new customers . The truth is that most of the growth for any MSP lies within their existing customer base ! However , MSPs are not good at seeing how they can optimize their current customers by selling to them . Tapping your current client list is the best pathway for additional growth — analyze what services your customers may be missing or how you can help them grow their own business and increase profits and uncover a multitude of opportunities to cross-sell .
The Top 3 For MSPs
Fred Voccola Speaking At Connect IT Global 2021
When it comes to M & A , there are three things to keep in mind . First , do you have a strategy ? Ask yourself this : Are you a buyer , a seller , or neither ? Be definitive with your strategy ; otherwise , you won ’ t be making the right decisions . This doesn ’ t mean you can ’ t change your mind as your MSP evolves . Just be sure to take regular pulse checks on your business . Next , if you haven ’ t done so already , plan to dedicate professionals within your organization to sales and marketing . MSPs are getting more professional every day on how they run their business . The competition will be better at coming after you , so make sure you have a good offense , not just defense . And finally , lean into the new realities of the global labor market . It will never go back to what it was , so make sure all your technicians are as efficient as they can be and that you are not reliant on one super techie . The tech job market is incredibly competitive right now — there ’ s more demand than supply , and good people are difficult to find and retain . Ensure your compensation structure makes it challenging for them to leave , and again , don ’ t be over-reliant on any one person . Turnover is very real . Given the state of remote work combined with the explosion of tech , it ’ s an exciting time to be an MSP . It ’ s only going to get better . By the end of this decade , around 7 out of 10 small IT shops will be outsourcing some , or all , of their IT to MSPs . This will open a market twice as large as the one currently being served . MSPs with people dedicated to the business side who can sell , market , and deliver services will excel . The private equity sector will recognize that and want a piece of it . n
Mark your calendars for Connect IT Global , June 20 – 23 , 2022 , at the MGM Grand Resort in Las Vegas . Make sure you attend the M & A Summit on June 20 , where you will hear Kaseya CEO Fred Voccola and other MSP leaders , private equity groups , and investors discuss what is making the MSP one of the most valuable businesses of our time . Tickets are available at ConnectIT . com .
M & A Toolkit
Want to get your MSP noticed ? Here ’ s what you need to do :
Make sure you have basic financial statements together and forecast where the business is going . You need to have an operational plan behind those numbers .
Run the business separately from your personal finances .
Get tight on what your annual recurring revenue ( ARR ) is . When rolling up , ARR is what investors are looking at .
Lock customers into longer contracts — it will help ARR and future projections . Investors look for predictability and growth .
Ensure you have a cybersecurity stack in place that protects against all threat vectors .
About The Author
Fred Voccola is the CEO of Kaseya , the leading provider of unified IT management and security software for MSPs and SMBs . As CEO , Fred leads the vision , strategy , and growth of Kaseya and its family of brands .