msp business plan in a box

© 2015 N-able Technologies, Inc. All rights reserved. 1

MSP Business Plan in a Box

Strategies to develop your 2017 MSP business plan


Webinar details

? REC

Length: 60min Questions welcome any time

Recording and slides available

next day


On today’s Webinar

Presented By:

Gary Pica

President, TruMethods

Ali Mahmoud

Senior Product Marketing Manager, N-able

www.trumethods.com

Free Business Plan Assessment:

Call with TM Growth Expert

Review 5 key Business Plan guidelines

email: [email protected]

Subject line: Promo

TruMethods Promotion

Special Offer: Expires 11/18/2016

www.trumethods.com

Copyright 2013 TruMethods, LLC

• Having a business plan does not ensure

that you grow faster or make more money

• Most companies that achieve growth and

profitability have an actionable business

plan

Your 2017 Business Plan

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Top Excuses

• I am already working as hard as I can!

• I am buried with reactive work

• I don’t have the time or resources to take

action on my plan

• I need to finish a few things first

• My company is small and doesn't need a

written plan


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The Business Planning Process


Vision

• 10 Years

Target

• 3 Years

Plan

• 1 Year

Action

• 1 Quarter

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• Review 2016 results

– Revenue by category

– Gross margins by category

– New MRR sales

– Churn

– Average AISP and MRR

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• 10 year vision for your life and company

• Do some soul searching

• Why did you get into business?

• Have your expectations changed?

• Put a price tag on your life's vision

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What is the hardest

thing to do in business?

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A.T.D.I.Y.P.B.A.


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$1,500,000

• Liquid Net Worth Goal

• Exclude the value of your business and home

• Consider life events

• Determine annual post tax dollars required

(10 year time horizon)

___________

$150,000

Liquid Net Worth

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Annual Income Goal

$150,000

• Annual income goal

• How much additional annual income do you

need to generate $150,000?

• Divide $150,000 by 0.65 (35% effective tax rate)

__________

$230,000

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MRR Goal

$230,000

• Annual revenue required: $230,000 divided by

18% net profit is $1,275,000

• Recurring revenue goal: $1,275,000 X 70% is

$892,500

• Divide $892,000 by 12 for MRR Goal

_________

$75,000

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$75,000

• Set a time frame to reach your MRR goal:

3 Years

• Determine your 2017 MRR goal (Divide MRR

Goal by Time Frame)

• Add sales activities required to your plan

_________

$25,000

MRR Goal

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Business goals

MRR Sales Goal Calculator

Input your goals:

New MRR for 2017 $25,000

Average Contract Value (MRR) $2,000

Close ratio 20%

Monthly MRR goal $ 2,083

New Customers per Month 1.0

New customers needed in 2017 12.5

Building your playbook (summary)

MRR needed on Pipeline $ 8,300

# of Prospects on Pipeline 4.2

Appointments needed 2017 60

Appointments per month 5

Appointments needed per week 1.2

Contacts per week 30

Dials per week 140

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Putting it in perspective

18% net profit

10 yr. liquid net worth goal: $1,500,000

Additional post-tax income required: $150,000 / yr.

Additional income required: $230,000 / yr.

Additional revenue required: $1,275,000

Recurring revenue required: $892,500

New MRR goal: $75,000

New MRR / yr. goal: $25,000

New MRR / mo. goal: $2,083

Appointments needed per week 1.2


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Managed Services PlatformRemote Services Technology

| Product Family

MSP AnywhereRemote access & support

MSP ManagerTicketing & billing

N-centralMonitor. Manage. Automate.

Connect in seconds

Cross platform

Support mobile devices

Session transfer

Session recording

Performance dashboard

Ticket management

Customer portal

Password management

Technician scheduling

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Accounting integration

Device monitoring

Health & performance

alerts

Drag & drop automation

Integrated patch, AV,

backup

Integrated remote control

Business reports

$49 USD / monthper concurrent user

$49 USD / monthper concurrent user

Starting at

$499 USD

/monthUnlimited sessions

300 devices

Unlimited tickets

Unlimited billing

Monitor 100 devices free

Free business coaching

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SIGN UP FOR A FREE TRIAL

N-ABLE.com

The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-able Technologies, Inc. and its affiliates, are registered with the U.S. Patent and Trademark Office andthe Canadian Intellectual Property Office, and may be registered or pending registration in other countries. All other N-able trademarks, service marks, and logos may be common law marks,registered or pending registration in the United States, Canada, or in other countries. All other trademarks mentioned herein are used for identification purposes only and may be or aretrademarks or registered trademarks of their respective companies.

http://signup.mspanywhere.com/signup/?id=QLxMkPQzNR


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Two key factors

1. Operational Efficiency

– Net profit %

2. Sales Trajectory

– Net MRR gain


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Profit and Leverage

• Profit is determined by leverage

– Leverage = Amount of service revenue / employee

You need higher profitability;

you DRIVE leverage


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Measuring Leverage

Average MSP TruMethods Target

Number of Employee’s: 6 6

Annual Service $: $600,000 $900,000

Leverage: $100,000/EE $150,000/EE

Unrealized Profitability: $300,000


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Unrealized Profitability

What is your unrealized profitability?

