You lack the focus to push projects through to completion and billing , even though you have the work . You have an insufficient backlog for the current team .
Whatever the issue is , we recommend fixing this first before you try to start adding on work , especially if your issue is underpricing . We have started noticing ( and recommending ) all companies develop and own their training process and start to develop boot camp-style rapid onboarding and continued development of their team . With the ability to use Zoom to record screen sessions , it has never been easier to create your own training content . But content without validation will not get you where you need . You must add the testing element to your content — both written and in-person thesis review type testing — to make sure they paid attention to the content . You can only expect what you inspect !
COVID-19 left us with a workplace gift where we found out we could go home for two weeks on lockdown and the world did not end . That has led to significant declines in workforce productivity . Workers consistently quit for the day without “ playing through the whistle .” What does not get done today gets pushed to tomorrow , next week , or even next month . MSPs can combat this by using LER to track success every week from the first day of the month .
An MSP knows monthly recurring revenue on the first day of the month ; they also know a good estimate of labor for the month . On day one of each month , you can measure how much gross margin still needs to be produced to hit your $ 2 LER target . Each week , you report to the team progress and a new remaining target for the three weeks remaining . Then two weeks , then one week . It won ’ t be hard to determine if it is a production issue or a sales issue .
Where Will The Growth Be ?
The overall economy will be struggling for a while , so you cannot rely on an expanding economy to add new businesses . You will have to grow mainly by taking business away from a competitor . There will continue to be small competitors giving up as they cannot find labor , and they typically do not adjust pricing , so many will become unviable to continue .
You are not immune to your customers ’ issues , so select customers and markets carefully . You will continue to see your good customers get bought as M & A activity will
continue to be strong . I still like to target customers that are necessary businesses , but other businesses are good if they are in the upper echelon of their industry . If you get a shot at a new big customer , do your due diligence to make sure they are financially strong , as a big customer that fails can be a big hit on you as well .
Innovation is the next way you can win new business and expand your current customer list . Keep an eye and an ear out on the market to look for the next idea that solves a customer need ! It is great to sell them what you do , but the highest form of innovation is coming up with a solution to an unmet need .
The final conclusion is that the next 5 – 10 years will be the greatest separation of the good businesses from the weak . The economic growth pre-COVID-19 allowed even the bad businesses to grow . Those days are gone , so which group do you plan to be in ? n
Greg Crabtree , CPA , Partner , Carr Riggs & Ingram LLC .
Author of “ Simple Numbers , Straight Talk , Big Profits ” and “ Simple Numbers 2.0 : Rules for Smart Scaling ”
Greg . Crabtree @ cricpa . com Website : SimpleNumbers . me
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