https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2022 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Channel Partners 101 (CP 101)
  • Events
    • Back
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2022 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Channel Partners 101 (CP 101)
  • Events
    • Back
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Agents
  • Cloud Service Providers
  • Channel Partners Events
 Channel Futures

From the Industry


Getty Images

Sponsor Content

MSP growth

Think Long Term to Supercharge MSP Growth

  • Written by Kaseya Guest Blogger
  • September 3, 2021
Simply adding more customers, seats and endpoints under management does not guarantee MSP growth.

With no shortage of demand and a broad array of services to offer, it’s a great time to be an MSP. Small to midsize businesses struggling to manage the complexity and scope of core business functions rely on IT services more than ever before. In such a hot market, there’s no excuse for MSPs to not only survive, but also to thrive and grow. But simply adding more customers, seats and endpoints under management doesn’t guarantee MSP growth. MSPs need realistic, actionable business plans aligned with their capabilities and their owner’s own personal goals.

Working Backward from a Vision

Before beginning any journey, you should have a final destination in mind. MSP leaders need a vision for themselves and their business 10 years out into the future–encompassing both objectives for the business and themselves–since attaining personal financial, lifestyle and retirement goals depends on how the business performs.

Owners should start with why they got into the MSP business to begin with, assessing if those expectations have changed. With this picture in mind, it’s time to put a price tag on it: How much money is needed to turn that vision into a reality?

Visions can be quantified in terms of after-tax dollars in your personal bank account. How much to buy that boat or vacation home, or send the kids to college, or retire at 55? This math first requires calculating current personal net worth and then determining how much more personal income you need to reach that goal.

With that objective in mind, a little more math identifies how much additional monthly recurring revenue the business must generate to have enough in the bank 10 years from now to realize that vision. Essentially, two major levers influence the increased profitability needed for that financial goal: boosting revenue and increasing efficiency.

Adding Top-Line Revenue and Boosting Efficiency

Raising an MSP’s monthly recurring revenue (MRR) ultimately boils down to adding new customers or increasing revenue per seat. MSPs drive this by increasing sales activity and expanding the portfolio of products and service offered.

Landing enough new customers to reach the MRR needed for that vision may seem daunting, but it won’t seem as out of reach when broken down into more immediate actions. Get a good handle on close rate–top performers typically close about 20% of potential deals. That rate can get much higher if they’re only working off referrals, but that also limits the overall funnel of potential business.

As long as you’re consistently calling on new prospects and steadily adding new customers, you can get there in a reasonable amount of time. Viewing it by how many new deals or sales calls must be closed or made each week or month turns it into an actionable reality.

The other side of the coin is increasing efficiency and profitability. Examining seat-to-support staff ratios is an excellent starting point. This should be at a minimum of 400 seats per staff member–ideally reaching 500–which gets things to a monthly support cost of around $10 per seat.

When MSPs aren’t seeing ratios in this range, it’s time to explore opportunities for optimization. The first part is looking at employees themselves. You don’t need all “A” players, but you do need lots of “B” players equipped with the right processes, training and tools to deliver A-level quality.

Automating routine processes, consolidating management into fewer tools with more robust capabilities, and creating consistent offerings can all boost productivity and support more seats with fewer staff.

But the other weapon in an MSP’s arsenal is upping average seat price. Even minor increases create a huge ripple effect as the MSP makes more money with the same number of clients while seeing even bigger returns on newly closed business. Make sure you’re getting paid for the value you deliver, and make it a climb to the top versus a race to the bottom.  Click on Page 2 to continue reading…

  • Page 1
  • Page 2
Tags: MSPs Business Models From the Industry Intelligence Sales & Marketing Kaseya Sponsor Content

Most Recent


  • Black Hat expo hall 2022
    The Gately Report: Black Hat USA Edition with Cisco, IBM, CISA, More
    Black Hat USA has come roaring back since the COVID-19 pandemic.
  • Making Waves
    7 Channel People Making Waves This Week at Microsoft, Rackspace, RingCentral, Avaya
    Hackers targeted one UCaaS firm by impersonating the company's IT department.
  • Welcome Mat
    Okta Names Splunk Vet New Global Channel Chief
    Okta's global channel chief left the company in June.
  • Cloud Roundup
    Oracle Cloud & AT&T, AWS Lead Cloud News Roundup
    Find out what’s happening with each company and how it all ties to the channel.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • supply chain attack
    How to Stop Supply Chain Attacks in Their Tracks
  • edge data centers
    The Rise of Edge Data Centers
  • ransomware
    Lessons Learned from a REvil Ransomware Attack
  • growth plan
    Why You Need a Growth Plan