Number of employees * $150,000

minus

Annual Service Revenue

=

Unrealized Profitability


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How to increase leverage

1

Roles &

Responsibilities

2

Delivery

Process

3

Revenue

Base

Operational Efficiency

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5 Service delivery areas

© TruMethods, LLC. 2016 - All rights reserved

Professional Services

Centralized Services

Net Admin vCIO Support

Macro Picanomics

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1

Sales Plan


How to increase MRR

2

Sales

Process

3

Accountability

Sales Trajectory

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MSP Math and Science

Recurring revenue sales formula

MRR= FTA’s X close ratio X average MRR


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Goal: $36,000 MRR

Avg. MRRClients needed

Close ratio Annual FTA’s

$1,500 24 20% 120$2,500 15 20% 75$3,500 11 20% 55

Impact of Average MRR

© TruMethods, LLC. 2016 - All rights reserved.

www.trumethods.com

Goal: $36,000 MRR

Avg. MRRClients needed

Close ratio Annual FTA’s

$2,500 15 10% 150$2,500 15 15% 100$2,500 15 20% 75

Impact of Close ratio


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Factors impacting Sales Math

Average MRR

• Value Proposition

• Minimum MRR

amount

• Targeting the right

prospects


Close ratio

• Value proposition

• Lead quality

• Sales process

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The impact of price

ExampleAvg.

Seats

Avg.

AISP

Avg.

MRR

MRR with

50 clientsSeats

Right

Customers-

Right price20 $140 $2,800 $140,000 1000

Right

Customers-

Wrong Price20 $95 $1,900 $95,000 1000


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Impact of Efficiency

12% net 18% net 30% net

10 yr. liquid net worth goal: $1,500,000 $1,500,000 $1,500,000

Additional post tax income

required per year:$150,000 $150,000 $150,000

Additional income required

per year:$230,000 $230,000 $230,000

Additional revenue required: $1,920,000 $1,275,000 $767,000

Recurring revenue required: $1,344,000 $892,500 $537,000

New MRR goal: $112,000 $75,000 $45,000

New MRR / yr. goal: $37,333 $25,000 $14,000

New MRR / mo. goal: $3,111 $2,083 $1,250

Appointments needed / week 1.6 1.2 0.7


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Impact of Efficiency and Trajectory

12% net 18% net 30% net

10 yr. liquid net worth: $994,500 $1,500,000 $2,486,250

Additional post tax income / yr. $99,450 $150,000 $248,625

Additional income / yr. $153,000 $230,000 $382,500

Additional revenue required: $1,275,000 $1,275,000 $1,275,000

Recurring revenue required: $892,500 $892,500 $892,500

New MRR goal: $75,000 $75,000 $75,000

New MRR / yr. goal: $25,000 $25,000 $25,000

New MRR / mo. goal: $2,083 $2,083 $2,083

Appointments needed / week 1.2 1.2 1.2


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Quarterly Action Plan

• Quarterly Goals

– Revenue goals

– Sales goals

– Sales activities

• Quarterly Actions Items

– Top action items for the quarter


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• Quarterly Action Items: The 3-5 most

important actions that will move you towards

your goals

• “Most important” is the key

• Top 5 and Top 1 of 5

• Should be more than just sales goals

• Actions vs goals


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Words to avoid related to action items

• Focus on

• Improve

• Tighten up

• Spend more time on

• Work on


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How will you and your team be held

accountable?

• Discipline

• Metrics (SMART Numbers)

• Rhythm

• Culture


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Business Planning Process

It’s personal

• Your financial future is at stake

• Do you have long term team members?

• You can’t give someone something that you

don’t have

• Don’t let success be around the corner

© TruMethods, LLC. 2015 - All rights reserved

www.trumethods.com

Summary

• Vision-Target-Plan-Action

• Set 2017 goals for MRR and

activities

• Calculate your unrealized

profitability

• Put accountability in place

www.trumethods.com

Copyright 2013 TruMethods, LLC All rights reserved.

• Develop an actionable business plan

• To identify and attain unrealized profitability

• Add new recurring revenue clients every month

• Sell at a higher price

• Dramatically increase margins

• Achieve your vision

Why TruMethods?

www.trumethods.com

FormulaWon

Training

• Over 100 hours of role based content

• 2 Live Webinars / mo.

• Weekly Podcasts

Community

• Member Forums

• Ask TruMethods

• Schnizzfest

• Events

Tools

• myITprocess™

• SMART Numbers

• Business Plan Template

• Sales Playbooks


Results:• Complete Business Plan

• Gain Command of your SMART

Numbers

• Align packaging and pricing

with World Class standards

• Develop your Super Power

• Implement Sales Discipline

• Generate Leads

• Raise your expectations about

what’s possible

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How TruMethods Can Help

Video Series

• Preparing for your business plan

• Life and business plan

• The TruMethods Quarterly Action Plan

• Sales plan workshop

• Company purpose and core values

• Getting outside your comfort zone

Tools and Resources

• Business plan template

• Quarterly Action Plan template

• Sales goal calculator

www.trumethods.com

Free Business Plan Assessment:

Call with TM Growth Expert

Review 5 key Business Plan guidelines

email: [email protected]

Subject line: Promo

TruMethods Promotion

Special Offer: Expires 11/18/2016

www.trumethods.com

Free Business plan assessment:

[email protected]

Subject line: Promo

SPECIAL OFFER: Expires 11/18/16

SIGN UP FOR A FREE TRIAL

N-ABLE.com

The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-ableTechnologies, Inc. and its affiliates, are registered with the U.S. Patent and Trademark Officeand the Canadian Intellectual Property Office, and may be registered or pending registrationin other countries. All other N-able trademarks, service marks, and logos may be commonlaw marks, registered or pending registration in the United States, Canada, or in othercountries. All other trademarks mentioned herein are used for identification purposes onlyand may be or are trademarks or registered trademarks of their respective companies.

Questions

