluate your employees, teams and departments regularly to make sure they’re still working within your structure.
It’s important to start your business planning journey today. Sit down with your company leaders and begin the process with preparation, or reach out to a consultant for more guidance. Each day you let your company operate without an effective business plan is another day you’re sacrificing profitability.
Want to learn more ways to implement a successful business plan? Download our free business planning worksheet