[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text]****This blog piece is from one of ConnectBooster’s newest contributors, who provides IT support in Los Angeles, CA, Brent Whitfield. Check out Brent’s bio below.***

Technology is usually the easy part for IT pros. Running the business side of an MSP can be much more challenging for those with limited or no back office experience. You need to build and manage complicated processes and put tools in place to make it all work.

But what specific parts of your business deserve the most attention?

#1 Deal flow

The number one thing that affects MSPs is deal flow, which translates into that steady stream of new clients coming through the door. When you’re busy, it may be hard to imagine on-boarding another client, but that’s the exactly when you need to do it. Unfortunately, a lot of MSPs have a tendency not to take steps to improve deal flow when they’re slammed, and everyone is already fully booked.

As a result, they tend to go through peaks and valleys that increase their stress level. The employees wonder if the boss knows how to run the business. Suddenly, business is slow, and your staff is worrying if their jobs are secure.

It may seem counter-intuitive, but clients leave and sometimes things just happen, so MSPs need new deals coming in all the time.

#2 Collections

The best time to set up collections is when a new client is being on-boarded. Establish your price, and offer a cash discount for ACH payments from clients. MSPs should tier IT so 90% of clients are going to take the cash discount.

That’s where your costs will be lowest, and it works best for monthly recurring revenue. We’ve attached ACH to everything we do, to all of our billable time and all of our projects.

And most clients love it.

More than anything this will help fix your cash flow. You no longer need to make collection calls to get money after you’ve done the work.

#3 Reduce friction

MSPs need to look at everything, from their sales, service delivery processes, to billing and collections and remove as much friction possible.

Reduce or eliminate calls and back and forth conversations by agreeing at the very beginning on how you collect payments.

From an accounting perspective, nothing lessens that friction more than ConnectBooster. No more “I have to call these ten clients and remind them of the past due invoices” days. No one likes that. You feel like the bad guy, and your client is likely grumbling “they keep bugging me, and I am too busy to deal with it.”

ACH reduces friction, automation cuts out a lot of phone calls and removes some stress when collecting receivables, on-boarding clients and delivering services.

#4 Inability to scale

There are technical reasons why some MSPs have trouble scaling. My bottleneck is good on-boarding engineers who can do the work. For others, the problem is deal flow, billing or accounting. For whatever reason, they don’t fix or automate these processes.

They may not link their CRM and ConnectBooster to take advantage of the workflow and speed client payments.

When looking for ways to scale your business, hiring and retention needs should be a bigger focus, assuring the right number of people are available at the right time. On the accounting side, automation is a no-brainer.

Anyone who has manually sent an invoice once in their life has done it too many times. These things prevent you from scaling. If you have some clients, manual invoicing will drive you crazy and could keep you from scaling your business.

#5 Cash flow is King

Giving clients equipment without collecting for it in 30, 60, or 90 days is a crime against your business.You may have cash flowing out from your business long before the invoice goes out, and clients may have excuses that further delay payment.

ConnectBooster is incredibly valuable here, giving MSPs an automated, elegant billing process. Setting expectations up front, giving your customers online access to make payments, and automating the payments process are all win-win opportunities to strengthen the bond with your customer.

Final thoughts

As MSPs, we hear all the time that we should focus our efforts on our business instead of in our business. ConnectBooster is one of those incredibly rare opportunities to check 100 different boxes in the process improvement arena, and it really is easy to set up. It is really worth the time to learn more.[/vc_column_text][vc_empty_space][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1505164626835{padding-top: 35px !important;padding-bottom: 35px !important;background-color: rgba(136,136,136,0.08) !important;*background-color: rgb(136,136,136) !important;}”][vc_column width=”1/3″][vc_single_image image=”10476″ img_size=”medium” alignment=”center” style=”vc_box_border_circle_2″ qode_css_animation=””][/vc_column][vc_column width=”2/3″][vc_column_text]

About Brent Whitfield

Brent Whitfield is CEO of DCG Technical Solutions, Inc. providing IT Support in the Los Angeles area since 1993. DCG exists to help our clients choose, implement, and manage IT and cloud solutions that are cost effective and reliable. DCG’s pro-active approach to IT is ideally suited for companies who depend on reliable IT infrastructure, but don’t want to spend a lot of money to keep it that way. His company DCG is recognized among the Top 10 Fastest Growing MSPs in North America by MSP Mentor. Brent has appeared in Fast Company, CNBC, Network Computing, Reuters, and Yahoo Business.

To learn more about his company, click here.

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