MSP Business Plan in a Box

© 2015 N-able Technologies, Inc. All rights reserved. 1
MSP Business Plan
in a Box
Strategies to develop your
2017 MSP business plan

Webinar details
? REC
Length: 60min Questions
welcome any time
Recording and
slides available
next day

On today’s Webinar
Presented By:
Gary Pica
President, TruMethods
Ali Mahmoud
Senior Product Marketing
Manager, N-able

www.trumethods.com
Free Business Plan Assessment:
Call with TM Growth Expert
Review 5 key Business Plan guidelines
email: gary.promo@trumethods.com
Subject line: Promo
TruMethods Promotion
Special Offer: Expires 11/18/2016

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Copyright 2013 TruMethods, LLC
• Having a business plan does not ensure
that you grow faster or make more money
• Most companies that achieve growth and
profitability have an actionable business
plan
Your 2017 Business Plan

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Top Excuses
• I am already working as hard as I can!
• I am buried with reactive work
• I don’t have the time or resources to take
action on my plan
• I need to finish a few things first
• My company is small and doesn't need a
written plan

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The Business Planning Process
Vision
• 10 Years
Target
• 3 Years
Plan
• 1 Year
Action
• 1 Quarter

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• Review 2016 results
– Revenue by category
– Gross margins by category
– New MRR sales
– Churn
– Average AISP and MRR

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• 10 year vision for your life and company
• Do some soul searching
• Why did you get into business?
• Have your expectations changed?
• Put a price tag on your life's vision

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What is the hardest
thing to do in business?

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A.T.D.I.Y.P.B.A.

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$1,500,000
• Liquid Net Worth Goal
• Exclude the value of your business and home
• Consider life events
• Determine annual post tax dollars required
(10 year time horizon)
___________
$150,000
Liquid Net Worth

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Annual Income Goal
$150,000
• Annual income goal
• How much additional annual income do you
need to generate $150,000?
• Divide $150,000 by 0.65 (35% effective tax rate)
__________
$230,000

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MRR Goal
$230,000
• Annual revenue required: $230,000 divided by
18% net profit is $1,275,000
• Recurring revenue goal: $1,275,000 X 70% is
$892,500
• Divide $892,000 by 12 for MRR Goal
_________
$75,000

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$75,000
• Set a time frame to reach your MRR goal:
3 Years
• Determine your 2017 MRR goal (Divide MRR
Goal by Time Frame)
• Add sales activities required to your plan
_________
$25,000
MRR Goal

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Business goals
MRR Sales Goal Calculator
Input your goals:
New MRR for 2017 $25,000
Average Contract Value (MRR) $2,000
Close ratio 20%
Monthly MRR goal $ 2,083
New Customers per Month 1.0
New customers needed in 2017 12.5
Building your playbook (summary)
MRR needed on Pipeline $ 8,300
# of Prospects on Pipeline 4.2
Appointments needed 2017 60
Appointments per month 5
Appointments needed per week 1.2
Contacts per week 30
Dials per week 140

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Putting it in perspective
18% net profit
10 yr. liquid net worth goal: $1,500,000
Additional post-tax income required: $150,000 / yr.
Additional income required: $230,000 / yr.
Additional revenue required: $1,275,000
Recurring revenue required: $892,500
New MRR goal: $75,000
New MRR / yr. goal: $25,000
New MRR / mo. goal: $2,083
Appointments needed per week 1.2

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Managed Services PlatformRemote Services Technology
| Product Family
MSP Anywhere
Remote access & support
MSP Manager
Ticketing & billing
N-central
Monitor. Manage. Automate.
Connect in seconds
Cross platform
Support mobile devices
Session transfer
Session recording
Performance dashboard
Ticket management
Customer portal
Password management
Technician scheduling
Customer billing
Accounting integration
Device monitoring
Health & performance
alerts
Drag & drop automation
Integrated patch, AV,
backup
Integrated remote control
Business reports
$49 USD / month
per concurrent user
$49 USD / month
per concurrent user
Starting at
$499 USD
/month
Unlimited sessions
300 devices
Unlimited tickets
Unlimited billing
Monitor 100 devices free
Free business coaching

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SIGN UP FOR A FREE TRIAL
N-ABLE.com
The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-able Technologies, Inc. and its affiliates, are registered with the U.S. Patent and Trademark Office and
the Canadian Intellectual Property Office, and may be registered or pending registration in other countries. All other N-able trademarks, service marks, and logos may be common law marks,
registered or pending registration in the United States, Canada, or in other countries. All other trademarks mentioned herein are used for identification purposes only and may be or are
trademarks or registered trademarks of their respective companies.

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Two key factors
1. Operational Efficiency
– Net profit %
2. Sales Trajectory
– Net MRR gain

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Profit and Leverage
• Profit is determined by leverage
– Leverage = Amount of service revenue / employee
You need higher profitability;
you DRIVE leverage

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Measuring Leverage
Average MSP TruMethods Target
Number of Employee’s: 6 6
Annual Service $: $600,000 $900,000
Leverage: $100,000/EE $150,000/EE
Unrealized Profitability: $300,000

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Unrealized Profitability
What is your unrealized profitability?
Number of employees * $150,000
minus
Annual Service Revenue
=
Unrealized Profitability

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How to increase leverage
1
Roles &
Responsibilities
2
Delivery
Process
3
Revenue
Base
Operational Efficiency

