As the saying goes, “Talk is cheap.” Yet, when there’s a shortage of open communication between MSPs and their business clients, particularly regarding the financial aspects of their relationship, the consequences can be quite expensive. Issues tend to go unnoticed, and these inefficiencies can erode profit margins. Unfortunately, this scenario is all too familiar in the IT channel.

While managed services leaders are exceptionally adept at designing technology solutions and diagnosing complex IT issues, many are not as skilled at explaining payment processes, policies and best practices. Those communication slip-ups often come at the MSP’s expense. For example, an early disconnect in provider/client relationships can significantly impact accounts receivable balances and cash flow.

If clients do not know when or how to pay for services rendered, those transactions are more likely to occur later than anticipated, especially without a little prodding. The most significant challenge that MSPs face when it comes to collections is that their primary client base — small businesses — often have limited staff and overburdened owners. Due to their workload, paying bills often takes a back seat on their list of priorities. This issue becomes even more pronounced when suppliers fail to communicate expectations clearly or offer effective tools to streamline these processes.

Understanding how their clients operate and how to compensate for potential points of failure is critical for MSPs. Strong and clear communication can make up for some, if not all, of those deficiencies, especially with clients’ payment processes.

Build collections policies and stick to the plan 

Setting proper expectations is one of the most overlooked yet critical steps in building a successful organization. To establish enduring and fruitful business relationships, it’s essential for owners, managers, employees and even customers to have a clear understanding of their respective responsibilities, particularly in terms of financial matters.

Effective communication helps make that possible. Since B2B companies need to reach a diverse community of business leaders and decision-makers, as well as end users and partners, open and sometimes pointed conversations are often necessary. Developing and delivering clear, consistent messaging around business practices and policies reduces misunderstandings and mistakes. Whether that involves an MSP’s accounts management team or those responsible for billing and collections, regular check-ins and frequent communications with key contacts tend to improve compliance.

There are several ways to streamline and boost performance with those processes, including:

Reduce the complexity of A/R communications 

MSPs understand the value of streamlining and automating critical business processes. With that in mind, their collections teams can readily benefit from a dose of optimization and specialized IT services tools like ConnectBooster.

Improving A/R communications and boosting collections efficiency are worthy objectives. This can improve cash flow and reduce the stress of engaging in challenging conversations with clients about overdue payments. Nobody enjoys repeatedly asking customers for explanations regarding late payments.

ConnectBooster helps improve B2B communications and minimize the need for more difficult conversations by automating many critical tasks and providing an easy autopay option. Clients can simply schedule payments and, thanks to an invoice repository, instantly access their current and previous billing details.

Leveraging technology in the collections process reduces anxiety for clients and providers while improving an MSP’s cash flow and customer satisfaction. Since communications are such a critical piece of the business equation, investing in solutions like ConnectBooster that improve the flow of information and access to critical data is the smart move for savvy IT business owners.

The post Mastering MSP Collections With Clear and Effective Communication Practices appeared first on ConnectBooster.

No business can overlook the time continuum. While managed services may seem to have little in common with Marty McFly and Doc Brown, it’s important for MSP owners and leaders to recognize that even minor industry changes can significantly sway future outcomes. That’s why business leaders must periodically assess, streamline and improve critical parts of their operations. Complacency is the enemy of efficiency. 

The post 6 Signs It’s Time to Update Your MSP’s Collections Process appeared first on ConnectBooster.

MSPs play a pivotal role in supporting businesses with their comprehensive solutions and technical expertise. However, one critical aspect of running a successful MSP that often gets overlooked is the timely receipt of payments. From recurring monthly services to one-time projects such as cybersecurity audits, new implementations or specialized consulting gigs, getting paid on time is not simply a matter of convenience — it is vital to the success and endurance of the company.

For service providers, steady cash flow is not just king — it is the key to unlocking their full potential. A reliable stream of funds allows MSPs to stay ahead of the curve, adapt to frequently shifting market demands and deliver top-tier services without compromise. Providers must have enough cash on hand to confidently take on new projects, expand portfolios and make strategic investments that drive their long-term sustainability.

What impact do non- or slow-paying clients have on MSPs? How critical is cash flow and what are some of the common difficulties that IT service providers experience? In this blog post, we’ll dive into these issues and cover several actionable tips to solve these issues and revolutionize collections policies to help prevent late payments.

The significance of strong cash flow

Consistent funds allow daily operations to continue without interruption and provide MSPs the ability to invest in new technologies to stay ahead of the competition. Cash on hand also helps providers cost effectively scale their services to meet growing demands (which may involve hiring more staff, expanding service offerings or opening new locations). Avoiding loans and lines of credit eliminates interest expenses and minimizes the need to take on new investors, who may require some control of the organization if they invest.

Decisions related to business expansion, marketing initiatives and long-term planning require a stable financial foundation as well. A strong cash flow empowers MSPs to make well-informed and strategic choices, rather than being driven by short-term financial constraints.  Reliable funding makes tough times and economic downturns more manageable, ensuring that businesses do not have to compromise service quality or the well-being of owners and employees.

One of the most significant consequences of late-paying clients is unreliable cash flow. Operating with inconsistent realized revenue makes it challenging to plan for the future. Unreliable cash flow can impede the ability of an MSP to scale and innovate, impacting the company’s overall valuation in the market. Investors and stakeholders view consistent cash flow as a sign of financial stability and growth potential.

Another less-often considered challenge of inconsistent cash flow is that billing cycles may not overlap favorably. This means MSPs may have to pay their suppliers, employees and other operational costs before receiving payments from their clients. That can quickly shift finances from black to red.

Non- or late-paying clients also have a negative impact on employees. Managing late payments can take a toll on internal staff if they are constantly chasing down customers to discuss billing and collections issues, leading to higher levels of stress and burnout. Instead of focusing on providing top-notch services, employees find themselves spending valuable time and energy on A/R issues and discussions.

Reasons for delayed payments

There are times that clients may be facing their own cash flow issues, making it difficult for them to settle their managed services invoices promptly. Thinking back to the previously discussed overlapping bill cycle example, payment delays can quickly spiral out of control. Unfortunately, this issue can happen to any business that relies on timely collections to pay overhead.
Outdated payment methods (such as only accepting checks) can also hinder the collection process and lead to delays. A lack of easy-to-manage payment options and billing transparency typically slows down the system, frustrates clients and negatively impacts cash flow.

Tips to ensure getting paid on time

MSPs can implement several effective strategies to address the challenges posed by late-paying clients, including:

1. Focusing on creating predictable cash flow: Encourage customers to sign up for recurring payment options and subscription-based services that can be consistently invoiced (e.g., monthly, quarterly). This approach ensures predictable funding and makes it easier to plan and allocate resources efficiently.
2. Identifying top culprits: Analyze patterns to discover which clients consistently pay late (or not at all). This allows for issues to be proactively addressed by engaging in open communication to better understand the clients’ challenges and find mutually beneficial solutions.
3. Offering multiple payment options: To improve convenience, embrace modern payment methods such as online bill pay, credit cards or digital wallets. This provides customers with the flexibility to choose the most suitable payment method for them.
4. Implementing autopay: This policy helps MSPs streamline the invoicing process and eliminates (or at least minimizes) the need for manual follow-ups. Autopay automatically deducts funds from the clients’ chosen account on predetermined dates. This option is gaining traction with most of today’s consumers, so every provider should investigate the opportunity to offer a similar upgrade to its customers.

Empowering MSPs for efficient collections

The consequences of late-paying clients are substantial and far-reaching. Unreliable cash flow can hinder an MSP’s growth, while the stress of chasing payments can affect staff morale and productivity. By understanding the reasons behind delayed payments and implementing practical solutions like ConnectBooster, service providers can ensure timely payments, create predictable revenue streams and ultimately thrive in a competitive IT marketplace.

ConnectBooster’s user-friendly customer portal allows clients’ accounts payable teams to review new and old invoices and access payment information on demand. With multiple payment options, it’s easier for clients to pay promptly, resulting in improved cash flow for service providers.

Take the next step toward ensuring your MSP’s financial stability and download our comprehensive e-book on effective collections. Learn how ConnectBooster can revolutionize your payment processes and safeguard your business from the challenges of late-paying clients.

The post Understanding the Consequences of Late-Paying Clients for MSPs appeared first on ConnectBooster.

In a technology landscape where innovation and efficiency reign supreme, why should MSPs continue to toil over manual invoicing and collections, diverting valuable resources from their core mission? Now is the time to free your team from the monotony of creating and managing invoices, chasing late payments and reconciling accounts. The future of billing and collections lies in automation and integration. By embracing a systematic approach that fuses technology, strategy and client-centricity, IT services providers can usher in an era of financial agility and unwavering focus. 

There are five distinct yet interconnected steps MSPs should take to transition from manual processes to fully automated systems. Following these steps will strengthen your financial foundation and cultivate an environment that allows your team to devote more time to driving innovation, enhancing client relationships and scaling the business. 

Step 1: Establish clear billing deadlines 

The foundation of a solid collections system rests on well-defined payment due dates. By establishing precise timelines, MSPs will create a payment schedule that clients can rely on. For example, recurring services are often due at the beginning of each month, while project-related invoices could be due within 24 hours of completion. Providing clients with this level of clarity not only ensures timely payments but also ensures transparency and professionalism in customer relationships. 

Step 2: Strengthen collections policies 

Crystal-clear communications are paramount in billing and accounts receivable (A/R) management. Align your team’s expectations with the information outlined in each specific agreement and contract. Explain terms like net 15 or net 30, highlight any potential discounts and walk clients through all the various payment options. Be sure to emphasize the convenience of autopay when discussing terms, as that option can streamline the process and reduce delinquent payment headaches for customers while ensuring consistent revenue for your MSP. 

Step 3: Simplify payment for clients 

Integrating advanced solutions like ConnectBooster will make the collections process easier for everyone and minimize the costs associated with payment collection. This technology empowers customers with an online portal, offering them easy access to their company’s financial transaction history and past and current invoices, with flexible payment options and the ability to enroll in autopay. 

Simplifying the payment experience not only makes financial transactions smoother but also strengthens the backbone of your MSP. Seamless collaboration between your clients and internal team results in a more positive customer experience, which can strengthen your operations and propel your business to new heights. 

Step 4: Harness the power of automation and integration 

Technology is the key to transforming your billing and collections into a “set-and-forget” masterpiece. Integrating PSAs and other critical applications with ConnectBooster ensures accurate and timely invoicing, saving MSPs valuable hours and minimizing costly errors. Additionally, connecting CRM tools and accounting packages helps create a more unified data flow and provides more holistic insights into your firm’s financial landscape. 

Step 5: Continuously assess and improve 

Like any well-oiled machine, invoicing and payment systems require regular evaluation and optimization. Generating comprehensive reports that detail outstanding A/R and other pertinent financial metrics provides invaluable insights into your MSP’s cash flow, which aids significantly in strategizing for future growth. Leverage key performance indicators to fine-tune your billing and collection methods and keep that financial engine running smoothly. 

Fueling growth 

A resounding 90% of IT services professionals say automation plays a pivotal role in their growth journey by freeing employees to focus on business-critical tasks, according to Kaseya’s 2023 Global MSP Benchmark Survey Report. Liberating staff from manual billing and collections tasks allows them to spend more time nurturing client relationships, addressing customer needs and closing sales.  

Embracing a “set-and-forget” payment system is not merely an improvement — it’s a strategy that empowers MSPs, allowing them to focus on innovation and service delivery. Following the five-step process above will help revolutionize your financial operations. This newfound efficiency can enhance customer satisfaction, fortify cash flow and future-proof your MSP for years to come. 

For a deeper dive into the metrics that can supercharge your cash flow, explore our comprehensive guide on billing and collections KPIs here. The journey toward a set-and-forget billing and collections system begins with a greater understanding of your MSP’s issues and opportunities, and this resource provides insights that will help drive your MSP’s long-term financial success. 

The post 5 Steps to Achieve Set-and-Forget Billing and Collections appeared first on ConnectBooster.

Should providers be worried about the current economic situation? What actions could they take today to avoid bad financial scenarios in the future? With an annual inflation rate of between 4.9% and 7.0% over the last three years, according to the May 2023 U.S. Labor Department report, any business that has not increased prices or significantly decreased expenses during that period is already falling behind.

Not keeping pace with rising costs has a negative impact on cash flow and profitability and makes it harder for MSPs to hire new talent and expand and improve operations. Unfortunately, that is a situation many SMBs, including channel partners, find themselves in more often than their larger counterparts. Owners of smaller businesses tend to lag behind on price increases. Whether worrying about losing clients to competitors or expecting costs to drop in the not-too-distant future, some compromise profitability in the short term by avoiding those unpleasant discussions.

Unfortunately, banking on hope is never a good plan. With high inflation driving costs higher, and concerns in many industries causing businesses to pull back on spending in 2023, MSPs must keep close tabs on recurring revenue streams and, more importantly, cash flow. Collections take on ever greater importance as providers’ monthly payments for payroll, rent, taxes, tools and other “goods sold” rise. Without a corresponding increase in bank deposits, MSPs can see fund balances drop quickly, which is one of the many issues ConnectBooster helps providers address.

Assess AR and strengthen collections processes

Many business owners get so caught up in day-to-day operations that they miss the early warning signs of a potential problem. Even when things are running smoothly, it’s easy to overlook small increases in overdue payments or to dismiss concerning conversations with clients about contracts or sales numbers. Some alarms are quieter than others.

Today, MSPs need to know as much, if not more, about their clients’ operations as the owners and management teams of those companies. From addressing workflow problems and automating critical processes to tackling new or shifting business goals with new technologies, IT services firms are now mission-critical partners. Providers with strong client communications should have some level of insight into potential cash flow concerns, or at least the ability to look for normal warning signs.

• Watch invoice payment dates. Are clients approving invoices and reimbursements later than usual? This sign is one of the most obvious indications of financial issues. Tracking payment dates and noting deviations is a good standard best practice for accounts receivable teams and MSP owners/managers. ConnectBooster simplifies that process by keeping everyone in the loop on where clients are in the collections process.

• Be on the lookout for downsizing/furloughs. Have any clients recently reduced the size of their workforce, even temporarily? While never a good sign, these labor cutbacks can work in an MSP’s favor, signaling a need for greater IT investments such as managed services, automation and new efficiency solutions. However, these companies may also be struggling financially and slow down payments to contractors and other suppliers.

• Periodically review local tax notices. With more local governments posting open records online, it’s easier than ever to see which companies or individuals are in arrears with payments. While any business can forget a payment or overlook notices, a good rule of thumb for MSPs is to watch for clients’ names tied to concerning activities.

• Listen. MSPs’ team members often interact with a number of people in each client organization. Have employees expressed concern about the company’s viability or their competitive environment? Are they asking about potential job prospects (cutback concerns)? While some of these questions might be more personal than corporate, if they become a pattern, a deeper investigation may be worthwhile.

The hard part for MSPs is separating rumors from legitimate financial concerns. Inflation and economic uncertainty are just two of the many factors that can negatively affect business prospects and cash flow.

Take a proactive pricing approach

With the cost of products and services rising at a rapid pace, with little sign of a significant decline, IT services providers must keep pace to protect their profitability. A long-established channel best practice is to make annual incremental price increases to prevent hitting clients harder at a later point. No one ever likes to pay more for an existing service.

However, when MSPs can show an increasing value of the offerings they deliver – like cybersecurity and operations-optimizing solutions – most clients will understand related rate increases. Presentation is key. Those who continually educate clients on the rising threat vectors and the growing costs of protecting their systems and data are better able to justify cost increases. Selling decision-makers on the many benefits of automation, including the ability to reduce payroll and boost customer satisfaction and retention, can also help minimize anxiety (on both sides) during price increase discussions.

Confidence in an MSP’s support capabilities and portfolio of offerings gives them an edge. Few competitors can displace an effective IT services provider unless they can significantly undercut pricing or deliver unique programs or services. Based on reports from the greater MSP community, the rare clients that do defect in those cases typically return. In far too many cases, providers come to discover their profits improve after jettisoning customers that are continually late with payments or demand too much time and resources every month. Reducing the workload allows MSPs to bring on new and more financially lucrative business.

Implement a resilient payment policy

Although a strong cash flow may not eliminate the headaches of inflation and future economic uncertainty, it does allow providers to get paid for the services they deliver. That assurance helps MSPs pay the bills, invest in business expansion (i.e., hiring, developing new practices, enlarging portfolios), and build larger “rainy day” funds to get through harder times. An effective payment policy is an essential part of that plan.

Creating, communicating and enforcing collections guidelines provides safeguards for MSPs. Putting commonly accepted controls in place with penalties for noncompliance will ensure that more clients pay within the prescribed timelines of their managed services agreements.

Of course, as with most critical processes, automation makes it easier for providers to manage and track the collections part of the operation. Innovative solutions like ConnectBooster allow MSPs to get paid quickly and securely, minimizing the uncertainties around the current economic situation. Ensuring on-time payments while trimming collections costs is one of the best ways to hedge inflation and overcome future financial struggles.

ConnectBooster empowers MSPs with those capabilities. Learn how our secure payment automation solution can help your business get paid faster and minimize the impact of inflation. Request a demo today!

The post Are Inflation and Economic Uncertainty Fueling Higher AR Balances? appeared first on ConnectBooster.

The big problem is each of those actions requires time and money. Payroll costs for supporting the technology needs of small businesses can escalate exponentially without proper escalation processes and workflows in place, and controls to manage exceptions. Two of the key success factors for managed services businesses are optimization and proactive support. Driving efficiency throughout an MSP organization improves the cost of delivery and bottom-line profitability, especially with the ongoing inflationary pressures on payroll and other critical expenses.

Controlling overhead must be a top priority for any business today. For MSPs, one of the best options for trimming labor costs and minimizing financial risks is through automation and tool optimization—getting the most value from each feature of their technology platforms.

Focus on Organizational ROI

The best way to highlight what an IT firm can do for its clients is to demonstrate its own optimization strategies. How does the MSP employ and integrate its various technologies to get the most benefit from each specific investment? While those systems may vary between providers and customers based on their specific business needs, the strategies around optimization and automation should be similar in mindset and application.

In other words, MSPs should evaluate the feature set of each potential solution (internal and client-facing) and select the options that provide the best win-win for all parties. Determining the hypothetical return on each investment can be tricky in such a dynamic environment. Clients may come and go, and providers may need to add and subtract tool based on a variety of factors, including technology advances, vendor relationships and pricing models. Keeping track of all those potential changes can be maddening for any MSP.

There are several common tool features that deliver a solid return for managed services businesses, including:

1. Management portals. Control and oversight are critical to an MSP’s success and the ability to add, remove and manage endpoints and track activities allows providers to handle many clients with fewer resources. That saves labor costs while boosting service quality and customer satisfaction.
   
2. Mobile apps. In today’s remote working world, techs and sales teams must be able to access to key business tools from virtually anywhere. Applications at their fingertips lessens the chances of losing critical information and reduces the time to it takes to resolve issues and close service tickets.
   
3. Instant alerts. Time is money, and the faster MSPs receive notice of potential internal or client-side problems, the less potential fall-out for their IT environment. Whether receiving notification of a power outage or probable cybersecurity attack, technicians can begin troubleshooting the issues and restoring any affected services.
   
4. Workflows/templates. Who doesn’t enjoy a good shortcut? Many technology vendors provide their partners with guides and pre-designed workflows to optimize set-up and success with their tools. Rather than spending time experimenting and adjusting configurations and processes, MSPs can leverage the know-how of SMEs and peers to limit their frustration and reduce their team’s learning curve.
   
5. Practical reporting. MSPs need access to the right information at exactly the right time to properly support their IT ecosystems and clients. Not just performance statistics for networks, but key data like employee productivity and resource utilization rates. From PSAs and RMMs to systems that manage collections and payments, reporting helps providers better manage their people and technologies—a sure way to maximize ROI.
   
6. MSP-centric integrations. This feature is one of the most critical for MSPs, especially those leveraging a variety of different systems to support a disparate collection of clients. Imagine how difficult it would be to work with multiple platforms simultaneously, attempting to reconcile all the alerts and information in real time. High-value MSP integrations bring oversight and data into one central location. These features make management much simpler, boosting efficiency and profitability.
   
7. Chat functions. Easy support options increase margins for MSPs. With fast access to vendors’ help desk staff, providers can resolve clients’ issues faster, reducing labor costs and helping to improve customer satisfaction and retention.
   
8. Automated billing. Any systems that improves an MSP’s invoicing and collections process has the potential to put more money in their bank account. Automatic billing features with scheduling options remove critical tasks (and guesswork) from over-taxed IT services employees while strengthening cash flow—a must in this economic environment. These features allow MSPs to convert more of their MRR opportunities into actual money in the bank.
   
9. Document managers. MSP businesses can be very complicated today between the multitude of systems, paperwork and client and employee-related issues. Effective management of critical internal documents and client standard operating procedures allows authorized personnel to easily access information whenever and wherever it’s needed.
   
10. Simplicity. The best feature for any tool that MSPs utilize is ease of implementation, use and management. Saving time and anxiety for managed services business owners and their employees is critical, so the simpler the systems are to operate, the fewer the headaches and lower the payroll. A straightforward application with automation and integration options is one of the most cost-effective tools in an MSP’s arsenal.

Keep it Simple!

Constructing a cost-effective managed services portfolio is not easy, especially for firms that target clients in multiple verticals with a dizzying number of needs. That toolset can be hard (and costly) to manage.

Most MSPs focus on developing core platforms and assemble their portfolios with flexible and feature-rich solutions that deliver a solid return on their investment. The platforms channel vendors specifically design for the managed services community can save providers a lot of headaches—and money. Why recreate the wheel with integrations and configurations for a non-industry specific toolset when those critical features are readily available in an existing system?

Purpose-built MSP tools like ConnectBooster give providers the features they need to do business. From integrations with best-of-breed industry platforms and automated workflows to a host of billing and collections-related options, IT services firms can improve efficiencies and improve cash flow—which translates into a solid return on their investment.

Schedule a 15-minute discovery call to see how ConnectBooster is specifically designed to save MSPs time, money and hassle.

The post Top 10 Tool Features that Deliver Optimal ROI for MSPs appeared first on ConnectBooster.

Successful MSPs get both. While one individual may not be responsible for the financial and technology sides of the house, the collective team must know what’s going on with critical client-oriented activities, the IT ecosystem, AND all back-office operations. No key metric should slip their attention.

The performance of billing, collections and payment operations is the perfect example. MSP owners and other business unit leaders should have a firm handle on the key metrics that can affect their ability to pay the bills while expanding the organization. Without a good understanding and proper oversight of these critical operations, even the best of companies have been known to stumble—if not fail. The list of IT services companies with sizable contracts that nonetheless ran into financial difficulties due to poor collections methods is longer than most would expect. Banking on MRR before clients pay their bills can lead to unhealthy financial projections and get MSPs into trouble over the long-term.

Measure and Track to Boost Cash Flow

Everyone working for an MSP should understand the impact and importance of collections activities. Team members need to know their support has a positive effect on operations, company growth and, in many cases, bonuses and pay increases. Suggesting ways to trim accounts receivables or encouraging clients to adopt autopay can aid those objectives tremendously.

MSPs should also track and, when necessary, work to improve Key Performance Indicators (KPIs) related to billing and collections, including:

1. Cash Flow and Debt Usage. One of the major problems for any business is converting predictable income streams into actual bank deposits. A strong cash flow allows MSPs to borrow less of other peoples’ money to fund expansion and take on new clients. Implementing best practices to collect payments for the services the provider delivers is essential to that goal.

2. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). This KPI consistently tops the list for any business valuation discussion. Regular evaluation of the overall financial performance of the organization allows MSPs to spot and rectify potential negative trends—and reinforce positive tendencies. The problem many MSPs experience is sales don’t always translate into earnings; accounts receivables must be converted into payments before that number goes on the books.

3. Average Monthly Recurring Revenue (AMRR). Measuring an MSP’s sales projections helps project eventual income opportunities. MRR is totaling the monthly billing charges for each client and then deducting hardware sales and one-time or intermittent fees. While this metric is a standard in the managed services community, highlighting the ideal financial health and value, unless that provider has a strong billing and collections game, actual monthly revenue will likely be lower.

4. Contract Profitability. Tracking this KPI helps MSPs manage and improve efficiencies within their operations. Accounts receivables can have a major impact on these figures, since the investments required to support that client may not be recouped if the billing and payments cycle is extended. The more time the collections team spend chasing down overdue invoices, the less profitable the contract or engagement.

5. Client Churn Rate. Measuring the percentage of clients your MSP loses over time is critical to retention plans and potential M&A efforts. Many providers end up parting ways with customers for payment-related issues, so implementing an effective and fair collections process can ease many of those pressure points in the relationship.

6. Client Lifetime Value (CLV). Similar to contract profitability, but from a longer-term assessment perspective, this KPI quantifies the strategic financial opportunities of working with various businesses. Understanding the value of different engagements allows MSPs to gauge investments needs for acquiring and growing new managed services customers. In addition to sales and marketing expenses, providers must estimate the cost of the goods and services sold, as well as support. Collections charges and write offs are easy to overlook, but implementing efficient policies and procedures for billing and payments can minimize the impact on CLV.

7. Break-Even Sales Point. No matter how successful an MSP is at landing new clients and contracts, the business will struggle if the leadership team cannot keep costs in check and ensure clients are paying on time. For example, before implementing ConnectBooster, there are many reports of providers having $50,000 to $100,000 in accounts receivables balances that they struggle to collect. Those situations can lead to liquidity and cash flow issues and drive up the cost of doing business or eventually cause an MSP to close its doors.

8. General & Administrative (G&A) Expenses. The more people and time businesses put into their collections’ efforts, the greater the impact on the bottom-line. Managed services is all about efficiency, so implementing effective policies and industry best practices across the entire organization is critical to success—especially with billing and collections. Shortening that cycle through automation helps reduce costs while ensuring more timely payments.

Watch KPIs to Reinforce Best Practices

The bottom line is every employee’s responsibility. From owners and managers to sales, marketing, and support teams, ensuring the profitability and long-term viability of the organization protects everyone.

Effective billing and collections processes are key to that financial stability. From the first contact with a prospective client to their payment hitting the company’s bank account, efficiency ensures success. Helping employees understand how their particular activities affect the bottom-line can spur cost-saving and business-improving ideas and make them feel more connected to the business.

MSPs can utilize these KPIs in those efforts. By scrutinizing results and adjusting processes and plans, providers can strengthen their profits and cash flow and ensure the long-term success of their business.

ConnectBooster is proven to boost cash flow while saving MSPs valuable time and money. Schedule a 15-minute discovery call to see how.

The post 8 Billing, Collections & Payment-related KPIs To Boost Your MSP’s Cash Flow appeared first on ConnectBooster.

Technology companies should always lead the charge to innovation. Whether performing a major system overhaul for business clients or updating their own operations with the latest innovations, the drive to thrive begins with IT solutions. That concept should apply from the first monitoring application installed on a client’s PC to its billing and collections systems: every piece of technology in the collective customer/provider ecosystem should be connected and leveraged.

MSPs typically have both the skills and knowledge to automate and integrate technologies that can be game changer for SMBs, yet they often overlook the most important consumer – themselves. IT services professionals, like the cobbler in the fairy tale, are often so consumed with doing the best possible job for their customers that they fail to make similar improvements in their own businesses.

Time is a major factor. According to the Kaseya 2023 Global MSP Benchmark Survey Report, nearly 70% of executives work holidays, while more than half regularly put in 50+ hour weeks and perform all-nighters to support their clients. That makes it tough for MSP owners to focus on business planning and other issues.

The problem with those scenarios is that taking a little time to upgrade their managed services operations can have a multiplying effect on productivity. Since MSPs often support dozens of businesses, if not more, the benefits of automation can carry through the entire IT ecosystem, speeding up various processes and optimizing management capabilities. The potential return on technology investments for providers can be exponentially higher than similar innovations for a single client.

On the backend, automation can deliver big returns for billing and collections, speeding payments and boosting cash flow. For example, integrating MSP management and accounting application with ConnectBooster creates a more efficient (i.e., faster) way to get paid for the services providers deliver.  It’s a critical step towards achieving collections maturity for a managed services business.

Efficiency is the Driver

In an era of skills shortages and rising payroll costs, automation is an MSP’s best friend. No business owner wants to overextend its capabilities and overtax employees. When there are not enough qualified people available to properly support all of a managed services provider’s clients, there are basically two options: innovate or downsize. Unless that MSP is preparing to retire or wishes to convert to more of a “lifestyle business,” automation should be the preferred first step to balance workloads and augment the firm’s capabilities.

The research confirms that point, with approximately 90% of IT services providers affirming that automation is a crucial component of their business because those technologies improve efficiencies, allow them to take on and manage more clients and generate more revenue. Powering endpoint management, monitoring, patching, ticket resolution and cybersecurity with applications and integrations saves MSPs a tremendous amount of time, energy, and headaches.

Other related findings from the Kaseya report include:

• Nearly two-thirds (64%) of the IT services providers executives and more than half (54%) of technicians (54%) selected automation as the top feature for Remote Monitoring and Management (RMM) tools.
• 90% of respondents indicated that integration between core applications is critical to their operations and business, helping them streamline processes and minimize duplication of standard and repetitive tasks.

Integrations Drive MSP Success  

Removing people (manual steps) from a process helps minimize errors and delays. That’s a key reason why MSPs rank integrations so high on their “must have” features list. Those connections empower IT services businesses, improving productivity without increasing payroll and other critical expenses.

For example, integrations between Customer Relationship Management (CRM) platforms, Professional Services Automation (PSA) applications and quoting tools can empower sales teams and provide extensive reporting capabilities for managers. These linked systems make it easier to update and share key account details and communicate more effectively with current and prospective clients.

On the backend, integrating ConnectBooster and accounting packages can speed and simplify an MSP’s billings and collections activities. Connecting a quoting solution to that solutions mix optimizes communications between MSPs and suppliers, giving providers access to the latest and most competitive pricing. Those solutions also boost providers’ margins and speed delivery of products and cloud solutions for their customers. With 7% of providers reporting declining MRR — nearly double the numbers from the 2022 Kaseya Benchmark Report – capturing every billable hour and getting paid quickly can help offset profit concerns.

Collecting and sharing information is also vital for closing new and larger deals and growing “wallet-share” with clients and prospects, and MSP-centric integrations make that possible.

When properly configured, these connections can tear down data silos between applications and strengthen the lines of communication in a managed services business. Sales and support teams can more readily oversee accounts and plan next steps. Integrations that connect to a “single pane of glass” management portal simplify reporting and planning processes by giving business leaders immediate access to data files, email messages, texts, call and meeting recordings, and other critical information.

To Automate is to Innovate

The bottom line for MSPs? Employ as many time-saving tools as possible to minimize manual interactions. Integrations free team members to focus on other important aspects of the business, like prospecting, closing, and onboarding new clients. Automation is the force-multiplier that lets MSPs do more with less.

The options that boost back-office operations typically provide a quick return on investment. For example, ConnectBooster users report saving between eight and twenty hours per month on billing and collections activities. With the scarcity of talent and high cost of hiring, training, and retaining quality employees, MSPs can’t afford not to automate their billing and collections processes.

The savings in payroll alone can add up quickly and, when combined with the improvements to cash flow, provides a tremendous lift to the bottom line and productivity. Looking to build the ultimate automated billing system for your MSP? Check out this ConnectBooster article for some industry best practices.

The post The Value of Automation and Integrations Have Never Been Higher for MSPs appeared first on ConnectBooster.

One of the age-old challenges for managed services professionals involves tool strategies. Whether assembling their portfolio of client-oriented solutions or designing internal technology systems (or both), many MSPs tend to transition their approaches over time and adopt whichever option makes the most sense at that particular point. A lot of variables come into play.

From the availability of integrations and features that support an MSP business as well as support options and affordable pricing, providers must assess each piece based on their own business needs. Every component needs to make sense from an operational and financial perspective, providing the organization with the necessary functionality with few, if any compromises.

Those factors are especially critical when it comes to the payment side of an MSP business. Concessions in this critical area can be costly. Can providers effectively use a single vendor platform to manage invoices and accounts receivables, or should they assemble a specific collection of solutions from different suppliers to handle those responsibilities?

New Concerns as Ecosystems Expand

The “one or many” debate is as old as the IT channel—and the continual introduction of new and more flexible cloud solutions is not simplifying those conversations. A lower cost of entry into the global software space makes it easier for unproven players to set up shop and further muddy the waters. In addition, as the growth of cloud services fuels competition in the development community, those companies, in their search for more profits, seek different go-to-market (GTM) strategies, further confusing prospective users.

In the SMB community, responsibility for sorting through all the various options, vetting the viability or new suppliers, and managing all the pieces typically falls to IT services providers. Which solutions best address clients’ needs while supporting channel partners? Finding suppliers with suitable applications and GTM strategies can be a full-time job for MSPs today.

The advantages frequently favor one side at the demerit of the other, so the objective is often to find a good balance. For example, IT firms often test two or more backup and disaster recovery (BDR) solutions to evaluate the effectiveness and management capabilities of each before adding the best to their portfolios.

All things (features and usefulness) being equal, vendors that offer MSP-specific control panels and integrations with channel support programs should receive a higher ranking. The closer the connection to the unique needs of providers and their clients, the higher the value of the solution. Finding vendors that understand the managed services business model and build systems to support those ecosystems can be a major challenge—especially with billing and payment technologies.

Taking a ‘Single Pane of Glass’ Approach with Collections

MSPs need every part of their operations to run like clockwork. From services and sales to invoicing and accounts receivable management, process efficiency is critical to profitability and long-term success. That’s why many IT services firms adopt a single platform approach.

Leveraging a ‘single pane of glass’ allows MSPs to manage multiple actions from one central portal—empowering their teams with more operational insight and control. A comprehensive solution suite typically integrates several complementary tools and automatically shares relevant information across the platform. With automation at the core, single vendor systems speed up and simplify processes, eliminating many of the mundane, manual tasks that increase payroll and keying errors. Additional benefits include:

• Vendor management. Fewer supplier contacts and interactions lessens the time and energy spent communicating about routine matters. Single vendor platforms also allow MSPs to forge deeper and more meaningful business relationships to improve the client and user experience.
  
• Interoperability. Single vendor platforms are designed to work as one. Optimizing management and visibility for MSPs and their clients helps assure greater success. For example, ConnectBooster provides a seamless experience each step of the way, from invoice creation to payment, and offers deep integrations with and critical tools like PSAs, accounting and quoting solutions.
  
• Security. The fewer the connections, the easier it is to protect the data. Most IT vendors invest a lot of time and resources to secure their platforms and segment access to sensitive and highly vulnerable information. For example, ConnectBooster allows clients to review invoices and transaction information while protecting bank and credit information from prying eyes.

Each of these benefits are significant for payment technologies. The fastest way to convert recurring revenue-based contracts into actual cash flow is with a fully automated and integrated platform that simplifies, secures and ensures payments (like ConnectBooster).

The Advantages of a Multiple Vendor Platform

Options are rarely a bad thing. In the technology community, having a number of possible solutions to address different business pain points provides greater flexibility to IT services providers. Choices typically increase availability, profit potential and creativity.

Developing a multiple-vendor solution stack gives MSPs the freedom to work with the people, technologies and companies that best address their business needs. That independence allows providers to easily add and drop products and services to meet changes in clients’ demands and operational requirements. Another perceived advantage of this approach is the ability to implement each MSP’s best-of-breed options into its solutions portfolio. From cloud-based cybersecurity and compliance monitoring tools to PCs and laptops, most every provider has preferences.

Of course, for every positive benefit of a multi-vendor approach, there can be downsides. Those include:

• Relationship complexity. Managing multiple vendors requires more time and resources. Additional phone calls, emails, and visits detract from everyday activities and attention that should go to support existing and new clients. MSPs invest a lot of time evaluating, onboarding, and replacing solutions, and increasing the amount and frequency of those vendor interactions comes at the detriment of other, more beneficial activities.
  
• Expense. Efficiency drives profit. The more resources MSPs invest in managing vendor relationships, adapting portfolios and integrating new solutions, the greater the opportunity cost. Connecting and optimizing technologies that drive a provider’s back-office operations can be time-consuming and expensive, especially those that manage critical processes like invoicing and collections. Weak integration points can compromise timely payments and put client data at risk. Training techs, sales and account managers on multiple technologies adds even more payroll costs that an MSP may never recoup.
  
• Interoperability. MSPs can run into compatibility issues when leveraging multiple vendors in their solution sets and operations. Does the vendor have an API to connect IT-services-specific tools? How well do the processes and automation workflows align with an MSP’s business model? What sales team may pitch as an easy operation can be a lot more complicated (and expensive) to resolve.

Never Compromise on a Payment Platform

While MSPs have a number of vendor and solutions options to choose from—and that list keeps expanding—simplicity drives success with invoicing and collections. A comprehensive payment platform like ConnectBooster streamlines and automates those processes for providers and their clients.

MSPs deserve easy integration options to link in all their critical tools. From professional services automation (PSA) and CRM platforms to accounting and quoting applications, ConnectBooster understands what connections IT services companies need to get paid on time. As a part of Kaseya’s IT Complete platform, a portfolio of MSP-centric tools, the channel DNA runs deep.

ConnectBooster users enjoy the best of both worlds. As a single vendor payment platform, MSPs have the power to get paid on time with minimal effort. On the flip side, ConnectBooster integrates with other best-in-breed solutions to provide an even greater user experience.

MSPs deserve to receive on-time payments for the services they deliver each month. Simplify collections with a complete, all-in-one recurring billing system platform—link ConnectBooster to your PSA, accounting package and other IT services tools. Consider that combination the ultimate cash flow enhancing solution. Schedule a discovery call to learn how ConnectBooster can transform your company’s billing, collections and invoice reconciliation process.    

The post A Single or Multiple Vendor Payment Platform Approach for MSPs: Which is better? appeared first on ConnectBooster.

Whether billing a client after completing a project or sending out invoices every month as part of a recurring service offering, without effective policies and processes in place, accounts receivable balances can skyrocket in just a few months. No one needs those collections nightmares, particularly MSPs trying to gain a footing and expand operations, and without dependable cash flow, their short and long-term objectives could remain well out of grasp. 

Payment expectations may be one of the least mentioned yet most critical topics that every provider’s sales team should bring up before closing a new business deal. That conversation sets the proper tone for the financial side of the client/MSP relationship by helping minimize the confusion over invoicing and payments. Sharing the “ground rules” and the process, including methods, timelines, tools, and agreeing on specific terms, can prevent problems in the weeks and months ahead.    

What is the process? When will a new client receive the first and subsequent invoices and when and how should they make payments? Many businesses fail to answer those questions until long after their sales teams close a new deal, and the customer gets the first bill. In some cases, those conversations happen only when the person who handles collections calls to check on an overdue invoice—not an optimal time nor the most comfortable of discussions for MSPs or their clients. That situation can be awkward and set the wrong tone for a professional business relationship.

Communicate Early and Often

An upfront collections conversation helps minimize those problems. While relatively few people enjoy discussing things like billing processes, credit terms and penalties for late payments, that step is more critical than the attention it typically receives. Someone needs to have those discussions before prospective clients sign on the dotted line of a new contract—not during the sales-to-account manager hand off call and certainly not after the first month of service.

MSPs that outline their financial policies and procedures prior to “the close” are more likely to get true buy-in from the decision makers. Delaying those discussions or hoping others will handle the inevitable issues that will come to light from not reviewing that critical information can set the stage for failure. In most cases, the disappointment of not getting paid on time can be traced back to this lack of proactive communications. The timing factor means much of the responsibility for setting payment expectations falls on the sales team. While some of the more “tenured” professionals might suggest that task does not align with their job description—and in the past, they might be correct—the increasing importance of recurring revenue and cash flow invalidates that argument today. Everyone plays a part, from sales and account managers to the technical and accounting teams.

Setting proper expectations around payments, services and other deliverables is now a collective responsibility inside a managed services business. Perhaps employee job descriptions should include language about answering payment questions and helping to solve similar client-related problems? Many companies are encouraging and incentivizing cross-company engagement to tear down traditional silos of responsibility and communication and create a more collaborative, sharing, and caring environment. That doesn’t mean everyone does everything all the time but allowing employees to walk a mile in their co-workers’ shoes fosters a more understanding and supportive workforce.

That practice can greatly benefit those on the collections side of an MSP business. From the latter part of sales discussions and during account manager hand-off calls to onsite service and help desk activities, there may be opportunities to support billing and A/R. Does a prospect have questions on their invoices or payment responsibilities? Some employees may be uncomfortable asking about overdue bills, but they could collaborate on game plans with the collection team or their managers before the next engagement.

Communicate, Review, Repeat

Everyone in an MSP business can help in some manner. Since IT services firms rely heavily on their monthly recurring revenue to pay bills and expand operations, each employee has a responsibility to point out and help address cash flow concerns—including overdue invoices. Of course, to provide that support, team members need to understand the mechanics and reasoning behind billing and collections.

What should employees know? 

• The basic invoicing process
  Does everyone understand what information goes on a client’s bill and the frequency of delivery and collections? Who is responsible for ensuring the bills go out in a timely manner and for answering questions?

• Payment terms
  When is payment due for each invoice? MSPs’ employees should understand the deadlines and penalties for non-compliance and how those terms affects each client. That may seem like legalese to some, but this language is an important part of the financial relationship.  

• Transaction process
  Last but not least are the guidelines that ensure proper payment of outstanding invoices. Many MSPs are moving to an autopay only method (electronic banking), such as through ConnectBooster, to eliminate the typical collections hassles and time-delays. However, it’s important that employees understand how the tools work and who to contact if a client experiences any problem with the system or has questions on payments. Many MSPs include a billing and collections check-in during quarterly business reviews (QBRs) or more frequently in the first few months after onboarding new customers.      

Ready, Set, Go!

While MSPs should follow proper accounting standards and protect client data, those who engage regularly with clients should have access to account payment status and other relevant information. The best way to boost collections and cash flow is through team collaboration and support.

Setting new client payment expectations is a team sport. By educating employees on the need for tight financial policies and providing everyone with resources to assist the collections department in its mission, MSPs can improve customer relations while strengthening their cash flow.

People, processes and automation are all essential parts of collections. ConnectBooster is a vital tool in this process. With a secure payment portal, client visibility and an easy path to autopay, customers are more capable of meeting MSP’s expectations. And MSPs can achieve the cash flow they desire, with little ongoing effort and hassle.

Schedule a demo to see how ConnectBooster makes billing and collections effortless.

The post Set New Client Payment Expectations the Right Way: During the Sale appeared first on ConnectBooster.

Self-funding is a critical objective for any business. The less need for financing, the lower the risk. With interest rates on the rise and the uncertainties around lines of credit, the only sure bet when expanding an MSP organization is having the cash on hand to pay for those activities. Whether hiring technicians, leasing new facilities, or contracting with marketing firms to drive lead generation, no owner wants to add unnecessary expenses to their company’s bottom line.

Aging accounts receivable (A/R) have the same effect. The longer clients delay payments, the less money MSPs have available to implement expansion plans—one side essentially gets an interest free loan at the other’s expense. It’s important for business leaders to understand that concept when developing or refining collections policies. A poor strategy can slow payments and rapidly inflate the company’s A/R balance.

Just the Facts

Accounts receivable is one of the easiest metrics for an MSP (or any business owner for that matter) to understand. How much do your clients owe your firm? More specifically, A/R is the balance due for goods and services delivered or that have been used but not yet paid for by customers. The key point is accounts receivable are on the asset part of a business’ balance sheet since those outstanding balances can be readily converted into cash.

The problem with that assumption is that nearly every company fails to collect from some customers or ends up at some point selling their outstanding debt to collections agencies for pennies on the dollar. MSPs are no different. Managing aging A/R is a struggle across every industry, but for those that send out a variety of invoices monthly, including those for just completed projects as well as services, it’s easy to lose track of the process. Payment dates tend to slip by quickly without a good system for managing all the chaos.

Many MSPs don’t have an effective way to quickly convert invoices into bank deposits. As a firm’s aging accounts receivable balance rises, it weakens (or even loses) its ability to pay employees, suppliers, and other expenses without dipping into reserves or borrowing other peoples’ money. That’s why successful managed services businesses implement collections best practices and automate as many of those processes as possible.

Leverage Technology

Integrating customer relationship management (CRM) or professionals services automation (PSA), accounting and quoting tools with a secure payment portal (i.e., ConnectBooster) allows MSPs to increase their overall billing efficiency and cash flow. When properly connected and managed, these systems optimize the experience for providers and their clients, sending out invoices and collecting payments on schedule.

Whether billing at the end of each month or upon completion of projects or delivery of new products and services, MSPs can count on the technology to take care of mundane tasks that most employees would rather not tackle.

Automated collections reduces anxiety across the board. Clients receive invoices in a timely fashion, have an option (with ConnectBooster) to double-check previous statements themselves thanks to a 24/7 accessible payment portal, and can set up autopay to prevent late charges. MSPs benefit from all the same features. The best result of all is the ability to minimize if not eliminate aging A/R. With strong collections policies layered into these automated systems, providers can quickly and effectively reduce payment lag time and boost their cash flow.

The Bottom Line

A robust collections program gives MSPs greater control of their financial futures. That means less reliance on banks and credit agencies to fund business expansion—along with less interest expenses and fees.

Having cash on-hand also provides greater flexibility, opening credit lines for firms to pay for unplanned and high potential projects. MSPs with aging A/R issues may not be able to take advantage of opportunities such as onboarding a major new client and properly building out their solutions stacks. Without adequate cash flow, providers may be forced into taking out loans and incurring higher financing costs to adequately fund those types of business growth activities.   Getting paid on time eliminates many of those headaches. MSPs that can quickly collect their monthly recurring revenue and project-based income MRR can readily reinvest in their businesses. Those with aging A/R lose out on all those benefits and may throw away thousands of dollars in interest every year.

The best way for MSPs to minimize or eliminate aging A/R and optimize cash flow is by automating collections. With ConnectBooster, your MSP can bill and collect the exact invoice amount generated by your CRM or PSA to dramatically minimize your aging A/R and enhance cash flow. Contact us for a demo to see how ConnectBooster can transform your billing and collections procedures.

The post Aging A/R is a Growing Problem for MSP Businesses appeared first on ConnectBooster.

Unfortunately, for some providers, those optimistic forecasts can be a blessing and a curse. While bright market prospects make it easier for MSPs to build a base of new clients and add incremental services and revenue streams, that situation can lead to overconfidence and lax business practices. Many providers do well in the initial stages of development and flame out as their operational costs rise faster than income.

In fact, some MSPs readily admit their business management skills lag far behind their ability to build and support complex IT ecosystems. Network design and data protection require much different talents than setting sales objectives, creating financial forecasts and developing quarterly plans. To build a successful long-term small business, MSP owners cannot afford to lose focus and get caught up in the minutia of day-to-day operations. Failure to develop and constantly monitor and, when necessary, alter strategic plans can majorly impede the growth of the organization.       

Focus on People, Processes and Metrics

Business owners never intend to lose focus or ignore priorities. Many get caught up in the flurry of activity, helping land and onboard new clients and hire and train employees, or put out some of the many “fires” that tend to occur with thriving organizations. That’s when the real problems happen.

Without a scalable business mode, policies and best practices tend to fall to the wayside, and no one steps up to implement necessary improvements—the “not my job” response is quite common today. The stress of running any business can be overwhelming and when things get tough, one normal owner reaction is to spend more time in activities that bring them relief. For IT professionals, that typically means working on technology-related projects or problems.         

Avoiding areas of concern creates more problems. Small issues tend to grow larger without attention, especially those that involve clients and staff, and could spiral out of control. Here are just a few of the surprising and easily overlooked reasons why MSPs slow their own business growth:  

1. Strategic operations. Processes tend to get “stale” over time. In most industries, there is a constant drumbeat of efficiency as innovative companies develop and adopt new methodologies and refine former industry best practices. Positive changes can boost revenue and profitability, improve customer and employee satisfaction and increase the value of the business. MSPs must embrace that mantra of “continual transformation” to ensure scalability within their operations. From the sales and marketing processes to service delivery and collections, providers need to periodically evaluate and optimize methodologies across their organizations. Without that level of attention, MSPs may see revenue, margins, client counts, and employee retention slow, if not fall.      

2. Service delivery. From new client onboarding issues and delayed projects to unplanned downtime and other day-to-day operational setbacks, MSPs can easily be forced into   reactive responses. Periodic evaluations and testing across services ecosystems allows providers to identify and address potential points of failure. Communicating and collaborating closely with peers, vendors and distributors can help MSPs boost delivery success, as can participation in channel-focused forums and partner communities. Discussing potential concerns and implementing best practices helps providers minimize future risk.              

3. Automation. MSPs are often seen as early or leading-edge (not bleeding edge) adopters, actively promoting and implementing the latest technologies with their business clients. However, many IT services firms follow the proverbial philosophy “the cobbler’s children have no shoes” when it comes to innovation within their own operations. In other words, MSPs are often so busy and focused on their clients that they fail to instill the same sense of improvement urgency internally. Investing in automation tools such as services ticket routing, support chatbots, payment portals, and VoIP solutions can streamline key client-focused operations and improve the customer and employee experience. Automation reduces response time and strengthens relationships by keeping relevant stakeholders in the loop. These tools eliminate many mundane tasks and allow employees to focus on higher-value activities (like problem-solving and strategizing with clients).

4. Portfolios. Are you offering the things your clients will need or want tomorrow? While an MSP may not have the ability or desire to build a technology practice to directly deliver every possible service, it is important to understand which solutions each customer needs or will require soon—and have a hand in procuring and/or supporting those offerings. If not delivering or co-managing each critical part of an IT ecosystem, it opens the door for competitors or lessens the value of your MSP to that client.       

5. Hiring and onboarding. Everyone in the IT community should understand the value of high-quality technicians, engineers, sales and marketing professionals, and other specialists who support their business. Creating a solid staff is one of the toughest and most critical tasks for an MSP, especially when scaling the business is a top priority. A quality technical bench and sales department are essential to a growing managed services business, so acquiring and developing those professionals must take precedence. HR needs should be listed in the company’s business plan with key objectives and potential timelines for onboarding and training.     

6. Client retention. Improved customer satisfaction is one objective that an MSP can easily take too far. Concern over losing contracts or customers can lead providers to make concessions that hurt cash flow, investment options and long-term business prospects. Knowing when to walk away from detrimental clients—those who pay late, consume too many resources, or create undue anxiety for the MSP’s staff—can mean the difference between profitability and failure.

Focus on Optimization

Constantly innovating to stay ahead of the competition, attract new customers, and retain existing customers is a real challenge for any business. For MSPs, those obstacles can be even more difficult with all the dynamics involved inside and outside the organization

That’s why MSPs need to be more proactive than ever before. By investing in automation, advanced sales and operation-optimizing solutions, training and client relationship-oriented programs, providers can prepare for any challenge that comes their way.

Position your MSP to grow by optimizing your billing, collections, payment processing and invoice reconciliation processes with an all-on-one tool that will save you time and money. Get pricing and learn how you can achieve healthy cash flow with ConnectBooster.

The post Six Surprising Things That May Be Slowing Your MSP’s Growth appeared first on ConnectBooster.

Now is the perfect time for desiring MSPs to cash in—under the right conditions. As any savvy business owner would expect, investors are not looking to buy just any technology business. One of the more proven approaches is to start with one or more highly successful firms with solid key performance indicators (KPIs) and optimal backend processes. Once those businesses are under control of the new owners, those investors may expand into new geographies or specializations by acquiring underperforming yet high potential MSPs. Implementing best practices across the combined organizations improves efficiencies and raises profits.   

Sales opportunities and healthy KPIs are key. A highly scalable MSP not only offers tremendous revenue growth options, but it optimizes its people, processes, tools, and other resources. Those firms provide the best-case scenarios to those looking to acquire or invest in the managed services space. MSPs need to create solid ROI opportunities for potential owners and investors to get the most value from their businesses. There is no real secret to M&A success—it’s about dollars and using common sense.

That’s why 2023 has the potential to be a big year for managed services mergers and acquisitions. Recurring revenue and long-term contracts reduce risks for investors. While other industries reduce their workforces in uncertain times, successful IT services firms typically experience sales growth. Businesses can significantly trim their payroll expenses by outsourcing IT support, infrastructure, cybersecurity and other technology services, especially as costs rise to hire and retain those professionals.           

Gartner predicted worldwide IT spending will hit $4.6 trillion in 2023, a 5.1% increase over previous years’ gains, and someone has to make it all work. More organizations may be open to outsourcing at least a portion of their technology support dollars. That spells opportunity for MSPs.

Raise Your Firm’s M&A Profile  

Demand and growth potential are just a few reasons why MSPs are gaining more investor attention today. Managed services valuations are rising based on several factors, including:   

1. Strong recurring revenue streams.
   MSPs typically focus a lot of time and attention on boosting cash flow. Whether shifting attention away from one-time projects and infrequent hardware sales to more predictable income, or developing new “as-a-service” opportunities, IT presents a number of possibilities for driving new income streams. The math is quite simple: increasing cloud and monthly support contracts raises monthly recurring revenue (MRR). Those steady income streams are what many investors need to fuel expansion plans and generate a long-term ROI. 

2. Robust contracts. 
   Prospective investors scrutinize managed services agreements to determine the MSP’s true financial outlook. The longer and stronger the contract, the less risk. Effectively crafted managed services agreements detail the deliverables for each side and the penalties for potential failures, effectively defining the relationship, rules, and payment timelines and processes. Providers need to periodically review all these documents and templates with their accounting and legal teams to ensure everything is up to date. Liability, length of contracts, and collections methods and tools should be a major focus during those meetings.
   
3. Service offerings.
   Closing larger deals with existing and prospective customers is the most effective way to boost revenue. Suggesting complementary incremental solution options to sales proposals boosts client awareness—MSPs get an opportunity to educate decision-makers on the benefits of each selection. For example, including cloud backup solutions to all new and renewing contracts helps spur conversations on the cybersecurity and business continuity needs of their business. The incremental revenue also boosts the value of the MSP for potential M&A activity.

