Is Your MSP Vulnerable?

Can one client decision devastate your income overnight?

Podcast: Play in new window | Download (Duration: 1:10 — 2.7MB)

Subscribe: Apple Podcasts | Spotify | RSS

Transcription:

Bryce Whitty here from Technibble.com and in this video I would like to share with you something that can wipe out an MSP business overnight.

So something I often hear is MSPs saying that they lost just lost a large client which was a large percentage of their work. Some MSPs allow a single client to make up 50% of their businesses revenue.

They often don’t intend for a single client to take up that much, they just take on the work as it comes and it ends up that way.

However much you earn, imagine what would happen if you lost 50% of your income tomorrow? Could you pay your bills? Could you pay your mortgage?
It doesn’t even have to be your fault. It it could be a new boss, a change of direction or just someone making a stupid decision.

Obviously, when you just starting out your first client will make up 100% of your income. But you will want to work to get that figure down to about 10%.

Luckily, if you already have a single client and sending you that much work, you already know what it takes to get a few large, high paying clients.

Find out what makes them good and why they chose you, and then go out and find more.

As an additional, ongoing protection, you can get a lawyer to write an exit clause for your contracts which discourages hasty decisions and lessens the damage to your revenue if your clients do leave.

This makes your business significantly more robust and less likely to get wiped out overnight.