MSP Success April/May | Page 18

ENTREPRENEURIAL TOOLBOX

Will Your MSP Have An Early , Unexpected Death Or Reap Prosperity ? The Business Health Plan You Must Read

Whether you ’ re planning a marathon or a sprint for your MSP business , it should go without saying that you want a lucrative payout at the end of the race . How do you build a strong foundation for scaling and creating value ?

BY COLLEEN FRYE

You don ’ t start a race with the intention of dropping out . Similarly , nobody starts a business with the intention of failing , yet about 1 in 5 companies in the United States don ’ t make it past the first year , and about 50 % don ’ t make it past five years .

If you do make it past that five-year marker or beyond , you want to cross the finish line — whenever that is — strong , with a high valuation , not merely limping along , drained of energy and profits .

Whether you started your MSP business 10 days ago or 10 years ago , you can take steps now to get and keep your company healthy for the long run . They mirror some of the principles of longevity science that Dr . Peter Attia highlights on page 14 of this issue : Plan for what you want your business to look like at the end of your tenure and take actions now to achieve that goal .

Start With The End In Mind

In the early days of a business , establish the value that you want to create , advises Paul Cissel , CEO of Growth Caddie , entrepreneur , and an M & A Expert in Residence at TMT . “ How much money do I want this business to be worth ? Start there ,” says Cissel .

“ Most business owners starting out don ’ t realize that exit strategy is business strategy ,” agrees Scott Snider , president of Exit Planning Institute ( EPI ), growth specialist , and entrepreneur . “ By focusing on things that make your business valuable , you create a better business today .”

Snider adds that you want your company to align with your business , personal , and financial goals and be

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