Upcoming Events

View all

MSP Summit

September 13, 2022 - September 16, 2022

Channel Partners Conference & Expo

May 1, 2023 - May 4, 2023

Galleries

View all

The Gately Report: Black Hat USA Edition with Cisco, IBM, CISA, More

August 12, 2022

7 Channel People Making Waves This Week at Microsoft, Rackspace, RingCentral, Avaya

August 12, 2022

Oracle Cloud & AT&T, AWS Lead Cloud News Roundup

August 12, 2022

Industry Perspectives

View all

How to Take Shared Responsibility for Securing Cloud

August 11, 2022

Seize the Application Modernization Opportunity

August 2, 2022

A Growth Mindset: Your Organization’s Strategic Differentiator

August 1, 2022

Webinars

View all

Outsmarting RaaS: Implementation Strategies To Help Your Clients Before, During, and After a Ransomware Attack

August 23, 2022

Why it is Important to Upgrade Aging Servers and How to use Live Optics to Upgrade Efficiently

August 25, 2022

Executives at Home are Not Alright: An Intro to Digital Executive Protection

September 8, 2022

White Papers

View all

Work Goes Remote – (and Other Top ITOps Trends)

May 25, 2022

The New Bottom Line: How MSPs Can Meet the Healthcare Crisis While Evolving Their Businesses

April 19, 2022

How to build a Security Operations Center (on a budget)

April 4, 2022

Channel Futures TV

View all

ThreatLocker Preaches Zero Trust, Addresses Industry Competition

ScienceLogic Debuts New Partner Portal

August 9, 2022

Vonage a ‘Single Communications Stack Provider’ for Partners, Customers

June 27, 2022

IBM, Partners and the $1 Trillion Hybrid Cloud Opportunity

June 26, 2022

Twitter

ChannelFutures

.@splunk vet Bill Hustad named @Okta's new #channelchief. dlvr.it/SWXmws https://t.co/ILQesul0Cz

August 12, 2022
ChannelFutures

The Gately Report: #BHUSA edition with @Hacker0x01, @Cisco, @SaltSecurity, @CISAgov, @ExtraHop, @IBMSecurity, more.… twitter.com/i/web/status/1…

August 12, 2022
ChannelFutures

Channel People Making Waves Include: @kencarnesi, @szebenisz, @vasujakkal, @brettsmith52, @DaveMichels… twitter.com/i/web/status/1…

August 12, 2022
ChannelFutures

Nancy Henriquez, VP of Sales & Marketing at MSP 501 award-winning @synetek, touches on the importance of gathering… twitter.com/i/web/status/1…

August 12, 2022
ChannelFutures

.@Equinix's new hire is a familiar face in the telco channel. dlvr.it/SWXV6v https://t.co/jIg0LrZ4DO

August 12, 2022
ChannelFutures

Missed the news this week from @OracleCloud and @ATTBusiness? We've got it here. Plus, news from @AWSCloud and… twitter.com/i/web/status/1…

August 12, 2022
ChannelFutures

Huge channel-impacting acquisitions in the past month. We've got details on @IBM, @nokia, @GoTo, @EnsonoIT,… twitter.com/i/web/status/1…

August 12, 2022
ChannelFutures

Boost privacy by design with #shiftleft mindset and add #security to cloud deployments from start, says… twitter.com/i/web/status/1…

August 12, 2022

MSP 501

The industry's largest and most comprehensive partner awards program.

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Galleries

Educational slide shows and images from live events.

Media Kit And Advertising

Want to reach our audience? Access our media kit.

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Events
  • Telecoms.com
  • MSP 501
  • Black Hat
  • IoT World Today
  • Omdia

WORKING WITH US

  • Contact
  • About Us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2022 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X