4. Cash flow.
   Effective billing and collections processes can further strengthen an MSP’s valuation. Without constant attention, even the most successful providers can run into cash flow issues, especially when rapidly scaling operations and onboarding new clients.  Strengthening collections policies and procedures, and capitalizing on automation and integrations, helps providers quickly convert more of their monthly recurring revenue into cash, which also increases the company’s valuation.

5. Skilled employees.
   Potential stakeholders look for companies with strong skills sets, high growth potential and staff stability. MSPs with positive HR plans and active training and retention programs typically draw more attention than unstructured firms with haphazard personnel policies. A strong staff reduces investor risk. Many buyers want some type of assurance that the MSP’s most skilled team members will remain after the sale.      

6. High customer satisfaction and client retention.
   Happy, long-term customers are a high-value asset for MSPs. Many prospective buyers will closely scrutinize account turnover and satisfaction scores to minimize the risk of losing clients following a merger or acquisition. Implementing customer satisfaction scoring applications helps MSPs identify and manage potential problems before seeking potential investors.  

Get the Best Possible Return

Achieving maximum valuation should always be a top priority—the greater the price tag, the more financial security for the principals. Of course, there can be other considerations, such as continued employment for the seller and current team members or a stake in the acquiring company. Raising an MSP business’ value provides owners with many financial opportunities.     

Equity is power. MSPs should work hard to ensure their business commands top dollar if and when the time comes to sell. Enhancing the revenue and profit potential of the firm also creates interest from potential M&A partners, including investors and buyers. The stronger the company’s cash flow, staff, contracts and customer satisfaction, the higher the valuation. Even if you have no plans to sell, MSPs that are built to sell are usually also great to keep and run. They’re efficient, yield high margins and a return on assets.

Will 2023 be the year you sell or bring in new investors for your MSP? With demand for IT services growing and M&A partners ready to pull the trigger, it might be the right time to consider your options.    

As you review your MSPs value and measure KPIs, don’t confuse outstanding accounts receivable with revenue. Money is only considered revenue after it’s exchanged hands and resides in your bank account. ConnectBooster has helped thousands of MSPs automate getting paid for predictable cash flow.

Request a demo to learn how ConnectBooster can help your MSP drive down A/R, and save time and money so you can focus on growing your firm and its value.

The post Why Your MSP Could Be a Bigger M&A Target Than Ever Before appeared first on ConnectBooster.

Is it time to hand off bookkeeping responsibilities? Do you know what type of professional is needed?

The processes and knowledge involved in the financial side of a managed services business have changed significantly over the past decade. Between competitive price pressures, rising personnel and training costs, and ever-evolving collections problems—not to mention new reporting and compliance requirements—MSPs have to deal with many more complexities today. Getting pulled in multiple directions on things outside their core competencies is bad for any business owner, but for managed services professionals responsible for critical decisions for many organizations, the effects can be devastating.

So many things can go wrong when working outside “your zone.” For example, most entrepreneurs know little about accounting best practices and all the disparate federal, state and local regulations and tax formulas. Many MSPs cross many geographical boundaries to support the IT need of their clients. With more employees operating from their homes and hybrid work environments, the number of locations under most providers’ control is increasing, as are the potential taxing entities with interest in each firm’s related income.

The financial and legal consequences of not properly reporting revenue to each city, town and state can be substantial. Now consider all the difficulties in reconciling income and expenses for various projects, programs and recurring services and it’s easy to see why most IT firms seek the help of qualified accounting professionals.

It’s the same story most MSPs tell their clients: every business owner should focus on what they do best and leave complicated matters like information technology support and accounting to experienced experts.

Build a Firm Financial Foundation

When do most managed services businesses bring in an accountant? “Usually when it’s too late,” suggests Rayanne Buchianico, owner of ABC Solutions, a Florida-based firm that provides accounting, tax, and management systems consulting to IT companies across the United States. With decades of experience supporting MSPs, she understands the unique needs and challenges of the community and bridges the gaps by implementing best practices and industry-standard tools and automations.

Buchianico helps IT services business owners identify accounting method weaknesses and build a plan to optimize the efficiency of their financial operations. That requires the ability to delegate and make changes in management styles. “MSPs have to stop thinking that no one can manage the books as well as they can and put off reconciliation until they have time. Waiting an extra minute turns into a day, then a week and a month, and before they know it, they need to file taxes and have 12 months of bookkeeping work to catch up on.”

She also warns that when accounting updates are two months or more behind, owners could be causing harm to their businesses, as well as to clients. “Unfortunately, many MSPs don’t take that advice, and I think 60 days is too long. You should run reports and check your financial position at least at every month’s closing.” Some of those key metrics for MSPs include:

• What was your revenue?
• Did you hit your company’s targets?
• What was the monthly profit?
• Is there a cash flow problem (look at the trends)?
• What is the current level of debt?

Knowing the current financial picture of the organization is critical to its success. Business owners cannot correct problems they don’t know exist, so monitoring and managing the key metrics is the one true way to ensure the company is building long-term sustainability.

Understand the Differences Between Financial Experts

MSPs also need people in the right positions at the right time. Understanding which tasks and responsibilities take priority is the first step toward building a timeline for hiring and contracting, and those decisions are an essential part of the budgeting process. Successful owners know the importance of bringing in appropriately skilled professionals at the proper company growth stage—to get the most value from each investment.

That philosophy holds true for the financial side of the house, too. Understanding the differences between bookkeepers, accountants and CPAs helps MSPs pick the appropriate professional for their current and future business needs. Buchianico points out the importance of having somebody in place to review and post transactions and reconcile the accounts. “At the very least, every managed services provider should have a bookkeeper. However, it’s one of the last things many business owners want to spend money on because they feel like they can do it themselves, which is fine as long as they are actually following through on that commitment.”

The problem is most MSPs didn’t start their businesses to be bookkeepers. Few providers have that type of expertise, and the vast majority of tech professionals will waste far too many billable hours and dollars focusing on those activities. Owners that hand off those tasks to an independent or part-time bookkeeper, or even a spouse, friend or another trusted person with good financial skills, can concentrate more time and attention on clients, prospects, employees and other core management responsibilities.

The objective should always be to put properly skilled people in that key financial role. A solid bookkeeping team strengthens the company’s financial side and provides MSPs with timely information needed to make critical business decisions.

For many organizations, the next financial development step is adding an accountant or fractional Chief Financial Officer (CFO) to the mix. MSPs greatly benefit by having someone to make sense of bookkeeping information and help them make sound business decisions based on the metrics. Those individuals or firms generally have more accounting and consulting expertise than an entry-level bookkeeper. Buchianico points out that “many MSPs will struggle to find a CPA who would want to get involved at that level. However, a number of organizations specifically coach managed services business owners on budgeting, cash flow analysis, KPI metrics and other CFO-related activities to ensure their success.”

One final role is a tax professional. Buchianico notes that these experts should be specifically licensed by the Internal Revenue Service in the areas of tax law and preparation, and knowing the differences between the various communities is critical. “Not all tax professionals enjoy doing CFO business analysis work, and not all accounting-type CFO people can or choose to do tax preparation. Finding one person who enjoys and is good at both practices is possible.”

Is an Accountant or Bookkeeper Best for Your MSP?

Most small businesses can start with a bookkeeper. As those organizations grow and the complexities of their financial transactions and tax liabilities increase, bringing in (or contracting with) professionals with more experience and consultative expertise is a good next step.

Much like IT security, the greater the business’ potential financial exposure, the more knowledge and skills it takes to minimize risks. MSP business owners should periodically evaluate their level of accounting support and ensure the right professionals are in place to limit the headaches with IRS and taxing authorities and maximize profits. Accomplishing those goals more than compensates for the extra costs of working with higher-level financial experts.

Ease the Accounting Burden with Automation

Month-end accounting tasks, like chasing payments, are time-intensive. The reality is many MSPs simply don’t have the time or resources to devote to moving the collections process along when customers are slow to pay. They quickly learn if you’re not managing your accounts receivable, cash flow issues follow.

With or without a bookkeeper, your MSP can ease the burden and hassle of monthly billing, collections, and accounting tasks, and achieve effortless cash flow with ConnectBooster. As the Channel’s demonstrated leader in accounts receivable automation, ConnectBooster has helped thousands of MSPs simplify accounting tasks, including invoice reconciliation, to save up to 20 hours each month. See for yourself—schedule a demo at www.ConnectBooster.com.

The post Does Your MSP Need an Accountant or Bookkeeper? appeared first on ConnectBooster.

The commitments are considerable, whether traveling down the street or flying across the country, if not the world, to participate in training sessions or network and collaborate with peers and vendors. Between the lost opportunity costs and hotel, travel and meal expenses, the expenditures tend to rack up quickly. The hard part is finding events that will enrich your life, aid professional development, or help attain business goals without breaking the budget.

From keynotes and engaging demos to networking with peers, vendors and other channel professionals, the options are plentiful every year, and the experience can be exhausting. However, with a little planning, that time can also be quite rewarding.  

Construct an Annual Events Strategy

Whether you own an MSP business or support the operation in some other capacity, attending industry events and engaging in professional training sessions should deliver a positive outcome for the organization. While it’s not easy (or even possible in some cases) to accurately calculate an ROI, a simple checklist of objectives can help travelers validate the value of the trip. With the events season just underway for 2023, there’s no better time to create an event strategy for your business. Need a few ideas for constructing a workable plan with measurable objectives? Here are several events best practices from successful MSPs:

• Map out an annual (at least quarterly) event plan.
  Begin by ranking each conference or show based on its importance to your business and professional goals. Personal interests (such as family or friends living close by the event venue) may play a part in how some select the conferences and training sessions they’ll attend, but organizational goals should be top-of-mind. Researching the options is a much easier process today with hosts promoting their agendas and list of speakers online and on social media months in advance. Validating the content and training opportunities before completing the registration and booking travel is a recommended best practice.

• Create a priorities list for each event.
  With so many activities at events, a good rule of thumb is to keep it simple by selecting three to five goals for longer conferences and one to two for roadshows and shows that run one day or less. Training sessions that could benefit professional development or the business should be at the top of that list. Many MSPs prioritize vendor partner events to optimize their technology utilization and deepen and broaden relationships with channel support and product teams. When prospecting for new suppliers, be sure to note booth numbers to save time (and steps) at the event.

• Build a personal schedule.
  The vast majority of conference organizers post their program details two if not three months before the show. Prospective attendees can review the session information and highlight the presentations that best match their own priorities. Larger events have their own apps for scheduling and communicating with attendees, though many MSPs add important sessions and meetings to their personal calendars. Experienced show-goers leave time for networking and one-on-one meetings with suppliers, peers, and others—conversations that tend to generate ideas and create new business opportunities.

• Follow schedule discipline.
  A good event plan can get off track quickly, especially when you meet old friends or get distracted or delayed in other sessions. Of course, altering the schedule to accommodate other business objectives isn’t bad for an MSP, as long as they don’t overlook key event objectives.

• Follow-up.
  This is the most critical step for achieving a solid event ROI. It may require several follow-up conversations to answer critical questions, work out key details of a new vendor program, or solidify plans for a unique new partnership opportunity. Success requires both sides to keep up the momentum and follow through on critical next steps.   

Put Those Plans into Motion

Now is the perfect time to map out a 2023 channel events schedule and strategy. Begin with a list of industry conferences, roadshows and workshops, including locations, dates and a few short notes on why to attend. Many MSPs set an annual travel budget and then frame out and prioritize the relevant events each quarter. That list should be dynamic since vendors and associations frequently add local roadshows and lunch-and-learns that could be hard to pass up to their travel schedules, especially those that take place in your neighborhood.      

Before booking flights or hitting the road, be sure to do a last-minute check of event agendas. Hosting organizations occasionally add practice-development workshops and channel business educational sessions. Many vendors and distributors invite partners to join in collaborative lunch discussions or after-hours entertainment. There’s nothing wrong with having a little fun while out networking.  

One final reminder, don’t forget to register. Signing up will open the doors to all the great sessions and discussions and ensure your place at the table. That’s the best way to get the most out of industry events.

Don’t miss your chance to visit with ConnectBooster and network and learn alongside thousands of MSPs at ConnectIT Global in Las Vegas on April 24-27, 2023. Find more information and register here. Best wishes and safe travels in 2023!

The post The MSP’s Guide to Getting the Most Out of Industry Event Attendance appeared first on ConnectBooster.

Most MSPs can recount multiple stories of those struggles. From expanding the client base and hiring the right people to scaling operations effectively without weakening support levels, providers must simultaneously focus on various matters. The hardest part is not dropping the ball on any of those activities while preventing the inevitable fires that come when managing IT systems for many different businesses.

The good news is MSPs are natural problem solvers. Constant challenges are a common reality for anyone running or considering owning a managed services business, which means the road to success can be paved with numerous obstacles. Triumphing over adversities will make an MSP and its team members even stronger.

That’s the reality of running a managed services business. The key to success is anticipating what challenges may come their way and developing proactive response plans to mitigate, if not eliminate, any potential harm.    

Identify the Pain Points

Knowing what things could go wrong or may already be impeding growth is critical to an MSP’s success. Providers must understand current and potential problems in order to develop proactive steps to mitigate, if not eliminate, those concerns—as should every business owner. Managed services providers should incorporate those realizations into organizational plans and build metrics, actions and checkpoints to ensure the firm is on the right track.

Current pain points for many MSPs include:

• Managing the chaos. Between digital transformation, escalating remote workplace demands and the rising threat landscape, a number of dynamics are at play for IT services providers. Today’s IT ecosystems are more complex than ever, and the number of activities that MSPs need to manage continues to rise at an alarming rate—a frightening concern when it’s so difficult to find qualified employees .
  
  Efficient processes and controls are key pieces of the solution. MSPs must continually streamline, optimize and automate (when possible) internal and client-facing procedures to minimize the chaos. Aligning with channel-oriented vendors with multi-tenant solutions and centralized management portals eliminates much of the stress for managed services business owners.         

• Securing the entire IT ecosystem. The days of slapping anti-virus software on computers and shipping them out to end users are long gone. Today there is no rest for MSPs as they constantly assess internal and client system risks and respond quickly to the latest threats. Controlling and limiting access to scores of networks, devices, and cloud applications is not just a major responsibility but a tremendous liability, with cybercriminals putting providers square in the crosshairs. MSPs can minimize those risks by implementing industry-best policies and practices, obtaining the appropriate cybersecurity insurance coverage, and employing effective backup and disaster recovery plans.                

• Enhancing cash flow. With all the economic and supply chain uncertainties, some reports suggest an economic softening this year with an upturn in 2024, meaning some businesses may delay supplier payments and trim expenses, especially in the first two quarters. Those actions could negatively impact cash flow for MSPs. The tactic of slowing accounts payables during uncertain times is nothing new to the SMB community, allowing companies to pad their bank accounts in case revenue drops while expenses remain constant (or grow). Now is the perfect time for MSPs to tighten collections policies and contracts, implement autopay requirements, and automate those processes [learn how ConnectBooster can help].      

• Retaining clients. Scaling a business can be difficult when customers go away. Pleasing clients and obtaining more of their annual budget dollars is a significant challenge but a normal objective for any successful organization. In periods of economic uncertainty, MSPs need to pay close attention to customers’ needs and regularly engage with key decision-makers to gauge their company’s financial health and viability (and ability to pay in the future).         

• Innovating portfolios and operations. IT services professionals must lead by example. Clients look to MSPs for insight into the latest technologies and operational efficiency best practices, which should be a cornerstone of their own businesses. That requires time and energy to streamline and automate processes with channel-centric management tools. By implementing innovative services and solutions, MSPs can increase innovation, proficiencies, sales and margins.

Construct and Execute the Plan        

None of these challenges are insurmountable. With a well-thought-out plan and continual evaluations and monitoring, MSPs can recognize and neutralize many of the problems associated with running a managed services business today.

Accountability and clear timelines are critical parts of those strategies. MSPs must assign qualified people to manage each particular activity and monitor progress with various objectives, giving them authority—as individuals or part of a workgroup—to change course if the need arises. The caveat is ensuring responsible people are in the right positions.

Hiring and training personnel to fill skilled IT positions can be difficult. However, it is typically much harder for MSPs to delegate critical planning and decision-making responsibilities to employees—and be actively supportive of their actions. The reality of running a managed services business today is it takes a team to make it happen. MSPs need more comprehensive support than ever to successfully scale their operations, revenue, and profits.            

The post Achieving Success through Adversity: The Reality of Running an MSP Business appeared first on ConnectBooster.

Managed services providers are battling several long-term issues that negatively affect their ability to do business. Unfortunately, financial and IT industry experts predict there is no end in sight for several of those challenges, including inflation, labor shortages and supply chain constraints. That last point is particularly concerning as MSPs attempt to upgrade critical systems for their clients while growing their revenue.

Following nearly three years of supply chain woes, 2023 may not provide many new solutions. The global economy is still experiencing hiccups from the pandemic and the demand for many products, especially IT components and devices, remains stronger than production. Some manufacturers are expected to proceed cautiously in the coming year with concerns over recession and inflation, particularly in Europe, where new Environmental, Social, & Governance (ESG) initiatives could significantly impact operations and purchases. The ongoing war in Ukraine also affects the supply of minerals and raw materials, including several key elements used in producing batteries and computer/electricity cables.   

MSPs are masters of overcoming the unknowns. If the past three years have proven anything to the business community, it’s the high value of having a skilled IT services team to solve the biggest challenges.

Those obstacles can be quite significant. When work from home (WFH) became the only option for businesses in many areas, MSPs upped their games—they planned the moves, procured hard-to-find equipment, and redefined their companies’ end-user support capabilities. With a virtually endless array of technological solutions and ideas at their disposal, managed services providers can quickly and effectively respond and resolve business-related issues for their clients, no matter the complexity.            

Addressing Supply Chain Problems

Product availability is one of the biggest issues MSPs will deal with in 2023. The good news is MSPs—the masters of technology, automation and process excellence—have several ways of addressing supply chain issues, including:          

1. Expand supplier networks.
   During the early days of the pandemic, many MSPs began partnering with more vendors, distributors and online marketplaces than ever before. According to a recent report on IT procurement, 50% of providers currently work with four or more distributors, with 20% leveraging at least six suppliers to source their technology offerings. Those numbers nearly doubled in the last two years. With more sources, MSPs are more likely to find what their clients need at the best price.  

2. Automate proposals and quoting processes.
   Another best practice for minimizing supply chain issues is maximizing the power of an MSP’s procurement tools. Implementing and integrating quoting and CRM systems allow providers to optimize the processing of Requests for Proposals (RFQs) and orders, which helps speed approvals, transactions and deliveries. Some of these systems allow decision-makers to select alternate options, monitor order statuses and locate hard-to-find equipment and supplies.    

3. Speed cloud transformations.
   Is hardware the best option? MSPs can use real supply chain issues to convince clients to make a digital conversion, providing them with a roadmap and the expertise to make a successful leap for the future. These changes are mutually beneficial. Business clients can reduce their capital investments for a low monthly payment while MSPs boost monthly recurring revenue (MRR) and cash flow.

4. Add online options.
   The good news for MSPs is that distributors are not the only option in today’s IT supply chain. Providers can readily procure components, devices and other supplies from e-tailers like Amazon Business, Newegg and TigerDirect. Those online ecosystems may not always provide the best margins, though the expanded options often allow MSPs to shop for the best prices and availability.   

5. Plan further out.
   If MSPs can control the timing of certain projects or alter schedules to match component availability, they can reduce clients’ anxieties and expenses. Of course, when customers have urgent needs, any delays could derail the sale or, in the worst case, cause service disruptions. Providers should highlight ongoing supply chain issues to push long-term system refreshes and upgrades rather than relying on the availability of replacement parts for older equipment.

Turn Challenges Into Opportunities

MSPs are in a prime position to help their clients deal with supply chain slowdowns. Overcoming those and other challenges are what managed services providers do best and procuring hard-to-find components and devices is sure to be a differentiator in 2023. Creativity will be critical.

MSPs can provide tremendous value using their procurement and technology expertise. Of course, the financial side of the equation is just as critical for solution providers—protecting sales growth and cash flow. Ensuring constant income streams in what experts suggest might be a very challenging year for many businesses.  

While many uncertainties related to the pandemic may be over, other disruptions are on the horizon, and MSPs’ clients will need plenty of quality advice and support in the coming months. Helping SMBs  steer their way through potential obstacles allows managed services providers to endear themselves to customers further and create a firm foundation for future growth.      

Efficiency and automation are critical for MSPs. ConnectBooster is the payment solution that thousands of MSPs trust for automated billing and collections and improved efficiencies. Schedule a demo to see how ConnectBooster can simplify your processes and save you time. 

The post 5 Ways to Overcome MSP Supply Chain Challenges appeared first on ConnectBooster.

From quiet quitting and skilled staffing shortages, managed services providers continue to battle a slew of economic, market and availability problems. With financial and industry experts predicting that most of those existing challenges (and likely a few new ones) will continue for the foreseeable future, MSPs may need to change their game plans in 2023.

That process begins with assessing the largest risks and potential points of failure. What realistic challenges could keep an MSP from achieving its annual business goals? Discounting the far-fetched possibilities such as meteors falling from the sky or businesses no longer being interested in IT, technology business owners must have a firm grasp of things that could derail their plans. MSPs don’t need an MBA or an economics degree to listen to industry podcasts, read financial expert blogs or attend channel events.

Each of those forums can provide IT business owners with the insight they need to build optimistic growth plans while considering worst-case scenarios. When developing strategies with actionable steps, there should always be contingency options so the company can change course when conditions shift.

Identifying those potential circumstances is a serious responsibility for any business owner. However, with the rapid changes in the IT services community, from technological advances and evolving work from home (WFH)/hybrid work environments to the effects of a potential recession on SMB clients, those obligations can be even more complicated. MSPs have to strike a balance in their business plans. What could logically keep them from achieving reasonable sales, profitability, growth and other goals in 2023?

Overcoming the People Shortage   

Two of the most critical elements of an MSP’s operations are people and portfolios. Skilled personnel are needed to help construct, implement and manage clients’ IT systems, with other professionals developing leads, closing new contracts, and handling billing, collections and other critical business processes. While tools and automation can lessen those workloads, MSPs must still expand their staff over time to successfully scale their operations.   

As 2023 gets underway, the ongoing shortage of people who are ready, willing and able to fill key roles in an IT services business shows no signs of resolution. MSPs must take a different approach to recruitment, hiring, and retention to staff for growth in the new year. While working in an IT services and support business can be difficult, managers are more likely to meet their staffing needs by offering engaging opportunities with attractive salaries and benefits in an appealing work environment.

Money is important, and MSPs often compete with larger companies with deeper pockets to land quality talent. However, the priorities of Gen Z and millennials are changing, and most are looking for a better work/life balance than previous generations, according to a recent Deloitte survey. Flextime and WFH options can draw more interest than the promise of long hours on the phone in a sterile office space.   

Invest in People and Development

The larger issue for many MSPs is how to find quality talent. Not necessarily the 10-year veteran IT professionals with dozens of certifications who can work independently (a great find if there’s room in the budget), but a mix of high-potential but less experienced candidates and novices. Those “diamonds in the rough” offer promise to IT services companies looking to thrive in the current environment.

But how can budget-conscious MSPs attract that type of talent? Here are a few best practices:      

1. Develop internship and mentoring programs.
   One of the most effective ways to instill core skills and business values in a work team is to build it from the ground up. Many MSPs work with local high schools, vocational academies and colleges to identify high-potential students interested in pursuing high-tech careers and create programs to boost their abilities. From part-time entry-level after-school jobs and post-graduate “trial” positions to mentoring sessions with IT business owners and technicians, providing paid or free opportunities and guidance helps providers discover and hopefully retain potential talent.           

2. Revise salaries and benefits.
   While money isn’t everything, most IT professionals expect to receive fair payment for the services they deliver. Are company salaries competitive with not just similar MSPs but other businesses that are recruiting high-tech workers? With WFH options, that list is virtually endless today, but conducting informal surveys of local wages for key positions—from office managers to help desk technicians—helps owners benchmark and adjust their own rates. Many MSPs pay a premium for critical IT positions to attract and retain the best talent.       

3. Partner with peers.
   MSPs are masters of leveraging strategic relationships; through those alliances, providers can optimize the use of their most valued resources—including people. Scores of IT businesses collaborate with peers to provide their respective clients with specialized and remote support. Those alliances give MSPs the ability to tap into other providers’ resources to scale services when demand exceeds capacity. The list of peer groups is lengthy, including Ingram Micro’s Trust X Alliance, TD SYNNEX’s CommunitySolv, the ASCII Group, the Tech Tribe, MSP-Ignite, TruMethods, Taylor Business Groups, IT Nation Evolve (formerly HTG Peer Groups) and The 20.  

4. Consider staffing agencies and alternate options.
   Several well-known firms specifically help IT services companies locate and hire quality talent. For example, IT By Design and VAR Staffing leverage specialized candidate databases, job boards, and algorithm searches to help MSPs find suitable prospects. While local agencies may offer similar services, their inventory of skilled applicants and understanding of the employment requirements of IT services companies may be less robust.   

5. Leverage vendor and distributor resources.
   MSPs often overlook some of the most cost-effective ways to scale their businesses and exponentially increase their support capabilities. Vendors make huge investments in their partner programs, and many offer white-label help desk, sales and even marketing resources to IT services firms. Distributors take that to another level, providing even more comprehensive support and programs to assist global partners. MSPs can leverage those resources to fill gaps in their own operations—from sales engineers and high-level cybersecurity professionals to 24/7 help desk support. Most come at minimal, if any, cost to partners.     

Turn Challenges Into Opportunities

Dealing with today’s biggest issues doesn’t have to be a negative for MSPs. From “quiet quitting” and “the great resignation” to other business disruptions, with the right plan providers can minimize the problems while finding new ways to support their clients.

SMBs need more help than ever to work through all the challenges that come their way in today’s global environment. How can they do more with less help? While MSPs may not have answers to all of those questions, most providers will need to reassess and realign their business models to meet growth plans and address their clients’ critical support needs.

Automation is the key to efficiency, especially when faced with skilled labor challenges. MSPs should employ as many time-saving tools as possible to remove manual tasks from its workforce. For example, integrating and automating the collections process with a PSA, accounting package, quoting tool, and secure payment platform frees team members to focus on more important aspects of their jobs.

ConnectBooster connects your CRM/PSA with your accounting software so you save time on bookkeeping, eliminate double-data entry, and reduce human-error. Plus, you’ll reclaim your time. After adopting ConnectBooster, most MSPs report saving 8-20 hours per month previously spent on manual billing-related tasks. Schedule a ConnectBooster demo to see how your MSP can save time and resources.

The post 5 Ways to Overcome MSP Labor Resource Challenges appeared first on ConnectBooster.

Economic concerns are forcing even more changes. Most companies are dealing with the ongoing threats of recession and continued high inflation rates, seeking to keep the pace of revenue increases in line with expenses and making more conservative yet wise investments. No matter how the economic pendulum swings in 2023, business leaders are hedging their bets to ensure success—or, worst-case, a softer landing.

What do all these changes mean for MSPs? Whether halfway through a year or approaching the next, providers are the purveyors of transformation, especially concerning IT-centric systems and business processes. Knowing what concerns and opportunities lie ahead and how the proper solutions can ease their operational transitions is a critical value proposition for MSPs. Many small business owners depend on their providers’ “clairvoyance-as-a-service” capabilities to assess the future landscape and recommend improvements to maintain their competitive edge.

One of the prime areas of change over the past few years is payments. A number of factors contribute to the shift in how people and businesses purchase goods and services. From the growth of online procurement options to the convenience of technology-based payments—in-person and virtual—these trends impact IT infrastructure, cybersecurity measures and business policies.

Electronic transaction capabilities are essential. With global cashless payments expected to increase more than 80% between 2020 and 2025 and nearly triple by 2030, according to research from PwC and Strategy&, every business needs to evaluate its options.  

MSPs can play a significant role in those activities for their SMB clients.

Overcoming the Complexity and Confusion

Many organizations struggle with payment ecosystems—not just methods for managing customer transactions but for securely and efficiently compensating contractors and suppliers. These essential processes and the tools they leverage to buy and sell products and services may not seem complex to an experienced MSP, but they can far exceed the technical know-how of many SMBs.

Payment expertise is a trusted value-add that allows IT services firms to differentiate themselves from less savvy competitors.    

The costs of mistakes in this field can be high, highlighting the importance of working with skilled transaction professionals. Few SMBs have expertise in implementing and supporting digital payment platforms and adhering to a multitude of continually changing compliance requirements. The more MSPs know about implementing, managing, and securing these systems for their clients, the greater their value to existing and prospective clients. Of course, to deliver those services, providers need to keep up with—and stay ahead of—the latest developments.

The Trends of 2023

As the year comes to a close, now’s the time to reflect on the successes and challenges of the previous 12 months and begin executing plans for the future. What will the payment landscape look like in the coming year, and how can MSPs enable their clients in these areas? Here are a few trends that might shake up the “status quo” for SMBs and the IT services firms they look to for support:

1. Payment protection (cybersecurity). Every business must take steps to ensure their customers’ data is secure from unauthorized access, breaches and misuse. With digital payments escalating exponentially, bank and credit card issuers continue to refine and tighten controls to keep that information as safe as possible. MSPs that understand the rules, regulations, and security measures—including the PCI DSS v4.0 standards—that protect a customer or partner’s privacy, data, and transactions are invaluable resources for SMBs today. Building a secure payments practice is a solid investment that every provider should consider in 2023 and beyond.       

2. Cryptocurrency. The death of blockchain payments has been widely reported in the media in the past few months, from the nearly two-thirds valuation decrease of Bitcoin to FTX, which hit $32 billion at one point before filing for bankruptcy in November. Coinopsy reported earlier this year that at least 2,421 cryptocurrencies had already failed. As with many innovations, the vast majority of entrants can be classified as speculators with risky balance sheets and prospects, but the model still holds tremendous promise. MSPs need to understand if, when and how clients may incorporate cryptocurrencies into their procurement and payment programs and then support their adoption plans.       

3. Recessionary trends. When money gets tight, and expenses rise, businesses look to trim costs. Many experts suggest that if a global recession is not already underway, the signs indicate a downturn coming in 2023. MSPs can help clients on several fronts—from augmenting sales and marketing efforts with new tools to maximize revenue to reducing expenses with automation and new efficiency solutions. For example, providers can implement self-serve payment portals and find new ways to reduce payment card charges and streamline collections.  

4. Autopay. The tide has turned for pre-scheduled online payments. The pandemic inspired people to trial contactless options for paying bills and conducting transactions, and those trends will continue. MSPs can make those processes easier for their clients with secure and automated payment solutions and related support services.   

5. Digital gains. Online and app-enabled payments continue to chip away at cash and check-driven transactions. While most won’t go as far as to predict traditional payment methods will soon be obsolete, as does the NY Times, many businesses realize the benefits of digital currency. Most business owners appreciate being able to convert receivables to cash flow and eliminate most, if not all, of the labor-intensive processes associated with collections. Like other critical business operations, MSPs can recommend or provide digital payment solutions to address those needs.

Back to the Future

The IT services ecosystem continues to grow. More employees work from home or in hybrid environments today, outside the safety of traditional brick-and-mortar corporate buildings and firewalls, with more cybersecurity risks than ever before. Dealing with all the complexities of these diverse IT systems, shifting customer preferences, and procurement processes can cause heartburn for business owners.

Those challenges are especially prevalent on the payment side of the business. MSPs can elevate their practices and reputations with advanced expertise in this area. Leading the way with new solutions, policies, and processes is just one of the many ways providers can stand apart from the competition.

MSP businesses that stay a step or two ahead of the competition (and cybercriminals) provide greater insight and support and can develop more proactive solutions to elevate their clients’ operations.  

Capitalizing on these trends can help make the year ahead profitable. Make sure your newfound profits don’t get stuck in accounts receivable by utilizing ConnectBooster. Schedule a demo and see how your MSP can automate getting paid with two-way data syncing and automations that will improve cash flow, and save time and money.

The post 5 Payment Trends to Watch in 2023 appeared first on ConnectBooster.

These “unknowns” or external forces may negatively impact clients’ perceptions and inhibit their willingness to increase IT investments and build longer-term business plans.

For example, the current economic conditions indicate an impending recession that highly concerns many business owners, including MSPs and their SMB clients. Businesses have been dealing with elevated inflation rates and ongoing supply shortages for more than a year, and global market experts predict those challenges may further escalate in 2023. Experts suggest worldwide economic growth will slow from 6.0% in 2021 to 3.2% in 2022 and to just 2.7% in 2023. Those numbers represent the weakest financial outlooks in more than two decades.

Providers must understand how these concerns factor into their clients’ budgets and affect those businesses’ long-term IT plans—and work proactively to overcome potential obstacles. Fear can drive clients to make poor choices with their technology investments. Rather than scale back on tools that can elevate sales or reduce labor requirements, savvy business owners continue to fund projects that will help them attain critical growth objectives or provide other vital benefits.   

The good news for the managed services community is that economic slowdowns have less effect on technology than most other industries, and the reasoning is two-fold.

• First, channel firms primarily support the SMB segment, which relies on the personnel and expertise of MSPs to optimize and manage their systems. In other words, those businesses are already outsourcing an increasingly more costly and invaluable responsibility to more experienced professionals. Bringing those skills back in-house will likely require greater investments and higher risks than letting current providers continue to work their magic.    

• Second, the solutions MSPs deliver allow SMBs to weather the storm better. Many IT services help businesses trim expenses, including payroll, while improving operational efficiency. MSPs that can design, implement, and support those solutions are even more indispensable during times of trouble.    

Further Recession-Proofing an MSP

While the nature of managed services softens the blow of economic downturns, there are other steps providers can take to insulate their businesses from the harsh effects of a recession.            

1. Sell deeper. A proactive approach to account management can significantly increase customer satisfaction and client retention. When the economy takes a hit, MSPs with the strongest relationships typically fare much better financially than those that take a “sign and wait for renewals approach.” Over time, every client should understand all the services, products, and solutions their MSP can deliver and have an opportunity to utilize those offerings. Growing wallet share is also a way to align business models and earn more revenue even during a recession. Clients who feel both parties have substantial “skin in the game” are more likely to invest and collaborate.  

2. Emphasize “efficiency by design.” IT infrastructure improvement recommendations are frequently ignored by business leaders because their concerns lie elsewhere. However, when those organizations need to optimize their efficiency by reducing labor and resources, they’ll pay closer attention. Successful MSPs continually emphasize the ongoing return on investments from business-enhancement tools and other forms of automation and highlight all the benefits in their sales and marketing efforts. In good times and bad, those services are invaluable to SMBs.   

3. Build a “cash flow enhancement” practice. While most businesses focus on operational efficiency, there are other ways MSPs can boost the financial situation for themselves and their clients. For example, assisting companies with optimizing and integrating accounting, quoting, sales, and payment solutions allows their teams to close more deals and collect accounts receivables faster. Automating those processes can improve cash flow and help the organization and its IT services provider better weather any recessionary storms.      

4. Trim the fat. In some cases, MSPs may need to make internal changes to address economic slowdowns. Providers that support less recession-resistant verticals may lose clients or watch their A/R balances escalate quickly during a recession. In those cases, MSPs may need to reevaluate their portfolios, people, systems and operations and make changes to address potential financial shortfalls.

5. Automate. The fewer hands, the fewer mistakes and expenses. While that concept is certainly not rocket science, some MSPs forget the value of automation and integrations in their own businesses. Optimizing everything from alerts and ticket creation to invoices and payment collection is not only possible in 2022, but a necessity for any IT services firm that wishes to compete in good times and bad. Assigning employees (typically technicians) to champion integrations and new business tools is a good way to ensure MSPs are hedging their bets for the future.    

The Ultimate Key to Recession-Proofing an MSP

The most successful IT services firms become part of their clients’ businesses. Being an integral and indispensable cog in the machine should be a goal for every MSP—it’s a solid way to recession-proof the provider while ensuring effective lines of communication between both organizations.

Trusting relationships create stickiness. Building an environment that fosters engaging discussions and encourages open exchanges of information inspires clients to fight harder for their IT services partners. Sharing concerns early and often is a sure way to get the creative juices flowing to develop alternate ideas and new solutions.

People tend to fight harder for those they respect and value. Clients are more willing to brainstorm and explore alternate paths to maintain those relationships while addressing their respective business challenges. One of the best ways to recession-proof an MSP is to become one of those essential partners. With well-honed IT services and operational practices and keeping the client top of mind, that objective becomes much easier.          

A crucial tactic to surviving a recession is to manage your cash flow. And the best way for MSPs to optimize cash flow is to get paid with set-it-and-forget it automation that’s amenable to variable billing. Schedule a demo to see how ConnectBooster can transform your cash flow inside one billing cycle.

The post Five Ways to Recession-proof Your MSP in 2023 appeared first on ConnectBooster.

No organization can defy basic business principles. A well-defined and streamlined collections process is essential to the financial health of every company. Growing Monthly Recurring Revenue (MRR) means nothing without the proper systems and checks and balances—ensuring that extra income is effectively converted from invoices to cash in the bank for an MSP. Higher Accounts Receivables (A/R) should never be the ultimate objective.

Every sales growth plan should include a review of the collections process to ensure all that hard work doesn’t go without reward. MSP businesses that continually augment best practices in this area are more likely to boost profits and reduce A/R—maximizing both their cash flow and margins. Implementing effective A/R plans isn’t rocket science. Still, it does require insight into the types of transactions (i.e., recurring, one-time, both), client payment preferences and habits and other collections-related factors.

Most MSPs collect this information over time and tweak their operations to maximize cash flow. There are a few areas where providers should focus their attention to advance their business on the collections maturity model.

• People: The goal is to turn employees into assets who don’t limit the company’s ability to scale
• Methods: How effective is each step in a procedure from a time and cost perspective?
• Information: Does the collections team have the right contacts and account data to speed up the payment process?
• Relationship: Can employees readily retrieve and update information from clients, sales, and account personnel? What is the best way to interact with customers to collect outstanding A/R balances?
• Automation: How much of the collections process can be driven by technology? From PSAs and accounting packages to secure payment portals with autopay options, the reduction in manual tasks (and payroll costs) can be significant, while speeding collections.  

Collection maturity is a journey for every business, but especially important to MSPs with recurring payments and little experience leaning on clients to get paid for the services they deliver. Those optimization plans typically evolve through various stages, including:

1. The Fundamentals. Few SMBs start with a system that includes formal operating procedures with proper documentation for each process step. Since MSP relationships are primarily transactional, with cost being a critical factor, most providers begin with less-than-optimal A/R plans and policies. Metrics are often minimal, as are reporting and tracking capabilities. MSPs typically experience higher A/R numbers and write-offs due to poor follow-up and a lack of expertise in collections.

2. Add Structure. Investing in organizational improvements is critical for every business. For the collections team, that means adding tools, honing processes and boosting reporting capabilities. MSPs must move from a reactive to a proactive strategy for managing their A/R, adopting industry-leading best practices and policies and providing clear documentation for employees and clients. Spelling out collections terms in master agreements and managed services contracts and including similar language in invoices is a good start. Identifying and tracking Key Performance Metrics (KPIs) are also critical at this stage. Many MSPs struggle with shifting their A/R processes and policies and adopting those most favorable to clients to a system that is at least mutually beneficial.

3. Push Payments Best Practices
   While MSPs at this stage have likely made significant investments to capture and strengthen their account information, managing the A/R side of the equation often comes last. At this stage, providers should regularly assess and enhance their collections procedures and implement tighter controls over outstanding payments. Data analysis helps identify revenue leakage and savvy A/R teams develop strategies to quickly address gaps with solutions they could roll out to other accounts. An automated and well-integrated invoicing and payment system can solve many of those issues and prevent errors on the client and MSP side of the equation.  

4. A/R Realization. Achieving Zen in the collections process is no easy feat—most companies will never hit that level of excellence. Evolved MSPs develop true partnerships with their clients and implement policies, procedures and tools that solidify those relationships. Collections is no exception. Most satisfied clients understand the need to pay promptly for the services they receive and will readily adapt to changes—especially those that are mutually beneficial. MSPs that provide top-notch support should never feel guilty about altering their collections agreements and requiring the use of secure payment portals and autopay for recurring services agreements. True A/R realization is when outstanding payments are the exception, not the rule, and providers eliminate that one point of “uncertainty” in their business.       

Implementing a Proactive Process

New clients are the easy part. When sales and account management teams do their job, those business leaders should fully understand the collections policies and procedures, and the issues should be minimal.

The problem for many MSPs is the conversion of existing clients. IT professionals tend to have more anxiety about discussing new collections terms and requirements than asking these companies to double their cybersecurity spending. Selling technology comes more naturally than selling themselves. If clients are true partners, they’ll understand the need for their IT provider to get paid fairly and when expected.     

Sure, some clients may require an incentive to sign a contract with new A/R collections requirements, but it’s often as simple as reducing next year’s rate increase from 10% to 5%. Another option for MSPs is to throw in a new low-cost but highly valued service for free (or at a reduced rate). For example, providers may offer a free annual cybersecurity assessment or provide a discount on employee awareness training for six months. The key is knowing the motivators for each business client and matching their want with the MSP’s capabilities. The incentives can be relatively small, considering how much the provider—especially their A/R team—gets in return.  

People, processes and automation are all essential parts of the collections evolution. Giving A/R teams the ability to communicate and collaborate with clients easily and providing both sides with a single interface to manage the process and related issues helps move MSPs quickly from step 1 to step 4.

With the proper focus and the right tools, there’s no reason why every managed services company cannot achieve its A/R nirvana.   

Schedule a demo to see how ConnectBooster can help your MSP automate its cash flow and reach optimal collections maturity.

The post Stages of Collection Maturity for MSPs appeared first on ConnectBooster.

That tide affects owners and workers in virtually every industry. Approximately 50% of employees and 53% of managers say they are burned out, according to a recent Microsoft survey of 20,000 people in eleven countries. Those numbers are likely higher than the norm in the IT industry as demand for computer support grows exponentially. At the same time, the supply of qualified technicians, engineers, sales professionals and other specialists lags far behind the need.

The rise in employee no-shows and “quiet quitting” creates even more stress for business owners. When workers feel exhausted or get frustrated with ever-increasing duties and more demands on their time and attention, they may scale back their daily efforts or simply do the bare minimum. “Quiet quitters” are especially challenging for MSPs who want to follow the proper HR protocols. Unfortunately, delaying those inevitable firings often increases tension across the workplace as co-workers or owners pick up more of their slack.      

A Deep Dive Look at the Business   

Meanwhile, MSP owners find themselves and their team members being asked to do more for each client. From upgrading cybersecurity stacks and addressing the latest compliance requirements to providing onsite and remote support for a growing number of end-users working at home or from hybrid environments. Businesses need and demand more from their IT services providers today.

All of these situations contribute to MSP burnout. What specific steps can an IT services provider take to lessen the burdens on themselves and their employees? Here are a few options:

• Automate. Technology is power. As the IT experts, MSPs should employ as many time-saving tools as possible to remove manual tasks and minimize human errors. When providers implement automation across their operations—on both the client and internal side of the business—it reduces work pressures and lowers the anxiety level for everyone. For example, integrating and automating the collections process with a PSA, accounting package, quoting tool, and secure payment platform helps boost cash flow and lessen financial, physical, and mental strain for MSP business owners.          

• Delegate. Many IT business owners have more expertise in technology than in managing a business and tend to take on a proportionally higher workload than most entrepreneurs. Hiring and training others to handle those tasks alleviates much of the stress and anxiety of running an MSP firm and gives leaders more time to develop and execute their long-term strategies. Providers who can devote more days to working “on the business” instead of “in the business” (handling tasks that other team members could easily manage) typically enjoy greater success without getting burned out.   

• Streamline collections. One of the best ways to minimize everyone’s stress in a managed services business is to define and refine the billing and payments processes. Implementing clear policies and procedures, including an autopay requirement for every client, decreases collections calls and repetitive tasks and employee anxiety. Automating those processes is a sure way to lower the risk of burnout for team members and MSP owners.        

• Strengthen cash flow. Nothing soothes the soul like having 3-6 months of expenses in the bank. Whether adding more profitable services or collecting more of the money MSPs earn from servicing their clients, increasing the size and regularity of that cash flow reduces stress and future financial pressures for business owners and managers.      

• Pick a Lane. Whether offering managed services to the local SMB community or supporting a niche market with specialized offerings, building around those targets is critical. The technologies and IT management requirements for each business can greatly differ. Providers can lessen their workloads and headaches by developing a consistent portfolio and core set of services and cross-training team members to handle multiple responsibilities.

• Reevaluate. Look inward. What changes could simplify operations and make life much less hectic for the owners and employees without compromising profits? MSPs often get too busy or too close to the situation to properly evaluate the direction of their business and end up spiraling downward. Unless they make significant changes in their operations, many will end up closing their doors for good. One of the best ways to avoid hitting that wall is to periodically evaluate the key areas of the business, including:
  
  1. Strategic plans. MSPs must continually assess their objectives based on various metrics, including quality of life for themselves and their employees. Could more hires or fewer “high-demand, low-profit” clients make a difference?
     
  2. Current clients. What’s the ROI of each business customer? MSPs should always be mindful of the cost of acquiring new clients while not overlooking the “unquantifiable expenses” of the bad ones. Constant complaints and after-hours emergencies are leading causes of MSP burnout. 
     
  3. Markets. Are the targets aligned with the company’s core strengths? If not, what needs to change to reduce workloads and anxiety? Many MSPs overlook the financial and mental costs of poorly aligned sales and marketing efforts.  
     
  4. Toolsets. IT services firms may need to realign solutions and suppliers to reduce management requirements. Juggling too many vendors leads to management complications and headaches, so many MSPs rate their offerings based on margin potential and resource requirements. For example, Kaseya IT Complete (which includes ConnectBooster) provides a comprehensive suite of tools that IT services providers can manage from one central dashboard. With deep integrations and a host of time-saving features, platforms reduce anxiety, and the risk of burnout for IT services business owners.   

Every MSP owner and their accountant knows the struggle of variable billing and the collections process. Eliminate the stress and ongoing accounting tasks that contribute to burnout with intelligent automations.  

ConnectBooster connects your CRM/PSA with your accounting software so you save time on bookkeeping, eliminate double-data entry, and reduce human-error. Plus, you’ll reclaim your time. After adopting ConnectBooster, most MSPs report saving 8-20 hours per month previously spent on manual billing-related tasks. Schedule a ConnectBooster demo to see how your MSP can save time and resources.

The post Key Strategies to Avoid MSP Burnout appeared first on ConnectBooster.

Electronic payments have become the norm for businesses and consumers. The shift towards credit, debit and virtual cards, ACH (direct deposit, direct debit and electronic checks), cryptocurrency and other non-cash transactions had already been accelerating before the pandemic. Adoption of those methods gained even more momentum and greater acceptance following the shutdowns, business restrictions and fears of face-to-face interactions brought on by that global crisis.          

According to a recent McKinsey & Co. survey, 82% of Americans now use a digital or online system to pay for their purchases and recurring bills. While the breakdown of B2B transactions is not listed in that report, market and economic forces are driving more businesses to make and accept contactless payments. The benefits of those systems over cash and paper checks are too hard to ignore.

As younger generations of workers and executives take over purchasing decisions and responsibilities, electronic payments will likely gain even greater traction. According to another recent study, Millennials and Gen Z indicate that debit cards (94%), mobile wallets (82%), and digital payment apps (83%) are their chosen methods of payment. With life-long experience and a high level of comfort using these primarily virtual processes, the latest generation embraces technology in the workplace—and relatively few use paper checks and cash. Most of their payment-related activities involve smartphones or online autopay programs.

Convenience is a major factor. With digital payments, there’s no need to carry cash or balance checkbooks. On the business side, most applications allow users to easily verify and document transactions and export relevant data into corporate accounting and expense programs.

However, as many organizational leaders have discovered over the years, convenience often comes at a premium price. Protecting credit and banking data and transaction details online requires not only attention and due diligence, but critical investments to secure networks, devices and data in transit. Whether hosting card terminals onsite or accepting payments online, every company that processes credit and bank card information must follow very specific rules to protect the processes and systems.

Embracing Industry Standards        

The growth of electronic transactions caught the attention of cybercriminals and scammers nearly twenty years ago. In 2004, as payment fraud began to rise, American Express, Discover Financial Services, JCB International, Mastercard and Visa came together to develop an industry standard to secure customer data and discourage illegal activities. The Payment Card Industry Data Security Standard (PCI DSS) requires every organization that accepts, processes, stores, or transmits credit card information to ensure its proper protection. Compliance is mandatory for every business—failure to meet those rules can lead to the loss of electronic payment privileges and hefty fines.  

While the organizations participating in these programs are ultimately responsible for meeting these mandates, many look to MSPs for solutions and support. PCI DSS outlines specific best practices that every business must follow, and many companies don’t have the knowledge and expertise to implement, manage and periodically test those measures. That situation creates door-opening opportunities for IT services firms with the right skillsets and cybersecurity acumen.      

Businesses need someone to rely on with expertise in PCI DSS. MSPs that can keep end-users on the right track—monitoring compliance, implementing and managing systems, enforcing best practices, and testing systems—are invaluable to companies that accept electronic payments. Safeguards and audits are the heart of PCI-DSS.  

The Payment Card Industry Security Standards Council understands the challenges business face in that arena. Decision-makers updated the requirements in 2018 and then again in 2022 to address the rapidly escalating cybersecurity threats and incorporate the latest processing and storage methodologies. PCI-DSS v4.0 requires companies to implement stronger firewall controls, multi-factor authentication (MFA) for accessing data environments, and flexibility for demonstrating compliance with security objectives.

Those changes are in addition to the original controls, which MSPs can use as a PCI checklist, including:

1. Install and maintain a firewall configuration to protect cardholder data.
2. Do not use vendor-supplied defaults for system passwords and other security parameters.
3. Protect stored cardholder data.
4. Encrypt transmission of cardholder data across open, public networks.
5. Use and regularly update anti-virus software.
6. Develop and maintain secure systems and applications.
7. Restrict access to cardholder data by business need-to-know.
8. Assign a unique ID to each person with computer access.
9. Restrict physical access to cardholder data.
10. Track and monitor all access to network resources and cardholder data.
11. Regularly test security systems and processes.
12. Maintain a policy that addresses information security.

The important thing for MSPs to remember is none of these requirements is “one-and-done.” In other words, businesses must maintain these controls continuously, with auditors periodically checking each guideline to protect the processes, systems and data.

Follow the Prescribed Plan

The PCI Standards Council also developed three steps to help businesses (and the IT services providers that support many of those organizations) adhere to their standards. Using these focal points, MSPs can construct the infrastructure and methodologies to safeguard devices, networks, and information. Those steps include the following:

1. Assess: Identifying cardholder data, taking an inventory of IT assets and business processes for payment card processing, and analyzing them for vulnerabilities.
2. Remediate: Fixing vulnerabilities and eliminating cardholder data storage unless absolutely necessary.
3. Report: Compiling and submitting required reports to the appropriate acquiring bank and card brands.

These three “steps” serve as a guide for the design, construction and ongoing management strategy for PCI compliance. For MSPs, that can spell long-term recurring revenue opportunities and stronger client engagements—a win-win situation for everyone.  

A secure payment gateway, as found with ConnectBooster, helps MSPs comply with these industry rules and best practices and protects online transactions. Locking down payment and credit information in a secure online portal minimizes the risks for MSPs and the clients who entrust them with that data. Protect your customers’ data; schedule a demo with ConnectBooster.

The post A PCI Compliance Checklist for MSPs appeared first on ConnectBooster.

Digital transformation is reshaping the world. With the ability to work and manage activities from virtually anywhere, people have more freedom to roam without affecting productivity. In some cases, that mobility helps workers improve their efficiency and accomplish more than if tied to a desk or conference room.

However, those benefits come with greater responsibilities. As companies shift activities online, they must ensure that protections are in place to keep everyone—including themselves, customers and business partners—safe from cybercriminals.

An uncompromising defensive posture is a “must-have” in this growing web-based commercial environment. That situation is especially true in relation to online transactions.

Sharing credit and bank account information can create anxiety in the best circumstances, but some misperceptions around passing data via the internet exacerbate those concerns.

MSPs must understand those apprehensions to support their clients effectively. The more you know about small business owners’ “payment insecurities,” the easier it will be to find and implement the appropriate solutions. Providing end-users with tools and best practices to safely complete online transactions is crucial in today’s fast-paced environment—and MSPs must be confident in those endeavors. SMBs increasingly rely on that type of support to keep pace with the competition.

What key points does every MSP need to know about payment security today?   

1. Compliance can be complicated for SMBs. While business owners need not understand all the complexities of PCI- DSS (the Payment Card Identity Data Security Standard), MSPs should have good familiarity with these transaction protections. Team members should know the basic industry requirements as well as the tools and best practices that can help clients protect card data and other personal information. MSPs must adhere to the same standards in their own operations—like implementing a secure payment portal (ConnectBooster).    
2. Strong policies heighten awareness. A proper payment security strategy outlines the rules, regulations, and measures to protect a client’s or partner’s privacy, data, and transactions. Examples include mandating the use of password management and encryption solutions and multi-factor authentication. Other typical requirements include employee training and adhering to standard operating practices for all transactions. The more end-users know about the risks and penalties for non-compliance, the more likely they will be to adhere to their company’s policy.
3. Online payment options are the new norm. Customers expect modern-day companies to offer the latest technologies, and as the IT experts for many small businesses, MSPs are often in charge of those transformations. Those responsibilities could include implementing a secure online payment solution. Providing options that address the needs of clients and their customers and adhere to the PCI-DSS rules is a must and, when done properly, can create new revenue streams for the MSP. Innovation and cybersecurity expertise, including payment security, are a value-add that many businesses seek in their IT services providers.  
4. Paper checks and in-person transactions offer no assurances. In some segments of the SMB community, there remains a misperception that online payments are riskier than traditional transactions. Those skeptics fail to mention that criminals have been targeting paper checks and in-person credit card transactions for decades. Whether through direct theft or “confidence schemes,” anyone can copy account information to make unauthorized purchases or withdrawals. Technology advances are making it easier for customers to make payments online without compromising the security of their bank and credit information.
5. Secure payments create high margin channel opportunities. Most businesses accept credit, debit, or ACH today, and that resulting rise in demand requires companies to double down on the defense of transaction systems. The more clients need those services and expertise, the greater the opportunities for MSPs who can deliver those options. Whether accepting payments online or in-person, designing, implementing and supporting solutions that adhere to the latest PCI-DSS standards is a thriving and profitable practice option for the IT services community.

