FormulaWon Growth Tracks · •House Keeping – Sound: VoIP or Telephone (Audio Pin #) – Type...

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© 2016 TruMethods, LLC. All rights reserved

FormulaWon Growth TracksYour 2017 MSP Business Plan

www.trumethods.com© 2016 TruMethods, LLC. All rights reserved

• House Keeping– Sound: VoIP or Telephone (Audio Pin #)– Type questions or raise your hand to speak– All past webinars are posted in the Members area– Webinar schedule is on the portal – go register!– Next Webinar:

• Thursday December 1st @ 2pm Eastern • Topic: Virtual Sales Meeting, 2017 Sales Plan

– When you're Schnizzin go to Schnizz corner!

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Focus on Success

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Mobile App

• Update! Notifications now through the App• Download on the App Store or Google Play• Listen to Podcast and Training content• Download for offline listening

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TruMethods News

• Schnizzfest 2017 Save the date– June 16th and 17th– Pre-day June 15th

– Location: Philadelphia

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Do you need more help?

• Inside Sales Champions• Personal coaching and Boot Camps• myITprocess• Winner Circle peer groups

Email [email protected]


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Your 2017 business plan


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• Preparing for your 2017 Business Plan• Complete your 2017 Life and Business plan• Draft your 2017 budget• Implementing your Business Plan

Today’s Agenda


TruMethods Resources

• Starter Kit: Business planning• Preparing for your business plan• Your 2017 business plan• Your 2017 sales plan• Quarterly action plan• Core values and purpose• Moving up the stack• Getting outside your comfort zone• 4 steps to success• 5 Qualities of a World Class MSP• The Schnizz

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Preparing for your 2017 Business Plan

• Compare 2016 and 2015 results• Review 2016 plan vs. actual results• 2016 month by month results• 2016 metrics and smart numbers• Calculate current run rate

Watch “Preparing for your Business Plan”


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2017 Life and Business plan


Vision

• 10 Years

Target

• 3 Years

Plan

• 1 Year

Action

• 1 Quarter

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TruMethods Life and Business Planning Document





$2,700,000$615,384$95,820$31,940$2,661

1.6

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Impact of Efficiency

12% net 18% net 30% net10 yr. liquid net worth goal: $2,700,000 $2,700,000 $2,700,000Additional post tax savings / yr. $270,000 $270,000 $270,000Additional income / yr. $465,384 $465,384 $465,384Additional revenue required: $3,878,200 $2,585,050 $1,551,280Recurring revenue required: $2,714,740 $1,809,850 $1,085,896New MRR goal: $226,228 $150,820 $90,491New MRR / yr. goal: $57,076 $31,940 $11,830New MRR / mo. goal: $4,756 $2,661 $1,000Appointments needed / week 3.0 1.66 0.63


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Impact of Efficiency and Trajectory

12% net 18% net 30% net10 yr. liquid net worth goal: $1,691,340 $2,700,000 $4,715,847Additional post tax savings / yr. $169,134 $270,000 $471,584Additional income / yr. $310,206 $465,384 $775,515Additional revenue required: $2,585,050 $2,585,050 $2,585,050Recurring revenue required: $1,809,850 $1,809,850 $1,809,850New MRR goal: $150,820 $150,820 $150,820New MRR / yr. goal: $31,940 $31,940 $31,940New MRR / mo. goal: $2,661 $2,661 $2,661Appointments needed / week 1.66 1.66 1.66


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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


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Moving up the Stack


World

Class

Impact

Alignment

MSP

Professional Services

Centralized Services Net Admin vCIO Support

• RHEM• Avg. AISP • Avg. MRR

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Draft your 2017 budget

• Detailed plan for 2017 • Revenue projections by month• Expenses by month• Profitability by month• Head count by month


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Utilize “run-rate” and “leverage” calculations to quickly verify your business plan assumptions


