Stop Losing Money On Clients (EP 998)

I sat down with Larry Cobrin, founder and CEO of MSPCFO, to unpack how MSPs can turn messy PSA data into a clear picture of which clients are actually profitable and which ones are quietly draining the business. Larry broke down the idea of treating clients like a portfolio, normalizing profitability with contribution per hour, and using that lens to decide whether to improve, protect, or let go of certain accounts. We also talked about how this ties directly into EBITDA and exit planning, especially as more private equity money flows into the MSP space and buyers expect real, reliable reporting instead of gut feel. I shared my own story about firing my largest client when the time and revenue just didn’t line up, and we connected that experience back to the numbers Larry sees every day inside MSPCFO. From there we shifted into AI, the risks of “DIY analytics,” and why confident answers from dirty PSA data can be more dangerous than having no data at all. Florida Man Working as a Ransomware Deploys Ransomware and Extorts U.S. Victims https://linkly.link/2hlAQ Chapters 00:30 Welcome to the IT Business Podcast 00:59 Beyond the Buzzwords 04:53 Shout Outs and Announcements 06:38 Introducing Larry Coburn 08:24 Understanding Client Profitability 12:57 Contribution Per Hour Explained 17:09 Internet Issues and Client Stories 23:38 Florida Man Story 27:30 Returning to Larry Coburn 34:53 The Value of Client Portfolios 38:23 AI and MSP Profitability 43:35 Larry's Journey to MSP CFO 50:24 Upcoming Events and Appearances 53:29 Closing Thoughts and Thanks Guest: Larry Cobrin, MSPCFO Website: https://www.mspcfo.com LinkedIn: https://www.linkedin.com/in/larry-cobrin/ Shout-out Jason Miller: https://www.linkedin.com/in/jason-miller-32a03530/ Kyle Kenyon: https://www.linkedin.com/in/kkenyonprotechguy/ Tom Wyant: https://www.linkedin.com/in/thomaswyant/ Mike Smith, Mike Tech Show: https://www.linkedin.com/in/smithmh/ Martin Obando: https://www.linkedin.com/in/mobando/ Amy Babinchak: https://www.linkedin.com/in/amybabinchak/ Companies / Vendors / Products Mentioned MSP Unplugged: https://www.facebook.com/groups/mspunplugged Nerdio: https://getnerdio.com Vultr: https://www.vultr.com Mike Tech Show: https://mikenation.net/ === SPONSORS:  Livestream Partner, ThreatLocker: https://www.itbusinesspodcast.com/threatlocker Technology Partner, NetAlly: https://www.itbusinesspodcast.com/netally/ Technology Partner: Bvoip: https://www.itbusinesspodcast.com/bvoip Travel Partner: TruGrid: https://www.itbusinesspodcast.com/trugrid Digital Partner, Designer Ready: http://itbusinesspodcast.com/designerready === SHOW MUSIC:  Item Title: Upbeat & Fun Sports Rock Logo  Item URL: https://elements.envato.com/upbeat-fun-sports-rock-logo-CSR3UET Author Username: AlexanderRufire  Item License Code: 7X9F52DNML === Connect with Uncle Marv🌐 Website: https://www.itbusinesspodcast.com/🎙 Host: Marvin Bee🛒 Uncle Marv’s Amazon Store (gear & tools I recommend): https://amzn.to/3EiyKoZ☕ Support the show: https://ko-fi.com/itbusinesspodcastIf you found value in this episode, share it with another MSP, IT provider, or tech entrepreneur. Your support helps keep practical, no-nonsense IT business conversations coming every week.