EP072 – Knowing Your MSP Numbers with Adam Morris & Ian Luckett

As usual, we kick off the episode with Adam sharing with us about who he is, what he does, and who he helps. Adams goes us through his journey from owning an MSP to running The MSP Finance Team, a company that helps MSP owners manage money.  Adam and I quickly chat about how managing finances well in an MSP business is as important as the operations. Adam also shares that the most transformative thing that happened in their business was educating and bringing up to speed the service directors and service team members from the financial perspective.  Then, I ask Adam what things MSP owners should consider in building a bulletproof financial system. He says that building a solid foundation is the key and getting the basics right is the first step. Getting solid data and having solid month-end processes which means looking at the data on a month-by-month basis, is the key thing.  We then continued on to talk about reporting. Adam strongly believes that having the insight into what's actually going on with your MSP numbers can really help everything you know. You have the foundation and data, you're all set. The data is there to help make the right decisions.  For the highlight of this episode, I then ask Adam about some tips and things to look out for MSPs of less than £250K turnover, between £250K and £1 Million turnover, and the ones with more than £1 Million turnover. Here are David's tips:  £250K – It's all about cashflow £250K - £1 Million – Understand margins and sales opportunity. Over £1 Million – Hold leadership heads to account on the financial goals.  Of course, Adam explains them one by one and why those key points are important in that particular MSP company turnover.  To wrap up the episode, Adam and I quickly talk about analytics for your KPIs. Adam says that gross margin and service gross margin are the two key things and then went on to explain why they are important.  I hope you enjoyed this episode. Finance may be boring, but you aren't going to run a business without it, so it's important to understand and know your MSP numbers.  You can reach out to Adam through his email at [email protected]  Get to know The MSP Finance Team by visiting their website, just click here – https://www.mspfinanceteam.com/   At IT Experts, we get up every morning to help IT & MSP Businesses thrive, IF you're looking to take your business to your next level and don't know where to start, then let's connect and we can organise some free support.    All you need to do to learn more is click this link :- https://innovatetosuccess.com/free-support    If we're not connected already, let's connect on LinkedIn, YouTube and over here at our website, innovatetosuccess.com   Alternatively, you can drop me an email at [email protected]   Until next time, you look after yourself and I'll catch up with you soon!