As a managed services provider (MSP), you likely entered this line of business because you wanted to help organizations optimize their IT infrastructures, get the most out of their technology, and become a helpful and strategic business partner. What started as a dream has now turned into a full-time business—one that you must ensure remains successful.
Now, it’s probable that you didn’t earn your MBA to become an MSP, but now that you’re in charge of your business you need to become well-versed in the business-side of things—like finances, accounting and mergers and acquisitions. For example, you may have a goal this year to grow your bottom line, but what does that actually mean? What goes into that metric? If you want your MSP business to grow and succeed, you need to start thinking like a chief finance officer (CFO). Use this post as your guide to better understand the factors that can impact your profitability and learn how to maximize your managed services margins.