Don’t wait too long to start preparing for your 2020 MSP business plan. The sooner you begin, the better off you and your company will be in the new year, so don’t waste another minute with inaction.
The business planning process is key to your success as an MSP. It’s what separates you from your competitors. While your business plan is a document, the business planning process ensures you’re following through with what’s outlined in your plan. Unlike your business plan — it’s about execution.
How does your current situation look?
Before writing your business plan for the new year, assess your current situation. Don’t take this suggestion lightly. Believe it or not, there’s a lot for you to review ahead of 2020, so plan accordingly.
Schedule some time to review the current results of every aspect of your business — including sales, operations and teams — and compare them against 2018’s numbers. While you’re doing this, don't forget to also project your year-end results.
To get a clearer picture of where you’re going to be financially at the end of 2019, break down your financial projections by categories. For example, when you’re projecting revenue for the remainder of the year, separate your revenue streams into MRR, non-recurring services, hardware, etc. If you haven’t already been doing this all year long, now’s a great time to reorganize your books for 2020.
Also, don't forget to assess your Smart Numbers, key performance indicators (KPIs) that enable you to manage the major cost drivers for your business — including leverage, Picanomics, turning point, churn, net MRR gain and reactive hours per endpoint per month (RHEM).
What about your service delivery areas? Even if your numbers are where they need to be, are the roles and responsibilities in your service delivery areas clearly defined? If not, determine how you can do a better job of creating a culture of accountability to deliver consistent results to your customers.
Now, it’s one thing for you to be pleased with your current results, but what about your company’s vision, principles and values? Are they still aligned with how you want to live your life?
Is your vision still the same?
Now’s a good time for you to reevaluate your vision. I know many of us would rather crunch numbers, but don’t gloss over this part. It’s important for you to assess where you are as a person. Do some soul searching. If your vision for your life has changed, what does that mean for your company?
Your personal plan must align with your business plan. Where do you picture yourself in five or 10 years? Do you have a meaningful 10-year liquid net worth goal? What are your priorities? What are your financial goals? You must be able to answer these questions if you want to thrive and succeed.
Purpose is another component to your company’s vision. Think about your core beliefs and apply them to your business. Your company’s vision, principles and values are what define your company’s culture, so choose them wisely. Remember this: They're going to impact the way your employees conduct business and engage with your customers.
Begin preparing for your 2020 MSP business plan today by assessing your company’s current results and ensuring your company’s vision, purpose and values are still aligned with your own.