MSP SPOTLIGHT
How Chris Galati Slashed Costs By 50 % And Doubled Profits At Two River Technology Group
BY CINDY PANETTI CYR
Chris Galati , CEO , Two River Technology Group
What Are The Top Three Business Indicators You Use To Measure Your Company , And Why ? tworivertech . com
Company Two River Technology Group
Founded 2004
Headquartered Holmdel , NJ
Geographic Market New Jersey & New York
Top Growth Indicator EBITDA ( Earnings Before Interest , Taxes , Depreciation , and Amortization )
YoY % of Growth 15 %
EBITDA , CSAT ( customer satisfaction score ), lifetime value , and MRR ( monthly recurring revenue ) are the top metrics we track . EBITDA gives us a good sense of how profitable we are and that our finances are in good order . CSAT keeps us in touch with how well we are supporting our clients and identifies that we are providing the service that they expect . Lifetime value helps us make sure we are profitable with the clients we ’ ve acquired . MRR drives the very thing that makes the business valuable .
After Two River Technology Group Was Sold And You Came In As The New CEO , What Was Your Top Challenge ?
Two River Technology Group was already a well-run , successful MSP and a market-leading technology ally in the area — the challenge was how do we make it even better ? In analyzing the COGS ( cost of goods sold ), I wanted to figure out how we could reduce those without sacrificing the exceptional customer experience our customers had grown to expect . For every dollar we could save in COGS , we could add a dollar directly to EBITDA . This strategy produced better results than if we only focused on adding revenue because even with best-in-class profit margins , for every dollar of revenue , you only end up driving 20 cents to EBITDA , whereas , for every dollar saved in COGS , you add one dollar to EBITDA .
CEO Chris Galati