In Part One of my blog series – Preparing your MSP for Sale, I mention the importance of showing profits for at least three years prior to selling. It is very difficult to sell a business without profits. Business buyers are interested in businesses that will make them money, not a fixer-upper like a real estate short sale. If they do buy a fixer-upper, they will expect to pay a short sale price.
To maximize your sale price, you want to present the already remodeled business. The first place to start is to increase your profits. Easier said than done, right? It might not be as hard as you think. Perhaps your pricing is off. Perhaps your debt is too high or your expenses. Maybe your lack of customer service is costing you customers and referrals. Take each piece of your business and analyze it. Is it as great as it could be? If not, why not and how do you fix it? Let’s look.
If every aspect of your business is broken, then you must find a way to mend it. Trying to change everything all at once is a sure way to implode. Be systematic and stick with it. If you keep your eye on the prize and work toward it a little each day or week, you will reach your goal before you know it.
Separate your business into various categories and look at each piece individually and the entire business as a whole. It might look something like this:
– Customer Service
– Response Time
– Bundled services
– One-to-One meetings
– Follow up
– Internal Processes
There are many other facets of a MSP business, but let’s start with these three. They all interact with each other. Think of it as a string of Christmas lights. If one is broken, the whole string goes out. The Sales Department sells the services in the Service Department and relies on Administration to support it. The Service Department relies on Sales for the work and Admin to run the show. The Administrative Department supports both Sales and Service. Without Sales and Service, Admin has nothing to do. One cannot operate optimally without the others.
Now we have three separate areas to analyze. In each area, there are multiple steps to building the perfect department. Broken down, the task doesn’t seem as daunting and changing the whole company. We cannot change the whole company in one day, but we can improve one piece per day or week. With each minor change, you will see a dramatic improvement in your bottom line.
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