Protect the Digital Divide

The internet continues to reshape the way the world does business. The COVID-19 pandemic caused online purchasing to swell as people stayed home and avoided person-to-person contact. That same transformation occurred with B2B transactions, as companies shifted from direct face-to-face meetings with sales teams to online conversations and payment systems.

According to a recent Gartner study, more than 83% of B2B buyers prefer to buy products and services online. That research also suggests those numbers will continue to increase as the older generations retire. Balancing that transformation with effective cybersecurity protections remains a top priority—a significant opportunity for the MSP community.  

Is your team ready, willing and able to take on that challenge? Whether you’re looking for options to keep clients’ payment secure or preparing to adopt similar options for your MSP business, ConnectBooster can help. Schedule a demo to see how ConnectBooster can better secure your transactions.

The post Five Things MSPs Need to Know about Payment Security appeared first on ConnectBooster.

Unfortunately, for a variety of reasons, some managed services prospects will never become clients. The decision-makers may not see the fit or have the budget to support their technology systems properly. Others may simply fall off the sales team’s radar and sign up with a competitor. Then there are those businesses that fail or get acquired by another company in the midst of the negotiations. There are many moving parts, and it’s not easy for any MSPs to keep track of all the communications, documents, notes and changes.

Some of those things can fall through the cracks, especially for productive sales teams working dozens, if not hundreds, of prospective deals with constantly shifting timelines. MSPs need effective organizational processes and tools to bring order to the chaos and ensure the sales cycle keeps moving in a positive direction. Automation is an essential piece of that equation.

With a multitude of communications check-ins and other activities in the sales process, most businesses implement specific platforms to streamline those operations. A quoting tool is a perfect example.

Automating and tracking Request for Proposals (RFQs) and quotes eliminates the headaches. Just as importantly, these applications reduce manual tasks and human errors, improving the team’s efficiency while boosting their opportunities to close more and larger deals. MSPs can leverage several complementary technologies to ensure sales activities move faster today—and in the right direction

Here are five reasons why every IT services firm (no matter if they have 2 or 200 employees) should invest in and automate these critical tools.

1. Efficiency Drives Sales Success

The formula for increasing an MSP’s revenue is quite simple: more touches means more opportunities. Sales automation allows team members to achieve more desirable outcomes by giving them more time to contact and develop relationships with lucrative prospects. An effective quoting tool helps MSPs build proposals and automatically search for availability and pricing from a large network of suppliers. By integrating these tools with CRMs, PSAs and payment portals, such as ConnectBooster, providers can also gain greater insight into team activities and sales cycles.

2. Augment Communications

Collecting and sharing information is vital for closing new and larger deals and growing “wallet-share” with clients and prospects. When properly configured and integrated, sales automation tools allow MSPs to tear down data silos between business applications and strengthen their lines of communication. Sales teams can oversee accounts and prepare the next actions using a “single pane of glass” management portal, which provides access to all account-related files, email messages, texts and recordings of customer exchanges. Integrations to other IT services-specific platforms allow that information to automatically transfer and initiate automated responses and set reminders for various team members.

Those connections help sales teams improve the quality and objectives of each potential customer conversation. Adding a quoting tool into the mix also speeds communications between MSPs and suppliers, allowing providers to get more competitive pricing, increase profit margins and speed delivery of hardware and cloud solutions.

3. Center on Top Prospects

Automation allows MSPs to prioritize and manage sales activities. After evaluating the quality of the opportunities, providers can leverage various tools to nurture prospects, build more effective proposals, and monitor the sales team’s negotiations. Automation lets them focus more on meeting each decision-maker’s specific needs and increase “wallet-share” by selling a more comprehensive set of services and solutions to each business. An integrated set of tools, including PSAs, CRMs and quoting tools, allow MSPs to adjust plans and shift resources to opportunities that can generate more revenue.

4. A More Informed Decision-Making Process

MSPs with great situational awareness are more likely to close more sales. Rather than searching through spreadsheets and notes, PSAs, CRMs and quoting solutions allow sales teams to review previous conversations, notes and other account activities before the next call. Account managers and company leaders can leverage that formation to strategize and create new pitches, proposals, and closes and determine the next steps.

5. Boost the Size and Volume of Deals

Freeing the sales team from unnecessary tasks gives them more time to close more and bigger deals, maximize monthly recurring revenue and boost profitability. Automation puts useful tools and up-to-the-minute information at their fingertips, improving their chances with each opportunity. Team members can strategize with co-workers on ways to expand RFQs and quickly fulfill and close proposals. Automation tools give MSPs the power to generate sales faster.

Automate Quotes, Increase Revenue

The increasing complexity of IT sales can create chaos without the proper systems in place. MSPs must leverage multiple tools and integrations to streamline information flow and centralize account management capabilities.

Quoting tools are integral to that operational infrastructure, allowing sales teams to quickly and effectively build proposals with optimal pricing and profit margins. They also help MSPs determine availability and delivery options. When integrated with PSAs, CRMs, secure payment platforms and other IT services-specific tools, providers can save time and money while boosting their bottom line.      

Automated workflows streamline processes and save MSPs more time, money and frustration.    

ConnectBooster integrates with various quoting tools, to ensure you never miss a payment. Schedule a demo to see how ConnectBooster works with the tools you already use.

The post Five Big Benefits of Quoting Tool Automation for MSPs appeared first on ConnectBooster.

The age-old problem for IT firms (or any business) is identifying and adopting the most cost-effective processes for converting those predictable income streams into actual bank deposits. Cash flow is entirely predicated on receiving payments for services the company renders, so the faster that turnaround time, the better the organization’s financial situation. That’s business basics 101.  

MSPs are masters of the recurring revenue and cash flow concepts. However, the collections process tends to foil success for many as clients either delay or withhold payments or their checks get “lost in the mail.” That last point happens more often than most business owners are willing to admit.  

Cash Flow is Key to Your MSP’s Success 

Financial problems are not limited to organizations with declining sales. Even the most successful MSPs can run into cash flow issues, especially when they onboard many new clients in a short period. Procuring new tools and licenses and hiring team members to handle the added workloads consume a lot of money, which can be a real issue if their accounts receivable balance is out of hand.        

Expansion is a key reason MSPs end up in debt, and borrowing other people’s money can be costly. Without a strong cash flow, companies often rely on lines of credit and bank loans to meet their payroll obligations and pay other necessary expenses. Cash reserves are critical for funding expansion plans without “robbing Peter to pay Paul.” In other words, IT services firms must properly manage their A/R and optimize the collections processes to effectively pay for day-to-day operations and their strategic growth.  

No business owner wants to get into the practice of delaying payments to contractors, utilities, landlords and others simply because of problems with their own debt-collection methods. Many MSPs provide quality service month after month while outstanding A/R continues to rise. Strengthening collections policies and procedures will put more cash in their bank accounts for paying those bills and boosting and expanding operations. No business with a healthy stream of monthly recurring revenues should ever need to borrow other people’s money just to keep the doors open.        

Collections Strategies 101  

An effective accounts receivables plan should not be complex or hard to communicate with employees and customers. The good news for MSPs is that there are a plethora of resources available to help them develop and refine these strategies, from industry associations, distributors and peer communities to the ConnectBooster library, videos and blogs.   

One of the biggest tasks is finding a starting point. How can an MSP design the most effective plan for their specific business? Here are six tips to make that happen:       

1. Create strict collections policies.

These rules must be clearly written into all managed services contracts and be accessible to the MSP’s employees and clients. Strict adherence to these policies is critical for ensuring the timely payment of current balances and any late fees or assessments. A thorough review with prospective clients before the sales close and during the onboarding process will address any misconceptions and clarify expectations.

2. Focus on Continual Improvement.

Disorganization kills profitability. MSPs are highly proactive in tackling clients’ IT problems, securing systems and managing all the various technology components. However, those skills don’t help with invoicing and collections, which typically get less attention than sales, marketing and other parts of their operations. Every MSP needs someone to be accountable for generating and sending bills, monitoring A/R and tracking down late payments. Collections teams need the time and resources to complete each of those tasks effectively and, most importantly, an opportunity to improve policies and procedures.

3. Collections is a responsibility, not a punishment.

Some companies put their least qualified people in charge of A/R activities, either as retribution for poor performance or because no one else wants that responsibility. As an essential part of the financial engine, MSPs should have a dedicated person with accounting and collections skills in place or provide that person with the right support and training. Those with a financial stake in the business (more than a paycheck) will be more willing to follow through with collections calls and enforce the stipulations in each client contract.

4. Create and regularly review A/R aging reports.

Tracking which clients appear most frequently at the top of an MSP’s accounts receivable list is essential. That periodic review helps IT firms identify and monitor harmful financial trends and implement penalties to change those behaviors. Those that rank high on the aging report should be the first an MSP converts to autopay to avoid the need for tough discussions in the future.

5. Implement automation. 

Recurring revenue means little without an effective collections process. Getting each client to pay on time each billing period can be a chore without the right policies, management, and systems, and automation can make that happen. MSPs have the tools at their disposal, including PSA (Professional Services Automation) platform and accounting packages, which, when connected to a secure payment portal like ConnectBooster, create a seamless (and essentially hands-free) invoice-to-payment collections system.

6. Incentives or penalties. 

Most business owners respond more favorably to inducements than fees and late charges. That’s why many MSPs offer discounts for signing up for autopay and using a secure platform like ConnectBooster. For example, a 10% discount for six months can ease the transition for reluctant clients. Alternatively, instead of taking on a 10% price increase for contract renewals, MSPs could drop that to 5% (or less) if the company opts into autopay

Taming A/R isn’t Rocket Science 

Getting paid on time is not an unreasonable expectation, nor should it be a difficult hurdle for MSPs to overcome. Strengthening and refining the accounts receivables processes requires time, focus and dedication. From tightening policies and procedures to automating and integrating back-office and IT services-specific tools, there’s a long list of best practices available for MSPs to follow.  

With the right tools and a forward-focused attitude, any IT business can boost its financial freedom, strengthening its cash flow to pay the bills and fund organic growth. 

Why should any MSP have to rely on other people’s money? With an effective A/R strategy and the right tools, providers can tap into their own reserves without paying interest.    

Schedule a demo to see how ConnectBooster can help your MSP automate its cash flow.

The post Six Surefire Ways to Fine Tune an MSP’s Cash Flow   appeared first on ConnectBooster.

Banking has undergone a lot of changes over the past thirty years. From the mass adoption of Automated Teller Machines (ATMs) and online account management to the introduction of full-function mobile apps, people have more options than ever before. Today, customers can complete virtually every step of the banking process without stepping foot inside an actual building. Innovation and changes to financial regulations and transaction rules make it easy to deposit and move money from practically anywhere in the world.  

Despite all those advances and a knack for technology adoption, many MSPs remain behind the times in their banking and payment methods. Printing and manually sending out invoices and then waiting for the postal service to deliver paper checks can be a painstaking process, especially when they sit on the accountant’s desk until they collect enough to make a deposit. That timeline can stretch from weeks to months in some cases.

With the ever-increasing benefits of a strong cash flow, taking the slow payment route can stifle an MSP’s growth opportunities. Those delays reduce access to money the company could use to fuel its expansion plans, including hiring additional personnel, increasing sales and marketing budgets and onboarding new clients. Why should an MSP pay interest to borrow those funds from others when they could leverage their own reserves? Antiquated and slow payment processes impede those opportunities.

Are paper checks contributing to those problems? Many financial experts, including accountants, suggest that accepting that long-established payment method hinders cash flow and growth for MSPs. The counterargument is that many people and businesses are still more comfortable writing checks than setting up online accounts. Fearing that customers might go away, they maintain the status quo and hope that all of those payments really do get put in the mail reasonably quickly every month.

Those expectations rarely come to realization. Unfortunately, as many MSPs have come to discover, accepting paper checks has a number of negative effects on their businesses, including:         

1. Traditional checks slow payments. While already mentioned, this point cannot be emphasized enough. Managing invoices and collections through conventional mail services can be lengthy, requiring days, if not weeks, just for message delivery. And, since clients rarely make out checks and send back those payments immediately, that timeline can stretch out much longer.

2. Paper is a security risk. Frank Abagnale, the renowned forger, turned FBI security consultant, travels the world pointing out the various problems with checks, including the lack of protection for the information they contain. From the name, address and phone number to the bank and authorized signature. Criminals can use the account and routing numbers to make online purchases, and checks are also easy marks for counterfeiters. All they need to do is intercept checks in the incoming mail or shuffle through the accountant’s inbox. Check out this previous article that outlines a number of these security-related concerns.

3. An outdated approach for innovative companies. In IT businesses, image is everything today, and by accepting paper checks, MSPs can seem behind the times. That could turn into a real problem if someone misuses a client’s bank account. Not only could that situation significantly damage a provider’s reputation, but it will surely sour that customer relationship, which can be very costly if they have loose lips.

4. Checks are inconvenient. Obsolete systems belong in the past. What kind of trust could prospective clients put in a tech company that relies on 20th-century methods when more secure and appropriate web-based solutions are available? An online payment portal eliminates all the paper and manual processes, making it easier for MSPs and their customers to manage payments with fewer headaches (and potential heartaches). ConnectBooster provides that type of automation with quality integrations to IT services-related tools and key accounting applications.

5. Collecting and processing checks is expensive. Contrary to popular belief, checks are one of the most expensive ways to collect payment because of their indirect costs. Yes, checks help MSPs avoid credit card processing fees, but that doesn’t mean they’re less expensive. Checks actually cost as much as the labor required to process payment, including accounting staff salaries, additional hours spent updating invoices in the accounting software and again in the CRM or PSA, trips to and from the bank and time lost to troubleshooting errors or partial payments. When other, more secure and convenient methods exist to lessen or eliminate credit card processing fees, accepting checks doesn’t make sense.

Less Paper = More Profits

Addressing the hidden costs of payment collection is critical for any forward-focused MSP—boosting the efficiency of those processes stimulates cash flow. To accomplish that goal, providers must assess and then eliminate or optimize various procedures and implement payment solutions their clients will appreciate and actually use.

Paper checks are antiquated and vulnerable to criminal behavior. Locking down payment and credit information in a secure online portal minimizes the risks for MSPs and the clients who entrust them with that data. Mandating the use of these systems—with few, if any, exceptions – will ensure greater protection and bring everyone into the 21^st century. Signing up is relatively simple, and it won’t take long before payments come flowing in and cash flow moves in a very positive direction. 

ConnectBooster is an all-in-one accounts receivable automation tool that connects with the solutions MSPs rely on—CRM/PSA, quoting and accounting software. That powerful combination relieves the surprisingly high and often overlooked costs of getting paid. Request a demo to see how ConnectBooster can help you get paid faster, cheaper and more reliably.

The post The Pros and Cons of Accepting Paper Checks appeared first on ConnectBooster.

The reasons for owning a business can be multifold. As many MSPs have discovered, sometimes at the most inopportune times, the reasons for selling a business can be even more complex and taxing. From poor health and employee-related problems to burnout and retirement, providers may decide it’s time to cash out, and some may have less time to plan and execute that process than others.

No matter what’s behind an MSP’s decision to sell, maximizing the valuation should always be a top priority—the greater the price tag, the more financial security for the principals. Of course, there can be other considerations, such as continued employment for the seller and current team members or a stake in the acquiring company. Raising an MSP business’ value provides owners with many financial opportunities.           

Cash Flow Opens the Door

Whether selling, merging with another IT services firm or leveraging the company’s equity to purchase a peer or competitor, the more the business is worth, the better the available options. Equity is power.

Potential sellers should always focus on commanding top dollar for the business. Enhancing the revenue and profit potential of an MSP makes it a highly attractive option for M&A firms, potential investors and buyers, and stronger cash flow will ensure stakeholders get a higher return on a sale. Financial leverage is a key factor in valuation.

Knowing which metrics to use to gauge the value of an MSP makes it easier for owners to fine-tune their operations, optimize their profitability, and gain the upper hand in M&A-related conversations. In this recent blog post, ConnectBooster detailed nine key performance indicators (KPIs) that IT services business owners can use to calculate their net worth (click here to check out that list).

With robust recurring revenue streams and an effective collections process, MSPs can boost their business’ price and expand the pool of potential suitors. Many investors will gladly pay more for an IT firm that can generate (and collect) a consistently larger flow of revenue each year. That steady income minimizes the unknowns and reduces the risks for prospective buyers, which tends to increase the number of interested parties and the asking price. Demand is a wonderful thing for those selling a business.

Rapid Payments Bolster Cash Flow

The best way for MSP’s collections teams to ensure they can quickly collect all that steady revenue and boost the value of the business is by utilizing an automated billing solution. Contracts don’t guarantee that clients will pay on time every month. They may make promises and receive invoices on time, but without an effective process and system in place, it remains an iffy proposition with no real assurances. 

Automation and a secure portal can directly impact cash flow. A platform like ConnectBooster ensures that clients cannot forget or delay payments or put IT teams in the awkward position of being “collections enforcers.” Most tech professionals prefer not to be responsible for calling or emailing businesses to discuss an overdue invoice, so avoiding those situations can improve morale and employee retention—both positives in today’s tight labor market.   

Those are just a few reasons why a proactive payment system is business-critical and has become a channel standard over the past few years. With MSPs leveraging technology to streamline virtually every part of their operations to optimize productivity and profits, adding a secure platform like ConnectBooster is a no-brainer. Automating the billing procedures from contracts and invoice generation to payment processing makes life easier for everyone, including clients, and helps maximize an MSP’s cash flow. That drives up the organization’s value for potential M&A activities by default.

Remove the Stigma (and Pain) Associated with A/R

Since collections are a key piece of the M&A equation, MSPs should spend more time honing those processes. Manual billing and A/R management can be repetitive and tedious for employees, leading to burnout and potentially massive mistakes. Even worse, these interactions can easily go awry and damage client relationships, especially if the people making the call have little or no training.

Not everyone is cut out for collections. Dealing with difficult and frequently late-paying clients can get frustrating—even for the most level-headed people. Automated payment systems will minimize, if not eliminate, those conversations and potential conflicts. MSPs should have clear and concise collections policies and review the details with prospective clients before closing the deal and again during the onboarding process as part of the mutual exchange of expectations.

The use of a secure payment platform should be part of those conversations. Mandating a system like ConnectBooster will ensure timely payments and reduce “friction points” between MSPs and their clients while boosting cash flow. The result is higher customer satisfaction, profits and company valuations.

Collections don’t need to be difficult or create anxiety. MSPs deserve to receive on-time payments for the services they deliver each month; automated payment systems make that a reality.

Schedule a discovery call to learn how ConnectBooster can help your MSP get paid faster, cheaper and more reliably.

The post Automated Payment Processing Boosts M&A Prospects for MSPs appeared first on ConnectBooster.

Local economic factors are even less predictable. Tales of MSPs experiencing significant financial shortfalls after their clients go bankrupt or experience cash flow issues are all too common, leaving providers scrambling to make up the lost revenue. Those issues rear their heads at the most inopportune times and, without a strong business strategy in place, a sudden downturn can turn into a complete disaster. So how can your MSP survive an economic downturn?

Assess your portfolio risk

If the largest employer in your city or town were to close its doors tomorrow without any notice, how would that affect your business? Do you or your clients rely heavily on the income of one or two customers? The answers to those questions are essential when examining your financial stability; that information can help owners and other stakeholders focus on their financial risks. Successful MSPs regularly spend time evaluating risks, reviewing key metrics, assessing the options, and adjusting their plans accordingly.

IT services providers must pay close attention to current financials as well as future projections. Validate those numbers with accounting professionals and investment experts who can spot potential issues and keep you abreast of the latest market indicators.

For example, a weekly review of accounts receivables helps MSPs spot negative overall trends and individual client issues before they get out of hand. The best way to reduce financial risk is to quickly address those outstanding balances.

Moving from collections to sales, a frequent assessment of your firm’s ‘revenue by client’ will keep everyone focused on gaining “wallet share” with innovative new services and solutions. While some customers, such as those with internal IT teams, may fall below average, this exercise helps validate the activities of your account managers and sales staff. Increased revenue projections and rising contract values will soften your MSP’s short and longer-term financial risks.

With a strong focus on the risk factors and periodic adjustments to minimize their effects, including changes in sales plans, you can make your MSP fairly ‘recession-proof.’

Focus on the metrics

Numbers never lie. With the use of industry and regional benchmarks, as well as the help of peers and qualified accounting professionals, MSPs should always know their true financial situation. The nature of a managed services business and the constantly fluctuating recurring revenue streams make frequent reviews mandatory ‒ at least for those who care about the health of their company.

KPIs are the key. Setting quarterly, if not monthly objectives with long-term goals benchmarked to industry standards is vital. Highly profitable MSPs measure and track metrics for key parts of their businesses ‒ typically around sales, expenses, support functions, and financials ‒ and make any adjustments needed to improve performance. A few KPIs that MSPs pay close attention to include:

1. Net Operating Income: one of the key indicators of the financial health of a managed services business. NOI is the firm’s total operating revenue minus its total operating expenses, and it gives MSPs a quick overview of their overall margins each month. When this KPI is trending upward or is at least 10%, your business will be in a better position to ride out an economic downturn.

2. Contract Profitability: this is the revenue an MSP generates from each client minus the expenses from supporting that business. While the range of margin targets recommended by various experts can vary from 25% to 65%, providers should set realistic targets based on discussions with peer communities, industry benchmarks, and each company’s unique circumstances (i.e., vertical limitations, automation constraints, other limitations). MSPs typically break this metric down by client so they can assess the financial contribution of each contract. During contract renewal this KPI can serve as a guide for your team, ensuring they propose rate adjustments, changes to service mixes, and expense reductions that strengthen profitability. The goal isn’t to add unnecessary services or pad your monthly invoices, but to avoid making poor financial decisions for you or your clients.

3. Monthly Recurring Revenue (MRR): the baseline cash flow for a managed services business, the income stream MSPs count on each month to pay operational expenses and fund expansion. MRR is the holy grail of assets. Since there is no easy way for MSPs to predict sales and revenue increases each month, and when that income will turn into cash in the bank, you can at least count the money due for services outlined in each contract. MRR represents the financial stability you need to get through economic downturns.

Cash is the best firewall

Accounts receivables are not guaranteed. Setting sales records and landing contracts with significant MRR totals looks great on paper, but until that rising A/R converts into cash in your bank account, those numbers are simply future promises. Your clients pledge to pay you a set amount each month for managed and cloud services and support, and if all goes well, you bill them on a timely basis for those offerings and any other deliverables.

No need to beg clients for the money they owe or get bank loans to get you through tight times. What can you do to future proof your MSP business and lessen your dependence on other people’s money? Payment automation is a wise first step towards these goals.

Then the waiting begins. It’s not unusual to see MSPs with 30, 90, and even 120-day A/R averages, if not longer, with no way to speed up their collections without straining the relationship with overdue clients. In those situations, customers essentially turn their IT services partners into long-term lending institutions. Don’t become an interest-free bank.

Savvy providers don’t play the waiting game. Those MSPs incorporate tight accounts receivables policies in all clients’ contracts and provide online payment portals like ConnectBooster to ensure timely collections. Cash in the bank puts you in the driver’s seat.

A combination of effective A/R management practices and automation will put you in control should economic conditions worsen. The payout from having strong managed services contacts with steady cash flow is economic freedom.

The post Is Your MSP Business Prepared For An Economic Downturn Or Recession? appeared first on ConnectBooster.

Money is fuel for building a business. However, even companies with huge contracts and what appears on paper to be strong cash flow cannot funnel those dollars into expansion unless their clients pay their invoices. The faster those payments flow into the bank, the quicker the firm can leverage those dollars to grow the business.

From hiring technicians, engineers and account managers to increasing marketing and sales budgets and technology investments, MSPs that fund those developments internally (with proceeds) rather than externally (with credit and bank loans) put themselves in a better financial position. No finance charges or potential defaults and no loss of control to lenders or investors. Organic growth allows MSPs to increase the viability and valuation of their business.

While the financial side of the house is a significant focus for many MSPs, the payment side of the equation does not always receive enough attention. With recurring revenue streams on the rise, accounts receivables can multiply quickly, so providers should streamline, tighten, and automate their collections processes. Addressing potential billing and payment “headaches” can help IT services companies minimize cash flow issues.

Current economic pressures may force MSPs to revamp their payment policies sooner rather than later. Rising inflation and interest rates—coupled with ongoing personnel shortages—are taxing the finances of many businesses, including MSPs and their customers. Providers need to be proactive to ensure clients pay on time. In economic downturns, some businesses delay contractor and third-party payments to protect their own cash flow, which can significantly impact their IT services partners. 

MSPs should streamline and strengthen their collections processes and implement automated recurring billing solutions to prevent those situations from becoming the norm. A good starting point is to review and assess current invoicing and collections procedures and tools, including PSA and accounting packages, as well as past A/R trends.

Time for a Makeover?

What issues continually slow payments? Invoice generation is just one potential “speed bump.” Few clients may be willing to pay bills they don’t receive, so MSPs must ensure nothing slows the process. For example, some cross-train team members to approve and send out invoices, so illnesses and vacations don’t throw off the schedule.

The best option is to assess each step of the collections process, from invoicing to transaction completion to invoice reconciliation, and then implement an automated recurring billing platform (if you’re not already using these tools). Like a PSA, it’s important to fix problems before adding those workflows to a technology solution.

MSPs need to do their homework before attempting to create the ultimate automated billing system.  You need to know how long it takes to collect the money your business earns. After closing a ticket to implement a new solution or reaching the end of a managed services billing period, how much time passes before the client receives an invoice? Do team members or systems generate those bills in minutes, or does it take hours or days? If the latter, MSPs should consider a makeover of their processes and tools.

Map Out the Solutions

Integrations between PSA platforms and accounting packages allow MSPs to create and send those statements in real-time and expedite collections through an automated recurring billing tool. Properly connecting and configuring those systems can save time, reduce headaches and frustration, and significantly improve the company’s cash flow.

Cash flow may be one of the channel’s most underrated factors or metrics.

Removing people (manual steps) from the process will reduce, if not eliminate, collection delays. Accounting will no longer have an excuse for not sending out invoices and, with a payment platform, will not store huge piles of customers’ checks waiting to make a deposit. These systems take over and can effectively and instantly manage those cash flow-critical steps.

Automated recurring billing ensures the collections process runs on time and in the proper order based on your MSP business’ needs and contract requirements. Lessening the “people component” of these activities also minimizes the headaches for everyone.

Improve Overall Productivity

From owners and technicians to accountants, no one enjoys handling collections, especially with clients they like, respect and interact with regularly. Good relationships can be a detriment when it comes to asking for money. Monotonous duties also drive procrastination, and when employees or customers slow down the process, it affects cash flow. But MSPs few give these responsibilities enough attention. While sales and account managers tend to get a lot of accolades, few companies recognize an over-achieving A/R (though every business really should).

Automated recurring billing systems take on some of the least popular manual tasks in managed services. These tools can also boost morale and eliminate headaches for clients’ accounting teams. Everyone will appreciate being involved in fewer emotionally draining collections calls.

Reducing stress is just one benefit. Eliminating manual procedures can also boost productivity. Automated recurring billing lets MSPs better leverage their most valuable resources—employees and cash. Personnel efficiency and cost control are especially critical in today’s economic environment.

These are just a few reasons why automated billing systems have become a business standard for the channel. MSPs leverage these technologies to streamline operations and enhance profit potential.

Simplify collections with a complete automated recurring billing system platform—link ConnectBooster to your PSA, accounting package and other IT services tools. Consider that combination the ultimate cash flow enhancing solution. Schedule a discovery call to learn how ConnectBooster can transform your company’s billing, collections and invoice reconciliation process.    

The post Building the Ultimate Automated Billing System appeared first on ConnectBooster.

Despite this reality, far too many businesses still consider accounts receivables to be as good as cash. While financial companies often buy outstanding debt for a fraction of its face value, there is no substitute for receiving on-time payments from clients that require no human interaction. No need for phone calls, follow-up emails, or reminder letters; just a notification of each bank deposit made within the previously agreed-upon amount of time.       

On-time payments should not be an afterthought for MSPs, nor an unobtainable wish. But more often than not, on-time payments are not prioritized. On average, MSPs wait 60 days or more before receiving payment! Businesses need procedures, policies, and systems to create invoices and quickly convert those accounts receivables into cash—and IT services firms are no different. An IT services firm may have slightly more complex billing due to the nature of variable billing agreements. Nevertheless, MSPs can achieve predictable on-time payments from customers. The timing and workflows are critical, as are steps for validating and tracking all the various payments to ensure nothing gets lost amidst the chaos of running an MSP. 

Most firms cannot afford to patiently wait for weeks, if not months, to get paid after mailing out invoices or only have team members check on the status of overdue accounts when it’s convenient. Expediency and efficiency drive cash flow and profitability, and providers that adopt proven billing best practices are more likely to achieve both objectives. Those practices include:    

1. Create Clear and Concise Payment Policies

How will customers be expected to pay for services? MSPs should adopt clear and concise policies that customers can understand and employees can easily explain. Those details should include dues dates, fees for overdue invoices, and preferred forms and methods of payment, as well as contact information for the accounts receivable department and other key team members. 

2. Set the Proper Expectations

The best way to avoid payment problems is by reviewing the company’s policies during the sales process, not on the handoff with account managers or when the first invoice becomes due. Engaging key decision-makers upfront helps MSPs establish clear “rules of engagement” and prevents misunderstandings from happening later. That timing also allows the sales team to gain “buy-in” on critical options like autopay, especially for recurring services, and set expectations for the onboarding process, implementation, and support.

3. Adopt Automation

MSPs are accustomed to tools like PSAs, RMMs, and system management portals that make life easier for their team members and clients. Similarly, automation can streamline and expedite invoicing and payments, boost cash flow and eliminate headaches for providers and their clients. Most of those businesses have the means and ability to pay on time each month; they just lack the motivation and systems to make it happen effortlessly and cost-effectively. ConnectBooster gives clients that power.   

4. Create a Winning Implementation Strategy

As with any change, getting clients to adopt payment automation may seem daunting without the proper motivation. While 100% adoption should be the objective, aiming to get 80% of clients’ monthly recurring charges on autopay is a realistic starting point, providing a strong and steady revenue stream for MSPs. They should continue to work toward converting that final 20% of holdouts. Incentives like delayed rate increases or free new (temporary) services help boost adoption.      

5. Reinforce and Clarify     

When onboarding a new client, always provide them with details on the payment process and everything that will take place, from service implementation to billing. They should know when to expect invoices, the subsequent charges on their credit or bank accounts, and the process for asking questions or resolving billing issues. Provide clients with a reasonable timeline and terms for making payments and provide contacts for account managers, the A/R team and executives (with the proper escalation steps).

Work the Plan

While the billing process is not typically complicated, some of the more critical steps often require a little extra motivation—like ensuring clients make their payments on time and following the right instructions. Automation eliminates many of those headaches. Clients set up their accounts with bank or credit information and schedules and check the approval boxes. When new invoices are generated or the system notes a specific date and time, the wheels kick into gear and the payment process commences.       

The main goals are to ensure every client receives the agreed-upon level of support each month and that their IT provider gets paid promptly for those services. There’s no need to turn IT team members into collections agents or give no-interest or low-interest loans to your customers. Proactive payment platforms like ConnectBooster simplify the process for everyone and let MSPs invest more of their own money in the business. A more predictable monthly income means a healthier cash flow, higher profitability, and greater financial options for funding growth and other endeavors.     

The best way to set your business up for success and make sure your clients never miss a payment due date is to automate your billing process. ConnectBooster automates customer payments based on variable billing amounts generated by the tools your MSP already uses, so you can stay focused on what matters: your customers. Plus, your clients will love the transparency, ease-of-use and convenience of their new 24/7, 365 payments portal. Connect with us to schedule a discovery call to start getting paid on time with less work.

The post Implement MSP Billing Best Practices to Encourage On-Time Payments appeared first on ConnectBooster.

Between the shift to work-from-home and the overall rewards of virtual work systems, the cloud cynics are rapidly fading. However, acceptance doesn’t mean all is rosy. Cyberattacks and network outages will likely always remain a concern. When criminals carry out their nefarious plans or systems go down due to other causes, it may limit workers’ access to critical business applications and data. Employee productivity can be affected without a good backup plan.

The good news for MSPs is none of these issues are insurmountable today. In fact, cloud applications provide more “alternate” options than traditional software tethered to physical servers and PCs—which are harder to recover in an outage or after a disaster. The ability to access business-critical programs and files from virtually any location is invaluable, and that flexibility is vital for managing large and small operations and recruiting top talent. Younger job seekers typically favor leading, if not bleeding-edge, companies that give employees the option to work from home part or full-time, which would be very difficult without cloud solutions.      

Drive Incremental MRR

MSPs understand the “as-a-service” business model. It’s really a simple equation: increase the number of cloud sales to raise cash flow. The incremental income providers receive from virtual technologies provides a steady stream of funds to fuel growth plans, pay utilities and other bills and hire more of the right people. Digital transformations also tend to reduce support requirements, so MSPs can redeploy their most vital resources to maximize customer service and drive even more revenue.

An effective “as-a-service” strategy allows MSPs to maximize their ROI. Cloud providers roll fewer trucks and typically have more time to grow their specializations and vertical market sales and build out their portfolios to attract (and support) new clients.

In other words, increasing adoption of the “as-a-service” model allows MSPs to develop the types of solutions and support programs their customers need. That means innovating and deepening their portfolios and providing consulting and other meaningful support programs that providers can incorporate into their clients’ monthly invoices. Growing wallet share through the addition of new services helps MSPs increase revenue, profitability and customer retention rates.  

MSPs can quickly and easily boost their “as-a-service” value-add in several ways, including:      

1. Leverage Your Cybersecurity Expertise

Presently, leading with defense is a winning strategy. With the global cyber-security market expected to go from $155 billion in 2022 to almost $380 billion by 2029 (a CAGR of 13.4%), according to Fortune Business Insights, MSPs have an incredible opportunity to build lucrative new practices. As an expert in that area, you can share creative and effective offerings, implement industry best practices with existing and potential new clients, and expand into different verticals. With SMBs transforming to the “as-a-service model,” providers can leverage their knowledge of networks and data vulnerabilities to develop and implement strong defenses for those customers and generate greater cash flow.  

Providing periodic “cybersecurity audits” is a great way to get those conversations going with existing clients. Highlighting potential vulnerabilities and solutions can lead to new revenue opportunities and strengthen the trust between key decision-makers and providers.

2. Become a Communications Authority

Do your clients still rely on landlines, desktop phones, servers and other hardware to make voice calls? If so, introduce their management team to cost-effective and highly flexible VoIP solutions. These investments can not only replace old legacy communications equipment and expensive telecom services, but also provide more automation options and streamline key pieces of their operations. VoIP includes call routing and forwarding, virtual phone numbers, and many other useful features for remote and hybrid workforces. Of course, this “as-a-service” offering also generates a profitable monthly income stream for MSPs.

3. Provide Business Continuity Support        

Every organization, big or small, must be prepared for disaster. From hacking and phishing schemes to addressing data retention needs for remote employees, the risk of losing or leaking valuable information if something goes wrong should be a top concern for every business owner. MSPs can help address those concerns with business continuity plans and disaster recovery/data recovery solutions. Reviewing “worst-case scenarios” with clients and highlighting how easy and affordable it is to protect their most valued assets is often enough to seal the deal and create additional MRR for your MSP.

4. Monetize Your Compliance Expertise

Are you giving away your most valued resources (knowledge and experience)? Providing a Compliance-as-a-Service (CaaS) offering is a win-win for MSPs and the clients that need that insight and understanding. Regulations and industry standards can be cumbersome to address and manage on an ongoing basis, and many clients will appreciate and be willing to pay for this type of support. From doctors’ and dentists’ offices and other medical facilities to credit unions and other financial firms, MSPs can generate additional MRR using industry best practices and tools.   

5. Customize Your Services Creative

No two clients are ever the same. Whether offering enterprise resource planning (ERP), marketing automation solutions, or packaging unique services that local businesses value, MSPs can package virtually any offering into a monthly recurring revenue bundle. Empower your team to come up with new ideas to solve existing and evolving problems for your clients and be sure to reward those who generate the most profitable new income opportunities.

Change Your Mindset

The most profitable MSPs today have an “as-a-service” mindset. What types of support are you currently offering, and what might be missing from that equation?

That process might force you to think outside your traditional comfort zone. Providing support for virtual meetings (think Zoom or Teams) or ongoing training sessions for sales and marketing activities may require new resources and people.

Successful MSPs tap into their collective resources to expand their “as-a-service” portfolios, encouraging team members and partners to share ideas and provide feedback on potential new options. The best way to quickly and easily generate additional revenue streams is to build from what you do best. Listen closely to what employees and customers say and get creative—it’s a low-cost proposition with a high upside.

As your MSP expands its “as-a-service” value-add, make it easier to collect your new-found recurring revenue with the tool built specifically for MSPs to collect payment and minimize accounts receivable tasks—ConnectBooster. Contact us for a no-obligation discovery call, and see how thousands of MSPs save 8-20 hours each month formerly spent on manual accounts receivable tasks.

The post 5 Ways to Boost Your MSP’s “as-a-service” Value-Add appeared first on ConnectBooster.

IT services businesses should monitor maturity level to ensure continual improvement through planning and attaining specific development goals. Advancing various aspects of an MSP’s operations makes it more valuable to everyone—including clients, employees, owners and potential buyers.

Many consider an MSP to be a “living” or dynamic organization. By nature, IT services firms must continually evolve their portfolios, support programs and even business models to keep pace with clients’ rapidly changing needs. Those changes also allow MSPs to increase their revenue streams, margins, cash flow and customer satisfaction.

More than ever, stagnation and complacency can force IT services firms to close their doors. Innovation in technologies, services and business models keep MSPs relevant with clients and prospects and allow them to optimize back-office operations, efficiency, and profitability.

Many investors prefer to acquire operationally efficient IT firms that closely adhere to (if not exceed) industry standards and overall business best practices. MSPs with ambitious yet sustainable development plans and solid sales track records typically garner more attention in the M&A dance and receive a higher sales factor than their less structured peers.     

MSP Maturity Levels

The best way to effectively manage the growth and development of a business is with a properly structured plan. Achieving a higher MSP maturity level requires an effective strategy and a cross-company commitment to each objective, with continual tracking, frequent reporting and accountability for individual and group goals. No task should be taken for granted, and owners must remain committed to each step of the development process.    

The good news is, with the advent of managed services and the cloud, many IT companies skip the so-called “bottom-rung” of the maturity model. While the Value-Added Reseller or VAR community remains a viable opportunity in some areas, most new providers invest their limited resources in growing recurring revenue opportunities. The relatively low cost of entry and high ROI are just two factors driving that trend, but many IT services business owners won’t stop there. Providers with higher profit aspirations typically begin building out their portfolios with cloud offerings and hire skilled technicians who can support more advanced solutions.  

The second rung on the maturity ladder involves standardizing the company’s operational processes while maintaining a strong focus on technology: keeping systems online and upgrading the IT environments. Any consultation or design support is typically related to the “nuts and bolts” of the applications and devices, not to the business processes or strategic plans and project work. Many companies comfortably reside in this space, as moving to the next level requires providers to implement Remote Management System (RMM) and Professional Services Automation (PSA ) tools and to adopt higher level business acumen.     

That’s because the third stage of the maturity model involves more comprehensive strategic engagements. MSPs of this level have a more developed business structure with stronger policies, procedures, and accounting/budgeting practices. Management portals and documentation tools help bring stability to the chaos and infrastructure improvement is more of a priority than device sales and maintenance. While most companies are quite advanced at this level, there are a few final refinements and investments needed to reach “IT services nirvana.”    

Consistent quality and operational excellence are two common descriptors for MSPs reaching the top maturity level. These organizations adopt industry, business and accounting best practices and effectively communicate and collaborate with their clients, outsourcing partners, vendors and distributors. They fine-tune and energize their sales techniques, invest in advanced lead generation and marketing programs and strengthen account management and customer service teams. Mission alignment is a top priority. These high-level MSPs typically take a business consultancy approach, selling clients on operational efficiency and policies first, with technology and automation as enablers.

Plan, Execute and Elevate

A common expectation is that every business will grow and evolve over time, on a steady climb toward peak efficiency and profitability—though those outcomes are never assured. Most companies ebb and flow in terms of sales, client counts, staffing and portfolio options. Forward momentum may stall for many reasons, including market conditions, owners’ health issues, and unplanned employee turnover.

Mature MSPs design business models and strategies to address those unexpected shifts and overcome potential hardships.

First, the leadership team should research best practices and industry standards and spend time gaining insight from peers and industry experts.

After assembling and digesting all that valuable information, they can put pen to paper (or fingers to keyboard) to build a long-term plan with the appropriate timetable.

Strategic goals should never be rushed. MSPs can often fund much if not all of their expansion and refinement plans through organic sales growth, leveraging revenue rather than paying interest on loans or credit lines.

Strong cash flow is key. With a solid business plan and steady increases in revenue streams and profits, MSPs can invest in new tools, people, programs and other resources to advance their operations and maturity level.      

Your MSP can achieve efficiency and cash flow to elevate its maturity level with an all-in-one accounts receivable automation solution—ConnectBooster.

With ConnectBooster, MSPs can stop spending so much time on billing and collections tasks, and instead focus on more productive parts of the business. ConnectBooster connects with the solutions MSPs rely on—CRM/PSA, quoting and accounting software—to automate tedious and error-prone accounting tasks and automatically collect payment according to variable agreements. Request pricing and see how ConnectBooster capitalizes on efficiency and automation to increase cash flow.

The post Elevate Your IT Services Business Maturity Level appeared first on ConnectBooster.

MSPs savor those roles. There is value and margin in the “mysteries” that IT services professionals address each day—even more so for firms with high demand specializations in cybersecurity and certain vertical markets. The more you know about the business processes that technologies drive, the greater your worth to the clients who rely on those solutions. That value proposition keeps managed services contracts growing and generates tremendous revenue for highly skilled providers.

Focusing on the right things at the right time helps drive MSP success. Clients may expect your team to be clairvoyant and predict which problem may occur and determine the optimal solutions before the dust can settle. Working from similar mindsets and vantage points is the ultimate objective.

Sounds easy, right? The problem for MSPs and other business owners is that the world is full of uncertainties. Who could have predicted the events of the past two and a half years? While managed services providers emphasize data backups and disaster recover plans to help clients survive unforeseen situations, few develop contingencies for a global pandemic. The ongoing supply chain and inflationary concerns add more complexity to the situation, leaving many business owners wondering how to prepare for whatever might come next.

The Transitioning Work Environment

With strong signs that the pandemic is waning, organizations are hedging their bets on a return to normal. Many companies adopted work from home (WFH) or hybrid environments over the past two years to maximize employee safety and keep most, if not all of their operations running.

Those arrangements will continue for many organizations. Some businesses saw increases in productivity and employee satisfaction after moving to the WFH model. Making that transition permanent, even on a part-time basis, allows organizations to reconfigure or eliminate office space and significantly trim expenses.

On the other hand, there are many companies that still need (or at least prefer) employees to spend some, if not all their working hours in a corporately controlled space. Whether their workers interact directly with clients or require constant oversight, or managers want all their team members in one place, those who have not transitioned back will soon make the move.     

Back to the Office Refresh

Change often spells opportunity for MSPs. That’s why it’s a great time for reassessing clients’ systems, solutions, and support programs, including more recent investments for enabling remote work teams. During the pandemic, many managed services providers spent more one-on-one time with clients, formed tighter relationships and gained more intimate knowledge of their operations and workflows. That level of insight, combined with greater trust and business value gives MSPs the leverage they need to pitch more comprehensive strategic plans to help boost those companies’ future success.

Building more robust and secure solutions to support today’s workforce should be a top priority. That means providing businesses with the best of all worlds—the ability to work securely from a central office, home environment, or other locations. With clients’ employees returning to the office, now is the perfect time for MSPs to add solutions that boost efficiency and productivity—and overhaul clients’ existing infrastructure and systems.

• PC/laptop refreshes. If your clients have not invested in computers since before the pandemic, now is the perfect time to pitch a replacement plan. Systems that are secure and free from issues (i.e., missing or sticky keys, glitchy monitors) help boost productivity concerns and employee satisfaction. While continuing supply chain issues may limit availability of some devices, it’s good idea to begin the planning and ordering processes sooner rather than later.       

• Phone systems. Your clients need the latest communications solutions to remain competitive today. If relying on traditional phones or a self-hosted VoIP application, it’s time to upgrade them to Unified Communications as a Service (UCaaS), providing their employees with video and text, as well as mobile device options. Even if everyone works from a central office, these applications save valuable time and empower collaboration among team members.        

• Printing apparatus. MSPs often overlook the devices that create the most stress in an office—printers and copiers. However, upgrading your clients’ printers and copiers and adding management solutions that reduce ink and paper costs are invaluable services.

• Routers/network upgrades. Advances in technology can provide major benefits to your business clients. Organizations that are returning to the office should jump at the chance to have an MSP assess and improve the strength of its backbone (networks and internet providers). These are core channel skills that can bring new project revenue to IT services firms.      

• Physical security. From video and access controls to entry and lighting management applications, MSPs can better protect their clients’ employees, businesses, and data. Most of these systems are IP- or app-based and provide the perfect complement to an IT services firm’s portfolio of network offerings. 

Strengthen Your Bottom Line

The options above are just a few of the many solutions you can provide your business clients. Those upgrade opportunities can also generate higher revenue and margins for MSPs and drive a variety of additional consulting and support services. Enhancing your cashflow is a nice bonus for your team’s extra work.

Which options would help the transition back to the office for your clients? Now is not the time for business as usual. MSPs should consider pitching solution that boosts customers’ efficiencies and drive down costs to offset rising expenses. With so much uncertainty, including skyrocketing inflation and hiring challenges, providers can deliver new applications and support options to ease some of the anxiety.    

As you provide solutions for your customers, don’t neglect optimizing your own business with efficiencies that can lead to cost savings. ConnectBooster is proven to save MSPs 8-20 hours each month formerly spent on manual accounts receivable tasks. Request pricing and see how ConnectBooster can save you time and money while helping you get paid faster.

The post Generate New Managed Services Opportunities as Clients Return to the Office appeared first on ConnectBooster.

The escalating demand for proficient tech professionals should keep experienced MSPs busy for quite some time. Unfortunately, those same market forces driving the high demand are also working against IT services business owners.

The ongoing supply chain issues and hiring difficulties that drive interest from prospective clients may also limit revenue and profit opportunities and create a number of other problems. MSPs without efficient processes and sound business practices in place may struggle to keep pace with competitors and maintain the level of profitability needed to grow. A desire to support additional business prospects means nothing without the resources, willpower, and planning abilities to make it happen. Building and following a well-crafted strategy improves your chances of success.

Reexamine Business Plans

The business environment significantly changed. Consequently, your MSP may need to develop a new strategy or, at a minimum, reevaluate your current approach. Continuing to build from an outdated (or now broken) premise will likely result in a disappointing outcome. Every business owner needs to “check-in” periodically to see if their original mission and objectives, the reasons their plans were first constructed, are still intact. If not, it’s probably time to revise or redraft your plan and adjust your goals.

Sometimes the best way for a business to move forward, especially when sales are strong, is to take a step back and look at all the key factors that may have changed over the past year or two. Evaluate what’s working and what’s not. Determine if specific current activities should change or be eliminated altogether.

Growing an MSP in today’s challenging business environment requires more planning and effort than ever before. However, the opportunities for scaling IT services sales and monthly recurring revenue are also at an all-time high, creating the ideal situation for fully staffed and enterprising tech organizations.   

Consider the following when evaluating if your MSP needs to devise a new strategy or revise its existing plans:

• Client support needs. Have changes shifted their priorities and requirements over the past couple of years—like work from home (WFH) and the growing adoption of cloud solutions?   

• Technology changes. Your clients may need (or want) more advanced systems and applications than you currently provide. Many MSPs are adding high-level cyber threat protection solutions to their portfolios to reduce the risk of ransomware attacks, and IoT-driven technologies to control energy costs. And offering a secure payment technology will help your clients mitigate payment processing vulnerabilities and cybercrime risks.     

• Economic conditions. Shifts in the economy (and business spending) can have a major impact on IT budgets (and your ability to drive solid margins). Offering cost-effective and productivity-improving options is a good way to change the technology narrative from “expensive services” to “wise investments.”   

• Buyer landscape. Have clients’ decision-making processes changed? Are the same people in place, or are there new methods and influencers in the mix with different preferences? What seems like minor changes can significantly impact MSPs’ ability to sell additional services and grow wallet share.

• Internal efficiencies. Sometimes internal inefficiencies are the bottlenecks that prevent or stymie growth. Especially when an MSP is on a growth trajectory, hiring or employee retention issues can cause slowdowns and result in poor customer service and service delivery or even delayed payment. Process efficiency and automation may not cure every ill, but those steps can reduce pressure while improving margins. MSPs that are more operationally efficient capitalize on the right technologies, integrations, automations and best-practice methodologies.
  
  For example, MSPs who leverage full-cycle billing automation have an easier time collecting payment and achieving healthy cash flow to afford additional tools, resources, or staff to scale.

• Talent pool. The ongoing shortage of qualified technicians, sales professionals and other skilled (and non-skilled) workers may be one of the biggest threats to MSPs’ growth objectives. Developing a strategy to enhance your firm’s image as a top-notch workplace is a great place to start. With an increasingly competitive environment for skilled talent, especially in the IT community, MSPs need to ramp up recruitment efforts and reevaluate compensation packages. Are wages, benefits and workplace policies aligned with prospective employees’ expectations? Better yet, can they attract experienced professionals from outside the normal talent pool?

Is your firm positioned to grow?

Can you provide high-quality support for an increasing number of clients?

Does your firm utilize the right technologies for its internal, administrative practices to keep overhead costs low and to keep up with a larger client base?

Expanding portfolios and increasing wallet share while onboarding new customers offers the best of all worlds—driving more revenue and tightening key business relationships. Those situations help increase client retention and long-term MSP success.       

ConnectBooster helps MSPs achieve healthy cash flow that supports adding tools, resources, or staff to scale. As you examine your growth plan, position your MSP to scale by optimizing your billing, collections, payment processing and invoice reconciliation processes with an all-on-one tool that will save you time and money. Get pricing and learn how you can achieve healthy cash flow with ConnectBooster.

The post Does Your MSP Need a New Growth Strategy? appeared first on ConnectBooster.

With robust demand in many sectors, including the automotive, real estate, and, yes, technology industries, and supply chain difficulties still causing issues, costs are skyrocketing in some areas and affecting virtually everything else. The March 2022 inflation numbers reflected the largest twelve-month increase since December of 1981 at 8.5%, up from 7.9% in February. Those price increases are hard for any company to absorb without taking action.

Successful MSP owners understand the need to pass on most, if not all, of those rising costs to customers to prevent margin and cash flow concerns within their own organizations. Timing truly is everything. Clients might jump ship if they feel your firm raises prices every time there’s a blip in the market, but rate stagnation can put your business on shaky financial footing if your internal expense costs rise faster than income. Finding the balance between the two extremes is critical.

That division doesn’t need to be equal, and MSPs should be able to more than compensate for the rise in their own expenses. Finding the right mix may not be easy. Some providers provide a low-cost value-add to soften the blow of proposed increases or offer some discount to clients for agreeing to adjust payment terms, sign a longer-term contract or adopt other processes that favor the IT firm. Most clients won’t complain as much about paying higher monthly fees if the services provide value. With unchecked inflation, few will object to price increases from business partners that deliver continual efficiency improvements in their operations.

Turn Challenges into Win-Win Opportunities

MSPs often get paid to address bad circumstances. Dealing with all the pandemic-related restrictions and business challenges of the past two-plus years clearly demonstrates the capabilities of the greater provider community. IT services firms admirably stepped up to drive, secure, implement and deliver ongoing support for remote and hybrid workforces in a matter of weeks (if not days, in some cases).

That same types of consideration and support should go into developing a 2022-2023 pricing strategy. How can you continue developing and better securing your clients’ IT systems without hitting them too hard in the pocketbook? At the same time, what steps can you take to boost your company’s financial situation—or at least ensure your margins don’t slip? Here are five proven MSP best practices to help you keep pace with inflation:

1. Increase Prices with New Value-Add
   In the current economic environment, no client should be surprised when an MSP announces new pricing. However, providers that create more of a win-win proposition by delivering more services along with that price increase typically receive less negative feedback and enjoy an easier transition.
   
   Most business owners and managers understand the situation today. If their IT provider delivers an additional solution that will improve their efficiency or security posture along with a proposed 5-10% price increase, that extra “value-add” may partially, if not completely, offset the additional expense. For example, an MSP could add services such as dark-web monitoring or password management with contract renewal or implement technology refresh programs that bring higher margins (instead of raising rates). The key is keeping the cost of those extras or portfolio changes below the rise in your expenses.
   
   Successful MSPs understand the things their clients need and provide new services to justify price increases, helping inflation-proof their businesses while boosting support levels and capabilities.

2. Review Expenses
   This may seem like a “no-brainer,” but with so many activities in a typical day, some MSPs don’t take the time to periodically assess their cost of doing business. Evaluating the highest cost items such as rent and mortgages, insurance, and personnel is the perfect starting point. Like their clients, MSPs may choose to adopt virtual or hybrid environments to minimize, if not eliminate, expenditures for buildings, utilities, and insurance. To offset rising gas prices, some companies are downsizing vehicles or leasing EVs.
   
   Regularly evaluating everything from software and phone systems (VoIP is a cost-effective alternative) to software applications and internet providers helps ensure your operations run efficiently.

3. Automate!
   Every IT services business owner should know how valuable properly implemented, and supported technologies are to an organization. For MSPs, that means PSAs and RMMS to streamline client management and integrate with a host of other critical tools. On the financial side of the MSP business, eliminating manual steps in the quoting, accounting and collections processes can save a tremendous amount of labor. With the shortage of talent and the high cost of hiring and training employees, the ROI of automation tools is rising, so MSPs should continually seek new opportunities to deploy these types of solutions.

