Creating a Cloud Business Growth Model

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If you are planning to start or scale a CSB business, then you should start with a sound financial model that will project the growth of your business based on key assumptions. This presentation provides an overview of the CSB Business Growth Model that is available at no charge to CSBcommunity members ($129 value). Just register at www.csbcommunity.com and download the model. A video of this presentation is also available at the website.

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Creating a Cloud Business Growth Model

  1. 1. CSBcommunity Mini-Tutorial Creating a Cloud Business Growth Model This video provides a quick overview of the Business Growth Model and how to use it to build your own CSB financial Plan Dave Zwicker, MSPexcellence November 2013
  2. 2. Why Create a Financial Plan? • How big of a business can you build and how fast? • What are the performance goals for key contributors? • What is the cash flow impact and investment required? • Where should you focus to maximize your success? - Pricing changes - Sales expansion - New services - Cost reductions - New markets - Recurring revenue www.CSBcommunity.com Copyright © 2013 MSPexcellence Page 2
  3. 3. Know Your Existing Business  Average Deal Value:  Average users per deal 1 Calculate the growth factors of your business  Revenue per user (OTR and MRR)  Revenue per deal (OTR and MRR)  Sales Productivity  Number of sales reps  OTR/MRR deals per month per rep  OTR/MRR from same or different deals? 2 Use them as your assumptions for modeling growth  Customer Acquisition Cost  Sales rep compensation  Cost per lead  Conversion rates  Other S&M expenses  Average Gross Margin  GM% for OTR  GM% for MRR www.CSBcommunity.com Copyright © 2013 MSPexcellence Page 3
  4. 4. What Is Your Growth Strategy? • Sell to larger, more profitable customers • Add new services to increase deal value • Expand your sales force and increase productivity • Reduce your customer acquisition cost • Increase margins with higher operating efficiency • Transition from one-time to recurring revenue www.CSBcommunity.com Copyright © 2013 MSPexcellence Page 4
  5. 5. What Are The Growth Assumptions?  Increase Deal Value: – Target larger customers – what size? 1 – Add new cloud services – which ones? Create achievable growth factors  Increase Sales Productivity – Add more sales reps – how many? – Accelerate the sales cycle – by how much?  Customer Acquisition Cost 2 Input assumptions into a financial model – Reduce salaries/change comp plan? – Increase marketing effectiveness?  Average Gross Margin – Raise service fees? – Reduce cost of service delivery? www.CSBcommunity.com Copyright © 2013 MSPexcellence Page 5
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  10. 10. EXISTING BUSINESS TRAJECTORY IDEAL BUSINESS TRAJECTORY GROWTH! Page
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  14. 14. Build Your Own Growth Model • Visit www.CSBcommunity.com • Register as a member (it’s free) • Download the CSB Growth Model at no cost ($129 value) • Read about all 3 Critical Success Factors (CSFs) • CSF#1 covers Creating a Cloud Business Growth Plan • You will find a link to the model there… www.CSBcommunity.com Copyright © 2013 MSPexcellence Page 14
  15. 15. Accelerate Your Transformation • CSBaccelerator Program – – – – 5 Sessions that cover all 3 Critical Success Factors Online workshops, business coaching and toolset Course Fee: $1199 Enroll today! • CSBadvisor Service – – – – Direct consulting engagement with MSPexcellence Customized Success Plan Project Fee: Tailored to your budget and timeline Contact MSPexcellence (info@mspexcellence.com) www.CSBcommunity.com Copyright © 2013 MSPexcellence Page 15
  16. 16. Join the CSBcommunity! For more information, contact MSPexcellence: info@MSPexcellence.com And be sure to visit: www.csbcommunity.com Copyright © 2013 MSPexcellence.com

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