The financial division of your MSP business might not be the most glamorous department, but it’s arguably one of the most critical facets of your company.
Your finances reflect the success of your MSP and play a crucial role in protecting the future of your business by using your capital wisely to keep your MSP afloat and thriving.
To safeguard your MSP, bring on a financial consultant to improve your efficiency and ensure that your business is protected for the future.
Before making changes to improve your MSP’s finances, you must ensure that every cent flowing through your business is accounted for. Utilizing a financial consultant will organize your finances and give you an exact idea of the state of your cash flow.
Once the state of your finances is established, financial consultants will then be able to identify opportunities to cut costs so that you can improve your profitability by weeding through your workflow and finding redundancies or expenditures that are costing your MSP. Just a few little changes can lead to massive savings and ultimately boost your bottom line.
A financial consultant's value extends beyond just optimizing your business’s current needs, as they also carry the wisdom to help your MSP grow to long-term success.
Financial consultants will develop guidelines for your business to grow safely while striving for its goals. These financial plans also account for savings and financial emergencies, so your business is prepared for any roadblocks that threaten your MSP’s growth.
Possessing a solid financial plan with a financial consultant to advise allows you to focus on perfecting your business operations with the confidence that your finances are already squared away.
The importance of financing in your business goes far beyond just the bottom line, as you must make sure your MSP’s financial operations are also properly managed.
Financial consultants guide you in obtaining additional financing for your MSP, such as receiving investments in your company or taking out loans to expand business operations. A consultant will oversee your paperwork to ensure such moves are done accurately and safely to protect your business from potential legal trouble or jeopardizing financial situations.
Keeping up with ever-changing regulations in the MSP marketplace, financial consultants can also evaluate your business operations so that your MSP can avoid potential penalties that can come at a colossal cost.
Even when you’re not thinking about your finances, financial consultants always stay one step ahead of anything that might threaten your MSP’s financial stability.
To protect the future of your MSP, financial consultants will assist in creating a succession plan. Succession plans are detailed instructions in the scenario that key members of your MSP decide to leave or suddenly can no longer be a part of your company. With this plan in place, there will be a seamless transition of responsibility, and your MSP will continue to progress without a hitch.
Having a succession plan also brings additional value to your MSP in case of a sale of your company. If you decide to sell your MSP, you may get a higher return price for a buyer with a succession plan since their transition would become much more manageable. The more ‘turn-key’ your business is, the higher the value.
While crafting a succession plan now may seem a bit soon to you, it is always wise to be prepared for whatever scenarios may arise. Securing your business’ future should always be a top priority, and financial consultants will help you prepare for any situation.
As former MSP owners and experts, we know the challenges of building MSPs first-hand.
At Bering McKinley, our consultants have a wealth of experience in the MSP industry. They are eager to share their wisdom with MSP owners looking to protect their finances.
Sign up for Vision here if you’re ready for your MSP to take off.