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5 Service delivery areas
© TruMethods, LLC. 2016 - All rights reserved
Professional
Services
Centralized
Services
Net Admin vCIO Support
Macro Picanomics

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1
Sales Plan
How to increase MRR
2
Sales
Process
3
Accountability
Sales Trajectory

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MSP Math and Science
Recurring revenue sales formula
MRR= FTA’s X close ratio X average MRR

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Goal: $36,000 MRR
Avg. MRR
Clients
needed
Close ratio Annual FTA’s
$1,500 24 20% 120
$2,500 15 20% 75
$3,500 11 20% 55
Impact of Average MRR
© TruMethods, LLC. 2016 - All rights reserved.

www.trumethods.com
Goal: $36,000 MRR
Avg. MRR
Clients
needed
Close ratio Annual FTA’s
$2,500 15 10% 150
$2,500 15 15% 100
$2,500 15 20% 75
Impact of Close ratio

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Factors impacting Sales Math
Average MRR
• Value Proposition
• Minimum MRR
amount
• Targeting the right
prospects
Close ratio
• Value proposition
• Lead quality
• Sales process

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The impact of price
Example
Avg.
Seats
Avg.
AISP
Avg.
MRR
MRR with
50 clients
Seats
Right
Customers-
Right price
20 $140 $2,800 $140,000 1000
Right
Customers-
Wrong Price
20 $95 $1,900 $95,000 1000

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Impact of Efficiency
12% net 18% net 30% net
10 yr. liquid net worth goal: $1,500,000 $1,500,000 $1,500,000
Additional post tax income
required per year:
$150,000 $150,000 $150,000
Additional income required
per year:
$230,000 $230,000 $230,000
Additional revenue required: $1,920,000 $1,275,000 $767,000
Recurring revenue required: $1,344,000 $892,500 $537,000
New MRR goal: $112,000 $75,000 $45,000
New MRR / yr. goal: $37,333 $25,000 $14,000
New MRR / mo. goal: $3,111 $2,083 $1,250
Appointments needed / week 1.6 1.2 0.7

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Impact of Efficiency and Trajectory
12% net 18% net 30% net
10 yr. liquid net worth: $994,500 $1,500,000 $2,486,250
Additional post tax income / yr. $99,450 $150,000 $248,625
Additional income / yr. $153,000 $230,000 $382,500
Additional revenue required: $1,275,000 $1,275,000 $1,275,000
Recurring revenue required: $892,500 $892,500 $892,500
New MRR goal: $75,000 $75,000 $75,000
New MRR / yr. goal: $25,000 $25,000 $25,000
New MRR / mo. goal: $2,083 $2,083 $2,083
Appointments needed / week 1.2 1.2 1.2

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Quarterly Action Plan
• Quarterly Goals
– Revenue goals
– Sales goals
– Sales activities
• Quarterly Actions Items
– Top action items for the quarter

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• Quarterly Action Items: The 3-5 most
important actions that will move you towards
your goals
• “Most important” is the key
• Top 5 and Top 1 of 5
• Should be more than just sales goals
• Actions vs goals

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Words to avoid related to action items
• Focus on
• Improve
• Tighten up
• Spend more time on
• Work on

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How will you and your team be held
accountable?
• Discipline
• Metrics (SMART Numbers)
• Rhythm
• Culture

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Business Planning Process
It’s personal
• Your financial future is at stake
• Do you have long term team members?
• You can’t give someone something that you
don’t have
• Don’t let success be around the corner
© TruMethods, LLC. 2015 - All rights reserved

www.trumethods.com
Summary
• Vision-Target-Plan-Action
• Set 2017 goals for MRR and
activities
• Calculate your unrealized
profitability
• Put accountability in place

www.trumethods.com
Copyright 2013 TruMethods, LLC All rights reserved.
• Develop an actionable business plan
• To identify and attain unrealized profitability
• Add new recurring revenue clients every month
• Sell at a higher price
• Dramatically increase margins
• Achieve your vision
Why TruMethods?

www.trumethods.com
FormulaWon
Training
• Over 100 hours of role
based content
• 2 Live Webinars / mo.
• Weekly Podcasts
Community
• Member Forums
• Ask TruMethods
• Schnizzfest
• Events
Tools
• myITprocess™
• SMART Numbers
• Business Plan Template
• Sales Playbooks
Results:
• Complete Business Plan
• Gain Command of your SMART
Numbers
• Align packaging and pricing
with World Class standards
• Develop your Super Power
• Implement Sales Discipline
• Generate Leads
• Raise your expectations about
what’s possible

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How TruMethods Can Help
Video Series
• Preparing for your business plan
• Life and business plan
• The TruMethods Quarterly Action Plan
• Sales plan workshop
• Company purpose and core values
• Getting outside your comfort zone
Tools and Resources
• Business plan template
• Quarterly Action Plan template
• Sales goal calculator

www.trumethods.com
Free Business plan assessment:
gary.promo@trumethods.com
Subject line: Promo
SPECIAL OFFER:
Expires 11/18/16
SIGN UP FOR A FREE
TRIAL
N-ABLE.com
The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-able
Technologies, Inc. and its affiliates, are registered with the U.S. Patent and Trademark Office
and the Canadian Intellectual Property Office, and may be registered or pending registration
in other countries. All other N-able trademarks, service marks, and logos may be common
law marks, registered or pending registration in the United States, Canada, or in other
countries. All other trademarks mentioned herein are used for identification purposes only
and may be or are trademarks or registered trademarks of their respective companies.
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