4. Enable New Efficiencies
   Strong IT services partners are invaluable—even more so today than before the pandemic and rise in cybercrime. Similarly, your clients are looking for ways to trim their expenses to avoid passing on huge price increases to their customers. Like the value-add strategy mentioned above, MSPs are the innovators that can leverage their ingenuity and beneficial technologies to create new business efficiencies. WFH and hybrid environments are great examples. Encouraging clients to downsize offices and better enable remote workers can significantly lower costs. That money can be reinvested in sales, marketing, and other technologies that drive additional revenue, increase customer satisfaction, and reduce employee turnover.
   
   How does that help MSPs counter inflation? Those technology investments allow providers to reconfigure monthly payments and augment IT contracts, with an opportunity to boost revenue and margins. Also, it’s in your best interest to suggest efficiencies that keep your customers profitable and in business so they can continue to invest in your solutions.

5. Encourage More MSP-friendly Payment Terms and Processes
   No one likes a price increase. Understanding client motivations and decision-making processes make it easier for MSPs to soften the blow on those announcements and create mutually beneficial proposals. Many providers leverage price increases as part of the bargaining process, offering a smaller bump if clients agree to adopt certain practices, financial terms, or technologies. For example, the new contract might include a different collections process that requires payment within ten days of invoicing with a secure payments gateway like ConnectBooster to streamline the process.
   
   MSPs may incentivize or penalize clients to encourage the adoption of these cash flow-critical solutions. Providing a discount less than the inflation rate will be less costly (and easier) than having your team call, email, and otherwise track down clients seeking payments for overdue invoices. Instead of increasing their monthly fees by 10% or more upon renewal to compensate for inflation, MSPs can propose a lesser increase (for example, only 3-5% increase) for those who agree to use ConnectBooster and enroll in autopay.

What is your strategy for countering inflation? Planning is critical. With the right approach, MSPs can mitigate their own rising costs while delivering broader and deeper support to their business clients and communities. The key is building a win-win strategy that everyone will understand and appreciate.

As inflation drives costs up, your clients might expect a rate increase. You can minimize your clients’ financial strain by incentivizing adoption of your ideal payment process—autopay. ConnectBooster makes it simple to get paid on time, every time, with rule-based, variable billing and two-way data syncing. Contact us to see how autopay with ConnectBooster can help you save money and achieve consistent cash flow.

The post 5 Best Practices for MSPs to Keep Pace with Inflation appeared first on ConnectBooster.

Does your MSP collect checks from customers?

Do you store customer payment information on sticky notes or in an excel document?

Do customers send their payment information to you via email or text?

If you answered yes to any of these questions, your MSP is not prioritizing the security of your customers’ payment data. All of these are vulnerabilities. You have good intentions—no MSP intends to put their customers’ information at risk. This simply doesn’t cut it when it comes to the high stakes of payment security and confidential information.

Most MSPs sell cybersecurity and privacy packages within their services. And yet, what could be less secure than requiring your client to send a paper check by mail or storing sensitive information on sticky notes or unencrypted files? Cybercrime just keeps increasing at a startling rate; even the most security-conscious businesses are on edge.

Don’t you want to be able to assure your customers that you secure both their businesses and their confidential information? How embarrassing would it be, not to mention costly, if you suffered a breach and their credit card information was compromised?

You can accept customer payments with less risk—even recurring payments—and in less time.

ConnectBooster transforms outdated, insecure collection methods with industry-leading technology that makes it convenient and secure for your customers to pay on time.

ConnectBooster’s secure payment portal encrypts a customer’s credit card information through the whole payment cycle. The PCI-compliant vault holds and protect customers payment information for recurring payments, while the patented 3-step redirect ensures that no sensitive information is ever stored on your server which minimizes your risk for a data breach.

Best of all, your customers will love it. The ConnectBooster portal delivers the security they expect, as well as convenience, line-item billing transparency and a variety of digital payment options to suit their needs.

Trust is everything when it comes to customer payment data. Don’t just protect your customers’ businesses, protect the sensitive data they trust you with too. It’s time you upgrade your billing and collections process to match the caliber of your other offerings. Schedule a ConnectBooster demo to get started. 

“We have used ConnectBooster for over 2 years now, and they have been an invaluable asset to our company. Before ConnectBooster, our accounting staff literally spent several DAYS per month, manually billing credit cards in QuickBooks, dealing with getting and updating cards, re-processing failed payments, and more. ConnectBooster has allowed us to fully automate that process and never have to touch a user’s credit card. (PCI Compliance … Done!) The clients like it because they can directly enter their credit card information without having to call, fax, or risk email, and they can see their invoices. The icing on the cake is we saved enough money in fees by working with them to easily pay for the program and then some!”

– Chris Amori, Network Depot

The post Boost your MSP’s Security with a PCI-Compliant Payment Vault  appeared first on ConnectBooster.

The industry had confidence in the efficiency of the supply chain until two years ago. As the pandemic swept through countries and then continents, suppliers and manufacturers’ operations were slowed if not completely halted, causing a ripple effect of shortages throughout the world. While the pandemic appears to be easing across most parts of the globe and those shutdowns are lessening significantly, delivery delays and wild price fluctuations continue.  

The war in eastern Europe is amplifying that problem. Approximately 374,000 businesses (90% based in the U.S.) relied on Russian suppliers before the invasion, with Ukraine providing goods and materials to around 241,000 organizations (93% based in the U.S.), according to Dun & Bradstreet. While the world works to resolve that conflict and stop the pain and suffering, the market will have to adjust and absorb the diminished capacity.    

Those supply-side challenges are more difficult in areas where product demand never subsided. When added to other unexpected quirks in production and distribution, including the recent earthquake in Japan and COVID-related preventative measures in China, the availability of IT-related supplies is sure to be a spotty proposition for months, if not longer. Those regions are a major source of semiconductors, hard drives, transistors, network cables, rare earth minerals and other key resources companies need to manufacture their products.    

The reality is, supply chain issues go much deeper than a computer chip shortage. So, what can MSPs do to overcome those concerns and best support their clients’ IT ecosystems?                 

Get Visibility into the Supply Chain 

Clear insight into pricing, availability and delivery times is essential when proposing new projects to clients and prospects. Businesses can leverage data-driven automation to empower their sales teams and optimize supply chains. Identifying which distributors and vendors have the inventory and the pricing and capability to deliver those products to their clients at the right time is crucial. The great news for MSPs is that IT services-specific quoting applications and integrations can easily make that happen today.     

Automating the data collection and communications processes ensures that the information companies use to make supply chain-related decisions is as accurate and up-to-date as possible. IT services-specific tools help make the proposal, ordering, delivery, invoicing and payment processes quick and effortless with little, if any, manual intervention. Integrations with hardware vendors, distributors and the latest generation of online suppliers—like Amazon Business and other e-tailers—provide MSPs with access to an almost endless number of options.  

That leverage is critical with the ongoing supply chain constraints. Unfortunately, suppliers are struggling to keep up with the high demand, especially with difficult-to-find devices and materials, so IT services companies need to work harder and smarter to secure the things their clients need most. 

Automation breaks down information silos and gives MSPs’ sales teams the ability to research every potential source in a matter of minutes, not hours. Industry-specific tools simplify the proposal and communications process to reduce deal closing times and speed up project timelines. Integrations with invoicing and accounting packages like QuickBooks and Microsoft Dynamics GP and payment tools like ConnectBooster help MSPs get paid faster.    

Leverage Larger Networks 

Before the pandemic, many providers relied on one or possibly a few suppliers without running into delivery and pricing issues. The onset of international supply chain challenges forced MSPs to add new distributors and vendors to meet rising client expectations, especially with the sudden shift to work from home environments. Many providers have been expanding their supplier networks to locate and secure products ever since. Adding vendors and distributors to your partner ecosystems reduces the risk of backorders and delayed shipments.  

Those growth and diversification strategies can slow down the proposal process if not combined with automation. Whether leveraging new vendors and distributors or e-commerce sites, without the proper search and communications tools, sales teams end up spending more time searching for the optimal prices, products, and delivery options. That inefficiency can hurt new revenue opportunities, company profitability, and customer satisfaction.     

Expanding supplier networks lets you commit more time to service and support and more adequately meet your clients’ expectations, even in the midst of so much uncertainty. Diversification and automation are critical in times of surging demand and supply chain disruptions. Those actions can trim product and shipping costs, boost your margins, and provide ease of mind to your team and business partners.   

MSP-centric quoting, procurement, and financial applications can be an invaluable part of the solution. With real-time supply and demand visibility and minimal manual effort, these automated platforms will alleviate or at least minimize many of your current supply chain, hiring, and pricing concerns.  

Efficiency and automation are critical for MSPs. ConnectBooster is the payment solution that thousands of MSPs trust for automated billing and collections and improved efficiencies. Schedule a demo to see how ConnectBooster can simplify your processes and save you time. 

The post Leverage Automation and New Partnerships to Overcome Supply Chain Issues  appeared first on ConnectBooster.

One of the most important but overlooked parts of the MSP/customer experience is how and when a customer pays you. This process is often confusing or even downright difficult for customers. Consider this:

If a customer has a question about their bill, how do they get answers? Do you offer convenient online access to view their billing and payment history, or are they required to contact you for clarification during your office hours?

How have you asked your customers to make payments? Do you offer multiple easy and secure ways to make a digital payment, or do you primarily accept checks in the mail or credit card information over the phone?

Making it difficult or inconvenient to pay a bill, or using outdated technology (hello, checks!) is frustrating for your customers. These oversights create barriers between your customers and their ability to easily and consistently give you money. They are the primary causes of late payments, which leads to other issues: poor cash flow, slower growth, and an urgency to go out and find more revenue in all the wrong places.

Is this the payment experience you want your customers to have, or your business to suffer through?

There’s a better way—a payment technology solution specifically designed for MSPs that’s efficient, convenient and transparent, and makes your customers happier.

ConnectBooster transforms your outdated payment process and makes it convenient for your customers to pay on time. Its white-label portal, branded to your MSP, enhances your professional image while giving your customers a more sophisticated and immediate way to pay their bill no matter when your business is open.

Your customers will appreciate 24/7 access to your payment portal through ConnectBooster where they can manage their own payment preferences, add, change and securely storing payment methods, schedule and manage monthly autopay, and view their entire itemized invoices and payments history. This is the level of ease and transparency your customers expect from a technology solutions provider.

Offering your customers a 24/7 payment portal and transparent online view of their invoices and payment history has several benefits. For starters, they won’t be able to make excuses regarding “missed” invoices. You’ll even be able to see when they opened an invoice. This on-demand portal brings transparency, security and convenience to your payment process.

ConnectBooster’s secure payment portal also automates dunning and eliminates awkward collections calls which means your conversations will remain focused on what matters: your services.

Best of all, the easier it is for your clients to pay you, the more likely it is that they’ll pay their bills on time.

The complete customer experience is more important than ever. Schedule a demo to see how ConnectBooster can increase your customers’ satisfaction and help you get paid on time.

“We consider it [ConnectBooster] to be a “must have” for any partner who accepts credit cards. We completely underestimated how much our customers would appreciate the convenience.” – Michael Creed, Mega-Byte Computer Services, LLC

The post Transparency, Ease & Convenience of 24/7 Payment Portal appeared first on ConnectBooster.

And that’s if every aspect of billing and collections goes right!

Partial payments or payments sent without an invoice number might require all-out guesswork. And if payments are overdue, additional time is spent sending reminders, dunning notices, and making collection calls. As your business scales, the time it takes to manually reconcile full and partial payments only increases to an unsustainable level. It’s no wonder most MSPs have an average outstanding accounts receivable well past 30 days.

MSPs get stuck in an endless game of “match the payment to the correct invoice in the accounting package.” But getting paid isn’t a game—it’s your livelihood. It shouldn’t be this hard.

Your billing and payments process will make or break your business. Having a time-intensive, manual system for collections is not just an expensive and time-consuming burden, it also puts you at risk for human errors and billing problems down the road that may damage customer relationships.

You need automatic invoice reconciliation.

With ConnectBooster, you can stop playing a losing reconciliation game. ConnectBooster connects your CRM with your accounting software so you save time on bookkeeping, eliminate double-data entry, and reduce human-error. You can reclaim your time and let ConnectBooster automatically match and reconcile invoices upon receipt of payment.

After adopting ConnectBooster, most MSPs report saving 8-20 hours per month previously spent on manual billing-related tasks. Schedule a ConnectBooster demo to see how your MSP can save time and resources with automatic accounting reconciliation. Your bookkeeper will thank you!

The post Eliminate MSP Bookkeeping Double-Entry with Automatic Invoice Reconciliation appeared first on ConnectBooster.

What does that mean for MSPs? First of all, some clients known for throwing out pricing and other objections may be complaining a little less today. Many companies are seeing their MSPs in a new light—as real partners in their success. Sales are growing at significantly higher rates than before the pandemic as cybersecurity and inflationary concerns cause businesses to rethink their technological investments. Protection and efficiency are no longer “buzz words” for your clients.

The increasing value of skilled managed services providers makes now the perfect time to assess your business strategies. Despite all the past challenges, industry experts expect MSPs will be in an even better position to increase their revenue streams in a post-pandemic world. Building new plans to increase monthly recurring revenue (MRR) will drive the cash flow your company needs to fund additional expansion.

Increasing “wallet share” with your current clients is one logical step. Adding new technologies and tools that boost their efficiencies and capabilities or supplement existing cybersecurity protection create a “win-win” situation for all parties. These services provide incremental revenue streams for your MSP while strengthening and better securing your clients’ infrastructures and businesses.

Take the Next Step in IT Support

While the SMB is the standard target for most MSPs, the advancing technical needs of organizations are creating many new market opportunities. Larger organizations are going through the same WFH/hybrid workspace challenges as their smaller counterparts and struggling to support a growing number of remote workers. Combined with hiring difficulties and many in-house IT team members’ lack of experience working outside the corporate firewall, it presents an entirely new opportunity for MSPs.

Dealing with all the issues that arise when making extreme workforce transitions can tax any business. Now add in the ongoing support and cybersecurity requirements, and it’s easy to see why many companies in the mid-size to enterprise space could benefit from teaming up with an MSP in a co-managed IT experience.

Freeing corporate IT teams to focus on the corporate network and systems and handle any onsite technology needs and handing offsite work to capable IT services firms optimizes mutual skillsets. MSPs could also augment cybersecurity and deliver 24/7 operational support. Many larger organizations can benefit from working with outside IT professionals, whether filling gaps with the client’s existing resources or providing new or specialized services and support.

Of course, those are not the only areas where MSPs can deliver value in a co-managed IT relationship. The slate is clear when pitching prospects with in-house IT teams, so it’s important to evaluate options and pitch creative and flexible proposals. Creating doubt in the status quo and getting sales prospects to consider new ideas are top priorities for your sales team. Can you easily and cost-effectively tailor support programs to meet that organization’s specific needs?

With certain tech specializations, such as expertise in advanced cybersecurity, O365 applications, or POS (Point of Sale) and payment technologies, MSPs will find it easier to leverage those skills to open new doors. Those “ins” allow providers to build and strengthen relationships with decision-makers and make it easier to discuss and explore additional current and future opportunities. Developing strong alliances with internal tech professionals and management teams is also essential for securing renewals and longer-term support contracts.

Co-management comes in many forms. From basic tech support in the off hours or when the internal tech team needs time off to a full-blown collaboration in many areas of the IT ecosystem, MSPs can carve their own space when and wherever businesses express a need. Cybersecurity is one of those high-value opportunities.

Pick a Starting Lane

With a strong combination of internal and external technical expertise, MSPs can help even the largest companies fortify their defensive strategies and meet increasingly demanding compliance requirements. A wide skillset and extensive cybersecurity resources are needed to protect today’s corporate infrastructure, including the WFH and hybrid workforce environment. With all the new and unique challenges of the past two-plus years, business leaders find themselves looking for solutions to address these different problems.

Co-managed cybersecurity creates a win-win in these environments—from the ever-increasing regulations and compliance requirements to the continually escalating threat of cybercrime. From the SMB to the largest enterprise, organizations without the right mix and depth of tech resources can benefit from working with an MSP today. With access to a diverse and highly skilled team of tech professionals, they can better support and protect their people, infrastructure, and reputations.

Co-managed opportunities are everywhere. With the bandwidth to support and augment internal IT teams, MSPs can increase their recurring revenue streams, cash flow, and profitability while sharpening their teams’ skillsets.

ConnectBooster is committed to payment processing for MSPs, with industry-leading payment security to bolster and complement existing cybersecurity efforts. Whether enabling your company to accept clients’ payments or giving you the ability to extend similar capabilities to those customers’ businesses and grow your MRR, our team can make it happen.

Are you ready to take advantage of all the opportunities associated with payment processing for MSPs? Contact us. We can’t wait to help you get started.

The post Take Co-Managed IT to the Masses, Not Just the Enterprise appeared first on ConnectBooster.

Most assuredly, you send invoices to your customers on time, and then spend after-hours and weekends sending dunning notices when you’d rather take much needed time away with your family and friends. You probably even make awkward collections calls and send follow-up emails, always careful to toe the line between good customer service and asking for what’s owed. You feel exhausted from continuously working in the business rather than growing the business and stressed about your complete lack of control over when customers will finally pay.

It doesn’t take long before you hear every excuse:

“I didn’t get an invoice.”
“I lost the invoice.”
“Payment is tied up in the billing department.”
“The check’s on the way!” (but it isn’t)

All the while, your MSP’s outstanding A/R continues to creep up. In the best-case scenario, situations like this keep MSPs trapped in their own status quo and unable to afford additional tools, resources or staff to scale. In the worst cases, owners anxiously choose between making payroll and missing a mortgage payment, simply because they aren’t getting paid what they’re owed for services that have already been delivered.

No one enjoys requesting overdue payment. As a result, these calls and emails are often pushed to the bottom of the list. Some MSPs intentionally shy away from sending payment reminders out of fear of aggravating customers and losing business. The reality is when payments become overdue, manual intervention is required. Fortunately, there is an easier way.

With ConnectBooster, you can configure dunning notifications to automatically send if a customer is behind on payments. These can be specified to send according to any timeframe. For example, set ConnectBooster to send payment reminders at 15 days and again at 30, then dunning notices can be triggered at 30, 40 and 50+ days past due. With a few clicks, you can even exclude specific, special customers that you do not want to receive notifications. Dunning is highly sensitive; with ConnectBooster you configure the timing and craft a friendly and polite message, and the software handles the automation.

Each automated notice from ConnectBooster includes a “Pay Now” option that links to a secure payment vault, so it’s easier than ever for your customers to make payments around the clock. Best yet, when owners and bookkeepers are relieved from keeping an eye on payment deadlines and spending time and mental energy continually asking for payment, time is freed up to take care of other more pressing tasks in daily business.

“ConnectBooster was the best business choice we’ve made in years. It completely changed our receivables. We no longer spend time tracking down people for their late payments. It saves so much time doing our least favorite job of calling people that owe us money. We can spend our time doing other more productive work. Highly recommended.” – Howie Brounstein

Aren’t you sick of chasing down payments? With ConnectBooster, you can finally stop doing your least favorite chore once and for all, and instead use your time to grow your bottom line.

Request a demo to see automatic dunning and ConnectBooster’s other features in action.

The post Automated Dunning Notices Free MSPs From their Least Favorite Chore appeared first on ConnectBooster.

Collecting payment on variable billing each month consumes a lot of human effort—separately updating your CRM or PSA and accounting package, sending invoices and reminders, and making follow-up phone calls to customers—all while toeing the line between providing customer service and asking for what’s owed. When payments are manual, it’s more likely they’ll be late and burdensome to collect. How many hours of manual labor does your MSP spend each month attempting to collect payment?

As the business grows, and the MSP’s own bills pile up, the effort required to get paid becomes unsustainable, especially when collecting and reconciling payments takes time away from growth opportunities within the business. When customers are slow to pay, cash flow is inconsistent, and revenue is trapped in A/R. You can’t scale your business with A/R; you need money in the bank.

Too many MSPs resign themselves to late and arduous payments as “just the way it is.” They presume the nature of variable monthly billing agreements make it impossible to set-up truly zero-touch autopay.

With ConnectBooster, billing and collections is no longer a time-consuming chore. Thanks to dynamic autopay and two-way data syncing with tools you already use, even varying monthly agreements require virtually no effort to get paid.

ConnectBooster automatically collects the exact dollar amount generated by your CRM/PSA’s invoice from your customer’s securely stored ACH or credit card, and then updates the correct data in your accounting package.

For example, when you document in your PSA that your client added three new employees this month, ConnectBooster intelligently and automatically pulls the correct amount from your customer based on the fluctuating terms on your contract. With no extra effort, you get paid on time, every time.

Meanwhile, your customers will feel confident they’re only paying for what’s owed through complete line-item transparency in the payment portal (which can be branded to your business). The portal gives your customers control while promoting on-time payments. Your customers can add, change and securely store payment methods, schedule and manage monthly autopay, and view their itemized invoices and payments history. When you integrate ConnectBooster with your tools, you enable your customers to pay your monthly bill in the same way they pay their phone bill—set it and forget it.

ConnectBooster’s zero-touch autopay could be your new best friend so you can spend less time on collections and more time growing your business.

Schedule a demo to see how zero-touch autopay with ConnectBooster could help your MSP get paid on time, every time.

The post Zero-touch AutoPay for Fluctuating Monthly Bills is Your MSP’s new BFF appeared first on ConnectBooster.

Less is definitely more in IT services operations. Therefore, two of the most important goals for providers include lessening the complexity and, whenever possible, eliminating the human element. Operational efficiency and structure, including documentation, allow MSPs to work faster and scale their businesses more effectively with fewer resources. Those capabilities help boost margins and make it easier to attract clients and investors, especially for those looking at M&A opportunities or designing short-term exit strategies.  

When employees are forced to use multiple systems and siloed information to perform their jobs, it lessens the time available to work with their clients, heightens anxiety and often leads to more keying errors and other mistakes. Partner management portals and centralization can alleviate many of those concerns, as can integrations and automation tools. The most productive MSPs provide their employees with better and more intuitive controls while eliminating as many manual tasks as possible. Those changes make it easier to scale the operations, deliver better and more consistent client support, and retain every company’s most valuable assets—its employees.    

The proven “tools of the trade” allow MSPs to successfully mature, providing more oversight and reporting capabilities, and making it easier for owners to sell their businesses. An established operation with properly optimized and authenticated processes and contracts is worth significantly more to a potential buyer than a poorly run organization with few, if any controls.

MSP documentation give managers more leverage. Whether proving the value of their business during M&A discussions or highlighting problem areas and solutions, these systems allow IT services firms to attain a higher level of operational maturity.                

Target Easy Access and Control

MSPs need fast and easy access to more tools than ever before, including those that run their operations, as well as every managed client and computer. From business and vertical market-specific applications to professional services automation platforms (PSAs) and remote management and monitoring (RMM) solutions, juggling all the credentials and login procedures can be quite a chore. 

IT documentation applications simplify that process. They collect and provide secure access to vital information across the IT ecosystems and help manage all of an MSP’s contacts and assets, all from one central repository. Authorized personnel can review client notes, service tickets, and system performance data and access password vaults for various customers. Documentation platforms provide a cost-effective and intuitive management system for modern-day IT services firms.

One of the most valued features of these applications is a flexible and easily navigable integrated dashboard that provides users with instant access to their specific tools and information. These secure and adaptable tools empower individual employees with the things they need to successfully complete all the various aspects of their jobs. No more and no less.  

Documentation Power in the Pieces

Every business owner likes leverage. The exponential power MSPs (and their employees) gain from IT documentation platforms lets them focus more time and effort on existing and prospective clients, training, and operational improvements. The collective controls of the various features increase the capabilities of individual workers and the entire team. The core elements of an IT documentation platform include:  

Knowledgebase – this is the crux of an IT documentation system. Instantaneous access to all the articles and documents available within an MSP’s ecosystem, including all information related to clients’ IT environments, is invaluable. An easily searchable knowledgebase simplifies system management and makes it easier to address potential problems.   

Central dashboard – this feature provides each employee with a personalized view of their business applications, contacts, lists, credentials, activities, and other job-critical information. Users can organize actions and details by dates, priority, or other important factors.

Configuration manager – manually entering details of each new device set-up can be a time-consuming and error-prone activity. IT documentation platforms can use templates to enter and update configurations and prevent unauthorized individuals (including users) from making changes.

Integration portal – MSP-focused IT documentation platforms should offer extensive integration options, allowing providers to connect and automate a variety of business-critical applications. For example, PSA and RMM integrations let providers quickly and seamlessly access client service tickets and account information and respond to support requests more effectively.

Asset management – knowing the location and status of IT equipment is critical for MSPs and the businesses they support. A valued IT documentation platform should track wireless and network devices, virtualization hardware, server components and other IT and non-technical resources.

Standard and customizable templates − each organization has different processes, requirements, and solutions mixes. An effective IT documentation platform will include both pre-designed and flexible templates so MSPs can accurately document configurations for each client.

Secure data backup – business continuity begins and ends with information control. MSPs must have sound and highly secure backups for each client and their own businesses, and a good IT documentation platform will provide administrators with that level of control. According to Statista, more than 55% of U.S.-based organizations store data in the cloud, and most of that information contains sensitive material. Preventing outside parties from accessing that information should be a top priority for MSPs.

Password management – MSPs hold the literal “keys to the kingdom,” with credentials providing access to all their clients’ systems, networks and everything in between. A secure password vault protects those lists and helps monitor and manage updates and changes.  

A Cost-Effective Way to Improve Operational Efficiency

Improvement typically comes at a price. For MSPs, technology is generally a cost-effective investment, especially when the solutions increase productivity, sales, customer satisfaction and retention. IT documentation platforms deliver a good ROI for channel partners, especially considering how many different areas of an IT business and processes they optimize and strengthen. From the back-office operations and support teams to ensure the protection of client environments, these applications support virtually every business objective of MSPs.

Managed services is a competitive endeavor, and any solution that can give providers an edge over their peers should receive close attention and a full evaluation. IT documentation platforms like IT Glue, NinjaOne, PandaDoc, and N-able Passportal (and several others) help bring order to that chaos, especially when MSPs leverage integrations with other valuable business tools, including ConnectBooster. Interlinking these platforms creates an automated network that can share new information and update data across the IT ecosystem with little if any, manual intervention.

Best of all, the documentation MSPs need to manage both their clients’ and internal business systems effectively remains secure from unauthorized personnel and cybercriminals. Building and maintaining a successful IT services firm is never easy. Still, by leveraging the power of automation and the top tools of the trade (including integrations), that job is a lot less complicated and stressful.   

Greater efficiency is critical for MSPs to remain competitive with their peers, and can propel profitability. ConnectBooster is the payment solution that thousands of MSPs trust for greater billing and collections efficiencies. Schedule a demo to see how ConnectBooster can simplify your processes and optimize cash flow.

The post The Value of MSP Documentation Tools appeared first on ConnectBooster.

Close rates are critical. Moving prospects from lead to a signed contract in the least amount of time is not just a sign of sales success and efficiency, but it demonstrates your MSP’s financial strength. Boosting the speed and rate of closes increases profitability. Sales-related expenses are typically smaller, while MSPs can convert projected revenue for those accounts more quickly into bank deposits. That money, in turn, can pay for hiring new techs and expanding sales and marketing activities, fueling even greater growth for the business.

What better way to fund the rapid expansion of your MSP than with your own money? No interest fees, closing costs, or paperwork. Accelerating the lead-to-close-to-cash cycle gives you more financial freedom and rapidly increases the value of your business to prospective buyers or investors.

How can MSPs speed up their sales closing process to realize those benefits? Like any worthwhile business improvement project, you start with a plan.

Continually Revise Your Methods

Process efficiency is key in today’s competitive environment, and IT services companies need to be at the top of their game. Converting marketing efforts into leads for the sales team are just the initial steps. Every MSP should have a playbook or list of potential activities for transforming prospects into new clients, a well-honed system with proper oversight that the team periodically reviews and updates.

Think of your sales processes as an engine. Frequent adjustments help optimize performance and efficiency, and with a little tinkering and ingenuity, you can usually coax even more horsepower and speed from virtually any machine. Modifications to your sales playbook can have a similar effect.

Transforming leads to new clients is a “tunable” process, and MSPs must work continually to simplify, enhance, and speed up those activities to optimize sales closing rates. Not all of those changes may be easy, but persistent improvements can strengthen MRR, grow new revenue streams, and help fund expansion plans.

Here are a few best practices for “speeding up” the closing process for your managed services business:

1. Identify the issues and opportunities.

Conduct a quick but thorough evaluation of each potential client’s IT environment, business objectives, and compliance requirements. Your sales team can quickly and effectively assemble preliminary plans and value-driven proposals to move the conversations (and relationships) forward with that information in hand.

2. Focus on key decision-makers.

Every MSP needs a customer relationship management (CRM) tool today. From the initial lead to the final signature, your team should be collecting names, titles, and responsibilities, as well as personality traits and personal details. Collect information that will allow the sales team to build bonds with decision-makers, which, in turn, can help build trust and speed up the closing process.          

3. Know your competitors

Spend time learning about the other MSPs and IT services providers in your area. Study their portfolios and messaging and identify pricing and any possible advantages. That will be useful when conveying your firm’s differentiators and discussing potential solutions with prospects. This will allow your team to more readily focus on key benefits and improve the odds of landing their business.

4. Quickly recognize and address concerns.

The “dance” is one of the most time-consuming parts of the sales process. Identifying real and perceived objections can be a slow and painful progression for both MSPs and prospective clients. A solid sales playbook can help with questions and ideas for eliciting feedback and gaining buy-in on specific technology or business concerns. Proactively develop thoughtful responses to possible objections. Employing trial closes and an automated proposal system can also help MSPs identify objections and gain contract approvals much faster.

5. Control your message.

Beginning with the initial assessment, MSPs must carefully meld their talking points to match their clients’ needs with the available portfolio of services. You may need to pitch new offerings to address specific requirements since the ultimate goal is to best support that business, including its operations, employees, customers, and long-term objectives. If the sales team can align messaging to address their pain points and aspirations, closing the deal will typically take less time.    

6. Leverage sales tools.

Automation helps MSPs thrive. The sales process is no exception, with various management tools available to help you better manage the chaos from lead generation to the close. PSAs and RMMs help your team manage the day-to-day operations, and connections with accounting and quoting applications eliminate many manual tasks. Automation helps MSPs speed up their sales processes while maximizing MRR and cash flow opportunities from each lead.  

7. Train!

Many small business owners hire experienced sales professionals and only offer a basic education on products and services before setting them loose. MSPs must continually nurture and train all their team members, especially those who play a critical role in driving revenue and cash flow. Investments in third-party training and coaching programs, in addition to a well-rounded understanding of the value of your products and services, can positively impact the speed of your sales process.     

Track Your Team’s Performance

MSPs have a lot of sales tools at their disposal. From CRMs and lead generation applications to PSAs and other management systems, it’s easier than ever to automate the processes and monitor almost every step of your operations. Generating reports on those activities can be just as simple.   

Setting and monitoring the speed and rate of sales closes allows you to assess and improve the process. You can experiment with training programs and new tools and adjust and streamline procedures to gauge the impact of each on the sales team. Performance may be measured using many variables; however, the most impactful numbers typically involve your bottom line. Faster closing rates mean nothing if MRR, per deal revenue, margins and cash flow don’t also move in a positive direction.

Orchestration and oversight are crucial to your success. Monitoring the impact of each change in sales tactics through financial reviews and employee discussions can simplify the decision-making process, giving you an easier way to differentiate the good options from the bad.

Getting more sales should always be better. Just be sure not to compromise pricing or contract duration to get a quicker signature on a new contract. The obvious goal of sales is to close deals, but it’s also about providing value. With a fine-tuned sales process in place driven by value, expedited close rates should follow.

Revenue is the fruit of faster close rates and increased sales. Real revenue is found in an MSP’s bank account, not in accounts receivable. Further set up your MSP for success by communicating clear payment expectations and collecting with ConnectBooster—an automated variable billing and collections tool that saves MSPs time and effort. Request a demo to see how ConnectBooster can help you achieve effortless cash flow from your newly closed deals.

The post Seven MSP Sales Techniques to Speed Up the Closing Process appeared first on ConnectBooster.

In any sport, the best players are the true masters of the game. They dedicate their hearts, minds and bodies, building up the right muscles and skills through specific exercises and endless practice sessions. Success typically comes to those who put in the work and sweat the details.        

It takes a similar mindset to build a new IT services specialization. MSPs must devote a significant amount of time and energy learning workflows, regulations, common IT requirements and the key priorities of various players before joining the conversation with business owners in any prospective target markets. Your team must appear credible in these discussions. MSPs have to earn the right to implement and manage technologies for clients in different verticals, acquiring the knowledge, business expertise and terminology to go toe-to-toe with peers already supporting these communities. Most of all, you must deliver the performance and results those companies need to accomplish their own short-and long-term objectives.     

Like any new business endeavor, building a new specialized MSP practice requires a good plan and even better execution. Identifying and exploring the best market opportunities are just the initial steps.

Select the Best Vertical for Your Managed Services Business

In the past, many industry sales consultants told MSPs to focus on the “low-hanging fruit,” meaning the easiest or fastest ways to close prospects. However, simple and quick doesn’t always drive profits. When looking at new markets, a better course of action is to create a standard (or ideal) client profile. That gives the management team a baseline for assessing the different attributes for each prospective vertical, including the number and types of devices to manage, profit potential, systems complexity, and support requirements. This forethought could save an MSP from taking on clients that could lower their average margins and increase their management costs and headaches.

Most managed services firms focus their expansion efforts on complementary verticals and industries with more local players. That approach reduces the investment requirements for sales, marketing and training programs and typically lessens the time to ramp up a new practice. Selecting a specialization that complements or closely aligns with an MSP’s current business model, when that option is available, carries less risk than venturing into a completely different vertical.

For example, IT services firms with strong medical support practices may wish to explore business opportunities in the dental, chiropractic, and optical fields. With similar workflows, compliance requirements, and “vocabulary,” the learning curve should be shorter, and investments will likely be minimal.

Retail-focused consultants could investigate opportunities with companies with similar business operations, including restaurants, hotels, and a variety of hospitality-related businesses. Their Point of Sale (POS) and payment technologies expertise, along with experience developing and supporting customer relationship strengthening solutions, could readily transfer to those other complementary verticals. The more common the technologies, business processes, and consumers, the less heavy lifting it will require for an MSP to enter that market.

What are the best verticals for selling managed services? Most MSPs start with broader categories, such as SMBs, and build a niche, and then, after establishing a beachhead and enjoying success, they expand into the next closest specializations. Here are a few of the many industries where IT services firms have the greatest success:  

• Construction
• Health care
• Legal
• Banking/finance
• Education
• Local/state government
• Hospitality
• Real estate
• Restaurants
• Retail

After determining which sector offers the most opportunities, the real work begins—building and executing the business plan for a new vertical practice. The key elements of that strategy may seem daunting to an outsider, but experienced MSPs conduct some of these activities every day.  

Speak the Language

How do you communicate your value to an unfamiliar audience? Selling and marketing to new verticals require a solid comprehension of their terminology, jargon, and pain points. MSPs must understand what motivates prospective clients and, most importantly, the decision-makers and know how to “connect all the dots” with clear and concise messaging. While the technology may speak for itself in many cases, IT sales teams can “lose the room” quickly by misusing the industry’s everyday acronyms and terminology.

While some may cringe when they hear, “you can’t walk the walk if you can’t talk the talk,” that phrase carries a lot of weight in the business community. MSPs earn respect and close more deals when they can effectively communicate with potential clients. The sales pitch must connect the types of service with the business requirements of each prospect.  

To sell managed services to new verticals, you need to bring your entire team up to speed on the industry terms, acronyms and common phrases. Some MSPs acquire those language skills through research, industry-specific courses (i.e., a basic online course on opening a construction business), or by hiring an experienced sales professional or consultant in that particular field. Cutting corners on this step can quickly undermine your efforts at building trust in the chosen new vertical community. There is a real opportunity for MSPs with a dedicated sales pitch, solid technical background and knowledge of the industry.    

Learn Workplace Nuances

Like the language subtlety concerns, MSPs must have a solid grasp of workflow and a good feel for the customer expectations in each market they serve. Before selling managed services in a new vertical, a common best practice is to spend time inside one or more prospective clients’ businesses or bring in someone with that expertise.

For example, you could hire or contract with a former CIO of a health care organization to manage the practice and educate your team on the nuances of various types of medical facilities. From front desk operations and billing to the flow of patients and the tasks performed by doctors and nurses, understanding the staff’s responsibilities is critical to selling managed services to these organizations.             

Understand the Tech Needs

Which systems automate or help prospective clients manage their workflows? While most organizations employ the same base technologies, including email and office-enabling applications from Microsoft or Google, the line-of-business applications differentiate the verticals.

For example, when selling managed services to restaurants, MSPs should be able to skillfully implement and support POS and kitchen/order management solutions. Those clients would naturally expect and rely on your expertise at supporting these systems if signing a contract—though you could partner with others to deliver some if not all of those specialized services. To prevent misunderstandings later, MSPs must be careful not to misrepresent their capabilities or technical details when entering a new vertical. Can you support the specific cloud solution, security services, or infrastructure management programs that their current service provider employs? You may wish to avoid developing business relationships in industries with a complex list of needs and technical requirements.         

Be true to new and current customers. The worst thing an MSP can do when selling managed services to a different clientele is to leave technology or support gaps or not be capable of addressing cybersecurity issues. IT firms with operational maturity that offer a wide array of tools, security solutions, cloud computing capabilities, industry expertise, and a solid services delivery model, will be in the best position to expand their customer base. 

In today’s tech-savvy environment, where decision-makers have more IT-related insight than ever before, the worst thing your sales reps can do is fake their way through a conversation. Your team must have a firm grasp of the technologies needed to succeed in new vertical markets.  

Generate Demand

Unlike the movie “Field of Dreams,” you have to do much more than build a new specialization to ensure its success. Prospects will only come if they know about your MSP’s expertise and ability to address a true need in their operations. Effectively telling the story of how your solution or expertise will help a new audience is essential, but first, you have to get their attention.

Start by leveraging your current customers and networks. Reach out and share the news of new vertical expertise with respected business professionals who can provide recommendations to potential customers. Create a referral program that incentivizes people in your network to make a simple introduction to targeted businesses’ key decision-makers, including previous clients. Whether that means offering a free cybersecurity assessment, a one-month 50% discount, a $250 gift card or another enticement, the goal is to encourage positive engagements between acquaintances.       

Effective IT marketing activities (i.e., advertising, social media campaigns, newsletters) should also be part of the demand generation plan. An MSP that builds an effective sales funnel will engage prospective customers with their specific pain points through the stages of the buying journey: awareness, interest, decision, and action. Selling managed services to new verticals can energize your team, boost customer retention, and even increase your security business or other offerings. 

Close the Deals!

No new IT services practice can succeed until it generates more revenue than expenses. Creating an effective sales process for each business unit is essential. For that point, the most important step when selling managed services to a new vertical is closing the first, second and all subsequent deals, creating strong cash flow to pay the bills and invest in future projects. It’s all about creating the best business outcome and client satisfaction.  

Sales success is all about the links. The opportunity becomes real when you connect the dots between a prospective client’s potential issues and business objectives and your core and specialized services offerings. What your sales team does from that point will determine whether your new practice succeeds or fails.    

If your MSP is ready to explore a new vertical, you’ll need cash flow to propel your efforts—to invest in marketing and acquire new tools, training or staff. ConnectBooster is trusted by thousands of MSPs to automate billing and collections to achieve effortless cash flow. Request a demo to see how ConnectBooster can help you convert outstanding accounts receivable into real revenue in the bank—all while saving time and money.

The post Guide to Selling Managed Services to New Verticals appeared first on ConnectBooster.

Even without the need, desire, or chance to sell, MSPs should be able to calculate a price (or range) in which they would seriously consider accepting an offer. Sellers often envision receiving a much higher value than prospective buyers. On the buyers’ side, any investor must look objectively at the ROI of any potential deal and determine how that new piece would fit into their business strategy. A lessor match will typically receive a lower offer than an MSP that “checks more of the boxes” for the prospective buyer.

It’s like buying a house. People are willing to pay more if it closely matches the purchaser’s ideal vision for a home with little or no further investments after the sale.

Beyond the Money

Finding that “right fit” buyer for your MSP isn’t always a given. The more unique your business case and less repeatable or scalable your operations, the harder it may be to locate a match, which can lessen the value of the business. While some prospective buyers may appreciate niche MSPs, the ability to easily grow sales and revenue is one of the largest pricing factors.

It’s simple math. Price is all about risks and opportunities. The better and faster the prospects of covering the purchase of an MSP, the more valuable the deal.

Financial factors are usually just part of the equation. A “big picture” MSP may place a higher value on a specific clientele, high-level talent, certain solution sets, buildings/equipment, or a number of other business considerations. Understanding the “worth” of the known resources and the intangibles that would attract various acquirers will simplify the pricing and negotiations processes. That’s why experts suggest MSPs bring in an IT service experienced M&A expert to help conduct a comprehensive assessment of all their company’s assets before selling the business.    

Benchmark Your MSP’s Metrics          

Your MSP could be one of many options a prospective buyer is considering. In some cases, the suitor may even contemplate different business types in other industries to determine the best potential ROI. That is if you truly intend to sell.

Building your MSP’s value may have little to do with M&A. You may plan to transition the business to family members, co-workers, or others as part of a long-term exit strategy with no upfront money changing hands. A common best practice for a new MSP is to track valuation monthly or quarterly as they acquire clients and contracts and hone their deliverables.   

Providers should also know what their business is worth for succession planning and insurance reasons. A proper valuation gives insight into covering employees and other stakeholders from disasters, such as the loss of a principal investor, fire, or other liability. Without having a ballpark appraisal, at a minimum, it would be difficult to appropriately insure the business and ensure continuity.

Knowing which metrics to use to gauge the value of your MSP makes that easier. Here are a few key performance indicators (KPIs) peers use to calculate their net worth.    

1. Monthly Recurring Revenue (MRR). This metric assesses the income an MSP produces from its subscription services. You can calculate that number by totaling the monthly billing charges for each client and then deducting hardware sales and one-time or intermittent fees. MRR has become the go-to metric for instantly measuring an MSP’s financial health and value. Investors, financial institutions and partners will typically ask for this number to determine the viability of any prospective M&A or lending opportunities.

2. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It’s important to periodically measure the total financial performance of a business. MSPs may substitute this KPI with earnings or net income since it ignores accounting and financial deductions that tend to distort the real revenue opportunities. Service Leadership suggests top-performing MSPs typically exceed 19% EBITDA.

3. Agreement Profitability or Managed Services Contract Profitability. Tracking this KPI helps MSPs manage and improve efficiencies within their operation. According to Taylor Business Group, each managed services agreement should produce a 65% gross margin. If not, your services prices or productivity may be too low, or your processes need improvement.

4. Churn Rate (Clients). Measuring the percentage of clients your MSP loses over time is critical to retention plans and potential M&A efforts. Whether firing or mutually agreeing to part ways with customers, that metric, when combined with the lifetime value of an average account, helps you assess the business’s health and cost of potential failures. A retention rate of 90% or higher is what most investors look for in an MSP business.

5. Client Lifetime Value (CLV). This metric lets MSPs evaluate the financial benefits of gaining and keeping a business customer. Understanding the value of different income opportunities lets you know how much you can spend to acquire and maintain those business relationships. To calculate this KPI, you’ll need to include sales, marketing, and support expenses, the cost of the goods and services, and any other revenue streams from that client over the projected period. A standard five-year baseline will give you a good idea of each prospect’s long-term value to your bottom line.

6. Inbound Qualified Lead Velocity. How much are your sales opportunities growing month over month? Measuring your company’s pipeline is crucial for your bottom line and potential buyers or investors. Knowing which prospects, especially those with the greatest revenue potential, are most likely to become paying clients is an essential step for planning. Will you need to hire techs and invest in new tools to support these customers? The more confidence your team has in its lead funnel, the easier it is to make those decisions.
   
   
7. Service Utilization or Technician Utilization. Workforce efficiency is one of the most critical KPIs in an MSP business. Since IT talent is one of the costliest expenses, the goal is to keep this KPI as high as possible. Your team’s productivity is important to profitability. MSPs can use this metric to calculate the effect of new hires, technology investments and integrations, and client onboarding on their bottom line.

8. Net Promoter Score. Do you truly know if and how much your customers value your service? This KPI measures how strongly your customers will recommend your MSP to other businesses on a scale of zero (never) to 10 (highly likely). The Net Promoter Score is fairly easy to calculate and track and manage today with the help of a variety of cost-effective tools. Of course, this metric also allows MSPs to spot negative trends and potential issues that may affect upselling opportunities and renewals.  

9. Service Level Agreement (SLA) Compliance. This KPI measures the percentage of client incidents resolved within previously established boundaries. Is your team meeting your MSP’s standards and customers’ expectations? The SLA compliance metric also allows you to evaluate and verify that service level objectives are reasonable and obtainable and adjust those standards if and when needed. If falling short, MSPs may consider hiring more personnel or partnering with third parties to increase their support capabilities and decrease response times.

Keep Your Eye on Other Key Metrics

No single KPI can predict the future of your business. In addition to continually reviewing the metrics above, MSPs can better measure their financial health by periodically checking a few other statistics. Taking a deeper look at the books on a monthly or quarterly basis helps focus your attention on the value of your business and note any inconsistencies or anomalies in the numbers. Other critical KPIs to watch include:     

1. Net Profit Margin. This metric shows the business’s after-tax profit for every dollar of revenue it generates.

2. Gross Profit Margin. How much money does the MSP have left after subtracting the costs of providing services? While revenue may fluctuate month to month, gross profit should remain steady.

3. Average Monthly Recurring Revenue (MRR). This metric is the median income an MSP generates each month for repetitive services under contract.

4. New Recurring Revenue. The ability to generate continual income with minimal effort is a huge value to investors, buyers, and lenders.

5. Cash Flow. If an MSP doesn’t have a strong and growing payment stream, it can’t effectively scale.

6. Average All-in Seat Price (AISP). This KPI represents the total expense incurred by every end-user supported by the MSP.

Does financial performance align with expectations? Do you need to make course corrections to address potential issues? Hold yourself and other stakeholders accountable for regularly finding the answers to those questions to keep everyone in the know and on track. Every MSP’s leadership team should understand the numbers and how to positively impact those KPIs.

As you review your MSPs value and measure KPIs, don’t confuse outstanding accounts receivable with revenue. Money is only considered revenue after it’s exchanged hands and resides in your bank account. ConnectBooster has helped thousands of MSPs automate getting paid for greater cash flow. Request a demo to learn how ConnectBooster can help your MSP drive down A/R, and save time and money so you can focus on growing your firm and its value.

The post Nine KPIs that Can Raise (or Lower) Your MSP’s Value appeared first on ConnectBooster.

Cash flow is a critical element that determines an MSP’s ability to scale. If you don’t have cash flow, you can’t grow. If your money is trapped in A/R, you can’t invest back in your business.

There are numerous things you can do that will ultimately increase cash flow—for example, pay off debt, negotiate vendor contracts, update longstanding customer contracts, eliminate unnecessary spending. One of the most obvious and overlooked ways to increase cash flow is to insist on getting paid by your customers on time, every time.

ConnectBooster spoke with several MSPs who have taken control of their A/R and cash flow. They all shared common themes: know your company’s value, selectively take on only the clients who will abide by your payment expectations, adopt autopay, incentives and penalties despite your hesitancy and discomfort, and save time and effort while reducing errors with automations.

Fellow MSPs who have achieved low A/R and consistent cash flow share reminders, tips and advice that you can adopt in 2022.

Use Payment Expectations to Determine Best-Fit Customers

Setting up customers with autopay is the best way to ensure predictable and consistent cash will hit your bank account each month. But MSPs commonly believe their customers are opposed to autopay, and to avoid alienation, don’t press the subject. Customers may be hesitant, not necessarily opposed.

Kloud9 IT made the choice to assert autopay as a protocol in their businesses. CEO Trent Milliron shared they set a goal to get 100% of their customers on recurring autopayments via credit card or ACH for the flat fee portion of approved items indicated in their contracts. If a prospective client won’t agree, they don’t take them on. Now, they operate with approximately 99% of their clients on recurring autopay.

“I think most MSPs are not comfortable making autopay mandatory, but I can tell you that they should be comfortable because I have never had anybody really say no in the end,” Trent explained.

Their payment expectations became a sort of litmus test to determine if a customer is a good fit for their company. “I’ve only had a few customers balk at it and when they do, I start questioning whether they can afford us,” Trent shared. “If I’m defining in the contract that the only portion that’s going to come out of your account [via autopay] is the flat fees which are laid out in the contract, then I have to question, what are you scared of?”

Remove Emotions When Making Decisions

EVERNET Consulting, LLC CEO Eric Buhrendorf said he made a decision to run a better business, which included applying an onboarding fee to new clients and requiring payments through ConnectBooster. He advises fellow MSPs to take the emotion out of your business decisions.

“I made a decision not to be beholden to any would-be customers,” Eric said.

He began asserting his company’s value and payment expectations up front. Eric admits, at first it was unnerving, then it became exciting. Ultimately, EVERNET’s profits increased by 300%.

“I ran the business scared and afraid of my clients and money for 10 years. I would onboard any client and had a mass of accounts that we had to chase payments,” Eric said. “Now we charge an onboarding fee that’s really asking the prospective customer, ‘do you value this relationship?’ If they don’t see the value in the relationship, then it isn’t a fit for EVERNET. If they do, we explain how the relationship has to work—this is what we do and how we do it.”

As part of this methodology, EVERNET requires payments through ConnectBooster, both to ensure on-time, consistent payments, and to save staff time. Nearly 100% of payments to EVERNET are processed through ConnectBooster.

As soon as a payment is overdue, EVERNET applies an account servicing fee and lets the client know they can avoid this with autopay.

“We’re not a bank. We don’t extend credit to anybody.” Eric stated. “Who wants to make that call to clients asking for payment? How tired are you of watching your bookkeeper make deposits? Owners expect their bookkeepers to chase the money, but how much time do you want your staff to spend making calls, printing invoices, stuffing envelopes, and sending notices? Your bookkeeper doesn’t want to do this either, so A/R creeps up.”

“We stopped being emotional and let the numbers run the business. Now cash is in my bank account every month.”

Save Time and Money with Automations

A lot of human effort goes into trying to get paid. If you’re constantly chasing money that should already be in the bank, then you have less time to devote to servicing clients.

Evan Faller, director of operations at Furniture Wizard Software, knew they could make the billing and collection process more efficient for their office staff, and customers.

“The process of taking cards and updating card information and expiration dates was taking too much time. We knew we could get a return by using automations.” Evan said.

They spent 4-5 days finalizing transaction before closing a billing date, of which they had three each month. After implementing automations with ConnectBooster, they reduced the number of days spent on processing payments from 12 down to 3—a 75% reduction in time. Less time spent on billing and collections eliminated the need to hire additional staff, which had a direct impact on cash flow.

Primarily, Furniture Wizard Software sought to be more efficient and save time, but automations also solved a secondary goal.

“As a technology company, we wanted to show our customers we’re adopting software and tools that make their lives easier and offer transparency to their bills,” Evan shared. “Automations created a better experience for our internal staff and the ConnectBooster portal also provided value for our customers.”

Adopt Strategies to Transition to a New Payment Protocol

If you’ve been lax about your billing and collection protocols, you may feel hesitant to change the way your customers do business with you. The following are simple and effective methods fellow MSPs have used to transition to their preferred payment expectations:

1. Make an announcement that rates will increase due to rising costs of doing business. Then offer a discount to qualifying accounts that enroll in autopay.

2. Pitch autopay as a free, value-added benefit for your customers. By enrolling in automatic payments, you give them the power to pay their bill or automatically schedule their monthly payment whenever and wherever, 24/7, regardless of business hours.

3. Before each customer’s next service agreement renewal date, add in a clause about payment expectations. Then discuss the changes when the time comes for customers to renew.

4. Make the payment fields required in your electronic contracts, so customers can’t quickly sign and return and later claim they didn’t agree to the payment terms.

5. Include incentives and penalties alongside your billing and payment expectations in your service agreements, and consistently enforce your expectations.

Achieve Effortless Cash Flow

Your infrastructure can influence and support business practices that prioritize getting paid on time. ConnectBooster is an automated payment gateway designed for MSPs. With two-way syncing and programmable billing rules, it automatically collects the exact dollar amount outstanding in your accounting solution from your customer’s securely stored ACH or credit card, and then updates the correct data in your accounting package.

Connect with us to learn more about how ConnectBooster can help you master your cash flow in 2022 and make traction on your goals.

The post Boost your MSP’s Cash Flow in 2022 with ConnectBooster appeared first on ConnectBooster.

Of course, building a successful business isn’t easy, and that process can be more difficult for managed IT services firms. While the promise of tangible financial rewards sounds fantastic, and it can be for those who put significant effort into developing a winning MSP business model, there is no guarantee of success. As many of your former peers already know, building a successful and scalable managed services firm takes a lot more than great skills and a tremendous work ethic.

MSPs’ responsibilities are dynamic and never-ending, from developing a viable portfolio of solutions and hiring the right people to closing new contracts and supporting a diverse collection of business requirements. That’s not to suggest that opening a new firm is the easy part. Developing customer relationships, marketing plans, and determining which core offering will match each client’s needs takes time and effort. Building a suitable technology stack with a wide range of capabilities that provides solid profit margins and operational efficiency is just as critical. 

MSPs typically invest a substantial amount of resources to secure an office and research a multitude of local, state and federal requirements. Evaluating business models and determining potential vertical markets and specializations also take a lot of time as you methodically develop target audiences, identify opportunity gaps, and choose the “best fit” for your organization. 

“Sweat equity” is a common and, some would say, necessary part of developing an MSP. IT services entrepreneurs typically spend countless hours working through obstacles to optimize their operations and cash flow. These investments help ensure the MSP is of value to its clients and community.   