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Calculate current run-rate

Current MRR +

Monthly Average of NRRMonthly Average of Product Revenue

Monthly Average of Other Revenue=

Current Run-Rate


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Current 3 years

MRR $55,000 $150,820

NRR / mo. $11,000 $38,000

Product / mo. $11,000 $38,000

Total rev. / mo. $77,000 $226,820

Total rev. / yr. $924,000 $2,721,840

Service rev. / yr. $792,000 $2,265,840

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Leverage

The amount of service revenue per employee

Total annual service revenue divided by

The total number of employees


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Check your leverage

Watch “Macro Picanomics”© TruMethods, LLC. 2016 - All rights reserved

Leverage Guidelines

Professional Services 1 per 20k+ / month NRR

Centralized Services 1 per 5,000+ endpoints

Network Administration 1 per 70k+ in MRR

vCIO 1 per 120k+ in MRR

Support Desk 1 per 60k+ in MRR

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Check your leverage

• What is your leverage?• Target $150,000 per employee

• If too low…why?• RHEM• AISP• Average MRR• Revenue base• Roles and responsibilities• Capacity• Sales, admin and management overhead


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Current 1 year 3 years

MRR $55,000 $86,940 $150,820

NRR / mo. $11,000 $17,500 $38,000

Product / mo. $11,000 $17,500 $38,000

Total rev. / mo. $77,000 $121,940 $226,820

Total rev. / yr. $924,000 $1,463,280 $2,721,840

Service rev. / yr. $792,000 $1,253,280 $2,265,840

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• Use current and 1 year run-rate to develop your 2017 budget• Revenue by month• Expenses by month• Profitability by month• Head count by month


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• Recap• Calculate current run rate• Calculate 3 year run rate• Check leverage• 1 year run rate• Draft 2017 budget


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Vision

• 10 Years

Target

• 3 Years

Plan

• 1 Year

Action

• 1 Quarter

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Implementing your business plan

• Vision• Your personal goals and vision• Your company vision• Core values and purpose (Why)

• Target• First year of a 3 year plan• Mid range goals• Verify your destination• Identify major initiatives


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• Annual Plan• Annual plan and budget• Key annual initiatives• Company wide goals

• Quarterly Action• Plan becomes action• Quarterly initiatives• Accountability• Decide what “not to do”


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• Develop meeting rhythm and structure• Financial planning, Sales Meeting structure, Service

Delivery Meeting structure, Success Rhythm

• Quarterly planning sessions• Review and update Quarterly Action Plan• Use the TruMethods QBR • Block out the entire day• Review QBR results



Summary

• Preparing for your business plan• Complete your 2017 Life and Business plan• Draft your 2017 budget• Implementing your business plan (action)


TruMethods Resources

• Starter Kit: Business planning• Preparing for your business plan• Your 2017 business plan• Your 2017 sales plan• Quarterly action plan• Core values and purpose• Moving up the stack• Getting outside your comfort zone• 4 steps to success• 5 Qualities of a World Class MSP• The Schnizz

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Business Planning Process

Two different perspectives

• We focus on business planning discipline at TruMethods and at our MSP

• Bob and I work at TruMethods everyday• We are only involved the business planning

process at our MSP• We have a coach!


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Business Planning Process

What we have learned

• Core values and purpose are critical• The quarterly action plan is the key to success• Say NO to anything not on the plan• Involve the entire team in quarterly initiatives• Critical/SMART numbers are powerful• Themes and celebrations impact culture


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The Essence of TruMethods

ResultsImpact on the client, the business and

the person in the role

EssenceThe spirit of the role.

Ties the Core to the Results.

MathMeasurable drivers

ProcessPriorities, steps and tasks

© TruMethods, LLC. 2016- All rights reserved

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World Class Leader

Impacting every client and team member in a positive wayThriving World Class MSP

Turning your potential into results

Connect the core to results in every areaMoving up the Stack!

Building the culture of the Schnizz

-Avg. MRR-AISP

-RHEM

-Super Power-Warm Leads

-Business Plan

© TruMethods, LLC. 2016- All rights reserved

www.trumethods.com© 2016 TruMethods, LLC. All rights reserved

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