One of the most misused and misunderstood terms quickly gaining traction in the channel is vCIO (Virtual Chief Information Officer). While most will agree that the phrase belongs to a tech professional or team, many fail to identify the full scope of this critical role and, more specifically, how those activities affect the businesses they support.
Invoicing best practices eliminate the major headaches for IT services firms. An organized billing process will speed collections, improve cash flow, and reduce errors and issues that keep employees on the phone when they should be focusing their time on support, sales, and other more critical and profitable business activities.
Financial cutbacks can have a negative multiplying effect on the channel. When things are going well, many vendors provide their partners with a...
Everyone with experience around technology understands automation is good. See these three overlooked benefits of automated billing systems for MSPs.
Long-term losses continue to plague the U.S. Postal Service. Unfortunately, the COVID-19 pandemic is creating new financial and delivery challenges that may significantly affect the way they do business. How will those adjustments affect your MSP business?
The most valuable part of your MSP may not be the tangibles. Sure, your clients may sign up with your firm based on your team’s technical...
After four months of holding the status quo and potentially putting their own businesses at risk, every MSP should re-evaluate their current pricing models. Are some of your clients costing your firm more than they were in January?
Through a myriad of software applications, platforms, and other solutions, your firm can deliver and manage automation tools that will streamline some extremely complex business operations. MSPs fuel the efficiency engine for the SMB.
No business owner wants to be thought of as an opportunist during a pandemic. MSPs work hard to build a reputable name and, in most cases, go out of their way and over-deliver on commitments made to their clients, employees, and community. That dedication drives sales and customer retention and can help providers get the attention of the best candidates during the hiring process.
Unless you have a passion for math or accounting, metrics are rarely an exciting point of any discussion. However, for MSPs, or any business owner, channel or not, some of those numbers hold tremendous value and should be monitored closely and analyzed frequently. Key Performance Indicators (KPIs) help managed services business leaders measure and track their operations and provide the insight needed to navigate through the tough decisions. Those metric capabilities may be more crucial for an MSP than ever before in the midst of a global pandemic.
Now is the time for planning. Even if your MSP business is seemingly unaffected by the COVID-19 pandemic and ensuing shutdowns, perhaps also managing to grow revenue while addressing the needs of your clients, that situation may change in the coming months. Your customers may experience new productivity issues related to government mandates or run into other unexpected challenges that could negatively affect their headcount, seat license usage, income, and cash flow. No one knows what the future may bring for MSPs as the business community heads into uncharted waters.
A month ago, cash flow might not have been your biggest concern. At that point, many MSPs, like other business owners, were focusing their efforts on transitions: preparing employees to work from home and reconfiguring workplaces to meet social distancing rules and best practices. With those tasks out of the way, most are shifting their attention to longer-term priorities such as planning upgrade projects for clients, improving productivity, and stabilizing cash flow.
Over the past few weeks, the IT community as a whole has been stepping up and committing tremendous resources to ensure businesses and individuals can carry on their work and provide vital education and communications. Most are realizing that as a people and industry, we are all in this together. The best way to help clients, employees, and others make it through a global pandemic is through direct communications, prudent planning, and a strong commitment to excellence.
We are in the midst of troubled times for most, if not all, of your clients. Amid the COVID-19 outbreak and the various levels of quarantines, most organizations are either closed or are seeing a significant drop in revenue and cash flow, and those issues may linger for weeks, months, or longer. Even clients that appear to be thriving during the pandemic, such as grocery stores and delivery companies, could be experiencing a variety of issues relating to staffing, worker and customer safety, and personal health. The hard reality is that bad things are happening, and we may not see a resolution to this situation for quite some time.
One of the joys of owning a business is the financial freedom it provides, or so the story goes. As most entrepreneurs know, without great customers, proven ways to manage accounts receivable, and procedures to collect in place (and enforced), economic independence is never assured.
The reality is that there are never any guarantees in business. You can have the best-laid plans and a robust financial model and still run into problems that the most insightful entrepreneur would never anticipate. Running an MSP business presents many challenges, including fluctuating workloads and staffing issues, and managing multiple vendor relationships, all while struggling to achieve operational efficiency.
Work less while earning more; that’s the goal for any business owners. Wouldn’t it be great if your clients were willing to pay handsomely for your services and sign multi-year contracts to solidify the relationship? Even better, imagine if you could pile on more customers with no concern about the ability to support infinite growth. That may seem like a dream, but many MSPs are turning that fantasy into reality with a robust portfolio of high value, low cost, scalable services, and products.
With the right offerings and partnerships, MSPs can readily increase their recurring revenue streams without stretching their resources.
No one can accurately predict changes in the stock market, bank stability, and key financial indicators. Local economic factors are even less predictable, and those can affect MSPs significantly if their clients go bankrupt or experience cash flow issues. Without a strong business strategy in place, a sudden downturn can turn into a complete disaster. Learn more about how your business can survive an economic downturn.
Technology is the fuel for an MSP business. IT not only allows providers to satisfy a variety of their SMB clients’ strategic and tactical needs, from basic computing to the most advanced solutions of the day, but it automates their own operations, as well.
To be successful in a rapidly changing industry, MSPs have to break from that norm and invest more in the systems that can boost productivity and profitability in their businesses. The best way to ensure your IT services firm can support its clients for generations to come is by strengthening its long-term financial capabilities. Automation tools that boost cash flow should be a big part of that strategy.