Evaluating Business Models

The chief purpose of a business model is to outline how an MSP expects to make money. An MSP model provides a lot of flexibility for a business owner and allows firms to build portfolios and programs to fit the specific needs of their potential customers. That is a key benefit of creating a proactive managed services business. So, the first step for a prospective IT services provider is to develop objectives. While the process can be challenging and all that hard work will never guarantee success, the end product is a support organization that adapts to changing conditions, delivers real cost savings, and supports key aspects of their business. The long-term goal is to deliver great value and provide better business outcomes to virtually any SMB.

Prospective MSPs need to understand the market and competitive landscape. There are many vertical and technology specialization options and an infinite amount of tools to assist new providers. You also need to know what your customer base requires before assembling a portfolio of goods and services. Start by assessing the critical business requirements of prospective customers and any gaps that exist in the current market. Determine what other MSPs are missing and scout for future opportunities outside the “wheelhouse” of existing competitors. What types of businesses need MSPs? Which add-on services are not offered in your community? Assess the availability of remote monitoring, backup service, cloud infrastructure support, and outside-the-box opportunities like digital marketing or specialized consulting services.

Determining basic price expectations and interest in bundled services or support for core business functions is essential. The cheapest package may not be as valued to your client base as delivering an advanced combination of network performance capabilities and addressing other critical aspects of their infrastructure. In the eyes of customers, messaging around cost efficiencies and all-encompassing packages can grab their attention more than a low-cost pricing model or if you’ve been in business for decades. Projecting your MSP’s capabilities into business value will help close the deal.  

With the demand for tech firms with specific skillsets rising exponentially, such as cybersecurity and remote management, developing an MSP model that emphasizes those capabilities seems like a winning formula. The recent workplace transformations fueled by COVID-19 create even more opportunities for providers; businesses need MSPs with remote solution expertise now more than ever.  

Find the Best Fit Solutions

As mentioned before, the specific types of services those organizations want and need are a determining factor when constructing the business. The good and bad news is, there is no “ultimate” portfolio to address the technology requirements of every organization. If an MSP plans to support diverse vertical markets and different-sized companies, like most IT services firms, that complicates that mix even more. Determining the blend of services depends on many factors, including potential clients’ regulatory requirements and office environments (especially with the great WFH transition). Those conditions can change, to some extent, every day.   

Many IT industry experts suggest the VAR business model is dead. However, a substantial number of MSPs still offer some level of break-fix services to address their clients’ need for a fast, local repair shop. The revenue may not be recurring, but it adds to the bottom line and keeps those customers loyal to the business. With devices becoming less expensive to recycle than repair and margins continuing their downward trajectory for break-fix services, this model may eventually fade away, so new MSPs may wish to avoid those discussions and partner with other providers to fill that gap. Your clients need more proactive support—the hallmark of modern managed services firms—to optimize their business technology investments. 

Most VARs already offer managed services. Building a complementary offering to existing operations is common, while others gradually shift to the MSP model over time as their clients’ needs and preferences change. One note for those making the switch: managed services require more engagement with decision-makers and end-users than a VAR business. If clients come to your team with problems, you’re probably doing it wrong. An MSP must proactively manage their clients’ systems and do everything possible to identify and stop potential issues before they materialize.    

Moving Up the MSP Value Chain

While becoming a managed services provider can be highly beneficial for those looking for stability and recurring revenue, it’s not a one-and-done proposition. Growth requires effective business plans and a continual focus on MRR. Steady and predictable income increases the value of your MSP, boosts vital cash flow and reserves for self-financing, and lessens the uncertainties associated with running an IT business. VARs have none of those assurances. The MSP model simplifies the planning and accounting aspects of the business because income is steady and predictable with long-term contracts and complex technologies that tend to increase client retention rates.

Managed services is a sticky offering. MSPs ensure uptime and optimize business performance for clients and create easier management opportunities and more lucrative income streams for themselves. If you can set up a winning business model, it lessens the interruptions for everyone in the IT environment. It allows employees on both sides of the relationship to focus on core responsibilities. MSPs are the enablers that make businesses run more effectively.   

Setting Up a Winning MSP Business Model

No two IT service provider firms are the same today. From the basic mix of VAR and managed services offerings to the more advanced cloud and cybersecurity support options, the more dynamic your portfolio, the more opportunities you’ll have to engage with businesses. MSPs can continually develop new vertical and technology specializations and shift delivery models to address evolving client needs. No one-size-fits-all “example” or type of service will work in every situation.

Winning IT services providers emphasize clients in each step of their business. That doesn’t mean they ignore adding new offerings to increase MRR. On the contrary, they evaluate each prospective new service to see how it will address specific customer needs first and then assess its financial and operational benefits to their firm. Those revenue streams give them the freedom to develop additional practices and programs to support existing and prospective clients better.

Setting up a winning MSP business model is not as hard as it seems. That objective is easier to attain if you and your team focus on the things that matter most, including your clients, employees, and financial health. Are you benefiting from the latest moves in the managed services space? What are you doing to maximize the available opportunities to grow MRR today? The answers to those questions are essential for building a successful business strategy and meeting customer expectations. 

Setting up a winning MSP business model is easier than ever with the support of a rapidly expanding community of vendors, distributors, and other experts willing to offer advice and support. The options are plentiful, whether offering foundational remote monitoring and management tools or the most highly advanced cybersecurity and disaster protection. Are you ready to take advantage of those opportunities?   

A winning model will guide your business to revenue opportunities and, perhaps more importantly, generate ongoing value for your customers even as their needs change. Alongside a responsive business model, healthy cash flow is necessary for an MSP to remain agile. See how ConnectBooster contributes to a sound business plan and helps MSPs achieve effortless cash flow.

The post Setting Up a Winning MSP Business Model in 2022 appeared first on ConnectBooster.

One of the best ways for IT services professionals to make that happen today is to fortify their cybersecurity offerings. Data and network protection are quickly rising on the priority list for all businesses, and that momentum shows no signs of stopping anytime soon. Cybersecurity threats pose a special danger to SMBs with few, if any, in-house IT staff and limited capabilities or knowledge when it comes to handling the latest threats.

MSPs can be their savior—with the right people, skills, training, and tools. A robust and dynamic cybersecurity practice allows an IT services firm to provide SMBs with a level of protection they could never afford to create and maintain on their own. Cybercriminals leave little room for error, so businesses need to secure the best possible support that their budget allows. MSPs can cost-effectively fill that role with the right mix of services, including solutions that address the latest threats.

What current trends will influence that cybersecurity portfolio? Here are some of the latest developments MSPs should pay attention to in 2022 (and beyond):

1. The Rise of Threat Hunting as a Service

Reactive cybersecurity solutions, technologies that identify and respond to attacks after they happen, do not provide the protection businesses need today. As financial risks and regulatory compliance pressures grow, organizations increasingly look to MSPs for mitigation options. Threat hunting relies on intelligence (both human and artificial) to identify anomalies and anticipate when and where cybercriminals will strike. Monitoring tools typically search through logs, databases, firewalls, and cloud infrastructure for potential signs of an impending attack. Security Information and Event Management (SIEM) solutions collect and analyze raw data and send back alerts when they spot suspicious behaviors. If not already offering these services, MSPs should consider partnering with security specialists with threat hunting capabilities.

2. Cloud Security Vulnerabilities

The digital age is here. Businesses continue to migrate applications and infrastructure to the cloud. Despite the perception that these virtual services are highly secure, many still lack essential protection measures, like encryption, multi-factor authentication, and audit logging. Others fail to appropriately segment the data in secure offsite storage facilities. MSPs have an opportunity to become the cloud security specialists their clients need today. Locking down access to applications with MFA and delivering the latest endpoint protection solutions can be a business-saving and profitable venture.

3. Increasing Payment Security Concerns

With 88% of SMBs storing unencrypted payment information in their IT environment and cyberattacks increasing at an alarming rate, the likelihood of a data breach is near certain, with astronomical financial and compliance consequences. The ability to assess and mitigate those threats can help MSPs land new clients and drive incremental revenue with existing business customers. For example, Secure Payments by ConnectBooster allows providers to assess their clients’ payments environments, identify potential gaps and deliver a secure solution. MSPs can drive MRR while proactively delivering a new and critical cybersecurity solution to customers.

4. WFH is Driving Mobile Security Fears

Cybercriminals view mobile devices as prime opportunities. Many people do their banking and make online purchases with smartphones, tablets, and laptops, sharing personal and financial information in those transactions and communications. The move to WFH during the pandemic is further raising cybersecurity concerns as business devices move outside the corporate perimeter. Cybercriminals often leverage ransomware and other malware to steal data, though device theft and hacking remain common threats. MSPs can deploy multi-factor authentication, antivirus and password management solutions to protect their clients’ IT environments.

5. Anxiety Growing Over Supply Chain Disruptions

MSPs are not the only businesses that cybercriminals are targeting through supplier networks. Accountants and attorneys, and pretty much any organization that employs any type of business application, can just as easily be made a victim through attacks using the cloud or another service provider. Companies that use monitoring and management tools to manage clients—from security, surveillance and managed print firms to heating, ventilation and air conditioning (HVAC) specialists—have backdoor access into various IT systems. Target is a great example of that latter vulnerability, the cause of its 2013 data breach, which cost the company an estimated $202 million. MSPs can calm these fears by completing network and cybersecurity audits and implementing tighter controls over suppliers that touch clients’ networks.

Educate with Stories of Success and Failure

Most leaders would rather learn from others’ mistakes than their own and are typically open to discussing new ideas, especially in cybersecurity, where a single vulnerability or employee slip could jeopardize the viability of the business.

MSPs must effectively leverage those concerns to properly protect their clients in 2022. Sharing the latest security trends, and threats and stories of failure and success can encourage decision-makers to take action, and increase the urgency to implement new and better defenses. Getting clients to allocate the necessary funds to appropriately protect their businesses should be a top priority today. Regularly communicating these points through company newsletters, email campaigns, and social media pages effectively raises their awareness and sense of urgency to take action.

Capitalizing on these trends can help make the year ahead profitable. Make sure your newfound profits don’t get stuck in accounts receivable by utilizing ConnectBooster. Contact us to automate getting paid with two-way data syncing and automations that will improve cash flow and save time and money.

The post 5 Hot Cybersecurity Trends for 2022 appeared first on ConnectBooster.

Not every IT professional has what it takes to run a managed services business. Every year, scores of prospective technology entrepreneurs “hang up their shingle” and begin seeking out potential clients. Many will fail in their first few months of operations, in addition to a fair number of long-established providers that, for a variety of reasons, close their doors every year. There is no guarantee for success in an industry where skill, knowledge, and hard work are a prerequisite.

The managed services market is somewhat crowded but still, according to many sources, underdeveloped. ChannelE2E projected less than 20,000 “successful (i.e., very healthy and very profitable) small business MSPs” in North America, while others have put the total number at more than 100,000. That amount fluctuates wildly from year-to-year as new money and talent enter the managed services community. Venture capital is flowing into the channel, fueling the ongoing MSP consolidation craze and a wealth of new upstarts, and M&A activity is sure to remain strong as long as ROI stays robust

Several factors feed the continued growth and success of the managed services community. First is demand for quality IT support from the largest segment of the business community. There are more than 32.5 million SMBs in the U.S.—an astronomical 99.9% of all businesses—which employ nearly half (46.8%) of the entire private workforce. The vast majority of those organizations rely on third parties to support their IT needs, from workstations, PCs and networks to system monitoring and cybersecurity. According to the SBA, more than 500,000 new businesses open each year, further expanding the market opportunities for industrious and capable MSPs.

Most SMBs have few if any IT resources and often look to channel partners to support many, if not all, aspects of their computer systems and solutions. Few small businesses need or can afford to employ a full-time staff of technology professionals today, especially with the increasing costs of acquiring and retaining quality talent. MSPs provide a practical alternative and, in many cases, offer their clients a more robust skill set to support both their current and future IT needs.

Are You Ready to Build an MSP?

Opening any business can be a major endeavor but starting a technology-driven company adds more complexity to the mix. From the exceptional skills requirements to the unique obstacles involved with marketing and selling recurring IT services, IT entrepreneurs often wear many hats while scaling the business. Prospective MSPs must adapt to constantly changing client preferences, rapid technology shifts, and an increasingly competitive landscape.

Do you have the expertise, knowledge, drive, and commitment for empowering scores of businesses with cost-effective IT systems? Those are just a few of the factors to consider before setting out on an MSP building adventure.

The good news is, you can benefit from the lessons learned by hundreds of thousands of other IT professionals who followed a similar path. For every multimillion-dollar MSP, there are likely thousands of others barely making a profit, with some fighting off creditors while trying to reverse cashflow issues. Leveraging the best practices shared by successful providers helps aspiring managed services business owners avoid costly mistakes and focus on implementing the right processes, tools, and policies. MSPs that follow industry standards typically enjoy a better return on their initial investments than those who rely on more general business guidelines or ignore the advice of seasoned IT services professionals.

When starting an MSP, aligning with like-minded owners is the right (and most efficient) course of action.

Follow a Recipe of Success

As mentioned before, it takes great focus and commitment to construct a successful managed services business. Most of all, prospective MSPs need to have a well-crafted plan of attack and stick to their goals and objectives.

Once you have thoroughly researched your service offerings options, you must clearly identify which services will make up your MSP offering. Most start with a smaller solutions stack that meets the business needs of a couple of key clients or a vertical market, including email and desktop support, remote monitoring and management, data backup/disaster recovery, and cybersecurity. Those offerings typically expand as contracts grow and user needs increase.

Creating a unique services offering is not as difficult as in years past. MSPs can leverage the “recipes” and best practices of peers to develop their services offerings, improve the sales process and marketing activities, and strengthen pricing models. Following the time-tested and proven advice of other providers reduces your risks and can improve operational efficiency. Consider tips like “avoid gold, silver, and bronze packages” to build a profitable and sustaining MSP business. That list of suggestions is long and covers a wide range of topics, including:

1. Research the Market
Before investing a single dollar in tools, buildings or other assets, every prospective MSP should have a good grasp of the local and vertical market opportunities. What types of businesses need better IT support? How many companies could benefit from innovative solutions and more proactive system oversight and management? If so, how much will the key decision-makers truly be willing to spend for that level of support? There is no opportunity without strong demand. Prospective MSPs must understand what their target clients desire and require, their core business functions and the actual budgets available to pay for that support. Market research is just the first step in building a viable MSP.

Prospective providers also need to explore the best practices for the delivery side of the business. Explore (and consider joining) industry associations like CompTIA, the ASCII Group, and MSP Alliance. These organizations will provide your team with access to valuable resources and allow you to network with thousands of successful IT services entrepreneurs. They may also offer vendor discounts, templates, business-enhancing tools and access to a host of other membership benefits. Take time to listen and learn from peers by attending industry events, including live and online conferences and webinars.

After conducting market and industry research, do you still feel confident in your ability to attract clients and deliver a valued combination of IT services? Can you control the cost of delivery, minimize the time to market, and provide a complex solutions stack? If so, the real work begins (starting with careful planning).

2. Outline Key Objectives/Build a Practical Business Plan
The foundations of some of the strongest organizations are not made of brick and mortar but paper (or computer files). Today, a business plan for service providers is essentially the basis for every organizational decision and action. A vital roadmap for MSPs, these documents should define your mission and objectives, establish the growth trajectory, outline concerns and opportunities, detail market strategies and business models and cover pricing and profitability goals. Business plans provide direction, and with the help of a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis, you can better prepare your MSP to take advantage of the best prospects and address the most likely threats.

3. Select Your MSP Toolset
To provide effective support, every managed services business needs its critical tools, including remote management and monitoring (RMM), access management and professional services automation (PSA) platforms. Your clients will likely require a plethora of business technology solutions and cloud applications. From email and collaboration tools to VoIP (Voice over Internet Protocol) and disaster recovery options, MSPs often partner with more than a dozen vendors to deliver a broad portfolio of services offerings. Creating all-encompassing packages that address a broad array of client needs, including compliance issues and rising demand for cloud-based infrastructure, will strengthen your toolset.

4. Build Strong Channel Networks
A managed services offering is only as strong as the firm’s key partnerships. Working with supportive vendors, distributors, master agents and peers allows MSPs to provide comprehensive support and deliver a broader portfolio of business-enhancing solutions. Industry events spur a lot of these engagements, allowing providers to learn about the latest tools and best practices, and align with partners to build out a complete list of offerings, technical services and delivery options.

5. Develop a Sustainable Pricing Model
Once vendors and portfolios are in place, it’s time to build out the expense and profit equations. Many MSPs begin with a “cost-plus target margin” baseline pricing model for client proposals with a floor for discounts to ensure profitability. It’s not always that easy. If you have a number of direct competitors, the pricing formula or the types of value-added services your MSP offers may need to be adjusted to capture more business. Discounting is discouraged by virtually every industry expert as most consider that approach a “race to the bottom,” reducing cash flow and negatively impacting other financial metrics. Your pricing plan for a core package (or core technology stack) should be competitive but profitable and still decrease costs in all client environments.

6. Leverage MSP-specific Sales Training Courses
Quality education and coaching help new sales team members hone their skills and allow you to get your business off to a strong start. Whether targeting prospects or upselling existing clients, effective training increases your chances of maximizing revenue and profitability and scaling your company’s operations. Managed services-specific sales courses help your team improve closing rates while addressing the specific needs of each client—a good way to boost retention and increase wallet share. Bringing in a sales expert to train your team helps improve their understanding of the sales process, overcome closing issues, and drive incremental revenue.

7. Create and Execute Your Marketing Plan
Building a database of prospective clients and generating demand and name recognition is essential for any new business. Popular MSP marketing strategies often include sponsoring local events and working with community civic and business groups. Participating in networking functions and sharing technical advice with regional newspapers and television stations are good ways to increase awareness and build mutually beneficial long-term relationships. From an informative and interactive website to email campaigns, client referrals and newsletters, matching your message with the needs of prospective clients will help generate leads for your MSP.

8. Build a Deep Sales Funnel
New MSP owners should invest a majority of their time in marketing and sales activities. Most IT services companies begin with one or two clients and funnel a fair portion of the revenue from those accounts to scale the operations. MSPs need a healthy sales funnel to help meet future revenue and profitability goals and grow the business. Innovative providers leverage every potential tool and available resource to drive those leads and strengthen the sales process. Leveraging targeted promotions and optimizing SEO and content on websites maximizes awareness of your firm and provides a solid return on your marketing investments. Utilizing crazy automation, cool sales tools and a creative marketing strategy can speed up lead generation and closing.

9. Develop a Team of Managed Services Professionals
Many MSPs start out as one-person shops or with a single business partner. A common past practice (though it still occasionally occurs) was for companies to essentially fire and outsource their IT staff. One or more of those professionals would form an LLC or another legal entity, hang out their shingle, and become their former employer’s IT services firm. Others went a more traditional route, starting a business and signing new clients.

No matter how they get their start, in the beginning, many MSPs wear many hats, and act as technicians, sales and marketing professionals, and the collections team. The bench needs to get deeper and wider as workloads grow. Full-time technicians and dedicated IT services sales professionals will help the organization scale quicker—if MSP owners recruit the right people. Finding the right mix of skills and personalities is never easy, especially in tough labor markets, but it is essential to the success of an IT services business. Successful MSPs regularly assess their current and future skills requirements and create hiring and training programs to support their companies’ long-term objectives.

Launch! Pursue Paths Less Traveled

While adopting best practices is key for building a successful (i.e., profitable, sustaining) managed services practice, MSPs must also be creative and pay close attention to their client’s unique needs. Building a “cookie-cutter” IT services business to mimic the competition won’t win new sales. Without clear differentiation, MSPs tend to get into pricing wars with peers to win bids and contracts, which, according to most industry experts, leads to a race to the bottom as revenue and profitability substantially drop.

A strong focus on value-selling is an effective way to blunt those issues. Building a strong portfolio of IT services, one that addresses the critical business needs of your target audience, allows your MSP to command more premium pricing. The greater the fit, the greater the demand. Taking the path less traveled—developing unique solutions and services—can be profitable for MSPs when they properly manage and sell those offerings. Better yet, more personalized portfolios create “stickiness,” strengthening each client relationship and elevating customer satisfaction and retention.

Building an MSP is not rocket science. As the paraphrased saying goes, “luck and fortune favor the prepared.” Along with adequate planning, that process is much easier for skilled IT professionals with attention to detail, some business acumen, the ability to connect with other business leaders, and hire the right people. Of course, the path to creating a successful MSP is never easy, but with the right guidance and support, the obstacles will seem smaller and more opportunities will come your way.

Set-up Your Business for Success

Cash flow is critical to every start-up, so your business has the financial resources on hand to grow. ConnectBooster is a scalable solution that automates getting paid, so your business can achieve consistent, predictable cashflow. We’re trusted by thousands of service providers to get paid on time, every time, all while saving time. All you need is an accounting package to use ConnectBooster. Connect with us to learn how ConnectBooster can set your business up for success, and save you time and money.

The post The Full MSP Startup Guide appeared first on ConnectBooster.

However, the risks of a payment data breach also rise as more organizations move their payment systems online or leverage mobile apps and other non-traditional platforms for transactions. The numbers are staggering—nearly 75% of businesses say they had been targets or victims of payment scams, according to a recent survey by the Association of Financial Professionals.

As cybersecurity thought leaders, MSPs must be actively involved in assessing the threats related to these evolving systems and processes for clients and themselves. Implementing platforms and services to mitigate those potential liabilities can also be a profitable opportunity for IT providers to increase their MRR.

Security is an All-Encompassing and Ever-Expanding Discipline

Payment-related data is one of the top prizes for cybercriminals. They can quickly and easily convert that information into cash or use it to acquire resalable goods or services. While conversations in the IT industry focus on MSPs’ networks being the “keys to the kingdom,” credit and banking data remain the low-hanging fruit that most cybercriminals treasure and regularly target.

The good news for IT professionals is that virtually every technology-based problem has a solution they can deliver. Payment security concerns are not a new concept to businesses and should be considered a natural extension of MSPs’ data protection practices. However, for many providers, that situation hasn’t always been the case.

Payment processing had often been pigeonholed in the specialized support category, much like telephone equipment, multi-function printers, and video surveillance and security solutions. In most cases, IT services professionals did their thing and other firms handled those areas and only intersected when there was a problem with computer settings, network configurations, or security. Cloud and technology advances have blurred those lines.

In today’s virtual world, with VoIP and other IP-enabled options, MSPs can virtually do it all with little, if any, outside help. Those capabilities are critically important with the rise of ransomware and highly sophisticated cybercriminal syndicates, and the incremental revenue from each new opportunity helps pad providers’ bottom lines. The breadth and complexity of the risks associated with online payments deserve the MSP community’s attention and advanced skills and resources. Payment security might not be in your current stack alongside other cybersecurity offerings. But it can and should be.

Expanding the Security Services Stack

Many business owners expect their IT services partners to provide comprehensive network and data protection. Unfortunately, that makes it easy for clients to assume an attack on any part of their payment processing system is the responsibility of their MSP—even if they were never entrusted with securing those processes OR technologies. There’s been a disconnect between security technology providers, payment processing providers, and the businesses that use the payment products. But providers often get the blame for things that fall through the cracks.

Payment security, at first glance, seems outside the traditional scope of MSP cybersecurity offerings. Because SMBs already believe it’s within range, IT providers should capitalize on that perception. IT services firms can offer tremendous value by leveraging their own expertise and the expertise of their partners to bring better risk reduction to the areas where payments and security overlap. Most business owners are willing to invest in cost-effective solutions that address newly discovered vulnerabilities. Bringing those issues to their attention is the first step in that process.

Proactively identifying payment environment weaknesses and promoting a secure payment platform that addresses clients’ needs and concerns fills an important gap and simultaneously drives valuable new MRR for MSPs.

Secure Payments by ConnectBooster creates a profitable, unique proposition for IT services firms. A simple assessment based on PCI DSS best practices and other standards, provided by Secure Payments, allows MSPs to quickly evaluate and address the security, compliance, and optimization of their clients’ payment landscapes and offer a solution.

Strengthening the payment landscape helps protect customer credit and banking data. Many companies end up storing some if not all of that valuable information in less-than-optimal systems with no consideration for PCI compliance standards. 88% of SMBs were found to have unencrypted payment information stored in their environments. That data is a prime target for theft, ransomware and other cyberattacks. The Secure Payments solution gives MSPs the tools to avoid these situations and effectively guide customers to reduce their cyber liabilities and compliance issues.

Point-to-point encryption, tokenization, EMV chip acceptance, PCI DSS Compliance, and other methods for protecting PII (Personal Identifiable Information) make this possible.

Start managing the growing payment threat environment for your clients by partnering with Secure Payments by ConnectBooster and get paid for doing so.

The post Rising Concerns Over Payment Security Can Generate MRR for MSPs appeared first on ConnectBooster.

Nowhere is this more obvious than in the collections department. MSPs may be experts at designing, implementing and supporting IT solutions, but few providers feel comfortable initiating discussions about overdue invoices with their clients. People naturally shy away from potential confrontations and unpleasant conversations.

That’s why MSPs must adopt an efficient billing and invoice process, and corresponding flowchart. Understanding cash flow and the methodologies behind collections is critical to the success of these programs, and steady income is essential to a company’s growth. Proper timing and consistency are the core ideas behind building and maintaining an MSP’s payment process flow chart.

The Value of a Payment Process Flow Chart

Cash flow management struggles are a primary factor in 80% of business failures, and one-third of U.S. SMBs have more than $20,000 in outstanding receivables with an average balance of $53,399. Those numbers suggest a large percentage of companies face significant collections issues. While many of those businesses are not MSPs, cash flow problems affect virtually every industry. Implementing an effective payment process and diagraming each step in an easy-to-follow invoice flowchart is a great starting point.

Visuals are a valuable aid for any business. A payment process flowchart is a key reference for training new employees and reinforcing collections fundamentals with existing staff members. Illustrations helps keep everyone on track and, when things go wrong, makes it easier to spot issues and missteps.

A payment process flowchart should serve as a best-practices visual for the company. The collections team should frequently review the steps as operational “checks and balances” and make updates as needed. Companies should constantly strive to create an efficient method for maximizing total revenue and cash flow and reducing late payments, and properly reflect those changes in the payment process flow chart.

These images must be dynamic. An effective invoice process flowchart is a living document and should change over time to reflect new business best practices and the evolution of collection-focused technologies and integrations. Automation is essential to a well-managed A/R program, and innovation will surely increase that role in the coming years.

Building an MSP-Specific Payment Process Flow Chart

The good news for managed service providers is the maturity of the business model. Operational best practices continue to evolve, and automation improvements drive greater efficiencies, but most of the pieces needed to run an effective and profitable MSP are already in place.

The IT services community is extremely charitable. No company should have to build a payment process and flow chart from scratch since so many quality templates and examples are readily available in the channel. MSPs may acquire these resources from peer communities or as a benefit of partnering with a vendor or distributor. Some build their own list of steps and methodologies by adopting or adapting proven industry best practices.

With a mix of consistent and project-based income streams, the challenge for many IT services companies is managing invoice communications, tracking payments and maximizing cash flow. Mapping those procedure is a lot easier than executing several of the most critical client-facing steps. An effective payment process flow chart addresses:

1. How does the company create and deliver invoices for its goods and services in a timely manner? While some may not consider this one of the key steps in the payment process, billing kicks it all off. MSPs need not add too much detail on their internal invoice processing flowchart but should outline the basic steps, concepts, and expectations. Listing the systems and automation tools helps ensure everyone is on the same page.

2. How does the MSP collect money for its services? Cash, credit, and ACH could each be a different branch on the payment process flow chart. Does the firm rely on manual data entry or electronic methods for transactions? How much actual time does it take to receive payment? A standardized invoice that outlines payment options is a common MSP best practice.

3. Does the payment match the invoice or other outstanding balances? MSPs’ payment process flow charts may include a number of different sub-steps and questions based on their collections policies, CRM and accounting systems. That can be a significant problem in a company with a large invoice volume with long processing times.

4. How does an MSP manage exceptions? Team members should identify and resolve discrepancies with payments, invoices or P.O. numbers, or other information. MSPs should review, verify, and address inconsistencies and exceptions with their clients before moving to the next step in the invoice process flowchart. Issues here can significantly affect collection time.

5. Is the information ready to record? When incoming payments match outstanding invoices, the collections team can input the data, including the reimbursement amount and purchase order number, and then close out the process. This is both a critical and typical step in the invoice management approval process

An MSP’s payment process flow chart could include a number of other steps and details. This is a basic list or starting point for providers to design a comprehensive roadmap to address their unique needs.

Fixing a Broken Payment Process Flow Chart

MSPs are dynamic entities. Service offerings frequently change, and customers may need or request additional offerings, throwing the process out of whack, if not completely off the rails. So a one-size-fits-all invoice processing flowchart is not a great option. An effective collections program requires periodic review and a method for quickly bringing problems to management’s attention.

Occasional enhancements may help strengthen an MSP’s cash flow and resolve operational issues. Incorporating new ideas and best practices from peer groups and the general business community can boost A/R collections rates, customer retention levels, and monthly recurring revenue. The payment process flow chart is a “living” diagram that providers may alter whenever they discover a better process or idea.

Automations are critical and invite enhancements. For example, adding a secure client payment platform like ConnectBooster helps MSPs route invoices, streamline their collections processes and increase cash flow. With integrations to accounting and quoting tools and PSA platforms, these systems can prepare each invoice for payment, reduce manual data entry requirements and potential inputting errors and improve the efficiency of each step in these operations. MSPs can realize greater productivity and profitability when they automate more steps in their payment process flow chart.

Leverage the Power of ConnectBooster

A primary goal for collections teams is to properly record and apply all incoming cash, credit and ACH payments. ConnectBooster helps MSPs accomplish that objective by automating the most critical steps in the process and reducing manual data entry requirements.

The platform allows clients to securely review current and past invoices and manage payment options. Integrations with high-value managed services and financial tools provide additional automation power, increasing the efficiency and success of collections teams. Eliminate all the additional steps with ConnectBooster.

See ConnectBooster in action and learn how your MSP can simplify its payment process flow chart. Request a ConnectBooster demo.

The post How to Fix your Payment Process Flowchart appeared first on ConnectBooster.

Some clients have a propensity for taking advantage of their IT business partners. For example, MSPs are often asked to perform extra services and unusual tasks, then go months without getting paid, even after going above and beyond the call of duty and with a contract in place. These business leaders put little thought into what happens outside their own company unless it affects their bottom line.

Virtually every MSP can tell horror stories related to their clients’ actions or failures. Running a business is never easy, and an overabundance of challenges frays the nerves of even the steadiest leaders. Some owners simply don’t have the personality or ethics to deal with other people, and the slightest issue can set them off and create angst for anyone they encounter, including their trusted partners.

The cost and complexity of IT exacerbates these problems. Today, relatively few businesses can operate without a fairly robust system of computers, networks and applications, and most organizations require a significant amount of support to keep it all running. MSPs often fill that virtual CTO role for a SMB, but without the title or control of the budget. This sometimes results in failures outside the MSP’s spheres of influence.

All of these combined factors—challenging personalities, complex technology issues and a lack of direct control—lead to difficult situations for IT service teams. No one wants to fire a client, but there are times when MSPs must make that decision. What can an IT services firm do to avoid those situations, or at what point do they pull the plug on an important business relationship?

The Issues that Drive MSPs Crazy

No two clients are the same, nor are the issues that creep up between MSPs and the people they support, but there are general themes. The problems that aggravate IT services professionals the most—and most commonly lead providers to feel the need to walk away from lucrative and hard-earned contracts—usually fall into the following categories.

1. Technological naivete. Business owners with little knowledge about IT systems, who second-guess or create roadblocks for the experts, tend to create numerous problems for MSPs. Micromanagement and unrealistic demands increase anxiety and a lack of respect for tech professionals, and generally wear on the relationship. It’s exhausting for MSPs to constantly justify new IT investments, especially if they need to pressure clients to improve cybersecurity and productivity.

2. Scope creep. MSPs are kind to a fault. IT professionals typically step up to solve any technology-related issues for their clients, and some go above and beyond to assist with other business-related concerns. MSPs have to pull back when those emergencies or extra favors become everyday expectations, or the client fails to invest in long-term remedies. As businesses grow and thrive, they often require more services and tech support, so providers must properly track and bill when workloads increase. It only becomes an issue if clients are unwilling to pay for what they receive.

3. Recurring payment issues. MSPs deserve to get paid on time for the services they provide to their customers. When a client withholds or is slow to pay for the valued IT services already rendered, it not only affects a provider’s cash flow but also makes it harder for that firm to invest in new technologies, hire more skilled professionals, and grow their business. Constantly delayed payments or a major overdue balance can be a sensitive subject. Still, MSPs need to promptly deal with these issues, following the terms of their contracts, before these issues get out of control.

4. Mistreatment of staff. Employee health and safety is non-negotiable for every business owner. Periodic onsite visits and continual interaction between MSPs’ team members and clients make it hard to police improper behavior. Mistreatment of staff is a zero-tolerance issue that must be quickly and effectively addressed by both parties’ management teams.

5. Criminal activity. Yes, corruption and misconduct can come into play in a business relationship. Stories of MSPs discovering illegal activities, such as fraud or theft of services, are not uncommon in the industry, though management may not always be aware of the issue (think rogue employees or outsiders). Failure to address or report criminal activities may have legal and financial ramifications for an MSP.

Exhaust All Options Before Firing a Client

IT business owners must realize they cannot save every relationship. MSPs should walk away if a client willingly partakes in criminal activities, tolerates mistreatment of vendors and partners, or has no intention of fulfilling other critical obligations, such as on-time payments. Giving a difficult customer a long leash simply adds to the cost and frustration of the IT firm’s employees and management team.

However, MSPs can address some of the specific issues listed above before severing a relationship.

• Set clear expectations upfront. Master services agreements should explicitly detail the scope of work, standard operating processes and responsibilities for all parties. Many MSPs review payment terms and conditions with the principals before signing a contract, during the handoff calls, and within QBRs and other client meetings when problems arise.

• Make autopay the standard. Adding a secure payment portal, like ConnectBooster, is one of the surest ways for a MSP to get paid on time every month. Many providers include autopay as a requirement in all new contracts and renewals. Reluctant or problem-clients may respond to incentives, such as a lesser rate increase in exchange for implementing autopay. The goal for MSPs is to shift some financial control in their own favor to protect cash flow and profit margins from each account.

IT services firms should never fire a good client. However, if encouragement and procedural and policy changes don’t improve the truly bad behaviors of a managed services customer, the MSP may need to sever that relationship. Those decisions, though difficult, often positively impact the business, boost employee morale, increase productivity, and give the team more time to focus on landing more profitable (and agreeable) prospects.

With two-way syncing and automatic variable billing, ConnectBooster can easily make autopay the preferred payment standard. Your clients will love the transparency and ease-of-use of their new 24/7, 365 payments portal. Plus, it’ll eliminate awkward collections conversations, which means your client relationships will stay focused on what matters: your services. Request a personalized price quote and see how ConnectBooster can save you time and money.

The post When is it Time to Fire a Client? appeared first on ConnectBooster.

With the abundance of QuickBooks users in the MSP channel, we often hear this question. The answer is simple: just because something works doesn’t mean there isn’t a better way. For example, I can wash dishes by hand, but it’s much more convenient and less labor intensive to put them in the dishwasher, set it and forget it. I could water my garden by filling and carrying buckets of water, pouring them on each plant, then make several more trips back and forth. Or, I could set up an automatic sprinkler to water my garden while I sleep.

When it comes to Intuit QuickBooks Payments versus ConnectBooster, the concept is similar; there is a way that works and there’s a better, simpler way.

This post identifies some of the reasons why ConnectBooster is a better solution than Intuit QuickBooks Payments for your invoice payment collections.

Support

ConnectBooster support is world class. You don’t have to take our word for it; search the internet (seriously, Google us!). Our support speaks for itself. Check out these reviews found on QuickBooks own app page:

Reviews for QuickBooks Payments and support sound more like this, as found on Consumer Affairs:

The ConnectBooster support team is entirely based in Fargo, N.D. We pride ourselves on customer service and believe it’s the primary reason for our success. When you have a problem, you want to know there’s a team who’s got your back—that’s ConnectBooster Support. When it comes to cashflow, can you afford to not have good support?

Software Features

All software has limitations. We know this, and strive to provide our clients with the features they need at the best possible value. We will never claim ConnectBooster is perfect, or say it has every feature you could imagine. We do, however, try to make ConnectBooster as feature-rich as possible with ongoing enhancements and integrations. In our humble opinion, our feature-set far exceeds our competition:

Do you need more reasons to switch from Intuit to ConnectBooster? Here are more ways we excel:

Customizable, Customer-facing Portal

When your customers log in to your ConnectBooster portal, they see your business with your branding and logo. The ConnectBooster portal also includes an Ad Card to help you inform your clients about additional services, new products or specials you’re offering, so your invoices can now help drive interest and sales for your other services!

Flexible Automatic Payment Options for Variable Billings

Do you have clients who prefer invoices be automatically paid when below a certain dollar amount? Do you have clients who want to make partial payments on an invoice or pay multiple invoices together in one payment? Would any of your clients like to set-up custom payment plans? I would guess you answer yes to one or more of these questions. No two clients are the same, and with ConnectBooster, you can customize how you work with your clients to fit their individual businesses, which translates to happier clients and on-time payments.

Future Proof

You know business constantly changes and evolves. In your business, are the solutions you started with the best long-term solutions? Typically, no. As businesses grow and transform, they tend to find solutions that help them “get by.”

If you’re reading this, odds are you currently use QuickBooks. Are you confident QuickBooks is the solution your business will utilize forever, or as your business grows and changes is there a chance there’s a better solution, such as Business Central, Xero, Microsoft Dynamics GP, Sage Intacct or others?

Intuit’s QuickBooks Payments works for your business only if you use QuickBooks, but if you change systems, you also need to change your payment provider if you want an integrated solution, which means starting from scratch with customer payment data. However, with ConnectBooster, as your business needs evolve you can make necessary changes without changing how you accept payments. Switching accounting systems no longer means starting over with collecting client payment data, and no need to re-train your clients on how to pay you.

With You for the Long-haul

If you’re unfamiliar with ConnectBooster, you may wonder if ConnectBooster is a new startup or if we’ll even be around next year. ConnectBooster has been helping our clients solve invoice collection challenges for more than a decade.

ConnectBooster was born from a need to solve a problem for its parent company BNG Holdings. Originally, BNG built ConnectBooster for itself because they were unable to find a solution that had the features and flexibility needed to fit its ever-changing business landscape. ConnectBooster has grown and evolved and now services thousands of clients all over North America. ConnectBooster is committed to improving our features and integrations to further outpace the competition.

If you want to simplify invoice payment collection, and improve your client’s satisfaction with your billing process, all while growing your business with a payments solution that can grow with you, then ConnectBooster is the solution for you!

ConnectBooster is a scalable solution that fixes your cash flow. We’re trusted by thousands of service providers to get paid on time, every time, all while saving time. Schedule a demo to see ConnectBooster in action or contact us.

The post Intuit QuickBooks Payments versus ConnectBooster: Why switch? appeared first on ConnectBooster.

However, in the managed services field, those parties are typically quite short. There are last-minute details to quickly finalize so team members can start working through their new client onboarding process. Closely reviewing and thoroughly completing each step improves an IT services firm’s chances of successful and happy engagement.

The MSP onboarding checklist is a crucial tool for ensuring client success. From exploring their current technology and business environment to implementing a series of checks and balances and other measures, this process helps IT service providers establish a solid foundation with new customers. This depth of communication at the front end of client relationships can ease the transition and create new opportunities for both organizations.

An MSP Onboarding Checklist has Three Key Ingredients

Processes can be the difference between gaining and losing sales. Organized and refined methodologies for bringing on a new client and introducing them to new policies and procedures increases an MSP’s likelihood of establishing a strong customer relationship.

Knowledge, standards and commitment are the three essential ingredients. An MSP’s onboarding checklist must effectively address each of those areas to be sure new clients (and all their employees) understand the various roles and responsibilities. In the increasingly more difficult to control IT ecosystem, team buy-in on both sides of the relationship is essential to keeping everyone and everything secure and online.

This process requires clear communication, comprehensive knowledge of clients and their systems, and a coordinated approach for resolving potential issues and taking advantage of new opportunities. A well-crafted MSP onboarding checklist will help accomplish all three objectives.

Build It Before They Come

As with any tool, preparation and repetition increase success. Every firm selling managed services should document and refine its processes and best practices for bringing on new customers. No two clients are the same, so assessing and capturing details on workflow, technology systems and other business procedures and goals are essential first steps. Before an IT services team can provide the best possible support, they need to know what the client’s company does and how most of the moving parts fit together.

An MSP onboarding checklist provides that assurance. Each step should help IT services professionals extract critical information, instill a process or connect people to the proper resources and ensure a smooth transition from sales. These digital documents or applications (paper tends to create silos) form introductory guides between the provider and the new customer, formalize the relationship and strengthen the connection.

Critical Steps in the Process

Building an onboarding checklist for an MSP will take some time and effort. However, that process should not be complicated for experienced technical professionals accustomed to identifying their clients’ IT and business-specific details and needs. The list must cover several critical action items, including:

• Review onboarding policies and procedures. Team members should periodically examine and update the processes, questionnaires, applications and other materials included on the MSP onboarding checklist. Before the handoff call, sales and account managers and IT service providers should discuss the new client’s business, including their goals, requirements, technologies and people. They should review the Service Level Agreement (SLA), as well. What are their IT needs? Are there any anomalies? Do they have a disaster recovery plan? Did they complete a pre-sales security assessment? Internal teams must have answers to these questions and should compile any additional questions before joining an onboarding meeting.

• Establish payment protocols and set client expectations. One critical step before completing a new handoff is to ensure the sales team clearly explains and gains agreement on the financial terms of the relationship. The account manager must be a part of that conversation and have access to related correspondence in case issues or misunderstandings arise at a later point. This is also a great time to set up new customers with autopay using a secure payment platform like ConnectBooster. Every client should understand the invoicing process and all terms and conditions. Setting proper expectations helps minimize late or non-payments and reduces the risk of disagreements.

• Designate an account manager. This point may seem obvious, but every client should be assigned a primary contact at an MSP, with secondary individuals as backups or to handle specific issues or assist in the delivery of services. The account manager is a customer advocate who is responsible for all related customer-facing activities, including project oversight and periodic business review meetings.

• Provide new clients with an onboarding questionnaire. While sales typically uncover current technology requirements before closing new business, further exploration fills information gaps. What information is missing? An onboarding questionnaire helps to confirm details and answers longer-term questions. Before the handoff, account managers should send decision-makers and other stakeholders an online survey with a list of critical questions. Each item must be pertinent to the client/MSP relationship and include a text box to provide details. Tools such as HubSpot, SurveyMonkey, Google Forms, SurveySparrow and Typeform (find more options here) make it easy to create and distribute questions and collect the results. A Customer Relationship Management (CRM) platform provides users with similar capabilities and can directly drop the information into the account. If automated or online questionnaires are unavailable, MSPs can send new clients a list of questions in a spreadsheet or text document and import the results to the CRM. This manual step could add time and labor costs to the process and increase the chances of input errors, so it should be a last resort for MSPs.

• Make introductions and fill information gaps. The main goal of handoff calls or kickoff meetings is to bring together the primary players on the client and IT services side of the relationship. Typically, this is the most critical action on the client onboarding checklist. In addition to learning the names and faces of each person, they should use this time to continue to fill in voids from previous conversations and data collection processes. While the sales team and questionnaires gather a significant amount of vital account information, decision-makers often forget things or fail to understand what they view as “IT questions,” leaving knowledge gaps that may affect the relationship. A solid client management handoff call addresses those potential issues and builds a solid foundation for long-term success.

• Document, document, document. What good is information if no one enters it in a Customer Relationship Management system or other account tracking app? These tools are only as good as the information they contain. The IT services team should create detailed documentation for existing processes, workflow, responsibilities and other critical variables in a new client’s business, starting with the names of key contacts on both sides of the relationship. Providers should also collect the following information as part of the MSP onboarding checklist:
  1. Final contract details
  2. Customer contacts
  3. Administrative passwords
  4. Service tier or support level
  5. Inventory of IT equipment, including mobile devices, network appliances and backup systems
  6. Current software license contracts and business applications
  7. Existing agreements with internet service providers and managed service providers
  8. Active documentation for current systems and the network infrastructure, including backup routines, VPN access and firewall configuration
  9. The results of all onboarding questionnaires
  10. Server, laptop, PC and other equipment specifications
  11. Compliance requirements
  12. Hours of operations (for each location, as well as availability for WFH environments)
  13. Third-party support in tech-related areas, including physical security, printers, VOIP devices and teleconferencing tools
  14. Hardware warranties
  15. Leasing and service contracts

• Create a custom welcome program. An optional but useful item on the MSP onboarding checklist, this step involves creating and delivering a package of tip sheets, contact information, and other useful documents and materials for new customers. Additionally, account managers could send company-branded merchandise, such as mugs, mousepads or magnets, or host a lunch-time meet and greet. The goal of a welcome program is to show appreciation and bring end-users up-to-speed on how your team will support their critical business needs. This step may occur at the close of the contract to gather additional information or after the onboarding process is complete.

• Prepare the technology transition. Each new client should receive a comprehensive plan of action and schedule to ensure a smooth technology transition from the previous provider (if applicable). Because these steps can be complex, communication is critical. MSPs need to develop and communicate the plan, import the data, set up new monitoring systems and user privileges, configure access devices, install remote monitoring solutions, and update applications and the network environment.

• Complete the transition. This point after the sale is where MSPs can make or break the new relationship. So much can go wrong when services providers switch clients over to new systems, reconfigure existing server services and software, and reset passwords and IP-enabled devices. Remote access is just the first step. Orchestrating those changes requires careful planning and execution by the MSP and strong participation, training and education by the end-users. Every MSP should have and follow a best practice guide when making these transitions.

Onboarding Never Ends

After everything is up and running, engagement shifts from tactical to strategic. The technical team steps back into a support role while the account manager evaluates, monitors and responds to potential issues and “handholds” new clients as they adapt to changes in their IT environment. These client management responsibilities and processes never end.

While MSPs may add new service accounts and technologies to the customers’ IT ecosystems and tweak work environments, they often employ similar processes at regular intervals during their client engagements.

Most customers will stick around when IT services teams work to develop strong relationships and deliver quality service. An effective MSP onboarding checklist, even with basic details, can help turn that concept into reality.

ConnectBooster is a scalable solution that fixes your cash flow. We’re trusted by thousands of service providers to get paid on time, every time, all while saving time. Schedule a demo to see ConnectBooster in action or contact us.

The post The Ultimate MSP Onboarding Checklist appeared first on ConnectBooster.

Some business owners throw out the pricing issue even when the cost isn’t the real concern. In many cases, it becomes a smokescreen or catch-all objection to interrupt a sales conversation or deflect from their true reasoning for not signing a contract. The artful dodge is alive and well.

The big problem for MSPs, or any sales team, is separating the true objections from conversation diversions. People have a strong tendency to take the path of least resistance to shut down unwanted or uncomfortable dialog. Avoidance is easier than an open and honest discussion with salespeople, and throwing out the tried-and-true concern about the price of a product, service, or program can be the next best thing.

Plan and Build

Every MSP should have a sales playbook that includes carefully crafted responses to the most common objections from prospects. The first step is determining the comments and level of pushback your team may receive from the gatekeepers, influencers, and the ultimate decision-makers.

In addition to price, prospects often use one or more of these familiar objections to stifle sales discussions:   

·        The timing is not right (lack of urgency)

·        That’s too rich for our budget

·        Your program sounds no different than what we already have

·        That won’t address our problems

·        We trust our current provider

Of course, those are just a few of the roadblocks, however big or small they may be, that MSPs encounter every day. That’s the value of building a sales playbook. Whether the objection is real, such as, “I don’t know anything about your company” or just an easy way of avoiding a deeper discussion, your team needs to be prepared to address the most common scenarios. Laying out all the potential issues with respectful and insightful responses is critical for your sales team’s development.

That’s not an easy job, which is why many MSPs utilize an industry-specific training program or hire a professional sales manager with the appropriate experience and solid leadership skills. One of the hardest parts of running a managed services business is knowing when to bring in help.   

Skillfully Obliterate the Pricing Objection

Cost is a factor in nearly 100% of sales conversations. However, if your team can neutralize that objection early on in their engagements and build a strong case for the company’s programs and offerings, the chances of closing new contracts will rise significantly. Mastering that process is essential to the continued growth of your MSP.   

One common problem is the rush to discount. That route is often the default for an inexperienced salesperson, reacting too quickly to what may be a smokescreen pricing objection by offering the prospect a reduced rate to close the deal. You can’t go back on that commitment.

More importantly, your company may not uncover that decision maker’s true objection until later in the relationship, perhaps even after signing a contract and going through the onboarding process. Those concerns may resurface at the least opportune time and cause heartburn for the account managers, technicians, and management team. Neutralizing their objections means addressing potential problems and ensuring the partnership is a fit for both companies. Full disclosure means taking an “eyes wide open” approach to sales and building a solid foundation for a long and fruitful business relationship.

The approach and conversation progression is critical. MSPs can leverage these five important steps to overcome, or at least minimize a prospective client’s pricing objective:    

1.      Wait for it. Great sales professionals spend more time listening than responding. A short period of silence when a prospect throws out an objection, at least two seconds but no longer than five, gives you time to collect your thoughts before proceeding to the next step. That pause can disarm the decision-maker and make them feel the need to provide more details about their statement. A confident sales professional avoids rushing to the next step or taking an immediate defensive posture.    

2.      Clarify the objection. The next step is essential for uncovering the truth behind their initial statement. Asking the prospect one properly phrased question can flip the script, disarming the decision-maker and possibly eliciting an explanation of their objection. Try to use the speaker’s words in the response. For example, “so, you’re saying the price is too high for the value you’ll receive?” or “what would you expect to pay for these services?”

3.      Connect the benefits with the prospect’s business. The key for any sales conversation is getting prospects to share their thoughts, business challenges, and future aspirations. Every sales playbook should include questions to keep the other party talking and the sales team listening. All responses should aim to clarify opportunities and connect specific solutions to that company’s unique needs and ambitions.  

4.      Emphasize the value/ROI. The final step connects all the dots. Share stories about other businesses that you’ve helped resolve similar problems and provide examples of cost savings or different measurable results. Understanding their industry is a big plus. The more experience your team has supporting similar types of businesses, the easier it will be to emphasize the value of your support.

5.      Close out the objection. Another common mistake is assuming a prospect’s initial concerns have been addressed in the conversation. Just having a good chat doesn’t mean you (or your sales team) neutralized or even minimized the pricing objections. A positive response to an easy question such as “do you see the value of continuing this discussion?” is one validator.  Asking them something more conceptual such as, “if cost wasn’t a factor, what would your ideal business look like?” is a great way to take the focus of price and move into the value conversation.   

Rinse and Repeat

The same process can be applied to other objections. Business owners can be quite creative when it comes to delaying and avoiding conversations with salespeople. Who can blame them? Spammers and fastpitch marketers constantly harass your prospective clients on their phones and through email.

The constant drone of voices and messages makes it harder for legitimate professionals with valued products and services to get time with decision-makers. Getting their attention is even harder.

That’s why MSPs need to quickly overcome any objections when they get to speak to a prospect. Carrying on an insightful and engaging conversation is much easier when your sales team knows how to react to different situations. The success of the deal depends heavily on their ability to build trust and convey value.

You might have your own reservations for utilizing ConnectBooster within your billing and collections process. Consider what our customers have shared,

“You can’t look at this tool as something you pay for because in the end, it pays you.” and “The extra money and time that I was able to regain with ConnectBooster allowed me to invest back in my business.”

See for yourself. Request a customized price quote.

The post Five Valuable Steps for Overcoming Pricing Objections appeared first on ConnectBooster.

No one wants to give away revenue. However, when MSPs prices are high, landing new clients is significantly harder. Setting prices too low hurts profitability, hurts cash flow potential, and increases the risk of business failure. Finding a happy medium, or at least hitting the higher range of the acceptable expense range, should be the end goal of every managed services provider. The proverbial “win-win” is the key to building long-term client relationships and a sustainable MSP business with high-quality service levels.

That explains why pricing is an important topic for the IT services community and the people who rely on their support. What’s the best model for your business? There is no simple answer to that question, as each MSP must consider a number of factors before building a line card with prices on every deliverable.

A little due diligence can ensure your firm is maximizing profit while providing cost-effective services to your clients and potential customers. While the complexity and number of solution options can complicate the process, MSPs can effectively price their managed services to scale up revenue and margins with the right mindset and strategy.     

Set Realistic Objectives

Discount rates and concessions should never be part of the strategy. Aiming for the lowest price with prospective clients is a sure way to put yourself out of business. The value organizations receive when MSPs provide critical advice and tailored solutions is why they deserve proper compensation, so lowering prices to land new accounts must be avoided at all costs. The best way service providers can prevent rate erosion is by building high-demand offerings.

Before constructing a managed services pricing model, MSPs need to develop portfolios of technologies, support programs, and ancillary services businesses need. From proactive IT monitoring and management and backup and disaster recovery options to ensure business continuity to cybersecurity and compliance applications, clients are typically willing to pay more for the most critical services.          

The hard part of pricing managed services is determining the amounts those businesses can afford to spend each year. Can you develop a cost-effective suite that addresses their needs and affords your MSP the profit it deserves? That is the root of the problem (and the opportunity).   

Calculating the Expense Side of the Equation

The costs associated with running an MSP practice must be a primary consideration when determining your managed services pricing model. Your expenses may not differ significantly from the competition unless your collective tools, deliverables, and employee skill sets are substantially more valuable to the target audience.

Do you know what technologies and process improvements your clients truly need to run their businesses effectively and securely in 2021? The response to that question should help determine the objectives for building a valued portfolio and a successful managed services pricing model.  

That procedure should include a complete evaluation of the target market and a careful review of the competitive environment. What are other MSPs offering, and what things are mission? How are the biggest competitors pricing their managed services, and, possibly, how much are they marking up those services? A quick survey of the tools they employ to support their clients can determine that final point, though some guesstimates and extrapolation may be required to fill in the gaps.    

