Schnizzfest: 5 Qualities of a World Class MSPSchnizzfest: 5 Qualities of a World Class MSP
Are you ready to move from being a best-in-class MSP to become a World-Class MSP? Are you ready for bigger MRR, higher margins and creating opportunities for your employees? If so, then hit the reset button and come along for our coverage of the 2013 TruMethods Schnizzfest.
June 25, 2013
Time to hit the red reset button. That’s what TruMethods CEO Gary Pica told members of TruMethods peer group and MSP coaching organization at its annual conference, Schnizzfest 2013, in Philadelphia last week. MSPs need to hit the red reset button before jumping onto the World Class Managed Services Provider (MSP) path through purpose, passion and enthusiasm.
Pica challenged Schnizzfest attendees to take their businesses even further by becoming more than just the best in class.
“Best in class will be a consolation prize for the people in this room,” Pica said. “I think that’s awesomeness.”
According to Pica, members should strive to become not just best in class but World Class MSPs. To get there MSPs must meet the following criteria:
Find new recurring revenue (MRR) each month;
Provide leverage of $150,000 or higher / employee;
Create opportunities for employees (not just jobs); and
See a net profit margin of 25 to 35 percent, instead of only 14 to 16 percent.
For MSPs below this threshold, there’s still hope. Pica said World Class MSPs focus on five qualities: business planning, knowing what they sell, focusing on sales, driving process and taking command.
Pica said MSPs can never become tired of business planning. His reasoning is business planning is the leading indicator in business. Get used to it.
Know What You Sell
Understand what you’re selling. Sell customers the entire user experience – the chocolate cake, not the ingredients.
MSPs should prioritize their efforts on their sales team and on MRR. World Class MSPs find new MRR at the right price every month.
Be Process Driven
MSPs become successful by following processes and not derailing from them.
Take hold of your business by bringing purpose, passion, and enthusiasm to your team.
“If you don’t have your hand on all the levers, there’s a rocky road ahead.”
A thriving business is born if every team member has a purpose. Create opportunity for every member of your team who wants to take advantage of it.
Along with these five qualities, Pica noted four steps of success for MSPs: desire, knowledge, discipline and belief.
“When you create an organization that is striving to be world class, you don’t need more management, he said. “Everybody is equally a part of it and has an equal amount of enthusiasm as the owners.”
TruMethods plans to assist more with lead generation, reorganize its content on its portal and develop its portal more in the future.
Also at the conference, Pica updated the audience on MyITProcess, a business intelligence system for MSPs.
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