Podcast EP189 - The Dangers of Being a Profit Passenger in Your MSP with Gary Rayner & Ian Luckett скачать в хорошем качестве

Podcast EP189 - The Dangers of Being a Profit Passenger in Your MSP with Gary Rayner & Ian Luckett

In this episode of the IT Experts Podcast, we bring you another inspiring Client Success Story, focusing on the journey and achievements of Gary Rayner, the owner of a managed service provider (MSP) based in East Anglia, Suffolk. Titled "The Dangers of Being a Profit Passenger in Your MSP with Gary Rayner," this episode delves into the critical transformation Gary's business underwent to stop being a passenger to its cash flow and take control of its financial future. Gary Rayner, after 18 years in business and on the verge of reaching a seven-figure turnover, recognised the need to shift his approach to managing finances within his MSP. Initially, his in-house bookkeeper managed day-to-day invoicing and bookkeeping, a role that evolved from Gary himself to an ad-hoc helper, and finally, a dedicated in-house process. Despite his interest and involvement in finance, Gary realised that what got his MSP to its current level wouldn’t be enough to propel it forward. The turning point came when his bookkeeper retired, and Gary temporarily resumed those duties, which highlighted areas where the business was not optimally billing or even missing billing entirely. Gary's decision to bring in an interim CFO marked a pivotal moment in his MSP’s journey. This CFO, although not from the IT sector, brought a fresh perspective and a wealth of financial expertise. Gary wisely chose someone outside the IT industry to avoid inherited bad habits and gain unbiased insights. This move highlights the importance of surrounding yourself with people smarter than you in specific areas to drive business growth. The CFO's role was not just to manage day-to-day financial tasks but to establish robust processes and provide strategic financial oversight. Gary and his CFO worked on integrating various tools and systems, such as PAX 8 and Autotask, ensuring seamless data synchronisation with their accounting software, Xero. By leveraging Excel for detailed financial analysis, they could compare data from different sources, ensuring accuracy in billing and financial reporting. One of the significant changes Gary experienced was the shift in focus from just net profit to a broader range of financial metrics, including EBITDA, adjusted net profit, gross profit, and cost per customer acquisition. This comprehensive approach provided a more detailed understanding of the MSPs financial health, enabling better strategic decisions. Gary's journey illustrates the importance of having a structured process and the willingness to revisit and reassess financial management practices. The introduction of a CFO allowed Gary to step back from the detail and focus on strategic growth areas. Even though the CFO's tenure was short-term, the impact was profound, leading to the implementation of efficient processes that the team could manage independently in the interim. The transformation also involved adopting forecasting tools like Fathom, which provided valuable insights into potential future scenarios. This capability allowed Gary to plan for various outcomes, ensuring the business could navigate challenges and capitalise on opportunities with confidence. Gary's story is a testament to the power of financial literacy and proactive management in scaling an MSP. His experience highlights that understanding and controlling financial metrics is crucial for any MSP aiming for sustainable growth. By taking the necessary step to bring in external expertise, Gary positioned his business for continued success and stability. Connect on LinkedIn   / ianluckett   with Ian and also with Stuart by clicking this   / stuartwarwick   And when you’re ready to take the next step in growing your MSP, come and take the Scale with Confidence MSP Mastery Quiz - https://scaleyourmspquiz.com/. In just three minutes, you’ll get a 360-degree scan of your MSP and identify the one or two tactics that could help you find more time, engage & align your people and generate more leads. Until next time, look after yourself and I’ll catch up with you soon!