Now is the Perfect Time to Adjust Your Managed Services Pricing Model

If anything good comes from the pandemic, it’s knowing how much businesses need the IT services community. From helping companies adapt quickly to remote and hybrid work environments to upgrading employees’ collaboration capabilities, MSPs proved their value when clients needed it most.

Now is the perfect time to revisit your managed services pricing model. That is not an endorsement for raising rates while the business community is still struggling with the ongoing economic challenges of the pandemic. However, MSPs should be looking ahead with contract renewals and targeting 2022 budgets for existing and new clients.     

This is an opportunity for increasing wallet-share by adding valuable services to your proposals. Pitching new offerings and discussing pricing adjustments right now can be tricky if the customer is struggling to stay in business. However, MSPs are often the efficiency experts that companies look to for answers. With the right tools and support programs, paying a little more to their trusted IT partners might improve their bottom line.

For example, implementing automations and integrations that trim manual labor requirements can significantly improve payroll expenses. Those savings can be routed into other money-generating solutions that boost your clients’ bottom lines.  

Setting the Proper Prices for Your Managed Services Customers

No MSP operates in a vacuum. Your managed services pricing model has to align with your clients’ budgets and be fairly competitive to keep everyone happy. The goal is to satisfy prospects and existing customers as well as the accounting and sales teams that rely on strong revenue and steading cash flow.

The array of pricing models for managed services may be long, but they give MSPs a number of options for meeting the specific needs of clients and their own businesses. Those choices include:

The Basic Plan − Some MSPs may not be comfortable offering a bare-minimum option. This package typically includes IT infrastructure monitoring with alerts, with additional costs for addressing problems when they occur, unless the company has an onsite IT staff. With the rise of co-managed IT, this model is regaining traction with larger organizations that may not feel they need a full-time MSP. Enterprise clients value remote monitoring and the managed service provider environment, but may not need the full array of services you have to offer. 

The Tiered Model — People like options. Current and prospective customers may prefer a variety of packages that align with their budget and resource requirements, and the price tiers allow MSPs to set prices according to the cost of delivering those specific services. This model allows providers to attain respectable margins while giving the decision-makers more power in the procurement process. The biggest challenge is ensuring that the sales team focuses on the appropriate plan rather than default to the lowest-priced option to improve the chances of securing the deal. Proper incentive plans (larger commissions or bonuses for higher tiers) can help minimize those concerns.   

Menu or Ala Carte Pricing — Giving clients more flexibility and allowing them to pick from an array of additional services can drive new revenue, but it typically adds to an MSP’s cost of doing business. Allowing decision-makers to pick from a variety of managed services offerings provides them with more control and can lessen negotiation time. However, customization and one-off deals typically complicate the relationship and the account management process. In this model, the price of each specific managed service must cover the cost of service delivery plus enough margin for negotiation since it is easier to compare and pick apart rates on individual solutions than packages. Ala carte takes away some of the mystery and makes it harder for MSPs to shift costs between different solutions. In some cases, this model can lengthen the sales process as discussions focus on individual pieces of technology instead of addressing a prospect’s business goals and problems.

Set Fee Pricing Model —The opposite of menu or ala carte, this is where clients get everything the MSP offers for one flat fee. Consider this the all or nothing approach,  or a bundled package where the entry price for managed services covers is easy to understand, though providers usually leave some room for negotiation. This has increasingly become the go-to option for providers as it simplifies the sales process and the management and delivery of their portfolios. Costs are easier to calculate, and MSPs often get volume discounts from their preferred vendors.  This managed services pricing model is often the most profitable while providing clients with a highly comprehensive support package. While the cost and complexity may extend the sales process, the high reward and ease of managing this model make it attractive for MSPs.

Per-Device — This model is easy for clients to understand and simple for MSPs to implement and manage, from sales and account managers to the accounting teams. The formula is just as straightforward: the client is billed a flat fee for each device every billing cycle (typically by month). Pricing for those managed services may vary by the type of device and specific package of solutions assigned to that particular user. Still, this model provides more clarity to each client and makes it easier to project IT costs when shifting work environments (adding laptops and mobile devices). The per-device model with one set monthly price is among the range of options available to the vast majority of MSPs.    

Per-User — Similar to the per-device model, this option bills by the person, not by the number of machines in the organization. This is a clear and cost-effective option for clients with flexible workplaces or more advanced IT environments.  For MSPs, this model requires a bit of homework, from calculating a fair price that captures all costs for delivering their portfolios to assessing the number of potential devices for each prospective client and then layering in a reasonable profit margin. A per-user pricing model is a viable option for your service offering.

Which Option Should You Choose?

Selecting a pricing model for managed services should never be considered a one-and-done activity. Some MSPs regularly adjust their rates and how they bill or offer more than one option to their clients depending on different business, market, or other key factors.     

There is no absolute right or wrong way to price managed services to your target client base. One may work perfectly for your peer MSPs but not be the best fit for your firm or the businesses your team supports. A good practice is to assess how competitors price their individual services and then determine which model might offer you and your clients the best advantage.

Copying what other local MSP do is not the best solution. That approach can lead to pricing battles and a race to the bottom as customers gain the upper hand by playing one side versus the other. Find a pricing model that leaves some mystery in the equation.    

Monthly costs are always a key factor. The best way to keep clients happy while remaining highly profitable is by keeping ahead of the expense curve and finding a service offering and pricing model that aligns best with the needs of each prospective audience. Whether offering a per device model or delivering more flexible bundles of services, there are a variety of options for keeping everyone profitable and satisfied.

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As you optimize your pricing model, you should also make sure your revenue isn’t trapped in accounts receivable. Check out how ConnectBooster can help you get paid on time and increase cash flow. Request a ConnectBooster demo.

The post How To Price Managed Services: MSP Pricing Models appeared first on ConnectBooster.

MSPs are masters of seeing the good in bad situations. For example, over the past year and a half, when businesses were left scrambling to adapt to pandemic-related restrictions, IT services firms admirably stepped in to save the day for scores of clients and end-users. Many providers worked tirelessly to procure, implement, and support remote workforce solutions to keep everyone running before, during, and after the government-mandated measures took effect. In many cases, MSPs adopt “temporary” systems to work in a hybrid environment while their clients determine what their operations will look like in the future.

Turning bad into good is a common theme for MSPs. Pessimists normally have a hard time being successful. Savvy business owners understand that a positive attitude makes it easier to forge strong relationships and create new sales opportunities. The carrot approach usually works better than beating customers with a stick.

The well-founded concerns about inflation are a great example. Everywhere you look, prices seem to be escalating at an alarming rate. With the economy heating back up as pandemic concerns subside, demand for many items is rising and supply chain issues are creating shortages of many goods and services. As companies nationwide are raising prices due to increasing costs of doing business, smart MSPs can leverage the timing to get enthusiastic buy-in from their customers on new procedures that introduce better automation and operational efficiencies into their businesses.

Inflation Enters the Discussion    

The numbers don’t lie. U.S. consumer prices experienced the largest gain since 2008, according to the Labor Department. While new and used vehicles account for 1/3rd of that growth, food and housing costs are rising on a similar trajectory. Median U.S. home prices increased a staggering 23.4% from the previous year. Labor and supply shortages are putting comparable pressure on the restaurant industry, forcing many stores to continually adjust menus and prices to keep up with the escalating costs of wages and food.

Inflation is a rising concern for everyone. A key priority for business owners is ensuring a balance between revenue and expenses. With expenditure increases considerably outpacing income growth and shows no signs of abating, organizations need to evaluate their options. On the expense side of the ledger, that may involve laying off personnel, dropping unprofitable products/services (at least temporarily), or seeking real estate/ lease alternatives. With all the remote work tools available to businesses today, the latter point is a very viable cost-cutting option − and MSPs can certainly help companies make that transition.     

These are issues that IT services firms should be considering when pitching contracts to prospects and working to renew existing clients. Automation and efficiency should be top of mind to all businesses looking to not only ease the sting of inflation but effectively scale their operations and enable their workforces. MSPs can deliver in each of those areas.

Minimize the Financial Strain for Existing Clients   

Every business owner should be prepared for prices to go up this year. Based on the effects of inflation across virtually every segment of the economy, suppliers must raise their rates to protect their margins and livelihoods. Your clients should understand that situation, and most will likely be bracing for increases as contracts come up for renewal this year.

That puts MSPs in the driver’s seat. Strong IT services partners are invaluable − even more so today than before the pandemic and rise in cybercrime. Even without inflation, businesses should be looking to increase their budgets to bolster defenses and remote work capabilities and spend more on automation. Those investments ensure your clients are adequately protected and remain competitive in markets with resource availability and pricing concerns.

While MSPs are in a strong position, every good relationship requires some give and take, even with contract renewals. Long-term clients understand the value of the products, services, and support that your firm delivers and, more than likely, wish to continue or possibly expand the alliance. Few truly satisfied customers will walk away from a renewal discussion, even with a modest price increase proposal on the table.  

On the other side of the equation, IT services companies strongly benefit from the strong cash flow from predictable monthly payments, so refining financial terms during contract renewals are crucial. You deserve to be paid on time for quality support and the various services your company provides.

Inflation can play an important role in negotiations. The amount and timing of monthly payments are the give and take points and, while MSPs have leeway on the pricing side, clients control the “when” and “how” pieces of these transactions. A satisfied and well-supported customer’s bargaining chip is considerably smaller.

Win the Payment Process You Deserve

Clients may protest strongly if an MSP pitches a significantly higher renewal rate during contract discussions − and no one can blame them. Businesses have to watch the bottom line, and every owner/manager has a responsibility to look out for their company’s best interests. The great thing for IT services firms is they serve the best interests of their clients while addressing similar concerns and responsibilities in their own organizations.

That doesn’t mean MSPs should settle for a less-than-optimal payment process. Leveraging current inflation worries as part of the bargaining process helps ensure those systems get put in place, and the “give” may be much less than the “get.” Every new contract for current and prospective clients should include a rock-solid collections policy with clear instructions and stipulations.     

The use of a secure payments gateway like ConnectBooster should be a mandatory requirement for every customer. MSPs can incentivize or penalize clients to ensure the adoption of these cash flow-critical solutions, though it is much easier to dangle the carrot to secure contract renewals.

Including an inflationary “rebate” to ensure adoption of these platforms and their adherence to payment policies is far easier than calling, emailing, and visiting customers to track down overdue invoices. In some cases, businesses owners may be reluctant to sign up for autopay today and must still be convinced that recurring ACH is the best option. Providing an incentive that speaks to their wallet during negotiations can help.

For example, rather than raising monthly charges by 10% or more in the proposed renewal contract to account for inflation, MSPs can cut that increase in half for companies that agree to adopt autopay. That number could be larger or smaller depending on the negotiations, but it gives providers more wiggle room to protect their margins and add essential new services.

Of course, each IT services company must evaluate changes in its projected cost of doing business before pitching future numbers to a client, or inflation may take a major bite out of its profits. Contract renewals don’t need to be stressful with a good negotiation strategy in place.

As inflation drives costs up, your clients might expect a rate increase. You can minimize your clients’ financial strain by incentivizing adoption of your ideal payment process—autopay. ConnectBooster makes it simple to get paid on time, every time, with rule-based, variable billing and two-way data syncing between your accounting system and CRM/PSA. Request a demo to see how autopay with ConnectBooster can help you achieve consistent cash flow.

The post The Hidden Business Opportunity in Rising Inflation appeared first on ConnectBooster.

The one constant among all that change is the options for building strong IT service ecosystems. Whether you manage a VAR business or an MSP, connecting with peers, vendors, distributors, industry specialists, and other experts helps expand your company’s capabilities and knowledge base. Tapping into other peoples’ bandwidth and skill sets creates the flexibility and scalability IT service firms need today.

Your ecosystem consists of all the experts and business partners you engage with to deliver the best products and services to your clients. There is virtually no limit to the number and types of people that make up that “inner circle,” though less than ten is a general rule of thumb.

Who are the top five people (or businesses) you spend time with each month? MSPs’ success typically comes from their ability to adopt industry best practices. Engaging and collaborating with “rock star” leaders and organizations can elevate your business standards and expertise. A rising tide lifts all boats. MSPs need to be sponges and improve their operations by learning from others and duplicating the processes and policies that drive success. Seek out peers who are willing to help expand your knowledge and mindset.

An MSP’s ecosystem may also be a sounding board. When you come up with an idea that sounds like the best thing since sliced bread, it’s good to have someone poke holes in the concept or offer alternate suggestions. Whether sharing details of their mistakes or successes, learning from the experiences of similar companies can save you and your firm a lot of time, money, and potential headaches.

Focus on the Market   

No two ecosystems are the same. While an MSP could theoretically create the exact same vendor partnerships and emulate similar expert alliances, the value to the provider and its clients would be questionable. Each existing and prospective customer has different needs and requirements, and the people and processes employed in those businesses are often quite unique. [Check out this episode of “Confessions of an IT Business Owner” that highlights these very opportunities]

Your ecosystem should support those variations. Most MSPs are great at certain things, good at others, and usually, avoid those requests that fall outside their areas of expertise. When clients sign a contract with your firm for a specific set of IT services, perhaps your core offerings, that action rarely fulfills every need of that business.

Your customers may have made some compromises to work with you. That statement is not a knock on your support capabilities or your offerings but an acknowledgment of potential technology or services gaps that exist for that client. MSPs simply don’t have the capacity to offer every possible solution on their own. Providers often secure contracts based on the comprehensive programs and packages they currently deliver. Those offerings may top the competition’s proposals but could still leave a new client in need of more specialized support.

For example, a hospital system may sign a contract with an MSP to receive remote monitoring and management resources, Office 365 apps and expertise, and cybersecurity and business continuity solutions. Most healthcare facilities will require a variety of advanced technologies and support options. Key on that list is IT integrations that improve medical equipment utilization and reporting and compliance-related cybersecurity and data archiving solutions.

Rather than avoiding those needs and risking losing that business to a competitor, MSPs can partner with vendors, distributors, or qualified peers to deliver those specialized services. Medical clients are not the only organizations that can benefit from an expanded ecosystem. MSPs can prosper in virtually every vertical market with the right team to support their efforts.

Understand Your Core Competencies and Services

The more you offer, the more things your team will need to support. With all the available technologies today, it is extremely easy for an MSP to expand its portfolio far beyond its capability levels. A strong ecosystem of channel partners will help minimize your training, bandwidth, and support requirements − no matter how many unique clients you take on in your business.

The key is focusing on the things your team does well. What parts of your current and prospective portfolio of services can your MSP effectively support today? How profitable is each offering?

The answers to those two questions are critical when assessing your firm’s core portfolio of services. You may lack the resources to profitably and cost-effectively deliver some current or proposed offerings. There is certainly no shame in admitting you can’t do everything as well or as efficiently as someone with more experience or extensive training in that area.

That’s why it is so important for MSPs to periodically review their portfolios and elicit feedback from clients on their service levels and offerings. At least quarterly, it’s a good idea to sit down with your team and assess each item on your line card. While revenue and profitability should be a big focus, gaining insight from staff members and customers can help you determine which services you may wish to outsource or improve.      

Forge Valuable Vendor Partnerships

MSPs trade time and expertise for dollars. Efficient use of your resources helps tilt that equation more in your favor, which is why successful providers develop strong partnerships with key vendors. Providers who can develop strong and mutually supportive relationships with these companies perform more efficiently and profitably.

Channel vendors want to help. They collectively invest millions (perhaps billions) every year, building the solutions and programs MSPs and your clients need to succeed. The great ones will go above and beyond to assist, especially when you encounter unusual problems. Want to get your vendor partners’ attention? Provide them with plans detailing how you can increase sales by incorporating more of their services and solutions. Creating win-win-win scenarios (that last one is for clients) strengthens those key relationships and drives more MRR for your business.

From sales and implementation support to marketing and demand generation opportunities, your vendor partners can provide a lot of resources. Vertical and compliance expertise are great examples. In many cases, vendors will pitch in during sales discovery or implementation calls to ensure prospective clients are aware of and addressing all their potential needs. That type of support not only increases the dollar value of contracts but creates a tighter relationship between an MSP and its new customer.            

Specialized expertise is another opportunity. For example, ConnectBooster partners understand the value of ensuring electronic transactions are secure and automated. Payment processing may fall outside your comfort zone as an MSP, but we can supply that expertise behind the scenes for your client. You can leverage our investments (not yours), increase your Monthly Recurring Revenue (MRR) and be the expert – leveraging an ecosystem of experts to fill in any gaps or perform the heavy lifting. Check out our REV program to learn how to add incremental income without increasing your team’s workload.   

Build a Strong Peer Ecosystem

The final piece of the “partnership pie” can be found in your IT services community. Are you a member of a peer group, or do you regularly connect with other MSPs? Building alliances and leveraging the skills and resources of those companies is a good way to improve your firm’s scalability.

No one can be an expert in every area. Partnering with an MSP with strong VoIP capabilities or an advanced cybersecurity practice could save you from making costly investments or losing a key client. What support or specialized service could you provide that firm in return?   

Strong partnerships are built on mutual benefits. Expanding your ecosystem may require a little extra time on the front end – exchanging ideas, forging bonds, formalizing the relationships – but the benefits far outweigh the investments.

As you apply concerted effort to grow your MRR, make sure your revenue doesn’t get trapped in accounts receivable. ConnectBooster makes it easy to get paid on time, every time, and effortlessly scales to match your business’ growth. Request a personalized price quote.

The post Grow MRR by Strengthening your MSP Ecosystem appeared first on ConnectBooster.

Some of the responsibilities can be tedious or difficult for skilled technical professionals. Selling managed services isn’t a natural talent, as many of those who live and breathe IT struggle when it comes time to negotiate and close new business deals. That may help explain why a significant portion of MSPs run what some consider to be lifestyle businesses, small firms that typically work with a relatively small client base. What some think is easy, like setting appointments and conducting a sales presentation, others find difficult and off-putting. Avoiding all the activities involved with selling managed services makes work and life much simpler.

Other service providers choose a different path. Some view expansion as necessary, and selling managed services can quickly improve their profitability and cash flow. MSPs must put structure in their marketing and sales programs to accomplish those objectives, adopting proven business practices and building processes that fit their specific needs.      

Targeting SMB Clients

The objective of any B2B organization is to find a target market willing to pay a premium price for easy to deliver goods and services. On the other end of the equation, optimizing the workload minimizes the personnel requirements and maximizes the profit margins. Selling managed services to potential clients is a prime example of that philosophy.

According to the latest U.S. Small Business Administration report, there are approximately 31.7 million small businesses, which means 99.9% of all companies in this country have fewer than 500 employees. The global number approaches 400 million), though many countries use the SME (Small and Medium Enterprises) definition, which caps the staffing limit at 250 and represents 95% of the total firms and 60%-70% of worldwide employment.

Those statistics provide MSPs with a very strong business case for selling managed services to the SMB. Additionally, most small businesses have few, if any, IT experts on staff, which provides more support and financial opportunities for channel partners across the globe.

Selling managed services to the SMB is a symbiotic proposition. New customers gain the support of skilled IT professionals who can design, procure, implement, and support business-critical systems and solutions, while MSPs add MRR (Monthly Recurring Revenue) to their balance sheets. Those relationships also allow providers to leverage their resources across a greater number of vertical industries, maximizing employee productivity while optimizing various skill sets.   

No matter how large the contract, there is usually always money left on the table. Small businesses are no different than their bigger counterparts. Technology is an essential part of their operations today, and selling managed services to the SMB helps ensure everything runs smoothly.

Regardless of the company size, business leaders must deal with a litany of tech-related concerns, from cybersecurity and compliance requirements to virtual desktops and data backups. Even a two-employee startup needs functional computers and secure networks. Selling managed services to the SMB helps those organizations compete on an even playing field with larger and more well-funded competitors.   

These clients can also be easy for MSPs to onboard and manage. In addition, simplicity facilitates profitability, and implementing remote management and monitoring solutions, professional services automation platforms, and key business tool integrations can further increase efficiency. While these decision-makers typically have smaller budgets to work with, selling managed services to the SMB creates a win-win for the clients and the providers.    

This model can generate greater profits for both parties.

Selling the SMB on Managed Services

Nurturing prospective clients requires a long-term commitment. Selling managed services to SMBs can take time, and MSPs often focus much of their efforts on education, informing decision-makers of the business benefit that comes from proactive IT management.   

Despite the latest generations’ exposure to technology, many business owners and decision-makers know very little about the specific IT needs of their organizations. MSPs must be able to connect on a non-technical level when selling managed services to the SMB. Discussing business objectives, workflow challenges, common sales objections, regulatory controls and security concerns – without getting into the “speeds and feeds” of IT – keep clients and prospects engaged.

The more open the lines of communication, the easier selling managed services to the SMB will be for your team. Addressing non-IT-related anxieties such as compliance and workplace changes can drop their defenses and open the door for MSPs to soft-sell new solutions and justify paying more for upgrades to existing services.

Thanks to remote technologies, there are no geographic limits around this model, meaning there should never be a shortage of new opportunities for selling managed services to the SMB. MSPs can support clients down the block or on other continents with the right solutions and people in place. With the ability to leverage regional partners to deliver last-mile service when needed, providers can scale and expand their physical reach without limits today.

Selling managed services to the SMB in other geographies without local connections or area knowledge can be more difficult. Still, with the right partners, channel professionals, and technologies, it can be a lucrative opportunity. The key is building out a highly valued and easily manageable system.

Develop a High-Value Line Card

The key to selling managed services to the SMB is the MSP’s ability to address their pain points, including the issues that decision-makers may not know about or understand. Enabling remote workers with cost- and time-saving collaboration and communications tools is invaluable today. WFH and hybrid environments require new ideas and mindsets, as well as technologies that help business owners better manage those employees.

Cybersecurity is another high-demand offering when selling managed services to the SMB. Security solutions for protecting their data, people, systems, and client base are a priority for most organizations today, and MSPs that can confidently address and lessen those rising fears will be more likely to increase their sales and MRR.

Other high-value offerings include cloud storage service, advanced network support, and 24/7 helpdesk options. As more companies break out of the traditional office norms, including 8-5 schedules and the five-day onsite requirements, they need their IT professionals to be just as flexible. Selling managed services to the SMB today is much different from two years ago. Some things have changed a lot since the pandemic forced many organizations to reimagine their workplaces.     

Hire Professionals

While many MSPs may have a good understanding of the services market, the sales process can be somewhat of an albatross, and owners and technicians are probably not the best people for those sales conversations. Pitching a solutions portfolio to business professionals can be taxing to someone with little experience overcoming obscure objections or negotiating complicated deals within the sales process. That skill set can be acquired through persistence and practice – otherwise known as on-the-job training – or by hiring an experienced specialist.

Selling managed services to the SMB requires a certain knack and mindset. Those who take time to understand their current client base, potential customer’s pain points, business models, and workflows typically enjoy the most success, though listening and observing are just two of the necessary talents.

Among the other critical attributes is speaking to people like people, not CTOs or technicians. Selling managed services to the SMB requires MSPs to engage in meaningful conversations with business owners, accountants, lawyers, and others not trained in the intricacies of computer programming, network installation, or system management. The best way to close deals is to listen and address their specific needs and pain points.

Hiring professionals with experience selling managed services to businesses, particularly SMBs, is the ultimate goal. However, most MSPs cannot afford to poach great talent from their peers, so they typically recruit, onboard, and train those with good sales skills from complementary industries. Identifying those with a solid track record of closing large deals, preferably in the professional services space, should be an ongoing activity of every MSP.        

Most industry insiders suggest that it is easier to teach a great salesperson about technology than to train an IT professional to sell. Sales is an intuitive skill – the ability to engage prospects, provide a sales presentation, build rapport and gain their confidence, and close a deal − while MSPs can typically provide new employees with the IT knowledge they’ll need to succeed.

Build a Solid Game Plan for Selling Managed Services to the SMB

Creating long-term business relationships should be a top priority for MSPs. That’s why the strategy for selling managed services to the SMB must center on the pain points of prospective and current clients. However, identifying those concerns is just the first step. The questions MSPs need to ask when building out their game plans, and sales playbooks are actually quite simple:

•       What issues do they need to address?  
•       Which particular services are best for the MSP’s target audience?
•       What are SMBs’ expectations?
•       How much do a new prospect’s business practices and IT systems differ from their existing clients?

Focusing on each client is the key to selling managed services to the SMB.  Every email and call must address the prospect’s needs or build rapport. Some experts in the IT industry undervalue personalization, but in the small business arena, paying close attention to individual preferences and requirements can be the difference between making or losing a big sale.  

The best way to succeed at selling managed services to the SMB is by creating genuine bonds. Building solid relationships with the decision-makers and other influencers are critical to securing long-term contracts and growing new friendships.

After you’ve done the work to successfully sell managed services, retain your customers by focusing on client satisfaction. ConnectBooster has heard from hundreds of users who indicate their customers are happier because of the transparent, easy-to-use, 24/7 payment portal. Request a demo and see all the ways ConnectBooster can simplify your billing and collections process and make your customers happier.

The post A Guide to Selling Managed Services to SMBs appeared first on ConnectBooster.

Unfortunately, things can get lost as the company adjusts to the latest and greatest new offering or methodology, and the business’ identity or messaging is often at the top of that list.

Differentiation is critical for MSPs. Since most IT service providers focus on their local markets, limiting the number of potential clients, they must stand out from the competition. MSPs need to address the issues those businesses face and deliver unique messaging that will distinguish their firm and its portfolio from less focused rivals.

Confidence in your products and services goes a long way with corporate decision-makers who may be looking to invest thousands of dollars each month with your company. Payment processing expertise is one of those differentiators that can pique the interest of many prospects.

Opportunities may be right under your nose

With cash and checks losing favor with the younger generation and many older customers (for several reasons), business leaders need help adopting and managing alternative options. Some of your clients may be struggling to find the right payment processing options and not know where to go for answers.

While MSPs may assume the businesses they support would come to them for support, the connection between technology and credit/ banking activities may not be as clear to the decision-makers. A little education and awareness can rectify that problem.

Other clients may already be working with a payment processing company. That doesn’t mean those businesses are happy with their current support or utilizing current systems that meet PCI and other compliance requirements. Those situations present prime opportunities for MSPs, especially those with the right industry partnerships. Aligning yourself with a vendor with a long and successful history in payment processing (like ConnectBooster) will help ensure your success in this area.

Shout it from the rooftops

Every current and prospective client should know about the various solutions your firm offers – a message that you should deliver as often as possible. With a shift towards electronic transaction systems, highlighting your expertise or ability to provide support through business partners is essential.

Payment processing can be an easy sale. Businesses that accept payments understand that these technologies are necessary, but very few can implement or support these systems. MSPs can be the go-to provider for these services with the right mix of solutions and a consistent message. Embrace the opportunity with promotion and education. Here are a few ways to make that happen:

Get the word out

A comprehensive campaign using email messages, newsletters, Google Ads, social media promotions, and event sponsorships will help drive demand for payment processing services. What’s the best way to get the attention of your primary audience? Utilize stories about current clients benefiting from these solutions and services to increase comprehension and build trust with prospects. Sharing statistics and related news articles can also help MSPs create interest in these solutions.

Craft an effective message

What is your specific offering and how can it improve your clients’ operations and customer experience? What are some of their pain points with collections and payment processing? Understanding your target market’s needs, especially around their financial and compliance requirements, is essential for crafting effective messaging. Promotions should be designed based on prospects’ level of comprehension on the topic (keep it simple) and speak to a variety of decision-makers, from the management team and accountant to those on the front lines of the payment process. Provide the facts and key points needed to sway their minds (and hearts).

Consistency is key

One-and-done conversations don’t exist in the sales/marketing world. Make an impression by regularly conveying details of your expertise and the solutions that improve their operations and financial condition. Tell them about the various benefits of different communication forms, from savings on processing fees and enhanced productivity to higher customer satisfaction. Conveying those messages continuously will strengthen your voice as a payment processing expert.

The perfect payment partnership

Can you confidently project that value proposition to your current and prospective clients? Boost your expertise, services options, and confidence by partnering with ConnectBooster.

Our team will provide the solutions and guidance needed to excel in this thriving field. With years of experience enabling MSPs, we understand what you do and how you support businesses and help your team take advantage of all the latest opportunities with payment processing.

The post Strengthen Your Voice In Payment Processing appeared first on ConnectBooster.

The cost of acquiring a new client is five times more than retaining an existing customer.

Experts suggest the differential may be significantly higher when complex and long sales cycles are involved, and the typical IT services transaction certainly fits that description. All the emphasis and repetition involving client retention highlights the value to business owners, and why those efforts are front and center in the MSP community.

Client loyalty is critical for driving incremental MRR and profitability. Returning customers are typically successful businesses that will require more licenses, devices, solutions, and support services each year. In addition to organic growth, profitable organizations today tend to invest more capital in innovation and enablement tools for their employees. The higher MSP customer retention rates, the more opportunities those firms will have to generate additional MRR.

Even a minimal investment in this area can help. Studies show that when businesses increase spending on these activities by just 5%, their profits can go up between 25% to 95%! What small things could you do to improve your MSP/s client retention rate and enjoy that level of margin growth?

The great news for IT services firms is that businesses’ increasing need for technological improvement tends to increase their reliance on quality providers. If you and your team do your job well, your MSP’s client retention rates will generally be high.

Understanding how your business can improve client retention is not some unknowable secret. In this piece, we’ll examine the top strategies for maintaining long and healthy relationships with your clients.

Eliminate the roadblocks

Before we begin, it is important to remember there are several factors that can challenge a customer’s loyalty. Even when IT service firms provide top-notch support and relationships are solid, the competition will be working to undercut them on price or get their foot in the door with a unique solution or support program.

Telecoms and copier dealers are perfect examples. Many of these companies also offer managed services and target MSPs with low client retention rates. Phone and copier services help them get a foot in the door with new customers before they start working to displace their rivals from the account. Boosting customer satisfaction and MSP customer retention rates prevents those predatory practices from succeeding.        

Quality service trumps discounts. When customers are happy, most of the obstacles that affect MSP’s client retention rates fade away. The best way to overcome potential roadblocks is to focus on what people care most about, including top-notch support, IT expertise and vision, and a commitment to business best practices.

Steps to boost your MSP client retention rate

The success rate for selling additional services to an existing client is 60-70%, while your chances of landing new clients run between 5% and 20%. Relationships make all the difference. Developing rapport and trust with customers makes it easier to communicate and fosters a deeper engagement.

The more you know about each other, the greater the opportunity to boost your MSP’s client retention rate. Trust is the key to quality engagements. But what can an IT services firm do to bolster these long-term relationships?

Here are eight focal points for strengthening MSP client retention rates:

#1 Set realistic expectations

Start with the time-tested standard of under-promising and over-delivering. When your clients anticipate a certain level of services, your team must at least meet, if not exceed, those expectations. Falling short in any area will undermine trust and could negatively affect a managed service provider’s client retention rate.

#2 Build trusting relationships

Good clients are more valuable than a one-year contract. Developing friendships and professional connections with the business leaders and everyone who touches a computer or influences technology decisions is critical. Those relationships open the lines of communications and strengthen the bonds between companies. Nothing boosts an MSP’s client retention rate like forging strong bonds with the people who rely on their support.

#3 Encourage open feedback

Effective communication is just as important as solid relationships. Urge your clients to share the bad along with the good. When they bring problems and concerns to your team’s attention quickly, it gives them time to identify and implement the proper solutions. Providing an easy feedback mechanism for your clients encourages more open communications and minimizes the chances of losing key customers.

#4 Respond quickly to complaints

The longer a problem goes unaddressed, the more anxiety there is for the end-user it affects and their employer. It’s no coincidence that MSPs with high client retention rates typically focus heavily on their service levels. The faster the response for critical issues − not just the “nice to have when you get around to it” activities – the more likely their customers are to sign longer duration and larger contracts. Attention to customer service-related KPIs is one of the best ways to boost an MSP’s client retention rate.

#5 Leverage automation

Customers appreciate well-designed solutions. Providing your clients with easier ways to report issues, create support tickets, or pay their bills improves their opinion of your business. People often prefer to talk to other people, but in today’s tech-friendly environment, the advantages of automation far outweigh the disadvantages.

#6 Commit to the QBR process

Embrace your time with decision-makers. QBRs provide MSPs with an opportunity to strengthen relationships, highlight results, sell new solutions, and overcome any concerns or objections. Avoid surprises at renewal time by committing to these valued discussions.

#7 Educate/communicate

The more others know about your company and the complexities of IT services, the more opportunities you will have for increasing your MSP’s client retention rate. Company websites and newsletters and social media make it easy to share that valued information today.

#8 Ask for testimonials/recommendations

What’s the best way to find out what your clients think about your business? Ask them for a referral or about what they like most about your support, services, and people. Are there things they would like to improve? You’ll never know unless you ask clients their real opinions.

Additional ways to boost your client retention

There are many more ways MSP’s can boost their client retention rate than the eight options listed above. While those ideas have been time-tested by some of the most successful IT services firms in the industry, most providers regularly device other creative ways to strengthen their key business relationships.

Loyalty programs are one of the more popular and successful options. MSPs may deliver tokens (nominal cost, branded favors) or larger gifts. Taking top clients to a sporting event or hosting a party at the office are other options. The key with these programs is to be thoughtful and considerate and use caution when planning activities to prevent bruised egos or hurt feelings.

Overlooking people of influence in these programs can negatively affect an MSP’s client retention rate, especially with smaller business partners. Double-check lists and involve all your clients’ employees whenever possible.

How creative is your team? What other ideas could they generate to boost your MSP’s client retention rate? Make customer loyalty an objective for everyone and encourage employee suggestions. Investing in one or two new ideas each year could pay off in a big way come renewal time. It really doesn’t take much money or time to build and foster important relationships in both your personal life and business.

Curious if there are other ways to add valuable services for your clients? Check out the Rev program, and see how both you and your customers can earn MMR with manual recurring work.

The post Eight Proven Tactics For Maximizing An MSP’s Client Retention Rate appeared first on ConnectBooster.

Efficiency is the top priority

Continual improvements in productivity and quality are essential to IT services growth. If an MSP is not making advances in those areas, client satisfaction and retention is at risk, and chances are there will be at least one competitor ready to poach unhappy accounts. You have to work proactively to improve all facets of service delivery and management to keep the wolves at bay.

At the same time, a healthy business needs to grow. Doing more work with minimal resources is the MSP mantra, as providers struggle to find and hire quality tech professionals. The salary demands of competent engineers and IT support specialists remain high, and with a strong job market, attracting skilled team members can be a difficult task. MSPs often delay recruiting and training activities until sales and MRR grow more than enough to justify those additional investments.

A PSA can help ease the “ebbs and flows” in your team’s workload. These platforms allow managers to track hours and resource utilization and instantly review revenue and margin status. Using analytical tool features, you can accurately predict bench capacity and workloads and the firm’s ability to take on new clients without substantially increasing overtime or causing employee uprisings.

A swiss army knife for managed services

While visibility is essential for proper planning, that’s just one of the many benefits of implementing a PSA. The “professional” part in the name often gets overlooked, but these platforms allow MSPs to strengthen areas of their operations that clients and prospects notice and respect.

The “automation” piece is just as critical. The complexities involved in running a managed services business, from the initial sales and service delivery activities to timely billing and collections, can easily get out of hand. PSAs typically integrate with a long list of tools that MSPs use to support their clients and manage their back-office operations.

These connections enable automated processes and collect, store, and transfer crucial client and business information across the platform. With fewer keystrokes and a smaller amount of human interaction, these integrations reduce errors and payroll costs.
More importantly, PSAs allow MSPs to manage service delivery and other critical business activities more effectively. These are truly enablement platforms for the managed services community.

What other advantages do PSAs provide to an MSP?

#1 Creates an information highway/repository

Many consider these platforms to be the foundations of their businesses. PSAs collect and distribute valued pieces of information between applications and initiate a variety of automated processes based on prescribed methodologies. A commonly heard phrase among channel professionals is “if it isn’t in ConnectWise/Autotask/Kaseya, it didn’t happen.” The information team members need to do their jobs, from business owners and technicians to sales and accounting personnel, should be saved somewhere in the company’s PSA.

#2 Manages service tickets

It’s easy to overlook the routing benefits of PSAs since that functionality is part of their original design. The base technologies in some of these platforms pre-date the managed services era, with some of the early systems providing ticketing support for a variety of professional services organizations, including appliance repair shops and plumbing and heating businesses. The ability to create and submit maintenance requests from virtually any location and route them to the appropriate support personel is invaluable. PSAs speed up the response times and provide technicians with the information needed to address the issues, especially when an alert automatically generates the ticket.

#3 Leverages and enhances key MSP tools

PSAs are the ultimate data leverage point. Integrating various MSP business and technical applications enriches the collective toolset, providing a highly manageable platform that collects valuable pieces of information and pushes them to all the right places. For example, you can connect a PSA with an RMM and other apps to monitor and manage clients’ systems. Integrations with accounting packages like QuickBooks and Dynamics and payment platforms such as ConnectBooster can automate critical activities in an MSP’s billing and collections process. Each connection can save time and reduce anxiety for IT services business owners, employees, and in some cases, clients.

#4 Automates key processes

Integrations are just the technical side of the equation. PSAs allow MSPs to set up work rules that route information through various aspects of the combined platform, automatically initiating processes based on the particular data inputs. A big part of the value proposition for these systems is their “hands-free” capabilities. Removing people from as much of the equation as possible not only reduces payroll costs and stress but cuts down on entry mistakes and other human errors.

#5 Provides visibility/control

Information is power. Putting critical business data in an easy to see and customizable format makes it easier for owners and employees to do their jobs. Most PSAs provide users with a simple interface that contains schedules, performance metrics, and other details relevant to that individual. With all information in a central location, each team member can easily manage their work and track progress on various projects and activities.

#6 Enables service level agreements (SLAs)

PSAs give MSPs the ability to manage multiple levels and types of SLAs concurrently. Providers can monitor agreement statuses across various workflows, through automatic alerts, and by tracking different escalation paths. Those automations help MSPs manage client expectations and improve customer satisfaction levels, with real-time alerts and updates tracking assignments and schedules, prioritizing urgent tasks or those with nearing due dates.

#7 Maximize resource utilization

PSAs allow MSPs to strengthen virtually every part of their operations. From quoting to collections, these platforms increase the efficiency, productivity, and customer satisfaction levels across the board in an IT services business. The end goal of PSAs is lower resource utilization rates and faster responses to clients’ technical issues. With all the information and control in one place, MSPs can make quicker and more well-informed decisions on their businesses and their teams’ activities.

A whole lot more

This article only hits on a few of the many benefits of professional services automation platforms. As a central management console, master tool connector, and repository of critical business information, these platforms exponentially expand an MSP’s capabilities.

They drive efficiency through automation. Few MSPs could scale their operations without leveraging a PSA and its key integration points, managing information and workflows to optimize resource utilization and boost customer satisfaction. Very few business tools provide the type of power and ROI these platforms bring to IT services firms.

Whether creating and routing service tickets or generating invoices and requesting payments through the various financial tool integrations, PSAs have become the cornerstone of a successful MSP.

But a strong PSA is not the only key to success, and it needs to integrate with other critical business tools like your billing software that impact your success. See how ConnectBooster fits into your whole MSP’s ecosystem to drive operational efficiencies.

The post How MSPs Can Take Advantage Of All The Benefits Of A PSA appeared first on ConnectBooster.

Building a practical sales funnel is a critical first step in growing. In the early days of an MSP business, that process may not exist; with new prospects primarily coming from an occasional client referral. Today, relatively few providers employ a full-time sales and marketing staff, with owners and other employees fielding questions and working on landing new contracts without official training. As those organizations gain clients and start to build out those functional areas of their operations, they need to be more proactive with the prospecting process, which is where sales funnel management comes into play.

Why building a sales funnel is important for MSPs

MSPs that get through that first stage− moving from a one-person or small shop to a more scalable business – still face many obstacles. The first is building out a viable services portfolio and team to support their various clients. Constructing the outward-facing operations, including sales, marketing, and all the required managed services contracts, comes next.

Team building is critical and where many fall short. MSPs need experienced professionals to construct and manage their sales funnels, “priming the pump” with quality leads to close as many profitable contracts as possible. Attracting top talent is much easier when a company can demonstrate its commitment to success, and having a vibrant sales funnel is the perfect example.

Virtually every successful MSP backstops its team’s efforts to ensure a steady stream of viable prospects. The best way to overcome the typical closing process’s peaks and valleys is to create strong sales funnels that provide the firm with a constant flow of good potential business prospects. Keep those teams productive and hungry for the next close also boosts employee satisfaction and retention. There is a proven correlation between sales funnels and workplace fulfillment.

So where do you start?

Follow the metrics

Inbound lead velocity is one of the key measurements for an MSP. This sales funnel-related objective is critical for providers, ensuring that they are growing the number of opportunities available to their team month over month. The lead velocity metric also allows MSPs to better predict their future recurring revenue streams since that statistic is typically not affected by seasonal fluctuations.

While the skills of the sales team can alter things at the latter end of the sales funnel, most providers would rather deal with an overabundance of prospects than not have enough opportunities in the CRM system. A strong inbound lead volume is a productivity solver. Expanding the team with experienced sales professionals is easier than identifying new prospects.

Solid investments in marketing and business development activities, as well as an effective strategy for managing each opportunity, are essential for creating a strong and effective sales funnel. Those activities provide employees with the resources they need to close more contracts and gain additional revenue from each current and prospective client.

Feed the sales funnel

The objective of sales and marketing investments is to drive steady revenue growth. The lead velocity metric helps an MSP assess how well those activities are fueling their sales funnel. That vital statistic provides management with insight into their future sales projections: if the quantity of potential opportunities begins to drop, they may need to step up investments and activities.

Analysis of future-looking trends is crucial. MSPs cannot afford to get caught tracking only the lagging indicators of their activities, especially those that affect their sales funnel and upcoming revenue opportunities. As with any business, they may require frequent adjustments to keep income and profit levels moving upward.

Those are just a couple of reasons why MSPs must monitor all the activities that can affect their sales funnel. From marketing-related campaigns to ongoing engagements with prospective clients, providers need to keep a close eye on the metrics that can truly predict their future success (or failure).

Enhance sales and marketing activities

What are some of the other ways MSPs can influence their sales funnel and create new revenue streams? Strategic investments in sales and marketing are the most effective way to move the needle, but which activities provide the greatest return? MSPs frequently employ some of these tactics to enhance their sales funnel.

Content Marketing

MSPs cannot prosper with a referral-only growth strategy. Businesses must tell their story and educate prospective buyers and use a variety of lead generation methods to increase their sales funnels today. Sharing a constant stream of valuable content with a firm’s target audience will not only raise awareness but boost engagement with prospective clients. Adding blogs and videos that link back to the company website are great first steps. Targeting specific prospects with focused whitepapers and eBooks helps boost MSPs’ expertise and sales funnels (when properly utilizing lead forms).

Create Awareness Campaigns For Multiple Targets

Promotions drive sales. A good way to get slow adopters to take action is to offer them a targeted incentive. That may include providing prospects with a free cybersecurity evaluation or a 10% discount for signing a twelve-month services contract. Shorter-term inducements include branded promotional items or research reports for filling out a lead form (a great boost to the sales funnel). Deliverables that appeal to the targeted audience are usually a great way to generate interest and leads!

Boost SEO Programs

Businesses live or die online today. The value of search rankings continues to increase and effective SEO strategies are a sure way to add quantity and quality leads to an MSPs’ sales funnel. Investing in keywords and phrases and optimizing every possible section of a company’s website, from content and images to connected links, will improve its ranking on Google, Bing, Yahoo, and other platforms. Those actions, in turn, will strengthen the firms’ sales funnel.

Embrace Social Media

Facebook, Instagram, LinkedIn, and Twitter are becoming essential communications platforms for the MSP community. Sharing events, news articles, tips, promotions, and other valued content that speaks to a managed services firm’s business, especially those connected to their company website, can indirectly fuel their sales funnel. Whatever they can do to get a site visitor to fill out a lead form will help the MSP’s growth. Carefully crafted and properly implemented social media programs increase awareness and engagement and feed the sales funnel that feeds new business opportunities.

Optimize Landing Pages

While many may scoff at making frequent website revisions, those activities are essential for keeping an MSP looking innovative and successful today. Online improvements can significantly strengthen lead generation and add a major boost to their sales funnel. Adding search-optimization plugins, keyword-rich text, meta descriptions, title tags, and other features to a website can vastly improve its online rankings. Web developers can evaluate and upgrade current pages, adjust content to bolster SEO rankings, add links and lead forms to articles and sections, and enhance visibility with target audiences.

Focus on the health of your sales funnel

Strengthening the lead generation process should be a top priority for every MSP today. A healthy sales funnel is essential for meeting revenue and profitability goals and growing the business.

The list of potential activities in this article is by no means all-inclusive. Innovative MSPs leverage every potential tool and all available resources to drive the leads that not only fuel their sales funnel but maximize their profitability and customer satisfaction. Listening closely to gauge the needs of clients and prospects makes that possible.

MSPs who adapt their activities to current and future market demands typically have no problems filling their sales funnels. They leverage targeted promotions and optimize SEO and content to maximize awareness as well as the return on their marketing dollars.

There are many resources available to boost an MSP’s sales funnel. Leveraging peers, vendors, distributors, and third-party marketing experts to bolster those activities is also an option. Developing a solid sales funnel is easy with the right plan and good people to make it work.

The post There Is No Secret To Building An Effective MSP Sales Funnel appeared first on ConnectBooster.

The first step in combating chargebacks is to gain a better understanding of this growing problem. Chargeback fraud is when a customer disputes a transaction with the bank or processor instead of contacting the seller or provider for a refund. Essentially, the purchaser or client leverages the financial companies’ rules to “opt-out” of the sale and get their money returned without directly notifying the company supplying them with services or products. While these policies’ original intent is to protect consumers, some companies and individuals abuse these policies by canceling valid transactions, thereby defrauding the sellers and the processors/banks.

For example, imagine your MSP landing a $10k project from a client referral, with half the investment in hardware and the rest paying your estimated labor costs. You receive a credit card payment for the full amount, and all their decision-makers are pleased with the installation and setup. However, 30-days later, that client disputes the transaction, and the processor withdraws the money from your company’s account.

Now, there is a liability when accepting any transaction electronically. Whether your clients pay with credit cards, ACH, or even checks, there is a certain period before the risk goes away. Depending on the bank, customers can dispute a transaction for between 90 and 120 days, and for credit card payments, the magic number is 60 (days).

Chargeback risks go beyond electronic

As mentioned previously, transaction fraud is not limited to credit cards and EBTs. Written checks are very similar to ACH in that a customer can still dispute charges.

Most people don’t understand that even after receiving payment, a liability still exists, and the period for contesting these transactions vary by the banking institution. Even when your company gets a check, there is no guarantee that that money will make it to your account.

Clients may file a ‘stop payment’ order on paper checks or ACH payments before those transactions close. Not much is required other than telling their bank that you noted an issue after making or sending the payment.

Of course, if that person were really dishonest, they can try to reverse transactions by reporting theft or fraud promptly. The problem with that process is it can have negative repercussions if the police get involved.

Friendly fraud is a misleading term

Chargebacks are an intentional act. When people use the term “friendly fraud,” it diminishes the fact that a client knows they are defrauding your company out of its hard-earned income. When your team delivers promised products and services, you expect to be paid for that time, effort, and related expenses.

The consumer is manipulating the chargeback process to secure an undeserved refund. Their intentions are not good and amount to theft of services and goods, with financial institutions and processors unintentionally running interference.

Of course, the majority of the blame falls on customers who not only make false claims but usually have to justify their request to reverse the transaction. Due to the way the system is weighted in the favor of customers, MSPs have to know their rights and how to defend themselves from this unscrupulous practice.

Lack of validation is part of the problem

With so many people expecting businesses to provide electronic payment options, these issues are sure to escalate, and the owners of IT services companies have to increase their awareness and defenses. These are the types of protection you should employ in your own firm, as well as a service you can provide to your clients.

Any business that accepts credit, EBT cards or checks could be a potential victim of chargeback or transaction fraud. With referral business, especially with emergency projects, you may not have much time to research the company’s credit history. How trustworthy will that company be as a customer?

The problem with vetting the “friends of trusted clients” is the process may not be as solid as for companies you pursue through other means. These relationships often begin with emergency or quick projects, and when a respected customer makes the introduction, it is very easy for MSPs to let their guard down.

A few easy ways to avoid payment fraud

Owners and employees are the most effective first line of defense against these deceptive payment practices. With the internet at your disposal, it takes very little time to vet new clients properly.

Check in the Better Business Bureau portal and search reviews on Google and other websites. Issues on the financial side or complaints are fairly easy to spot, but you should always exercise caution and be careful not to generalize based on one person’s grievance.

Every business has that one customer willing to wage war over a simple misstep. Base your opinions on overall trends and collect as much information as possible to support a case for or against taking on that business as a client.

Are they trustworthy? Have other business partners filed complaints in the past? Be sure to ask the referral source for as much information as possible without overstepping your bounds or discouraging them from recommending your firm in the future.

Do a little bit of due diligence to understand the potential liability. The bigger the project or commitment on your side, the greater the risk. Do you trust that prospect to make (and follow through with) an electronic transaction? Keep in mind that “statute of limitations” in which they may dispute a payment and withdraw the money, whether that equals 60 or 120 days. Services like Experian or Credit Karma make checking credit histories quick and affordable.

If you are still unsure, ask the company for a wire payment. These transactions are secure and finite. That may sound prohibitive for a business, but if MSPs are uncertain of their trustworthiness when taking on a project or deliver a new service, this will provide a good safety net.

Smart decisions help forge stronger relationships

People want to work with those they respect. Asking a potential new business partner to provide some collateral upfront shows you run a secure operation.

Most reasonable people understand that entrepreneurs need to protect themselves, their employees, and the companies they support in today’s risky environment. The chances are good that the decision-makers will want to establish trust and build a long-term relationship, so giving your firm some financial assurances upfront should not be a big deal.

When it comes to business, you need to trust your gut and teach your staff about friendly fraud. Be aware of all the potential scenarios and build a firm payment policy to protect your company. Above all, do everything you can to avoid becoming a victim of “friendly fraud.”

The post How MSPs Can Avoid Chargeback Fraud appeared first on ConnectBooster.

Not only can your company deliver new technologies, but you can profit from partnerships with companies that offer the other critical services, as well as improve your own cash flow (in more than one way). Payment processing for MSPs is multidimensional.

On the one hand, this service is a deliverable your team can provide to a growing number of organizations, from the traditional businesses that have always accepted these cards, including retailers and restaurants, to those looking to adopt or are relatively new at this practice.

Payment processing for MSPs can also be an internal opportunity. Have you assessed how many of your clients would prefer to pay their monthly bills using credit or bank cards or set up recurring electronic bank transfers? With the personal and business acceptance of these transaction options on the rise, implementing a system that allows payment processing for MSPs is a virtual no-brainer today.

Let’s take a look at each opportunity and how it can benefit your IT services firm.

Payment processing for MSPs’ clients

Do any of your clients have a Point of Sale (POS) terminal sitting on their reception desk or in the accounting/billing office? That is just one sign of a potential payment processing opportunity for MSPs. With existing clients, your team may easily overlook the installation of these mundane devices by third-party providers, which have multiplied exponentially over the past few years. Those systems are similarly easy for MSPs to ignore when organizations have so many other issues and priorities to address.

The vertical market opportunities are endless and continue to expand. In the medical field, from doctors and dentists to physical therapy facilities and laboratories, demand is growing exponentially, one of the many reasons why a payment processing service from their MSP makes perfect sense. The same opportunities exist with engineering and law firms, municipalities, landscaping companies, and many non-profits (even some churches). Many small manufacturers and fabrication shops adopt POS and other payment options to meet their clients’ shifting preferences and get paid faster.

You already support many of these clients’ various needs; why not add another recurring revenue stream with a payment processing offering from their trusted MSP? Many organizational leaders understand the benefits of emailing invoices and using online collection methods to speed up their cash flow. Handing off the complexities and nuances of managing payment processing systems to their MSPs makes a lot of sense.

These services spell more income for your business. When those clients receive revenue from their customers, your MSP can receive a percentage of the payment processing fees from referrals or as a value-added partner. Why not get a piece of the profits currently going to people your customers don’t know? Check out the ConnectBooster Rev partner program.

Payment processing for MSPs

Is your firm’s accounts receivable balance at an acceptable level? How soon do your clients pay off their invoices for the services your team provides? Using a payment processing platform helps MSPs get paid quicker by automating many aspects of collections.

From integrations with valued IT services management tools to a secure self-service portal for your client, implementing a system like ConnectBooster gives you greater control of the financial side of your business. Payment processing for MSPs is a critical part of the equation. The key is working with processors that you and your customers can rely on and a partner that understands each business model’s challenges and needs.

With many years of channel experience, ConnectBooster realizes what it takes to support IT services firms like yours − as well as those of your clients. Payment processing for MSPs requires a delicate balance of technical prowess, business acumen, and collaborative expertise. Mistakes with credit and banking information or the account management process can be costly for the IT firm, the client, and the processor.

ConnectBooster is committed to payment processing for MSPs. Whether enabling your company to accept clients’ payments or giving you the ability to extend similar capabilities to those customers’ businesses, our team can make it happen.

Are you ready to take advantage of all the opportunities associated with payment processing for MSPs? Give us a call or drop us a line. We can’t wait to help you get started.

The post How Payment Processing For MSPs Can Benefit You And Your Clients appeared first on ConnectBooster.

Opportunity is literally everywhere if you know where to look. For example, if you notice a prospect’s employees have their application credentials written on sticky notes next to their computers, pitching a company-wide password management solution would make perfect sense. An old physical security sticker in the front window may suggest the business is due for an upgrade to an IP-connected system.

Of course, not every indicator is as obvious as a Windows XP logo plastered on your supermarket’s check-out monitor. Many of the credit card readers that sit prominently next to a cash register or on the counter of local businesses tend to look fairly modern.

However, the technologies inside those devices may be significantly different as companies adapt to new PCI compliance standards.

