MSP SPOTLIGHT
Stephen Cracknell :
The MSP Makeover That Reaped $ 34,535 In New MRR
BY CINDY PANETTI CYR
Company USM Technology
( Formerly US Medical IT )
Founded 2010
Headquartered Dallas , Texas
Geographic Market Texas
Top Growth Indicator Monthly Recurring Revenue ( MRR )
YoY % of Growth 33 %
Co-Founders Stephen & Stephanie Cracknell
What Are The Top Three Business Indicators You Use To Measure Your Company , And Why ?
Our growth in net profit , MRR , and gross profit . These are the big three that I focus on . Is MRR leading to growth ? With gross profit , what do we have left over after we ’ ve paid for our direct labor , hardware , and software ? And then how well are we running our business as far as net profit ? Behind each one of these , I think about what leads them to growth . For instance , with MRR , are the marketing activities we ’ re doing leading to newly signed contracts ? Primarily , I focus on how we make these efforts reliable and consistent . I track gross profit to make sure that it ’ s in a healthy place . The MSP industry talks about going through this “ bathtub of despair ” when you get to around $ 2.5 million to $ 5 million . It ’ s a challenging period because you don ’ t have enough revenue to justify the infrastructure you need to drive a $ 5 million business . Currently , we are making investments and sacrificing short-term net profits to build a $ 5 million business . A big “ aha moment ” for me was that I needed to be OK with my net profit dropping while I went through this period of transition .
What Is The Top Lesson You Had To Learn That Allowed You To Kick-Start Your Business Growth ?
Last year , after watching my peers tell their stories of success and growth , I realized “ I ” was at the heart of every reason my business wasn ’ t growing the way I wanted it to . My company ’ s culture is a direct reflection of my decisions to act or , in most cases , not act .
I began to think about my business as if I were starting it from scratch , and I could make every decision again with no guilt , remorse , or mental baggage . What would I do ?
I imagined I had zero employees . I thought , ' Who on my team would I hire if they weren ’ t already working for me ?' We made all the marketing investments I was too scared to make in the past , such as writing a book and trust-based marketing . I hired a dialer , and we put a marketing program in place . We are still striving to map out the magic MRR formula , but the good news is we are no longer being held back by my timidity .
20 | MSPSUCCESS . COM