When we first started running our MSP business, we weren’t very focused on key performance indicators and measuring the business. We set up shop, went to work finding clients, provided them with technology services and just kept moving forward.
If we had a hiccup here or there, we worked through it. We measured our success by how many clients we had and how much revenue we collected each month. It was a pretty simple approach; that is until our client-base tripled in size and we had to add more techs, set-up different rates, invest in more tools and pay extra attention to managing cash flow.
Suddenly we found ourselves spending hours looking at spreadsheets to try and figure out if our business was thriving or just surviving. We realized pretty quickly that our business needed to be closely and carefully managed to ensure its success. The problem was, none of us were great at that, nor did we enjoy it.
We read books, watched videos and even reached out to other business owners hoping to find some simple approach to monitoring and measuring our business. A lot of what we read and heard seemed a bit complex for our MSP model and some of the technology that was suggested to help us was going to give us more work.
Deciding what we wanted to measure is what finally got us over the hump.
We identified what we felt were the four things that would tell us how we were doing. Our list included the following:
- Service Desk Performance
- Tech Performance
- Client Revenue Growth
- New Business
Once we had the list, we spent time deciding how we could measure it in a meaningful and simple way. Remember, we are not fans of spreadsheets and piles of numbers. It took a little tweaking, but within about three months we were able to measure month-over-month performance in each of our selected categories and get some visibility into the business.
If you’re not monitoring, measuring and reviewing the key aspects of your business, you’re missing the opportunity to make improvements in customer retention, growth, and profitability.
Not sure how to get started? Check out our infographic, “How to Measure Your MSP Business.” In it we share the areas we keep a close eye on and tell you how we measure it. It might not be perfect for your business, but it’s a great jumping off point.