Security is not the only risk

To be clear, there is no current law requiring organizations to use chip-card readers to accept credit and bank cards. However, since 2015, the evolution of these payment technologies, otherwise known as the EMV (Europay, MasterCard, Visa) Liability Shift, is making them an essential standard for businesses.

Companies not employing the latest readers in their transaction process are putting their organizations and livelihoods at risk. Chip-enabled cards make it extremely difficult for criminals to duplicate, unlike magnetic stripe cards, which virtually allow anyone to copy and use credit or ATM data. Employees may disappear with the latter type of card or use a skimming device to steal the data and make a usable copy for their own use.

EMV greatly reduces those concerns since the chips send unique (dynamically changes) information to the card readers. Copying these cards (especially the chip) is incredibly complex, basically eliminating the counterfeiting problem. Like traditional readers, the latest devices require cardholders to enter their personal identification numbers (PINs) or signatures to complete a transaction.

Chip-card technologies not only ensure greater privacy protection for the cardholder but limit merchants’ (your clients) financial exposure to cybercrime and fraud. If your clients are not set up to accept EMV cards − many small businesses have yet to adopt the technologies – they may incur significant financial losses from some of the most common sales schemes.

Companies without compliance systems may lose out on disputes where customers charge products or consume services and then ask their card issuer to reverse those transactions. Businesses that require the use of chip-cards for all onsite transactions (online is a different issue) will shift some if not all of that financial liability back to the issuers’ banks. The payment card industry is more supportive of those organizations that follow their guidelines, including adopting EMV-enabled readers and adherence to PCI Security Standards.

Hardware brings new opportunities

When you notice a business client or prospect using an outdated credit/ bank card reader, it is a great opportunity to have a conversation on upgrading that device and selling them complementary offerings. Savvy MSPs understand the value of selling complementary services, including network assessments, cybersecurity reviews, and secure payment options.

Offering hardware is even something your business doesn’t have to take on the sole financial responsibility, through companies like GreatAmerica is national and provides businesses with affordable commercial equipment and technology finance services. This allows your business to offer hardware, benefit from the lease, while not taking on the financial risk of buying and maintaining the equipment.

Payment cards replace cash

While many businesses still accept checks and traditional forms of money, more people are not just asking but demanding to pay for goods and services via credit and bank cards. Many organizations are increasingly replacing cash with a cleaner (a key point during a pandemic) and easier-to-track payment method, including plastic cards, mobile apps, and online portals.

Chances are, many of your clients could use help in that critical area of their business (getting paid is important), and some may not make the connection between IT and processing systems. More companies than ever are accepting payment cards today, and that growth is not just with retailers.

From doctors and dentists’ offices to attorneys and veterinarians. How many contractors, plumbers, small manufacturers, fabrication, and autobody shops are using payment card readers more than six-years-old? Those businesses rarely replace their technology, and the chances are good that many of their processors pre-date the 2015 chip-card initiative.

Those old magnetic strip machines present an easily corrected risk. Those clients could lose transaction disputes with clients, and it’s likely not the only outdated technology in their business. Big opportunities can come from replacing those machines, addressing their PCI compliance, and offering those companies a secure payment portal and processing service.

Final thoughts

Diversifying your portfolio of services is one of the best ways of retaining and attracting new customers. The best part of this is if you take time and do your research, your business can profit from leasing hardware. Each can provide MSPs with incremental recurring revenue streams and a chance to strengthen their relationships with marginal or new clients.

But what about other revenue streams? Many MSPs don’t just add MMR through leasing hardware, but also offer solutions that help them empower their cash flow. Curious? See how your business can offer additional services that impact your customers’ ability to scale and collect payment.

The post How To Turn Hardware Revenue Opportunities Into MRR appeared first on ConnectBooster.

The more MSP business tools you can integrate into your service operations, the less “hands” your team will need to accomplish their work. That philosophy is particularly valid when it comes to quoting and payment systems. The advantages you gain with a ConnectBooster to QuoteWerks integration can be substantial, especially when you properly link and configure those connections − a relatively easy task for any IT services professional.

Any MSP can enjoy those benefits. After setting up the ConnectBooster to QuoteWerks integration, you can import and save accepted quotes and payment information into the BNG or ConnectBooster secure payment gateway. That initial step opens the door to a plethora of other features.

For example, you can add payment records in QuoteWerks when setting up auto agreements. That means your employees will no longer have to repeatedly ask clients to submit sensitive credit and banking information. In addition to reducing a big security concern for MSPs, that feature eliminates manual entry errors that frequently occur during the data collection process, as well as the need to login to your payment portal (ever again). Not to mention an integration with your accounting software also increases your companies efficiency. Eliminating the quote of reconciling that quote in your preferred accounting software, ensure your books can be updated and documented as closely as possible.

The ConnectBooster to QuoteWerks integration creates time all around on your proposals and sales quotes. The seamless transfer of information lets your team members focus more on clients’ technical needs instead of spending endless hours working their phones and keyboards collecting the same data each month. Why have the same conversations every time your clients procure new products or services?

What automation does For QuoteWerks users

What is one of the benefits of a quoting software? To see line-by-line what value your services will bring to a prospect? Set upfront expectations of what a partnership with your business will look like? Removing any difficulties for prospects to accept and pay the quote immediately has long-lasting effects on your sales cycle. Consider this, you send off your quote to an interesting prospect, and they accept; if your QuoteWerks isn’t set up to take their payment immediately, your team has to spend time generating a new invoice to collect payment on.

That’s dangerous, as it’s giving them another chance to say no to your business for something they already agreed to once. Many MSPs find the quoting process to be a bottleneck in their sales funnel that slows down their average close times. Even when using a quoting software like QuoteWerks, you’ll need another key piece to automate the entire quote process.

Fortunately, one of the easiest solutions to this problem is to use a billing tool that integrates with QuoteWerks. If your sales team can generate the quote for prospects, then send it to not only have them accept the quote but also pay right away, your business has reduced the cost-of-acquisition time drastically. Even better, if they have sticker shock, a QuoteWerks billing integration can allow a business to take a partial payment initially and give them a longer period to pay.

This automation doesn’t end there. One of the big hassles for billing department down the road is getting future payments. Here’s the power a quoting tool integration, certain QuoteWerks payment integration partners have the ability to save customers’ payment method for future payments, saving your accounting team time on the phone requesting a payment method, all completely saved in a secure PCI Compliant Vault.

Remember, sales reps need automation to keep the customer journey going, and investing in the right quoting software and integration tool creates a better experience and potentially shortens the sale cycle by months.

Enjoy the multiplying effect of the ConnectBooster to QuoteWerks integration

MSPs have a limited number of resources. Automation helps you get a greater return from your investments in people, equipment, and technologies. After implementing the ConnectBooster to QuoteWerks integration, for example, IT services companies can enjoy the multiplying effect from both platform’s benefits as well as the unique features they come from the connection. As demonstrated above, the advantages of the combined tools exceed their individual values – and both begin with strong propositions for MSPs.

ConnectBooster simplifies the payment process and helps MSPs address PCI compliance concerns. The platform saves the average IT services business 2-4 hours per week by eliminating and automating redundant accounting tasks since it integrates into QuickBooks and can quickly reduce your accounts receivables (by 30 days in many cases). On the client-side of the equation, ConnectBooster increases billing transparency, allowing your customers to review current and past invoices and payments easily.

QuoteWerks also provides clarity, especially when used with QuoteValet. The application provides MSPs with an efficient and easy way to create, deliver, and track quotes to close new sales. Your business can benefit from a number of benefits, including the ability to brand documents and proposals and create uniform pricing and workflows to simplify and speed up the sales process. QuoteWerks lets you build item lists, templates, and bundles to standardize your company’s product and service offerings. QuoteValet lets you send those clean quotes that often get caught in spam filters but utilizing a company-branded, specialized, quote delivery webpage to present the quote on quotevalet.com to your customer.

Leverage the complete set of quoting software features

Enabling the ConnectBooster to QuoteWerks integration provides MSPs with many useful options. These connections let you automate many of the repeatable steps that team members will no longer worry about, moving information seamlessly between systems to generate new activities without human intervention. The ConnectBooster to QuoteWerks integration eliminates redundancies between platforms and improves your management capabilities for quotes and payments. Some of the many additional features MSPs can gain from connecting these systems include the ability to:

• Utilize your existing BNG merchant account, which saves on all the extra fees other companies may tack on when processing payments.
• Accept ACH (Electronic Checks, directly on the quote acceptance template.
• Automatically save and share payment information in the ConnectBooster portal for future use
• Access flexible AutoPay and Recurring Payment options
• Directly receive credit card payments on the quote acceptance template
• Reconcile payments to your accounting applications
• Utilize your brand with a customizable user portal (with logos/colors and ads)
• Automatically generate new invoices
• Easily provide access to the portal for new clients’ users, including managers and accounting personnel
• Automate new invoice notifications
• Track email histories for accounts
• Automate past due and collection notifications
• Create automatic and on-demand integration sync capabilities
• Generate and automate account summary notifications

MSPs can enjoy all those benefits after enabling the ConnectBooster to QuoteWerks integration. The total number of advantages multiply when you connect those platforms and ensure each team member who operates these applications, including sales and collections professionals, understands how they work. Having access to real-time pricing allows for your sales team to deliver flexible price discounts to prospects to entice prospects to say yes to your services.

Those are just a few of the standard features. The ConnectBooster to QuoteWerks integration opens the door to many more features that can make MSP’s lives (as well as those of their employees and clients) so much easier. Find out how easy it is to make that happen today here.

The post The Advantages Of The ConnectBooster To QuoteWerks Integration appeared first on ConnectBooster.

However, making money is easier when MSPs build strong relationships with their clients and ensure they get all the support they need to optimize revenue and operational efficiency. That statement is not to suggest that providers should take advantage of their customers. Quite the opposite; MSPs need to better leverage their relationships to gain honest feedback and access “insider” business information, so they need to build and deliver more valuable solutions.

Insight is priceless. The more information you can gather through discussions with all types of employees, from entry-level sales and marketing team members to top company executives, the easier it will be to design and deliver useful solutions. Those are the difference-makers business owners would love to have and be more willing to pay your MSP to provide.

In the current environment with all the uncertainty, growing client wallet share and improving retention must be MSPs’ top priorities. How can you make that happen? Start by offering cost-effective services that can improve efficiencies for struggling businesses during the pandemic. Increasing WFH (Work from Home) capabilities is one of those high-value options to consider.

Drive wallet share with incremental recurring revenue

Suppose your team can effectively address your clients’ issues with new solutions. In that case, you can increase retention and the amount of income coming from that specific customer. Wallet share is a measure of success with those businesses. The more they need your firm’s support, the harder it will be to walk away and replace your MSP.

This is how successful IT services firms monetize relationships. The more a client gets to know you and your team and understand the value of your services and other contributions, the easier it will be to encourage them to purchase additional offerings. Your recommendations will carry more weight than those of lesser-known competitors.

People buy from those they trust. When you make personal connections and show clients how much you value their business, the resulting relationship allows you to push the limits. After all, you are merely asking them to do the right thing for their organization – as well as yours.

New services help grow wallet share

Incremental sales can deliver significant benefits. MSPs should continually evaluate new options to help their clients accomplish more of their short and long-term objectives.

Here are some of the current offerings that can make that happen while increasing your MSPs’ wallet share.

Cloud Apps

Microsoft 365 and Google G-Suite have skyrocketed in popularity thanks to the WFH movement. So have advanced business applications like MS Dynamics, with its enterprise-level CRM and ERP capabilities. The transition has been difficult for many employees and their employers, and some SMBs continue to struggle with communications and productivity. These all-in-one connected platforms provide your clients with video conferencing, real-time file collaboration, and tools that keep everything well organized.

Cybersecurity Offerings

Many people continue to work in somewhat insecure locations (i.e., the home). Offering enhanced security options can reduce some of your clients’ angst by better protecting their WFH employees. No worker should have remote access to a business network without using a secure and encrypted VPN. Password managers are another valued offering, giving end-users a simple and easy way to store and access logins without using sticky notes, spreadsheets, or other high-risk options.

Hosted VoIP

Business dynamics continue to change. Hosted VoIP phones give your clients flexibility, allowing workers to make calls from virtually any device in any location as if they were sitting at their desk in the corporate office. Integrations can provide employees with instantaneous access to records for incoming and outgoing calls, send voice mail via email or text, and leverage advanced call center routing, monitoring, and reporting.

Payment Technologies

A great way to save your clients some money is by implementing various forms of payment technologies, such as secure portals, payment processing services, and mobile credit solutions. With the world changing fast and safety becoming a significant factor, IT services businesses need to offer various ways to make the payment process ‘cleaner’ for their customers, for example, through low touch systems for transactions. Payment processing services keep your clients from worrying about late payments or not receiving any payments – a considerable advantage in such an uncertain economy.

Hardware as a Service (HaaS)

Many organizations would like to upgrade their existing technology stack but simply do not have the capital to pay for it right away. HaaS allows your clients to upgrade laptops and remote devices for WFH situations or procure additional equipment for traditional office expansions. The pandemic presents a unique opportunity to make improvements, so why not help your customers modernize their workplaces while creating new monthly recurring revenue opportunities for your MSP. That is the flexibility that HaaS provides.

Remote Management Tools

How can SMBs ensure their team members in a WFH environment remain connected, productive, and organized? Without the luxury of in-person meetings, overseeing workers and projects can be a nightmare. Visibility is crucial. Applications that keep everyone connected and everything in one place are invaluable, allowing co-workers to share documents, manage tasks, allocate resources, and hold others accountable. Intuitive navigation and simple interfaces make these tools easy to operate and maintain.

Make wallet share a primary objective

The pandemic has opened communication lines between MSPs and their clients. With that extra time to ask questions and uncover possible issues, now is the perfect time to build and monetize relationships.

Providers should evaluate various new services that may address clients’ pain points and leverage those solutions to grow wallet share. MSPs must not be afraid to leverage their trusted advisor relationship to gain buy-in on offerings that can empower those businesses, especially those with remote workforces.

In tough times like these, your empathy and recommendations will go a long way. If you’re looking for a way to increase your wallet share AND bring value to your clients, check out Rev.

The post Monetizing Relationships To Increase Wallet Share appeared first on ConnectBooster.

For most MSPs, growing net income took a back seat in 2020 to protecting family members and employees during the pandemic, as well as keeping their clients operational. The WFH movement took precedence, even though all the added cloud services and new support options were driving incremental monthly recurring revenue.

COVID 19 continues to increase the opportunities for MSPs in 2021. However, this is also the perfect time to put a concerted effort into upgrading your portfolio with more services that add to your company’s monthly recurring revenue. “Out” with the inflexible legacy systems, from software to servers and infrastructure, and “in” with any of a host of remote workforce-enabling “as a service” options.

Monthly recurring revenue provides many benefits

Digital transformation allows MSPs to achieve two primary goals. First, your clients need cloud services and mobile applications to increase their business efficiency, boost productivity, improve support for remote workers, and most of all, remain competitive. The digital transformation is not just a hook to drive more monthly recurring revenue for your business; these changes allow the organizations you support to increase their operational efficiency and expand their workforce options.

The second objective concerns the ability to scale your business. SaaS solutions not only increase MSPs’ monthly recurring revenue and improve cash flow, but those applications require little support and make it easier to onboard new clients. The cloud allows providers to take on new business customers without adding staff, or at least without hiring as many technicians as they would with traditional software and hardware-based solutions.

Combining those cost controls with increased monthly recurring revenue means more cash in the bank each year for your MSP. That creates a larger pool of money for hiring and adding management tools to increase your operational efficiencies. Strengthening your monthly recurring revenue streams gives you the financial power to boost sales and marketing efforts and lets your team build the infrastructure to onboard new clients at breakneck speeds.

Scaling your MSP is so much easier when you can leverage your own earnings to expand, rather than paying interest to others for borrowing their money. That single point explains why IT services firms must double-down on their digital transformation efforts in 2021.

Craft an aggressive cloud/mobile strategy

The best way to effect change is to execute a well-designed plan. Growing your monthly recurring revenue is no different, so MSPs should start the year with a solid strategy to assess and take advantage of all the potential opportunities. Which legacy systems do your clients and prospects need to replace, and more importantly, which of their previous investments is impeding their growth?

Could cloud and mobile solutions provide those businesses with more flexible workplace options? Of course, a significant benefit of those application changeovers for MSPs is new monthly recurring revenue streams.

The first step in any plan is to assess the current state. Are your clients’ existing technology solutions and business automations optimizing their efficiency and enabling sales and market growth? If not, which virtual solutions or “as a service” offerings could empower those companies? Would they benefit by replacing their traditional office phones with a hosted-VoIP service or by swapping costly email servers with a cloud-based system?

These transformations can be advantageous to both parties. Your clients gain tools for remote and hybrid workforces that can also improve productivity and reporting capabilities, and the SaaS model provides more monthly recurring revenue for your MSP business.

A targeted “legacy to cloud/mobile” strategy can help your employees understand the value of these transformations and ensure they focus on these opportunities with each customer and prospect.

The monthly recurring revenue options are limitless

One of the most extraordinary things about running an MSP is that no two business clients are the same. Each organization has its own unique philosophy, personnel, processes, and technology preferences, and providers can tailor their solutions and support to maximize monthly recurring revenue opportunities.

From Microsoft 365 and Google G Suite to many other cloud-based platforms and applications, the options for building new services stacks are virtually (no pun intended) limitless. The IT ecosystem contains thousands (perhaps millions) of combinations of the web- and app-based solutions that MSPs can customize and integrate to serve each client best. A growing number of providers offer channel programs and partner portals to boost your management capabilities and financial options.

Allow for churn in your monthly recurring revenue model

Satisfied customers are a sure way to keep the amount of predictable revenue high. However, those monthly payments can disappear quickly when clients experience technical issues, or your team members fail to address one or more of their big concerns. A successful monthly recurring revenue model relies heavily on strong customer satisfaction ratings, simplifying the contract renewal process for sales and account managers.

As any business owner knows, you cannot please everyone. Clients will leave; some may have what they feel are good reasons, and others will walk away without explanation. MSPs should track the amount of income lost from churn, including businesses that fail.

Entrepreneurs must expect to lose a few relationships along the way. When following a monthly recurring revenue model with its predictable sales and steady income, be sure to factor in churn. Owners should estimate what portion of the company’s revenue is expected to drop and develop a plan to exceed those lost sales far.

There are several ways to offset those losses. Upselling new services on a MRR model to existing clients will increase average revenue per account (ARPA) and your MSP’s profitability. Of course, you can also offset churn by landing new customers and securing them with long-term managed services contracts. Either option will ensure growth in the amount of predictable revenue and cash flow.

SaaS and services drive the recurring revenue model

Unlike one-off sales (i.e., projects, hardware, software), pitching monthly subscriptions helps provide your MSP business with a steady income requiring little if any additional support. Your clients regularly receive and regularly pay their invoices for those services (preferably using an automated payment portal) and help fuel higher bank deposits for your company.

The transition from traditional offices to WFH and hybrid workforce ecosystems is driving the recurring revenue model to new heights, with cloud, SaaS, and other monthly support programs in high demand. MSPs can increase their MRR simply by leading their business clients across the digital divide, transforming and securing workstations for all their remote employees.

WFH specializations are a sure way to get more revenue from existing customers. By increasing SaaS solutions, MSPs can grow recurring payments exponentially, especially when factoring in higher-margin support options such as cybersecurity and helpdesks.

These revenue streams are more predictable than one-off sales, allowing you to better estimate cash flow over a longer period of time. When scaling an MSP, that type of financial stability will minimize the need for bank loans and credit lines, allowing you to use your own money instead of paying interest to others. Monthly recurring revenue provides IT services companies with more freedom.

The cloud offers a wealth of new opportunities for MSPs. Between WFH and hybrid workspaces and the phenomenal growth of cybersecurity services, there is no limit to what, and how much, your team can sell.

Are you ready to ramp up your virtual offerings and monthly recurring revenue opportunities in 2021? With a little planning and possibly some new vendor partners, you can make the new year quite successful for everyone. Putting a big bullseye on monthly recurring revenue can boost your MSP’s profitability while better enabling all the businesses your team supports. Curious what else could be waiting for MSPs in 2021? Check out this recent article about the top Channel trends for 2021.

The post Pin A Big Bullseye On Monthly Recurring Revenue In 2021 appeared first on ConnectBooster.

Collaboration is becoming a big part of that equation. IT teams can easily overextend themselves between the shift to remote work and the need for more advanced technologies, including specialized or industry-specific solutions. Many hands make light work; MSPs should keep that proverb in mind when looking at new business opportunities and assessing bandwidth capabilities.

That is one of the many roles of a Virtual Chief Information Officer (vCIO), with some industry experts suggest the “C” might also refer to collaboration. From formulating strategic IT goals for businesses and managing those operations to helping develop the budget required to meet those objectives, MSPs may take on any or all of these responsibilities. This is not a job for those lacking a work ethic and social skills.

Gain market and wallet share

MSPs with a solid understanding of business and technology are invaluable to the SMB. With that type of knowledge and expertise, IT services providers can create a definite “win-win” situation for companies with no or very few IT resources, giving those clients access to an experienced technical team as well as strategic IT leadership.

A vCIO role allows MSPs to forge closer relationships with their customers and build the infrastructure and systems those companies need to compete in today’s business environment. With the increasing importance and complexity of technology, every organization needs someone with the ability to develop a long-term (1-5 year) technology plan and ensure that vision comes to fruition. From crafting the strategy and procuring the solutions and services to managing implementations and projects, each of these processes is critical to the business’ success and something most MSPs can deliver on behalf of their clients.

Offering vCIO services can also help IT services firms expand market share. In addition to supporting existing clients, MSPs can target larger prospects with a more comprehensive set of solutions. IT leadership is an invaluable resource for any business, especially organizations that do not keep pace with the latest innovations and workforce transformations, including cloud solutions and the shift to remote work. A vCIO can address those shortfalls, and those services should help MSPs gain more traction in their target markets.

Those responsibilities can also increase wallet share. MSPs in a vCIO role usually need to address an ever-expanding list of technical requirements for their clients, and many of those services will generate additional income. The IT services firm in charge may collect and keep all that incremental revenue or share those proceeds with various collaboration partners that support those customers.

A comprehensive network of specialists and peers is critical to a vCIO. An MSP’s ability to bring in various experts to address specific areas of need for their clients is essential to success in this IT role and ensures each business gets the best quality support.

Partnerships create leverage

Virtual CIOs reside at the intersection of technology and business operations and often rely on multiple groups’ skills and support to carry out their missions. Resource utilization and management are critical for vCIOs. Collaborative MSPs can eliminate the need for internal IT by leveraging multiple relationships to keep costs in control while collaboratively delivering the solutions, support, and security their clients genuinely deserve.

MSPs that step into a vCIO role will enjoy tremendous success when they work with highly skilled and properly motivated partners. Those alliances are essential for ensuring they have every business and technology aspect covered. A vCIO coordinates IT support and project schedules and addresses any gaps in bandwidth and expertise.

The end goal for MSPs in this role (and those not in this position) is to properly construct and maintain highly beneficial technologies for each client while safeguarding all their systems, data, and employees. Working with other providers helps vCIOs extend their capabilities, from expanding their geographic and vertical reach and multiplying their skill sets to tapping into the imagination of other IT visionaries.

Like a rising tide raises all boats, collaboration can positively multiply affect everyone, including the MSP in a vCIO role and each provider taking part in various projects, and any business that employs their services. Partnerships create the leverage every organization needs in today’s challenging economic environment.

The post How Virtual CIOs Can Leverage Collaboration Partners To Increase MRR And Profitability appeared first on ConnectBooster.

The IT services channel is a diverse collection of technical support firms following a wide variety of business models. There are typically few similarities between MSP organizations, from the customers they support to the portfolio of services they deliver across the spectrum. By design, each provider builds an offering to match its local business community’s needs – or regional or national companies if the firm truly embraces the managed services concept. The options are infinite.

With different models and customer requirements, growth opportunities are just as diverse. Many MSPs are looking at various new ways to scale their businesses, from adding valuable services to their portfolio to increase wallet-share to building out their vertical knowledge and expertise. Co-managed IT is an option for virtually every channel partner.

A situational possibility

With the pandemic, a growing number of IT services companies recognize the opportunity to tap into larger markets, helping companies address service and support gaps in their time of need. The rush to remote work brought on by state and local business restrictions left many organizations, regardless of size, scrambling to get employees the tools needed to carry out their job responsibilities.

Even some enterprise companies found themselves with too few resources to effectively support that swift of a transformation to a distributed workforce. That situation presents a perfect opportunity for MSPs. IT services firms that can expertly design, procure, implement, and support remote work solutions are perfectly positioned to capitalize on all the current disruptions. Now is the time to help new companies navigate the new normal in their time of need.

Of course, MSPs must ensure their existing clients are well supported before taking on even more responsibilities, especially with all the unknowns of today’s business environment. Hiring to ensure your firm can support additional clients (without knowing if the services you currently provide will still be needed after the pandemic is over) can be a very risky proposition. Taking an ultra-conservative approach by committing only to support contracts that fit within your existing tech bandwidth could leave money on the table. Promising to deliver services beyond your current capabilities can negatively affect quality and customer satisfaction, if not client retention and MRR over the long-term.

Co-managed IT and scalability go hand-in-hand

Change is uncomfortable for many business owners. However, as MSPs know, being on the leading edge − not to be confused with the more costly and risky bleeding-edge − drives higher margins. Businesses rely on IT firms that can adapt to adversity and change and can assist leaders as they transition their operations.

Remote work is just one of those current requirements. In addition to supporting the SMB with all their core technical needs, MSPs can help those clients adopt more complex or scalable solutions with enterprise-level capabilities. You can partner with capable tech partners to deliver that support to save time and resources.

Inversely, MSPs can build out unique specializations and provide that expertise to larger organizations, including mid-market and enterprise-level companies with their own IT departments. Those businesses may require assistance monitoring and managing their new remote and hybrid workforces or have technical gaps in specific areas. Either way, as an MSP, you can come to their rescue.

Aim higher with new offerings

A co-managed IT offering can combine the in-house technical capabilities of your clients with the expertise of your MSP, as well as other third parties. This emerging hybrid approach allows your firm to maximize the use of each company’s resources and offload unfamiliar or burdensome activities that may negatively affect service delivery − and your bottom line. Co-managed IT lets MSPs maintain control, grow wallet-share with existing clients, gain a foothold in new businesses, and best leverage their assets.

What deliverables can you include in that portfolio?

Enterprise Accounting Applications

QuickBooks is a suitable solution for most small businesses, but at some point, companies may look for additional features as their sales and personnel demands increase. Most MSPs could and probably should question the value of supporting these solutions on their own. Significant investments may be required for training and support. Dealing with those typically less channel-friendly vendors and their personnel can also consume a lot of time for IT firms unfamiliar with these tools. However, selling and co-managing Microsoft Dynamics or Oracle’s NetSuite accounting software with an experienced third-party can strengthen the experience for your team (and your clients).

Customer Relationship Management (CRM) Tools

Similarly, as your customers scale their businesses and add new members to their sales and account management teams, they will need robust systems to handle information and track a substantial number of activities. CRM applications fill that role. Solutions range from Zendesk and Zoho to the more extensive (and enterprise-capable) offerings of Microsoft and Salesforce. MSPs can easily support any of these options with the right technical partner.

Business Intelligence

Information is a major asset for business leaders. The problem with collecting and storing data is that, as organizations grow, leveraging the sheer volume of information gets more complicated. Managers need tools that can crunch the appropriate numbers to highlight trends and issues, giving them the ability to analyze various aspects of the business to make more informed decisions. Commonly referred to as BI or big data solutions, MSPs can partner to deliver options from companies such as SAP, Zoho, IBM, and many other vendors.

Enterprise Resource Planning (ERP)

Manufacturers, professional services businesses, and supply chain companies rely heavily on a variety of resources. As those organizations expand, managing a growing number of daily activities can be challenging. ERP applications help businesses optimize procurement, project management, risk management, compliance, and supply chain operations. MSPs can co-manage implementation and support for their clients who need greater planning, budgeting, and operational capabilities.

Other Valued Business Tools

What other services and solutions would your clients value that you might not want to support on your own? Payment processing is a good example. While that service is a growing need for the business community as we shift to online payments, creating a ripe market opportunity, some MSPs would prefer to avoid the related security compliance-related headaches. Delivering collections and payment processing capabilities through a program like REV (from ConnectBooster) can increase your firm’s MRR while addressing a major concern for your clients.

Co-managed IT is a win-win

Collaboration is a means of solving complex business challenges. Leveraging the collective resources of peers, vendors, and the internal IT teams of your larger clients can multiply bandwidth and available skill sets. Co-managed environments allow MSPs to focus more attention on their core responsibilities and capabilities and continue to provide a high level of support: no distractions and no unnecessary investments.

Create a strategic alignment that allows your team to meet the business community’s rising needs and take on larger clients. Co-management takes the burden off IT departments and expands everyone’s technical and support capabilities without breaking the budget.

Are you positioned to help IT departments accomplish their missions, whether dealing with issues during the pandemic or building new solutions for the future? A co-managed IT relationship may be the perfect answer to both scenarios.

The post Up, Up, And Away With Co-Managed IT appeared first on ConnectBooster.

What will change? Which temporary workplace adjustments will become permanent or morph into some alternate business environment? While MSPs who act as trusted advisors will have some insight into those questions, those situations may not play out until long after the COVID 19 pandemic passes.

The naysayers suggest it could be 2022 before many leaders feel comfortable removing all the current restrictions and letting everyone go back to life (and work) as usual. Despite that discouraging prediction, there are a number of reasons why MSPs should be optimistic looking forward, including a few channel trends that will positively affect your business.

#1 The value of IT services is rising

Perhaps the biggest positive from this disappointing year is the elevated status of the tech community. When state and local governments began rolling out pandemic restrictions in March, MSPs and other IT professionals were recognized as essential workers. That designation did not receive the attention it deserves.

Where would millions of organizations be right now without skilled tech professionals making sure their systems and people are able to work from virtually anywhere? MSPs provide much of the support that keeps the SMB community operating and should be fairly compensated for those efforts. The goodwill created between providers and their clients over the past several months should fuel the industry for generations. Your actions should put you in the driver’s seat and well-positioned to drive additional revenue in 2021.

#2 Upmarket opportunities growing

Scalability has never been a more significant opportunity for MSPs. Many businesses have been caught off guard by the pandemic and government-mandated WFH directives, including Fortune 1000 companies. More are looking to the channel to fill in gaps in their IT support capabilities. MSPs can gain a foothold in the mid-market and enterprise space by partnering with peers and other suppliers to deliver local support and specialized services.

Those relationship opportunities may still be in the early stages, but 2021 could see demand rise exponentially as more organizations adjust to the new business norms. By offering co-managed services and aligning with larger partners with unique (and less seldomly needed) skills, MSPs can scale their support capabilities to attract bigger clients.

#3 Push solution boundaries to increase wallet-share

Many of the “tech innovators” are thriving during the pandemic. MSPs who successfully guided their clients through cloud and mobility transformations over the past few years are enjoying the fruits of that labor, with MRR streams on the rise and fewer WFH-related headaches. Good customers need and should appreciate your IT leadership.

What new solutions and services should those businesses be assessing in 2021? Continually evaluating your clients’ current and future needs, especially with the shifting workplace and economic drivers, is a great place to start. Keep your team focused on gaining “wallet share” with innovative new services and solutions that give those businesses more capabilities and greater efficiencies.

Consider services that fall outside your firm’s standard portfolio. MSPs often submit proposals to prospects with greater needs that they can support independently, then find capable partners to address potential gaps in resources and proficiencies. That may mean pitching your financial services clients a security operations center (SOC) to meet rising compliance requirements. Partnering with a Microsoft Dynamics-certified firm to support a larger manufacturer in need of an ERP and CRM application is a great way to protect wallet share and increase your profitability. Aligning our MSP with the right people and the right solutions is a sure way to break new boundaries in the new year.

#4 A resurgence of M&A

IT services firms represent one of the best investments in the current business environment. While some industries are struggling or face uncertainty with future revenue streams, many MSPs, vendors, and other companies in the tech supply chain are financially strong. M&A activities are sure to gain speed in the new year, with venture capital firms leading the charge.

#5 Automation on the rise

Between increasing competition and revenue pressures, every business must put more focus on efficiency in 2021. Automation and integrations should be a big part of that conversation, especially in the IT industry, where providers rely increasingly on tools that gather and distribute information relating to their clients’ networks, devices, and applications. With numerous applications at your disposal, it is easier than ever to create large-scale platforms that can significantly reduce labor costs and expand capabilities for both MSPs and their clients.

Get a head start of 2021

You don’t have to wait for January 1st to take advantage of the five trends listed above. Any day is a good day to work on building and implementing your strategic plans and, as 2020 winds down, wouldn’t you rather be looking further ahead?

Despite all the challenges in the current business environment, now is an excellent time to be an MSP, with even more opportunities to improve that situation in the coming year. What are you and your team planning to do to move forward?

The post Five Channel Trends MSPs Should Watch in 2021 appeared first on ConnectBooster.

Managed services billing problems tend to escalate quickly. Slip just once sending out your invoices on time and it will create a ripple effect that lasts for months, if not years. Some clients are quick to take advantage of a perceived lax attitude towards payments. Very few will ever go out of their way to rectify a managed services billing problem that tilts in their favor.

That may sound pessimistic, but when it comes to money, most people attempt to hold onto it as long as possible to maximize their company’s cash flow and short-term profitability. MSPs need to keep that reality in mind when building out payment policies for their clients.

The most common managed services billing problems

Some managed services billing problems originate from customers’ internal controls that discourage on-time payments, particularly when they incur no penalty for missing due dates. Poor processes and disconnected systems, as well as a lack of enforceable policies, are some of the other issues that cause collections headaches for MSPs.

How can you fix managed services billing problems like these? Here are five easy ways to resolve or at least minimize the issues that waste MSPs’ time and money.

#1 Delegate and prioritize

One of the most significant managed services billing problems originates from a greater organizational issue: a lack of organization. MSPs are typically extremely proactive when it comes to tackling their clients’ IT problems, securing data, and handling virtually every other aspect of their technology stack. That’s where providers focus their time and attention.

Since resources are usually limited and the skill set is primarily tech-related, invoicing and collections can take a back seat to support, sales, and other customer-oriented parts of their operations. To prevent managed services billing problems, someone has to be responsible for generating and sending invoices and enforcing payment policies.

MSPs must also give their collections teams the time and resources to get the job done. Most importantly, they need time to manage all stages of the process effectively. That includes critical activities such as reviewing outstanding invoices and scheduling calls with clients to discuss past due accounts and other managed services billing issues. Every MSP should assign qualified people to manage this essential part of their business.

#2 Create and enforce payment policies

Do your customers know how to pay you for your goods or services? Do your contracts include a policy that clearly details your expectations of the client, including due dates, late fees and corresponding interest rates, and acceptable methods of payment? You can also avoid managed services billing problems by listing details such as the company’s mailing address, phone numbers of the collections team, and instructions for paying online or setting up a secure payment portal.

Of course, a policy is only as good as the execution. Team members must closely follow the guidelines and stringently enforce the terms of each client’s contract. Letting payment dates slide, not imposing late charges, and relaxing other rules listed in your policies are sure ways to increase your managed services billing problems.

#3 Assign the right people to the job

This may seem like a no-brainer, but many companies give collections responsibilities to their least qualified people, as a punishment for poor performance, or only to those with any free time. None of those scenarios will fix managed services billing problems. Management should either hire a dedicated person with accounting and collections skills or handle the job themselves. Those with a financial stake in the business (more than a paycheck) will be more willing to follow through with collections calls and enforce the stipulations in each client contract.

#4 Automate the process

Removing people from the process can improve results, especially when humans are replaced with applications purposely designed for collections. MSPs can integrate accounting platforms, PSAs, and payment portals to speed up invoicing and collections and significantly reduce managed services billing problems.

#5 Encourage/mandate electronic payments

The absolute best way to fix managed services billing issues is to eliminate as many excuses from your clients as possible. When MSPs set up and mandate the use of a secure payment portal and automatic monthly payments, it significantly reduces the risk of not getting paid on time. Providers can incentivize clients by lowering an annual rate increase (3% instead of 5%, for example) or just require that process for all new clients and renewals.

Choose “all the above”

MSPs need to focus more on solutions, not collections. If you are experiencing managed services billing problems, carefully review all the tips above to see which might improve your current financial situation. Each of these options is a channel-proven best practice.

Are you making the best effort to reduce the time between invoicing and payments in your business? If not, start fixing the managed services billing problems today, one by one, and watch how quickly your cash flow responds.

The post Five Conventional Ways To Fix Your Managed Services Billing Problems appeared first on ConnectBooster.

The toll on businesses is just as significant. In many areas, entities deemed non-essential were forced to close for weeks, and some have still not been able to fully reopen or generate any meaningful income. Closure could still be in the cards for many small businesses, including some restaurants and hospitality-related organizations that cannot successfully adapt to government mandates or customers’ preferences in the “new normal.”

While 2020 may not actually be cursed, everyone will likely breathe a sigh of relief when that calendar changes at midnight on January 1st. The bad news is there are still a few weeks to go until the New Year’s ball drop, and the uncertainty of the election is sure the fray even more nerves. Are you in need of a hug?

On the positive side, the holiday season is approaching. While the festivities are sure to be altered for many with the current health concerns, any break from the doldrums of 2020 will be appreciated. Thanksgiving could not come at a better time.

Reflect on the positives

Who doesn’t love family gatherings featuring turkey and football? Of course, the original reason behind Thanksgiving often gets lost in the latest traditions, though many still embrace basic concepts. While the Pilgrims gathered with Native Americans to express their gratitude for a successful harvest, bountiful hunting, and good health, those things tend to take a back seat to Black Friday preparations and video gaming today.

This year has the potential to be much different. Get-togethers are being limited in many states by the pandemic, and some big named retailers are actually closing on Thanksgiving this year. What a great opportunity to pause and reflect on the positives.

In general, MSPs have a lot of reasons to be thankful in 2020. Despite months of dealing with the uncertainty at home and at the office, as well as all the overtime ensuring clients can work productively from anywhere, most IT services businesses are prospering.

If anything, this year has shown that people and organizations place a high value on what you do and need your support. What else should MSPs be thankful for in an otherwise thankless year?

#1 IT services firms are essential businesses

Many MSPs have mentioned how little their clients appreciate all the effort that goes into designing, implementing, and supporting their technology systems. Companies most often leave providers with that impression in the contract negotiation process or when making excuses for why their payments are late during collections calls.

COVID-19 flipped the script. In the scramble to enforce quarantines, many states, and other government agencies designated MSPs as essential businesses, ensuring companies like yours could continue to perform vital services. Imagine the problems hospitals, emergency workers, grocery stores, and others would have run into without skilled IT professionals available to help?

MSPs kept companies of all sizes operating during the darkest days of 2020. Whether putting in extra hours to set up remote worksites or scouring the industry to find new technologies to address the latest cybersecurity threats, providers demonstrated how valuable they truly are during the pandemic. No one can take that away.

#2 The Cloud works!

For more than a decade, MSPs have been one of the premier evangelists of digital transformation. You convinced clients to invest in virtual technologies and helped drive end-user adoption so everyone could enjoy the benefits. That persistence and hard work paid off for all those businesses who listened.

When COVID-19 forced many companies to move to a WFH environment, earlier cloud adopters found themselves in a better competitive position than the laggards. The great news is it works! Thanks to the cloud, MSPs were able to keep many of their business clients operational, productive, and happy.

#3 MRR

Paying your bills is easier with a steady income. MSPs with substantial contracts and a healthy stream of monthly recurring revenue should be thankful for the security it provides when times are tough. Even if clients run into financial difficulties and struggle with payments, your chances of collecting or negotiating smaller concessions improve with multi-year agreements (with MRR commitments) in place.

#4 Automation

Everyone in the IT field should be thankful for technology. Implementing and integrating MSP-related business tools can save your team time and effort and cut down errors. From PSAs and RMMs to accounting packages and payment platforms, connecting those technologies is especially important when your team members work remotely. Automation allows MSPs to focus on the things that really matter, such as helping clients adapt to the new normal and vetting innovative technologies to solve the latest business challenges. For that, you can be thankful.

#5 Cybercriminals

It may sound strange to be thankful for people who cost businesses (and individuals) billions of dollars each year, but the threats created by hackers and phishers mean opportunity for MSPs. Cybersecurity is a true differentiator for IT services professionals. Those skills are in high demand during the pandemic with the shift to remote work, COVID-19-related email schemes, and other plays.

Put things in the proper perspective

This list could be much longer. In an industry as dynamic as IT services, there is always something new on the horizon that can help you generate more business opportunities, increase profitability, or make your life a lot easier.

Those are some of the things that MSPs can appreciate. Despite all the challenges, 2020 could be a lot worse, and most IT services business owners are faring pretty well considering the circumstances.

Take stock of your situation. What changes could you make in 2021 to improve your sales, MRR, profitability, or other metrics? Being thankful doesn’t mean you cannot do better in the future, especially when the biggest nightmares from 2020 go away.

The post Five Things MSPs Should Feel Thankful For In A Thankless 2020 appeared first on ConnectBooster.

Profit Margins Matter. Healthy MSP profit margins protect providers from those types of adverse situations. These financial concerns are not rocket science: the more money you make selling goods and services, the greater your firm’s ability to pay for the things needed to move the business forward.

Of course, increased MSP profit margins typically lead to more income for the owners. As MRR and billing numbers increase each month, the value of the business, as well as opportunities for M&A activities, rise accordingly. Healthy margins are literally the key to everything good that can happen to your business.

10 Tips For Increasing MSP Profit Margins And Revenue

What can you do to enhance the revenue you receive for all the products, services, and support you deliver to your clients? Here are ten ways channel professionals can maximize MSP profit margins:

#1 Reduce waste

While this seems like a no-brainer, IT services teams tend to lose focus when business is growing quickly, and they don’t have or take time to implement important industry best practices. Process inefficiency can take a significant toll on cash flow. For example, rapidly expanding IT services firms often let billing and collections timelines slip or fail to research their options for key business tools and end up paying more for less than optimal systems. The management team’s inability to control waste can significantly impact MSP revenue.

#2 Increase pricing

Providers are usually quite conservative when it comes to rate increases. While virtually every owner wants to increase their profits, having those discussions with customers can be uncomfortable, so some avoid the conversation for as long as possible. Those providers are leaving money on the table. Many business owners are accustomed to receiving an annual price increase from their key suppliers. The commonly accepted theory is that it is easier for most clients to absorb a 3-5% inflationary adjustment every 12 months rather than get hit with a 15-25% hike once every five years. The latter is also worse for providers, delivering smaller overall profit margins for MSPs than the annual increase rule.

#3 Eliminate discounts

Like any business, MSP firms often use incentives to get clients to sign long-term contracts. However, rather than discounting prices for the long-term relationship, many providers offer 30-to 60-day enticements or other options that have a smaller negative impact. No two markets are the same, so you should evaluate several incentives to see necessary to close new deals or resign existing clients. Unless competitors are making inroads with discount pricing, you may be needlessly reducing your profit margins.

#4 Leverage supplier spiffs and discounts

Are you taking advantage of all the channel program benefits available to your business? Despite the availability of various incentives for selling hardware, software, and (increasingly) cloud services, industry experts suggest relatively few MSP firms actually utilize these discounts and resources. Tapping into supplier programs with easy-to-follow instructions and minimal requirements, you help boost your funds significantly, more so if your company manages a large number of licenses, seats, and devices.

#5 Fire bad clients and customers

IT services business owners are generally quite patient. Many willingly accept a fair amount of grief from their clients over technical issues and pricing and allow A/R to grow beyond acceptable limits, yet still show up when problems occur. Supporting those ungrateful customers, usually the clients last to pay can negatively affect margins as a managed service provider. Offloading those chronically complaining clients allows providers to shift the resources those companies consume to more highly valued customers and profitable clients.

#6 Increase business efficiency

Payroll makes up a significant part of the budget for any professional services business. Process improvement and automation can significantly reduce labor costs, money on staffing, and boost your bottom line, especially in markets where IT professionals are in high demand. From PSAs, RMMs, and other remote tools to client-facing payment processing platforms, with the right investments, providers can streamline their operations, improve cash flow, and strengthen their competitive position.

#7 Offer high demand solutions, strategies, and services

While technology remains a core part of MSP businesses, the portfolio of potential solutions and support options continues to grow. Adding more service offerings or a variety of products that your clients need or value, including those centered on cybersecurity and remote work, hold the most promise for enhancing revenue and profits.

#8 Collaborate on service delivery with another company

Few providers can do it all. Building out multiple practices can be costly and require years to recoup investments, which explains why IT professionals often partner with other service providers and vendors to extend their offerings. These alliances raise your profits as an MSP, increase MRR, reduce the cost of delivery.

#9 Upsell your services

Business leaders usually buy more from people and companies that they trust. Current clients are more willing to pay a premium for new services that solve problems or address compliance requirements, which raises MSP profit margins and MRR.

#10 Improve client and user retention

Happy customers lead to lucrative new sales opportunities. The best way to upsell clients and generate higher margins is to strengthen business relationships, provide valuable services, and reward loyalty with top-quality support. There is no secret to building customer retention, and the return on any investments in this area will pay off many times over.

Focus on monthly recurring revenue and cost savings to increase MSP profits and spur business growth

Several factors can influence your funds as an MSP. However, two significant targets can significantly affect that key sales metric: increasing monthly recurring revenue and controlling operational costs.

IT services business owners who pay close attention to sales KPIs will find themselves better positioned to spot and correct negative trends and manage their people. Rather than experiencing disappointment when a deal fails, or team members send out proposals with less than optimal margins, proactive providers take a more active role and work through potential issues in the early stages.

Sales metrics give you that power. The best way to maximize MSP profit margins in your IT business is to stay on top of the trends and pitch in to correct troubling developments before they affect the bottom line. Being proactive and asking yourself tough questions like: how do I maximize my profit margins? What factors affect my profit margins? And even if it’s better to increase my prices by 1% or customer base by 1%? MSPs who spend time asking themselves those questions will find success grow their business over time.

If you’re looking for a way to increase your wallet share AND bring value to your clients, check out Rev.

The post Maximize Your Profit Margins As An MSP – The 10 Easiest Ways appeared first on ConnectBooster.

A vCIO is not just responsible for managing IT systems. According to SearchITChannel, their responsibilities include “formulating strategic IT goals, planning the IT budget, analyzing and reworking business processes, and facilitating technology changes. The vCIO can help customers maintain their IT infrastructure — keeping the lights on — but can also provide more-forward-looking services.”

That latter point is crucial. MSPs are increasingly marketing virtual CIO services to their local business community as an ultimate tech resource, ensuring that their systems are up and running 24/7. However, some fail to recognize the importance of strategic visioning in their offering or focus too much on infrastructure, not on long-term planning.

For example, a true vCIO will ultimately be responsible for assessing current and future needs and drafting the company’s technology roadmap. MSPs offering these services must have team members who can thoroughly evaluate and comprehend critical pieces of other organizations, from IT current infrastructure and automation capabilities and limitations to strategic business goals and compliance requirements.

The key is to have the vision to understand the impact of new technology investments and workflow or process improvements. What potential changes could positively affect the organizations you support?

The normal engagement

True vCIOs are visionaries. If a client lacks internal IT resources to support a modern business, MSPs are typically capable of providing almost any service those companies may need. From the most critical applications, including email and cybersecurity, to help desk support and procurement services for hardware and cloud solutions, providers have a long history of success.

vCIO services are a different animal. For MSPs, technology usually involves tactical projects that may, or may not, include a monthly recurring revenue element. Securing a one-to-three-year contract is extremely valuable for any IT services firm. However, in many MSP/customer relationships, providers will only make initial upgrades and then support those technology systems’ status quo for the agreement’s duration. Unless something goes wrong, the client requests or agrees to upgrades, or one side or the other goes through a merger or acquisition, nothing changes significantly over the life of the contract.

Of course, there are exceptions. Engagements between MSPs and clients can be more fluid with a roadmap and timeline of technology improvements. These plans were driven by customers, and their budget processes than by IT services providers in the past. However, with the increasing complexity of technology, the movement to WFH and hybrid work situations, and the need to control costs, MSPs have more opportunity than ever to manage implementation, support, AND strategic planning.

The long view

The ultimate goal for IT services providers is getting the keys to the kingdom. For decades, MSPs (as well as VARs and systems integrators) have worked hard to earn ongoing recurring revenue opportunities from their clients as well as their continued trust. That faith allows providers to have more meaningful conversations and push the boundaries when making recommendations for improving infrastructure, automation, and data protection.

The vCIO role furthers those responsibilities. MSPs who offer those services must take an even longer view to imagine what those businesses will need to meet their objectives one, two, or even five years in the future. That focus goes beyond IT. Offering vCIO services means someone on your team must understand financial data and objectives and workflow and best practices for that specific industry.

For example, MSPs with medical specializations (i.e., physicians, dental, and chiropractic offices, hospitals, clinics) should be well-versed in HIPAA and insurance requirements and healthcare technologies. Those IT services companies must fully comprehend new industry challenges and opportunities and make insightful recommendations. MSPs need a strong understanding of the medical field to provide vCIO services to these types of organizations.

Next steps

How can IT services firms gain that level of wisdom and expertise? They earn a vCIO status one client at a time, starting with the longest-standing businesses with the deepest relationships. MSPs must have team members capable of analyzing existing infrastructure and clients’ organizational objectives, including financials, with a strong understanding of the new technology landscape.
Innovation is critical. With more highly distributed workforces and rising operational costs, companies expect vCIOs to offer process improvement ideas and introduce new automation options. Efficiency through technology should be a significant part of that focus.

How can the organization save time and minimize company resource consumption while maximizing revenue streams and cash flow? With deep technical and business expertise, MSPs are perfectly positioned to develop IT infrastructure roadmaps and introduce the innovative new solutions their clients need to meet their strategic goals.

That may require providers to grow their expertise in new areas and collaborate with peers and other third parties to deliver all the tools and support options their clients may need in the future. Most MSPs are ill-equipped to offer every conceivable offering themselves. Unless providers have an unlimited budget for hiring and training, most end up limiting themselves to a core set of service offerings.

However, in their vCIO role, MSPs may identify the need to deliver additional support and more advanced solutions, including SOCs to neutralize growing cybersecurity threats, and MS Business Central to streamline operations and accelerate growth. Collaboration partners can typically handle those roles and allow providers to increase their revenue streams without expanding their payroll.

Broad technical capabilities are invaluable pieces of a vCIO practice. SMBs are looking for outside experts capable of guiding organizational process changes and technology development and effectively securing their operations. MSPs with expertise in those areas and relationships with other experts to fill any potential support gaps can more confidently pitch their services to businesses of any shape or size.

The post From MSP To vCIO: Do You Have What It Takes? appeared first on ConnectBooster.

Focusing more effort on invoicing best practices will help. MSPs can strengthen their revenue and margins and eliminate costly payment delays by putting their billing processes in order and, whenever possible, adding automation to the mix.

Invoicing best practices eliminate the major headaches for IT services firms. An organized billing process will speed collections, improve cash flow, and reduce errors and issues that keep employees on the phone when they should be focusing their time on support, sales, and other more critical and profitable business activities.

The ROI of invoicing best practices

MSPs rarely get paid without billing their clients. Most business professionals typically think of invoices as the first and most essential step in the collections process.

Invoicing best practices provide MSPs with virtually instantaneous results, especially when they add automation to the mix. Improving the speed and consistency of payments not only boosts cash flow and gives providers the ability to use more of their own money, but a clearly defined and managed collections process helps enhance client relationships. Setting and following through on customer expectations helps earn their respect (and their business).

The best part of invoicing best practices? None of these improvements are incredibly complicated or expensive to apply. Here are 10 of the most cost-effective invoicing best practices any MSP can easily implement.

1. Create (and stick to) a schedule

You cannot expect your clients to pay their bills quickly when they consistently receive invoices late. Like you, most small business owners are too busy to open bills and make out checks every day, and missing their normal disbursement cycle may significantly delay your money. Invoicing best practices demand consistency. MSPs should submit recurring services bills on the same day each month (i.e., first, last, other), and deliver invoices for projects or other work requiring immediate payment within a standard time frame, perhaps 1-3 days.

2. Validate/audit

Periodically check invoices and confirm details listed on the document (paper or electronic). Note delivery/service dates, as well as payment terms and conditions. One of the most valuable invoicing best practices is to pick employees outside the billing department to occasionally review these documents, which helps ensure the language is clear and concise enough for anyone to understand.

3. Break from the norm

Most MSPs are quite creative. Incorporate some ingenuity in your billing process with ideas such as client incentive programs that reward quick payments or incorporate trivia or fun IT facts so clients will eagerly await their next invoice. Incentivize employees to provide suggestions on new ways to engage clients and speed up payments. You never know what invoicing best practices your team members may dream up.

4. Provide company information and a description of all services and goods

This seems like the “no brainer” of invoicing best practices, yet many businesses fail to include essential details such as company name, mailing address, and payment terms on their invoices. Clients also like to know, if not need to know, the specific goods and services included in the bill. With all the invoicing tools available to MSPs today, it is easier than ever to offer transparency and build trust.

5. Emphasize the options

Make it easy for your clients to pay their bills quickly. List payment options prominently on each invoice using clear and concise language to prevent errors and misunderstandings. This is the perfect place for MSPs to include information for utilizing an online payment portal to simplify (and speed up) the collections process.

6. Request email “received and read” confirmations

Email is the quickest and most reliable way of distributing invoices. Most of these business-essential communication platforms allow senders to confirm when others receive and read their messages, which indirectly increases its urgency level in the mind of recipients. That last point is one of the easiest, most cost-effective, and subtle invoicing best practices providers can adopt to remind clients to pay their bills.

7. Add friendly due date reminders

MSPs know how busy things get for business owners. Your billing statement is likely just one of many your clients receive each month, and it is all too easy to misplace or overlook incoming messages − neither email nor the USPS is foolproof. Things do get lost. A common invoicing best practice is to send a friendly reminder as due dates approach to minimize the real and make-believe excuses. That proactive approach can save your clients some embarrassment and help them avoid potential late fees.

8. Send confirmation/appreciation notes

Never consider the billing process complete until your company recognizes a client payment. A follow-up note is an opportunity to show that you truly value their business, always appreciate their feedback, and, if deserving, would love their recommendations to other organizations in need of IT expertise. That final point is one of the invoicing best practices that can have a significant positive impact on your revenue. Remember, sincerity matters, and satisfied clients are one of your most valuable sales and marketing resources.

9. Utilize branding

Invoices are a billboard for MSPs. Be sure your branding is prominent with at least a company logo and light messaging (without going overboard) to highlight new services or encourage upsales. This invoicing best practice is relatively easy to implement with today’s accounting tools, including QuickBooks, FreshBooks, Xero, and various MSP-specific applications.

10. Automate the process

Generating invoices is the easy part. Getting your clients to pay each bill in a timely fashion is considerably harder today, and collections policies only go so far during a pandemic. SMBs need clear direction, including a firm time window, paying their managed services bills, and automation to ensure the successful completion of those tasks each month. Platforms like ConnectBooster give your customers the ability to manage their credit card and ACH information and access current and past invoices in a secure online portal. Integrations with PSA and accounting tools ensure everything updates across all your systems in real-time, saving you a lot of time and headaches while strengthening your MSP business’ cash flow. These solutions and connections also simplify some of the other invoicing best practices covered in this post.

Monitor your results

As with any project in an MSP business, you should always measure the results after implementing invoicing best practices. Did cash flow improve? Are clients receptive to the changes?

Be sure to give it time. As you make changes, gather feedback from your clients and monitor for any major issues. Patience is vital. While your clients may not appreciate the changes right away or accept the reasoning, many will go along if it does not negatively affect their business.

Invoicing best practices are relationship-building opportunities. Simplifying and strengthening the collections process can be a win-win if it positively affects both businesses.

The post Is Your MSP Following Invoicing Best Practices? appeared first on ConnectBooster.

Suppliers often get hit when things go wrong and usually respond by cutting expenses such as overtime and marketing budgets. In the channel, that can affect the various areas of support that MSPs have come to rely on in their business operations, including MDF, as well as a multitude of sales and engineering resources. Without access to those types of programs and tools, providers may have a harder time attracting the attention of prospective customers and land new business.

A recent decline in MDF is a real concern. A growing number of MSPs are reporting a pullback of partner-focused marketing funds from long-established vendor programs over the past couple of months. Coupled with the economic uncertainty caused by the pandemic, anxiety among the IT services community is sure to rise in the coming months.

Costly incentives

The fall of MDF precedes COVID-19. The decade-long transition to cloud computing and the resulting move from product and software sales to monthly billable services are more to blame than any virus. Marketing funds continue to dry up as vendors move from single transactions to recurring revenue.

Though some cloud suppliers do offer MDF for cloud sales, including MSP-friendly companies that formerly offered only software and products (i.e., Microsoft, IBM, HP), there are no guarantees. The requirements for obtaining those funds tend to increase or otherwise change continually, and it can be difficult for IT services companies to keep up with and meet all those modifications.

Those constraints are moving targets and often end up costing MSPs more time and money than if they were to expand marketing budgets on their own. When the cost of obtaining something is more than the cash value, it is time to reevaluate your options.

Make MRR a priority

Stop walking past dollars to pick up nickels. With today’s resource limitations, MSPs need to focus their efforts on strengthening revenue streams rather than managing programs with diminishing returns. Marketing incentives often require hours to manage each month, and the amount of margin derived from new business can be relatively small when compared to other available options.

Increasing customers and adding services have associated costs. Both usually require more work and bring more risk to an MSP business, as well as headaches for the owners. Onboarding can be complicated, and rising support needs can tax existing resources or require new hiring and training programs to meet growing demand.

What if there was a way to grow wallet share and MRR without significantly impacting your team’s workload or the company’s expenses? Better yet, imagine that there was such a solution, and it meets a unique need that helps clients meet vital objectives, including strengthening their cash flow and scaling their businesses?

Nearly every service company struggles with collections. Those time-sucking calls and messages every month to follow up on delayed payments increase payroll costs that weaken profit margins and cash flow. Few employees want those responsibilities or the headaches from trying to balance customer service etiquette with their company’s financial needs.

Earn MRR without extra work

Fortunately, like many business problems, there is a technology solution to these issues that MSPs can bring to the table while increasing their own monthly revenue streams. That same ConnectBooster platform that takes away IT services business owners’ headaches is now available for your clients.

The Rev Program allows MSPs to improve profit margins by 7-10% just by offering solutions that help your clients manage and scale their operations. Those who use ConnectBooster understand the value of these secure payment platforms. Why not share the “love” with other professional services businesses that need a tool to manage collections and bolster cash flow while increasing your own MRR?

As those organizations scale their customer base and increase monthly revenue, payments to account-holding MSP increase, too. No extra hassles or leg work. ConnectBooster handles the support calls and can work together to close new deals with your sales and account managers.

Joining the Rev program allows you and your customers to boost collections and improve cash flow. What a great way to align business objectives with your clients while lessening your dependency on MDF and other time-consuming incentive options. Grow your MSP’s monthly recurring revenue without the extra headaches.

The post How To Counter MDF Decreases For Your MSP Business appeared first on ConnectBooster.

From employees and customers to accounting firms and suppliers, automation helps everyone by streamlining and speeding up communications and simplifying operations. Workers are an invaluable resource, and putting people only where they are genuinely needed is business-critical today. That helps explain why the World Economic Forum predicts that machines will handle more than half of all workplace task hours by 2022 (compared with 29% less than two years ago).

Automated billing systems are great examples of that trend. These applications can automate time-consuming steps in invoicing and collections, from generating and sending bills to accepting clients’ payments in a secure repository. Automated billing systems efficiently manage these processes and save companies both time and money.

Since professional services organizations tend to be very labor-intensive and rely on the expertise of many individuals to support numerous clients, automation is the key to success. Their growth is highly dependent on expanding their human resource capital, and these types of technologies can minimize their hiring needs (and the associated payroll costs).

MSPs fit that scenario and often use automated billing systems to ensure the most efficient use of their high-cost workforce. Of course, productivity is not the only benefit that providers derive from these applications.

The other advantages of automated billing systems

MSPs are masters of the high-tech world, but, much like cobblers being the last to get new shoes, these companies focus so much attention on their clients that they have little time left to make internal business improvements. Implementing tools like automated billing systems in an IT services firm can ease the burden and let you focus on upgrading other parts of your operations.
The totality of the benefits makes these solutions a wise investment for MSPs. Unfortunately, with all the noise in the channel and things providers get hit with every day, it is all too easy to overlook the many advantages IT services firms gain by implementing automated billing systems. Now is the perfect time to evaluate what these solutions can mean for your business.
The three most overlooked advantages of automated billing systems include:

1. Continuity. No one should confuse a financial application with a data restoration service. However, automated billing systems, once implemented, operate with autonomy, and ensure that your team can focus on critical client-facing issues. They generate invoices and receive payments reasonably effortlessly. Automated business systems can track and document business activities and safeguard the collections process, lightening the load for employees and the management team, especially when everyone is busy dealing with emergencies or the next “new normal.”

2. Brand Building. Clients do judge your business by its tools. Automated billing systems show your company is not just professionally managed, but a serious entity that will employ similarly beneficial tools to support their operations. The technologies MSPs use are part of their image. Company-branded automated billing systems are professional touchpoints for your clients, keeping your name and logo front and center while demonstrating your commitment to automation.

3. Improve customer satisfaction. No one likes a poor collection process. Automated billing systems ensure your clients know what they owe and when payments are due and allow users to instantly review current and past invoices, reducing, if not eliminating, potential confusion and anxiety. Consider these applications self-service portals that are essentially extensions of MSPs’ accounting and collections departments. Automated billing systems give your clients more control and greater visibility and cut down on those email and phone conversations between both parties that can so easily go wrong. In today’s self-serve world, these technologies can help boost customer satisfaction levels for MSPs.

Don’t forget the efficiency of automated billing systems

This is the part no one forgets. Automation eliminates those time-consuming steps that take valuable resources away from MSPs’ other valued operations. Why have techs and engineers making collections calls and getting distracted from more important activities when automated billing systems are so cost-effective and easy to implement?

These time-saving solutions not only deliver a quick ROI from payroll savings, but they make it easier for MSPs to scale their sales and collections capabilities—no need to expand the accounting team or tax other employees with invoicing and responsibilities. Automated billing systems can handle those tasks with no extra effort.

Why not enjoy all those benefits in your MSP business? Check out ConnectBooster and let automated billing systems improve your collections processes today!

The post Three Overlooked Benefits Of Automated Billing Systems For MSPs appeared first on ConnectBooster.

How will those adjustments affect your MSP business? If you rely on physical mail delivery to send invoices and receive payments, further delays could severely impact the timelines for getting paid. Those delays may add 2-3 days (or longer) on the front end of the payment process as your clients wait to receive the latest bill or on the other end, while you eagerly anticipate receiving and depositing their checks. Double that timeframe if your company relies solely on the USPS for delivering invoices and payments (no email or automation).

If your MSP is in either camp, now is the time to seriously reconsider your options. These proposed changes could significantly impact those who rely on the USPS for their collections process, from both cash flow and security perspective.

Less money in the bank

The longer it takes for invoices and checks to reach their final destination, the less money MSPs will have on hand to pay current expenses and expand their businesses. You know the story. Using your own cash to fuel growth is always cheaper than borrowing money from others.

Collecting payment for the work your MSP performs can be a tedious and painfully slow process without adding even more delays in the delivery process. Without automation, those activities can involve a lot of manual effort and tediously long waits, and the longer the wait, the greater the chance for mistakes.

All of those steps and delays can severely impact your cash flow. With the USPS slowing the delivery of mail even further, MSPs should reassess their current practices and evaluate options that can improve the speed and security of the collections process.

Higher security risks

Traditional mail and paper checks are fundamentally insecure. While the hard-working people at the USPS do their best to protect letters and packages in their possession, every process has its weak links, and things can get lost or stolen when not in the custody of a responsible party. The longer it takes to transport mail from Point A to Point B, the higher the risk.

And, as mentioned in one of our articles from two years ago, long before anyone outside of the science community heard the term “COVID,” paper checks present a sizable security threat to businesses. Each can contain a lot of personal and account information that, in the wrong hands, can have dangerous implications for your clients. Those details, in the wrong hands, could seriously compromise their privacy and security, including banking numbers that anyone could copy and misuse.

Compromising your clients’ bank information will not take much effort, especially with the latest copier technologies. All an opportunist with bad intentions will need is access to a single check. While mail delays may not seem like a security risk, the longer it takes for payments to reach your office, the more opportunities there will be someone to misplace or take that envelope.

Think about all the ways someone could get their hands on that small piece of paper. The greater the distance and time, the more chances there will be to lose that valuable letter. Even in a best-case scenario, when a client agrees to issue a new check, consider how much time it takes for them to stop payment and then make and send another. Meanwhile, you have bills to pay and less cash available for other things you may need to maintain and grow your business.

There are much safer and faster ways for MSPs to get paid.

Automation boosts cash flow and security

Hoping your clients’ checks are actually in the mail and not delayed or missing somewhere along the way should be a real concern. MSP owners rely on timely payments to pay employees and current expenses and fund the continued expansion of their operations, each vital to the health and longevity of a modern IT services business.

Automation is a viable solution. Rather than relying on the USPS for handling delivery and collections, MSPs are switching to email and digital payment platforms, and integrating those systems with their PSA platforms and accounting packages to speed delivery, minimize risks, and improve cash flow. Let innovation take the wheel and avoid all those old headaches.

Avoid excuses like “the check’s in the mail” or “I never received the invoice.” With email confirmations and reporting, you can easily track payments and outstanding balances, and autopay can help convert your AR nightmares into actual MRR.

Payment automation can ensure your MSP business avoids the problems that will come from the “new mail normal.” No more checks, stamps, or excruciating delays. Ensure you get paid promptly for the vital services your team delivers. Curious how easy to see to set up automatic billing? Check out ConnectBooster, the billing software used by thousands of MSPs who are transforming how they get paid. 

The post Snail Mail Slowdown: How Will Accepting Paper Checks Affect Your MSP’s Cash Flow? appeared first on ConnectBooster.

Skilled technicians are almost always a worthwhile investment, and the buildings, vehicles, and technology that supports your business clients in multiple vertical markets across large geographical areas may be just as vital to the operation. However, the most critical piece of the “IT services pie” is often made of paper (though digital documents are gaining traction).

MSP contracts represent long-term financial commitments and help you secure those highly sought-after recurring revenue streams that bolster your business. The potential income detailed in those documents is the true value of the organization. Firms with the most substantial and airtight MSP contracts are typically worth much more than those that rely on project work or operate on month-to-month verbal agreements. Just ask a channel, M&A expert how they assess the value of an IT services business.

Your CFO, accountant, and other company stakeholders should also be big fans of MSP contracts. When your clients run into cash flow issues, the suppliers without viable agreements in place tend to get paid last (if at all). MSP contracts provide a security blanket. If a customer runs into tough times, with this type of agreement in place, your company will have legal recourse to recover at least partial payment for services rendered.

Avoid the cookie-cutter approach to MSP contracts

This is where things get tricky. IT services are complicated, and creating an MSP contract that covers all the do’s and don’ts for providers, and their clients are best left to an attorney with industry experience. Of course, business owners should have insight into the process and collaborate on some, if not most, of the details in these agreements.

No two client engagements are the same. An MSP contract designed for a local manufacturer may not work for a restaurant chain with locations in different cities and states (or countries). While the standard stipulations in the master agreement may apply, significant revisions may be required to address a variety of factors, including the services to be provided, timelines, and compliance concerns.

Your team’s comprehension of specific facets of each MSP contract is essential. Owners and employees must understand their obligations and be able to accurately convey details and responsibilities to clients, end-users, and any peers or other suppliers listed in the agreement.

The seven essential components of an MSP contract

An MSA (Managed Services Agreement) is the foundation or roadmap of your client relationships, deliverables, and business value. Virtually every implementation, onsite repair, support call, and invoice you send is based on terms and conditions listed in your MSP contracts − that is, if those documents are meticulously crafted and correctly authorized.

The preparation process, as mentioned previously, should be a collaborative effort between business owners and attorneys. Of course, prospective clients may also request changes in an MSP contract, and their approval might depend on how well you and your legal team can negotiate essential details. This is where lawyers earn their money.

Your MSP contracts must be resilient. Expertly crafted, these documents outline each party’s deliverables and prescribe remedies for inaction, effectively defining the relationship and rules for conducting business. The balance is critical. MSP contracts must equally protect providers and their clients by including detailed provisions written in clear language.

As with any business relationship, there should be a fair exchange between parties, and these documents establish the gives and takes for each side. However, to be effective, providers must ensure their MSP contracts contain several criteria, including:

1. Scope of work

What work is expected to be performed, and when? A statement of work (SOW) clearly defines the services to be delivered and timelines, which helps avoid misunderstandings for all parties.

2. A baseline

The MSP contract should document the “starting state” of the client’s IT infrastructure. A customer signature establishes the “known” condition and status of equipment and various systems, minimizing potential disputes over new issues that appear during the life of the agreement. The baseline accurately represents the current IT environment.

3. Prerequisites

This is the “projects section” of an MSP contract, where providers detail all work that must be completed prior to beginning standard service delivery. From hardware and network upgrades to new security and disaster recovery/business continuity solutions, these are the types of improvements that reset a client’s systems to an acceptable standard.

4. Liability

Which party is accountable for what? This section in the MSP contract is where legal experts earn their money. Many attorneys use boilerplate text that protects your business from false or frivolous claims, cyberattacks, and unwarranted lawsuits.

5. Responsibilities (for the client, MSP, and others)

Who handles what? The MSP contract must clearly define responsibilities for all parties involved in the agreement, including roles for managing issues in various scenarios.

6. Client data expectations

In this era of compliance, your MSP contracts should include metrics such as Recovery Point Objectives (RPOs) and Recovery Time Objectives (RTOs) and other information management goals. With an “implied duty of care” around data, your agreements should detail all related processes, timelines, and responsibilities.

7. Incident response plans

No cybersecurity measure is impenetrable. Even best-in-class defenses can be infiltrated if a hacker has time, determination, and ingenuity. With most states requiring providers to notify clients and affected individuals of security breaches, including an incident response plan in each MSP contract can lessen the angst of your employees, clients, and other parties (including cyber liability insurance companies).

MSP contracts are the ultimate “promise keepers.” Each team member should understand the expectations of service delivery, including response times and responsibilities, and other obligations outlined in each client agreement. These guidelines keep everyone honest and help ensure timely payment for services delivered.

Do your current MSP contracts provide those guarantees? If not, consult an attorney with IT services experience and make sure to include the seven criteria covered above.

The post MSP Contracts: Don’t Forget These Seven Criteria appeared first on ConnectBooster.

Many MSPs invested a lot to ensure their business continuity for their clients through the pandemic. Think of all the extra hours supporting equipment moves and the added costs of additional licenses and cloud services, not to mention managing all the projects, expedited implementation requests, and support calls.

Despite those headaches and increased expenses, many MSPs are still holding the line on pricing. Some have expressed concerns about asking for more during uncertain times.

Others freely admit not having taken the time to sift through the financial and tally their current costs for supporting each client.
After four months of holding the status quo and potentially putting their own businesses at risk, every MSP should re-evaluate their current pricing models. Are some of your clients costing your firm more than they were in January?

The Channel sets up

Business costs rise every year, even in the worst economic conditions. Most MSPs factor in potential expense increases when building their pricing models and only adjust those rates (or request changes if there are limitations in their contracts) in extreme circumstances.

Cybersecurity is one of the more common exceptions. With the rapidly changing threat landscape, as well as ever-increasing business compliance requirements, MSPs are continually upgrading data protection for themselves and their clients.

Is it better to maintain the status quo on security until annual renewals when the threats rise or invest in the solutions your clients need right now? Of course, IT professionals would always choose the latter option when available. The move to a WFH (Work from Home) environment during the COVID-19 pandemic left many MSPs, and their clients, in this type of situation. Whenever providers had the time, supplies, and access to end-user systems, they pushed hard to upgrade the security of those devices to “remote work standards.”

Some MSPs added other solutions and services during the pandemic to ensure greater insight into end-users’ systems, including new monitoring applications to gauge internet strength, or productivity tools so managers could track employee work habits. The channel-related online forums are filled with ideas, requests for information, and best practices for shifting workforces to a WFH environment.

MSPs often took that approach with little if any immediate concern for getting paid. As always, the tech community rose to the occasion and did what needed to be done in the best interest of the SMB, triaging issues, finding equipment and solutions, and bringing inexperienced remote workers up to speed. Now, with most, if not all, those changes implemented, MSPs must evaluate the costs of all these new client environments and address any profit shortfalls. Imagine how hard it will be to effectively support your clients if you run into cash flow problems due to too much generosity.

No more excuses

Every MSP should accept the premise that many things are different today than they were January 1st. Due to pandemic-related cost increases for solutions and support, a price increase may be in order sooner rather than later. Some providers were able to have those conversations and adjust monthly invoices in real-time to reflect added services and equipment.

Others held off making immediate adjustments to their billing. In some cases, the financial health of the client was a real concern, and others worried about appearing overly opportunistic during the crisis. Some business owners were so stressed that their providers simply didn’t want to add to their burden at that time, preferring to defer those discussions until things settled down.

Unfortunately for everyone, there’s no end in sight for the pandemic or any ensuing economic conditions. MSPs should be getting paid for ALL the valuable services they deliver right now, not in six months or a year. Your chances for recovering lost revenue diminish with each passing month.

Assess all the factors

What can you do to stop those added expensive “leaks?” Sit down and carefully evaluate your business model, from the current service stack to all the additional support options your team continues to deliver during the pandemic.

1. Assess your total endpoints under management. Is every client paying for what their end-users are consuming? In some cases, MSPs may be paying for monitoring or seat licenses for multiple employee devices while only charging the business for a single workstation.

2. Review the “exceptions.” Not all WFH situations are equal. If your client is allowing employees to use personal devices to access corporate systems, that situation can add to your team’s workload, and the cost of securing their operation is likely to be higher. You should be charging more for BYOD-type environments. Insist they upgrade to a “hardened” workstation that your team can effectively manage or raise your rates for these “exceptions’ to compensate for your extra labor and headaches.

3. Evaluate onsite support costs: if your clients expect WFH to remain an option for their employees, your technician utilization could take a hit. If an employee’s house is a sixty-minute drive further from your office, who pays for that two hours of lost time every time they need onsite support? Depending on the area, a two-mile trip could take hours, which means you should evaluate pricing options that recoup most, if not all, a technician’s travel time. Always use your office as a baseline. A tech may currently live closer to a client worksite, but if they quit or move, you may end up eating part of the labor costs.

Focus on cost side down

The reality is that some of your clients may have legitimate financial issues related to the pandemic. Some may use that situation as an excuse, but there might be cases where businesses may need your help to address their own cash flow issues. Whether you provide a short-term price break (not encouraged), extend their past due to payments across a longer timeline, or allow them to drop unneeded services, there are several options available to help lessen their pain.

Of course, that means your revenue may drop, at least temporarily, while client support demands may be rising due to cyberattacks and WFH environments being at an all-time high. The need for optimal efficiency has never been greater for MSPs.

Review all your toolset integration and automation options. Controlling payroll expenses is one of the most effective ways to improve cash flow, so pay close attention to applications that can replace labor-intensive parts of your operations. Integrations that eliminate manual entry (or dual entry) can trim many hours each month for the technical and billing teams.

Your PSA should connect with literally every external system possible to ensure information is automatically updated, distributed, and available to those who need to take some form of action. Accounting, billing, and payment processing systems should also be integrated so your company can send invoices and collect payments as soon as possible.

Find balance

Now is the time for decisions. MSPs cannot afford to wait for a cure or vaccine for COVID-19 to adjust their pricing models and address expense issues that may already be affecting their bottom lines.

Are you getting paid for the services you deliver? Are your clients truly not able to pay for the added support and solution costs brought on by WFH initiatives?

Those are just a few of the questions MSPs need to be asking themselves right now to ensure their own long-term business stability.

The post Rethink Your MSP’s Support Pricing Model appeared first on ConnectBooster.

Through a myriad of software applications, platforms, and other solutions, your firm can deliver and manage automation tools that will streamline some extremely complex business operations. MSPs fuel the efficiency engine for the SMB.

No matter how frequently this topic comes up, it may never be enough to highlight the value of automation for those who own an MSP business ̶ as well as your customers. Unfortunately, many providers openly admit to not getting the most value out of the tools they possess, often due to time and resource constraints. Others forget all the capabilities of MSP automation platforms and fail to set aside time to review and implement various features and functionality of the software. As a result, those providers are limiting both the growth opportunities and cash flow in their business.

With competition on the rise and margins under increasing pressure, every business must put more focus on efficiency. MSP automation and integrations are an essential part of that conversation. In the IT industry, where tech talent is hard to find and a significant investment, providers are increasingly reliant on tools that gather and distribute information relating to their clients’ networks, devices, and applications.

The faster that information can be collected and shared, the quicker the decision-making process can begin for that MSP. Regardless of whether people or machines oversee that final step, MSP automation, including software integrations with other IT tools and platforms, can save providers dozens, if not hundreds of labor hours each month. That time will be better spent prospecting sales opportunities, creating innovative solutions, and onboarding new business customers.

Maximize your tech resources with MSP automation

The great news for MSP owners is that scores of MSP automation options are already available. With a host of software applications, tools, and integrations at your disposal, it is easier than ever to create large-scale platforms that remove a significant amount of your company’s labor costs and headaches.

MSP automation is the perfect foundation for IT professionals who want to scale their services businesses quickly. Of course, a significant first step will be to eliminate every unnecessary manual process in the organization. Focus on the labor-sapping parts of those operations first, including the steps for opening and closing trouble tickets. PSAs and RMMs, when effectively integrated, are invaluable tools, populating and updating information across the combined platforms (as well as to other connected software).

Those MSP automation systems will route tech resources to the proper locations so they can quickly resolve issues and keep customers productive and happy. An effectively integrated platform will ensure the right team members receive the trouble ticket with the appropriate information. Automation also allows their managers to track time and resource utilization easily.

When no alerts or performance issues showing on their PSA platform, MSPs can focus on the activities that generate even more recurring revenue. Automation relieves anxiety. These solutions allow providers to rest easy knowing their systems will notify the appropriate people when a client issue or internal business problem deserves their attention.

Of course, the value of MSP automation does not stop at PSAs and RMMs. Backup and disaster recovery and cybersecurity solutions are crucial to business continuity, which is why linking those software applications and tools into a management portal, to monitor performance and speed notifications, has become the industry standard. Failure is not an option, and MSP automation reduces the potential issues that could affect your backup and restoration capabilities. Platform integrations help you stay ahead of possible data protection and retention issues so both you and your clients can rest a little easier each night.

MSP automation can manage behind the scenes

Of course, these tools can bring you more than peace of mind. When properly configured and fully implemented, MSP automation platforms and integrations provide an almost immediate ROI by reducing labor costs, eliminating billing delays, and improving efficiency across the company’s operations.

These solutions can also improve customer experience and boost retention rates. MSP automation speeds (or eliminate the need for) communications between providers and end-users when issues arise, reducing the time between initial notifications and problem resolution. As with your clients, software can make a big difference in your MSP business.

Those same benefits apply to your back-office operations. MSP automation can streamline invoicing, collections, and accounting systems, so you not only get paid faster but save a significant amount of time and effort in the process. What used to take hours can take minutes with the right software solutions, and your associated payroll costs will drop exponentially.

For example, an integrated platform consisting of ConnectWise, QuoteWerks, QuickBooks, and ConnectBooster offers a variety of options for an MSP. Each has its own attributes and serves a unique function in a managed services firm’s daily operations. MSP automation increases that power significantly as they collectively function as a single, synchronized management platform.

For example, the ConnectBooster platform integration with QuoteWerks assures that accepted quotes and payments are updated and saved in a secure payment gateway vault. All transactions run through ConnectBooster are automatically reconciled in QuickBooks and QuickBooks Online, as the invoice between ConnectWise and Autotask and other accounting software. MSP automation does all the work for you.

These tools and platforms are all about the data. Each software application collects and processes information to accomplish its mission and can share relevant details through various integration points. Connecting complementary solutions creates a “single pane of glass” for providers. MSP automation breaks down the individual silos of information that can stifle the growth of a managed services business.

These software platforms allow IT, service professionals, to leverage data more effectively. Centralized reporting and management tools give you greater control over internal as well as client-oriented operations, as well as give you more insight into your overall managed services ecosystem.

MSP automation is an invaluable tool for running an IT service business. Check out the drop-down options on the ConnectBooster website to get the latest information on all our software and solution integration options.

The post Generate Higher Profits And More Business Opportunities With MSP Automation appeared first on ConnectBooster.

However, after three-plus months of supporting the pandemic-related needs of clients, helping many companies and end-users through “not so common” issues, it’s time for MSPs to put on their sales hats again (for those who haven’t already). Many IT services firms are experiencing or anticipating reductions in their revenue streams and cash flow in the coming months and cannot afford to hold back.

It’s time to overcome that natural tendency of burying your head during uncertain times. Why are you in business? The answer may involve several factors and can get more complicated every year as you add employees and clients and develop relationships with new suppliers. A lot of people depend on the success of your managed services business. Now is the time to refuel your sales engine to spur growth and head off a potential longer-term drop in your company’s cash flow.

Rip off that band-aid

Over the past few months, MSPs have been busy triaging client issues, configuring work from home (WFH) options for virtually everyone, including their teams, and tightening up cybersecurity measures. Some experienced short-term revenue increases with customers acquiring and setting up remote worksites, but most providers scaled back proactive sales and marketing activities.

No ethical business owner wants to be thought of as opportunistic or insensitive during a national (or global) health emergency. Carrying on a traditional sales conversation when people are struggling can be uncomfortable. However, MSPs control the narrative as respected advisors and trusted business partners and should always be willing to offer insight and advice that will improve clients’ operations and financial situations.

If you haven’t already had a profound “heart to heart” conversation with customers about their pain points and plans to move forward as states reopen for business, it’s time to “rip off those band-aids.” Even those clients experiencing cash flow issues may be looking for help. They may have substantial decisions to make to keep their businesses running and could be quite receptive to discussions on automation, revenue-enhancing technologies, and other cost-saving ideas.

Take your discussions onward and upward

A proactive conversation is the best approach for engaging clients and walking away with new business. If your team is not discussing current problems, future plans, and new opportunities with customers and prospects, someone else may step in and fill that communications and sales void.

In most cases, decision-makers are ready for those conversations, especially with MSPs who can adjust their objectives and tailor the dialogue to meet their needs. Inject more empathy and reduce the sales talk. That’s not rocket science, just human interaction.

Good discovery statements can help your sales team get useful information from clients and prospects. That approach encourages the other parties to talk more, to agree or dispute the comment, and expand on or support their position. Here are a few examples of good discovery statements:

• It seems like things are going well.
• It sounds like your company plans to boost its remote work capabilities.
• It looks like your company is expecting to continue expanding after the pandemic.

The trick is to phrase the statement as a question, in which case most people will offer up more information to prove or disprove the comment and move to the next step or topic. If you let the other person drive the conversation, they will sell themselves on the services or solutions you came to discuss. Not only does that show empathy for a customer or prospect’s situation, but it will encourage engagement and get them to open up and present new opportunities outside the original scope of the call or visit.

Evaluate each situation

The COVID-19 pandemic affects every business differently. Companies that produce disinfectants and hand sanitizers are having record years (and we’re not even halfway through June), while many restaurants and hotels are struggling to pay the bills. Your sales approach will need to vary based on the economic prospects for that specific client, so uncovering that information early in the conversation is a crucial first step.

Flexibility is key. Tailor sales conversations to address each business’ technological and support needs, as well as its current and future financial prospects. Don’t assume their condition will remain the same. Owners could leverage government stimulus checks and low-interest loans to rethink and retool their operations and might require more support from their IT services partners than larger clients.

That scenario illustrates why MSPs need to have meaningful conversations with all their customers as soon as possible. Find out how the organization is doing and determine if there are any technological solutions or support programs you could offer to improve their situation. With that information in hand, consider following one of these three sales approaches with your clients and prospects depending on their current condition:

1. Business is crushing revenue projections. Go all-in on your IT services proposals. Push projects and new workspace options that can help those clients continue the momentum and assume the close. Take a more aggressive approach to get the business and grow your firm’s wallet share of their budget, fall back to address any objections, and then close the sale.

2. Struggling business. Reinforce and reiterate the value your firm provides and how instrumental your team has been in preventing additional losses in the current environment. Assure decision-makers that they have your support and offer up cost-saving solutions that can boost profitability and speed up their recovery process. Be as supportive as possible. Uncover objections with good discovery statements (refer to the list above) and assume the close.

3. The business has no hope. The reality of the situation is that a customer who cannot pay is a liability. The objective is to find a way for both organizations to get through the situation without hurting one another. In some cases, you may need to negotiate a graceful business exit, which, if done with compassion and empathy, could lead to new opportunities in the future. You never know where principals and employees may end up after a business closes, and they just might appreciate your company’s capabilities and care.

Final thoughts on proactive selling

If you do these things well, your clients will never leave. Be a partner in their profitability and focus on the bigger picture. The key for MSPs is to do everything possible to ensure that every one of your clients successfully makes it through the pandemic.

That philosophy applies to your business, too. If you have not restarted the sales process and began having more meaningful future conversations with your clients and prospects, what are you waiting for? Get the answers to those burning questions today. Without that much-needed information, how can you project cash flow, make key financial decisions, and build solid plans for the future of your MSP business?

You can’t.

The post Three Keys To Proactive Selling In Uncertain Times appeared first on ConnectBooster.

Key Performance Indicators (KPIs) help managed services business leaders measure and track their operations and provide the insight needed to navigate through the tough decisions. Those metric capabilities may be more crucial for an MSP than ever before in the midst of a global pandemic.

Metrics are essential for your business

KPIs, when appropriately evaluated, help MSPs develop more effective long-term plans, identify impending issues that could cause a potential threat to their businesses, and evaluate their options for automation and integrations. With so many unknowns in the current economic environment, each metric provides context and a foundation that any MSP or channel entrepreneur needs to make rational decisions.

Which MSP KPIs do providers put their faith in when it comes to running their businesses? The list of metrics is long and seems to vary based on company size, capitalization level, and the expertise of its ownership team. Despite those variables, tracking and benchmarking your MSP operations against industry-specific channel KPIs helps ensure your team and company can meet industry and personal standards.

The Top 15 MSP KPIs

1. Agreement Profitability or Managed Services Contract Profitability can be a difficult to track but incredibly important metric for assessing the potential success (or failure) of an MSP or other channel-related operation. Taylor Business Group suggests these agreements should generate at least a 65% gross margin or the prices of your services are too low, the staff is underperforming, or your processes are inefficient. Integrations and automation tools can help MSPs lower support costs and elevate these margins.

2. All-In Seat Price (AISP) helps MSPs determine the total expense associated with every end-user those businesses support. Calculate this KPI, championed by TruMethods, by dividing monthly recurring revenue by the number of seats your firm supports. This channel metric provides you a baseline for evaluating client pricing options and helps ensure profitability for your MSP business.

3. Churn Rate (Clients) What percentage of clients does your MSP business lose every year? That metric includes customers you fire or mutually agree to part ways with, as well as those who choose not to renew contracts or simply stop paying. A commonly accepted KPI for channel businesses to calculate, a retention rate of 90% or higher is desired, which means a client churn rate of 10% or less (customers lost subtracted from those that the company retains, expressed as a percentage).

4. Client Contribution (CC) calculates the income derived from each customer after deducting expenses. This KPI includes revenue from the sales of solutions and services, products, consulting fees, and fixed charges. The expense side of the metric equation consists of the marketing, sales, and personnel costs associated with delivery, implementation, and ongoing support for your channel business. With this KPI, an MSP can evaluate client investments, assess the value of integrations and automation tools, and determine which relationships need to end.

5. Client Lifetime Value (CLV) helps MSPs evaluate the “worth” of acquiring and retaining various customers. Why does this KPI matter? When you understand the potential income opportunity, this metric clarifies how much you can afford to pay to acquire, onboard, and retain that business over time. This KPI is an elaborate formula involving sales, marketing, and support expenses, the cost of goods and services to be delivered, and the revenue that client will generate during that period. While the retention duration is difficult to calculate and estimate, using five-years as a baseline metric will give you a good idea of the long-term value of a particular prospect.

6. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rates the overall financial performance of a business. This KPI can be substituted for pure earnings or net income in some circumstances but is a more accurate measure of your channel business’ results since it excludes accounting and financial deductions ̶, which can significantly skew the numbers. According to Service Leadership, the EBITA profit margin of top-performing MSP businesses exceeds 19%.

7. Effective Rate (Per Client) equals the total amount an MSP invoices a customer divided by the number of hours against the contract. Calculate this KPI and then compare hourly billing for services and the income your company would derive via support agreements. This metric highlights yet another area where integrations can be a major factor.

8. Product Margin may seem like an outdated KPI to cloud-centric MSPs, but the reality is that many IT firms still sell a healthy mix of hardware and software with their virtual offerings. IT services companies typically generate 10-20% profit on these sales, though the margins may be higher for specialized equipment and solutions. MSPs may bump up those numbers by buying through channel distribution or participating in rebate programs offered by manufacturers.

9. Inbound Qualified Lead Velocity is the growth percentage of vetted sales opportunities for an MSP month over month. This KPI measures the high end of your company’s pipeline development; those with the greatest potential who are most likely to convert to actual customers. Calculate this metric by subtracting the number of qualified leads the previous month from the opportunities your team is working in the current month, then dividing by the number of qualified leads last month and multiplying by 100 to produce a percentage.

10. Monthly Recurring Revenue (MRR) this KPI measures the total amount of income generated from an MSP’s ongoing services. Calculate this metric by adding up the monthly service charges for each client and then subtracting the cost of hardware and one-time or infrequently billed deliverables. A practical measure of your company’s financial health and value; this is a critical KPI for lenders (banks), channel investors, or potential M&A partners.

11. Net Promoter Score shows how much your customers value your service. This KPI shows, on a scale of zero (definitely not) to 10 (probably will), how likely your customers will recommend your business to others. Subtract the percentage of people detractors (0 to 6) from the percentage of promoters (9 to 10) to calculate your company’s Net Promoter Score. Passives, those who rate your business a 7 or 8, are considered neutral, so they are discarded when assessing this KPI. Automation and integrations with key business tools can positively affect this metric for an MSP.

12. Revenue Growth Rate shows how well an MSP can increase its sales over a given period. This KPI is more useful if calculated more frequently, quarterly or monthly, so providers can identify and quickly address negative trends before they significantly affect operations and long-term cash flow.

13. Service Utilization or Technician Utilization measures your firm’s labor efficiency. Since your human capital represents the overwhelming majority of IT support expenses, when this KPI is high, so is your team’s productivity. MSPs can calculate the utilization metric by dividing their Total Billable Hours by Total Hours Available each month. While that seems like an overly simplistic formula for channel companies, this KPI is beneficial for planning new hires, evaluating integrations, and determining your capacity for onboarding new clients.

14. Service Level Agreement (SLA) Compliance is the percentage of client incidents resolved within the agreed-upon time parameters. Calculate and track this KPI to ensure that your help desk and other technical teams are meeting company standards and customer expectations. MSPs must assess and validate that the specified service levels are obtainable and necessary, and adjust their standards or the metric, or increase internal and external (channel) support capabilities if possible.

15. Tickets Opened vs. Tickets Closed is a simple KPI to calculate yet one of the most important metrics to follow for any MSP business leader. The ultimate goal for a tech team following this metric is to close more service tickets than the firm’s clients open during a specific period, trimming, if not eliminating the backlog of requests. If that KPI continues to increase, the company will either need to ramp up productivity, hire staff, or rely on outsource partners to fill the gap.

Personalize your KPIs

Metrics have greater value when they ‘speak’ to your company’s unique needs. For example, MSP businesses with a heavy contingency of non-profit clients might avoid benchmarking against industry standard KPIs, especially on the financial side.

Similarly, IT firms with a heavier mix of hardware sales than cloud and managed services revenue might want to adjust some of their metrics, such as MRR and service utilization targets. Integrations and automation typically improve many of the listed metrics.

Realize that no two businesses are the same. However, KPIs, when monitored regularly, can help MSP owners spot potential issues quickly and keep their operations on track. Metrics allow you to calculate, compare, and contrast, and make adjustments before minor issues turn into bad trends.

Embrace the metrics

How are you employing KPIs in your MSP operations? Could you add any new options from the list above to get more insight into your financial situation or help improve the efficiency of your business?

These metrics are more than numbers; they help you gauge and plot the direction of your business and determine which integration and automation options offer the biggest returns. Compare these numbers with similar channel companies to evaluate how well your company and team are performing and calculate the next steps.

Now is the perfect time to step back and assess which KPIs and other metrics could be most useful for your MSP business…and to bring you and your team more peace of mind.

One final metric shouldn’t be overlooked—your average outstanding accounts receivable. If your MSP waits more than 30, 60, 90, or even more days to get paid, your cash flow is stalled. Without cash flow, you can’t easily scale and grow. Request a demo and see how ConnectBooster can drive down your outstanding A/R, improve cash flow and save you time and money.

The post 15 MSP KPIs That Can Make Or Break Your Business appeared first on ConnectBooster.

The unknowns are challenging to address. Will your customers be able to recover quickly as government restrictions lift? How will their business model adapt to the ‘temporary new norm?’ Will they need fewer IT services due to short-term furloughs or permanent staff reductions? Of course, the question on most MSPs’ minds is if customers will survive and be able to pay their invoices in a timely fashion.

Business continuity, especially in times like these, goes far beyond data restoration. MSPs rely on the success of their clients and the resulting rise in income streams to fund additional services, expand support options, and drive their own cash flow. In other words, when the organizations your team supports do well, it creates more opportunities to grow your business. The pandemic and resulting chaos are threatening those interdependent relationships.

Focus on customer retention

Your clients surely have similar priorities. Two clear objectives shared by IT firms and the businesses they support include uptime − keeping systems and employees operational − and client retention. The former has been receiving a lot of attention the past few weeks, ensuring that everyone and everything is working at whatever level government mandates and safety allow. Failure here can negatively affect cash flow if not bring about the end of the business.

Customer retention is another essential element of commerce. What if, when the COVID-19 pandemic and all the related government restrictions lift, fewer clients are willing to pay the previous rates for your goods and services? That’s a real concern for MSPs and their clients. If your customers can make it through this critical period without losing a significant portion of clientele or experiencing a substantial drop in revenue, there may be little negative effect on your business.

So, what can you do to help? As IT professionals and trusted business advisors, you hold more power with your clients than you realize, and more than likely, their leadership team is looking for sound advice. Many MSPs control a big part of their own destinies in that regard.

1). Increase Communications

How much do you know about your clients’ current situation? Understanding their financial condition would be a benefit, but what are their biggest challenges during the COVID-19 pandemic? Don’t undervalue the desire of your clients to speak “entrepreneur to entrepreneur” on the unique issues they are encountering during these unprecedented times. Empathy between business owners goes a long way towards strengthening relationships and hopefully solving problems that can affect both companies.

Set aside extra time each day to dial up the decision-makers and ask what you can do to help. Sympathize with their situation and share your personal experiences and advice. Most of all, take time to listen. Sometimes people, including business leaders, just need someone to talk with, especially if that person actually cares about their well-being and may be able to offer solutions to their problems.

For example, many MSPs have been connecting their clients with experts and information related to the Payroll Protection Program (PPP). While IT pros, with some exceptions, are not accounting specialists, if you’ve applied for these government stimulus loans, you may be able to point other SMB owners in the right direction. Success navigating through these types of financial programs will significantly improve their long-term prospects − and your ability to retain those customers.

2). Raise Support Levels

There may be no better time to double down on the assistance you provide customers. SMB owners who signed a services contract with your MSP probably never envisioned dealing with a global pandemic and its implications on their business operations. Stress and fear are becoming the norm for entrepreneurs, with no one knowing what will come next since there are no prescribed timelines or best practices for dealing with this type of situation.

Boosting support levels can improve the long-term odds for your clients. Whether adding network and security monitoring to offsite workers’ systems or offering 24/7 helpdesk and SOC capabilities, reducing productivity-sapping issues can strengthen their outlook.

Consider these expanded resources to be an investment. While some of your clients will gladly pay more for that additional oversight and support, and be able to fit it in their budget, others may need a “hand up” in their time of need. Explore all your options. Many vendors are offering special pricing and more cost-effective options for their partners to extend to struggling companies. MSPs can wrap these offerings into packages that meet the unique needs of a variety of business clients.

3). Offer Business Improvement Tools

Whether expanding your standard stack without increasing price or pitching new offerings as extra-cost options, your clients will appreciate new solutions that strengthen their operations and financial situation. MSPs may benefit in the long-term by investing in services that create customer “stickiness.” These may be solutions that, once implemented, your clients cannot do without, or personally tailored to address their unique needs.

Those high-value options include hosted VoIP, virtual desktops, and Microsoft 365 to help companies migrate to a remote work environment. On the financial improvement side, MSPs should consider adding online payment processing platforms to their portfolios (not just for internal use), as well as accounting package integrations to automate manual processes and improve the speed and efficiency of your clients’ back-office operations. Offer hardware leasing so your clients can cost-effectively upgrade their remote workforce capabilities and replace any systems that might fail or cause slowdowns, further reducing employee productivity [check out this recent article for specific ideas].

Identify and strengthen the ‘ties that bind’

Now is a time for action. Your IT services firm cannot afford to lay low and ride out the post-pandemic period hoping for a quick economic turnaround for your clients and their customers. While it’s entirely possible that a full resumption of business activity could come sooner rather than later, savvy MSPs are already moving forward to implement some of the best practices mentioned above.

Consider it an investment in your future. Use some of those financial stimulus funds or your company’s ‘emergency capital’ to expand support and service offerings and set aside time to make calls and set up more frequent meetings with clients and their key employees (remote and onsite).

Communication is one of the most valuable and least costly things MSPs, and their employees can do right now to uncover issues, offer solutions, and strengthen relationships. The best way to improve customer retention is to be there in their time of need with empathy, good insight, and support.
Are you and your team doing everything possible to ensure the long-term viability of your clients’ businesses, as well as your own?

The post Three Ways To Increase Customer Retention In Your MSP Business appeared first on ConnectBooster.

The financial side of the house is a significant focus for many MSPs. With uncertainty around customers’ ability to pay, providers should prepare (if they haven’t already) to address potential billing and collections requests from businesses that are having their own cash flow issues. The unfortunate reality is that financial stress is sure to remain a topic of discussion for the foreseeable future.

Now is the time to be proactive. MSPs should be streamlining and strengthening their collections processes during this ‘pause’ while implementing automated recurring billing solutions to optimize cash flow. Begin by reviewing all your company’s current procedures and tools, including your PSA and accounting package, and assessing AR balance trends over the past couple of years.

What a great time it is to tweak or tear down and rebuild those systems. Start by addressing the issues that have perpetually slowed payments, beginning with invoice generation, and proceeding through each step of the collections process until a transaction is completed in your automated recurring billing platform (if you have one). Assess and document each problem or area of concern.

Recover lost time

A key thing to evaluate is how long does it take to collect the money your business earns. After a tech leaves a client site or you complete a billable month of managed services, the clock should start ticking. Do you have the ability to generate invoices as soon as the calendar flips or a service ticket closes?

Integrations between PSA platforms and accounting packages allow MSPs to create and send those statements in real-time, and to expedite their collections with the addition of an automated recurring billing tool. Providers who properly connect and configure all those systems can save a lot of time and frustration and typically see significant improvements in their firms’ cash flow.

Removing people from the process eliminates a variety of delays: no more excuses for forgetting to send out invoices or sitting on a pile of customers’ checks for deposit.

Automated recurring billing ensures the collections process runs on time and in the proper order based on your MSP business’ needs and contract requirements. Lessening the ‘people component’ of these activities also minimizes the headaches for everyone.

Automated recurring billing boosts productivity

From the leadership team and employees to those responsible for making the payments on the client-side of the relationship, few individuals enjoy handling these transactions. Collections require a certain mindset.

That is not a knock on the financial geniuses, just an acknowledgment that some professionals would prefer not to be responsible for collections calls or writing virtually the same check every month to cover identical service charges. Monotonous duties often lead to procrastination, and when your employees or customers take more time to complete these responsibilities, it can negatively affect your cash flow. Few companies recognize the over-achieving collections teams (though every business really should).

Automated recurring billing eliminates some of the least popular manual tasks in an IT services organization. These tools can help MSPs improve employee morale and make life (and work) easier for their clients’ accounting teams as well. Who wouldn’t appreciate having to make or receive fewer emotionally draining collections calls?

Reducing that type of stress is just one benefit, as cutting manual procedures also helps businesses improve productivity. With automated recurring billing, MSPs can be a lot more efficient with their most valuable resource ‒ employees. Providers need these types of solutions to control personnel costs, especially in the current economic environment.

Tally the financial impact of automated recurring billing

Creating structure in a typically chaotic process is an essential benefit of automated recurring billing. However, the reasons why these platforms have become a standard requirement for channel companies are more profound. While MSPs are leveraging these technologies to streamline operations, they also help improve the bottom line.

An automated recurring billing system like ConnectBooster gives providers more control over their collections processes, cash flow, and profitability. That latter part comes from speeding up the payment process and with MSPs saving between eight to ten hours per month or more. Automated recurring billing systems make it easier for providers to manage these critical financial activities in their businesses, and they also allow team members, including techs and other professionals who may answer clients’ requests, to spend more time on their primary tasks.

The collections process doesn’t need to be complicated, especially when there are so many other things you and your clients need to focus on right now. While you have time and your client’s attention, be sure to emphasize the benefits of automated recurring billing and, if needed, sweeten the deal with win-win incentives.

For example, if clients ask for an extension on paying their bill, offer to divide and apply the current charges across the next six month’s invoices if they sign up for your automated recurring billing option. Since both parties are making minimal concessions while improving their short- and long-term financial positions, MSPs can consider that to be a mutually beneficial opportunity.

Raise your collections process standards during the pandemic. Fine-tune your policies and procedures and implement an automated recurring billing platform to reduce A/R and boost cash flow. Even if revenue drops short-term, your MSP will be in a better position to make a quicker recovery ‒ and have less need for other people’s money. Now is the perfect time to stabilize your cash flow, take action, and start using the tools you need to collect payments easier and create a better future. Schedule a demo of ConnectBooster and see how you can take payments to ensure your cash flow.

The post Now Is The Perfect Time To Stabilize Cash Flow With Automated Recurring Billing appeared first on ConnectBooster.

Your customers need you now more than ever before. Due to circumstances out of their control, as well as yours, many of these businesses are being negatively impacted on a financial and a structural perspective. Most non-essential organizations are closed or operating far below their standard capacity. Employees may be working from home or in different onsite locations to meet state and local health department guidelines. Some businesses are furloughing or eliminating employees to stave off long-term cash flow issues, while others maintain the status quo and hope for a quick resolution.

The reality is that relatively few companies will be in the black when the dust settles. Other than those currently making or delivering life-sustaining products and services, many organizations will be cash flow deficient, at least for the short-term, with much uncertainty surrounding their financial standing once things return to ‘normal.’

Government stimulus and supplier options may cushion or even erase the financial pain for some of your clients, but MSPs must prepare themselves for tough discussions regardless of duration. Before you begin those discussions, it’s essential to take a step back and assess your company’s current situation, and then start mapping out strategies to put your business and your clients in the best possible financial position in a post-pandemic world.

Shared struggles

As that old saying goes, ‘the best offense is a good defense.’ No matter how great your revenue streams are at present, every MSP should be developing fluid plans with various options to address all the actual and potential short-term scenarios. A proactive approach will help protect your financial situation and ensure your firm is fully capable of supporting your clients when the dust settles.

Start with a strategic view. Have you had one-on-one conversations with each client’s decision-makers to assess their operational and financial health? One goal should be to determine how long those businesses can maintain their current level of activity without reducing their workforce (if they haven’t already) or having to close their doors.

Now is the time for an honest dialog between entrepreneurs. In some cases, you may be able to share management best practices or COVID-19-related banking or government resources that can benefit both parties (more on that later). Listen and show empathy for their situation, since they may be experiencing similar problems, and remind them that you’re in this together.

The channel experts suggest MSPs hold firm on pricing and services. Support your clients as much as possible, especially those that significantly shifted their workforce. Consider options such as delayed billing, with extended repayment plans, or temporarily cutting services or trimming the unused seats from furloughs and layoffs. Avoid price reductions and contract negotiations as much as possible and suggest putting off those discussions for 90 days or more (if possible). You can be empathetic without negatively impacting your MSP’s long-term cash flow.

Don’t let COVID-19 reshape your financial model

Technology and innovation, two of the bright spots to come from this pandemic, are your value proposition, and MSPs should be careful not to undervalue their services in light of what some may view as a ‘buyer’s market.’ Most business owners have real concerns about revenue shortages and cash flow fluctuations, but some will leverage the situation to get price discounts and free services from their suppliers.

Are your current clients truly suffering financially? Many organizations, including managed services providers, are actually growing during the pandemic. Some essential businesses are busier now than ever before (i.e., grocers, cleaning services, delivery companies), and others are relying as much, if not more, on IT services to run and secure their operations.

That’s not an easy thing to gauge, and few business owners are going to willingly share accounting data to back up claims of lost revenue or increased expenses to cope with the pandemic. As with any relationship built on trust, MSPs must take their clients at their word and help them resolve any payment issues that arise over the coming weeks and months.

If businesses are asking your team to drop seat counts or cut back on services, it’s usually a sign that things are not going well. However, in the current situation, the leadership team may simply be conserving resources and altering its emergency business plan to position the company for a healthy return after the pandemic restrictions lift.

With all the available government funding and loan options, organizational strategies and options are plentiful, even for those companies that are furloughing employees or otherwise reducing their workforce. Don’t assume your clients don’t have a viable financial plan. Be confident and supportive in those discussions and realize that now is the perfect time to talk regularly with key decision-makers. These ‘executive to executive’ conversations can, if done well, strengthen your relationships and create a more open dialog with these clients. Check-in and ask what they need to make it through the current crisis.

Use caution. Some savvy business owners will use the situation to renegotiate contracts with suppliers, including those that provide and support the very IT infrastructure that is keeping them operational during the crisis. Hold firm and remind your clients of all the valued services your team continues to deliver and only discuss discounts on a case-by-case basis. Avoid making across-the-board pricing decisions and manage the exceptions.

In those limited cases, provide temporary adjustments with set expiration dates, and be sure to get it in writing ‒ with your attorney’s approval. As mentioned previously, the best offense is a strong defense. Protect your company’s long-term interest by developing a solid (yet fair) strategy for dealing with contract renegotiation and price reduction requests. Develop a plan that allows your team to show empathy without compromising your cash flow.

Be sure to remind your clients of the value you bring to the table. If your business has to cut back to make up for pricing discounts or a significant increase in A/R, it will be harder to protect and support their business. You are all in this together.

Share stimulus resources

Technology is just one area where MSPs can help their clients (and other businesses). Some tend to forget that B2B is about building more than sales relationships with other owners, but personal connections that can benefit both organizations. In uncertain times, most everyone is looking for the latest information about government and lending programs, as well as tips and best practices for navigating through the endless red tape.

If you’ve spent any time deciphering the details in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, or have a personal relationship with an expert on that topic, discuss those resources with other entrepreneurs. Collaboration and information sharing is vital in times of emergency. Discussing the stimulus options available to small businesses may be just as valuable as stopping a significant cybersecurity threat today.

After all, those financial incentives can help ensure your clients can cover their payroll expenses the next couple of months and keep most, if not all, of their seat licenses intact. That’s a win-win opportunity for MSPs.

Resources such as are not only invaluable for providers, but that same information can be just as advantageous for the businesses you support. Why not set up a webinar or teleconference for your clients with a CPA who has a firm handle on the current stimulus options? Using social media and newsletters, your firm can distribute similar resources and best practices to a broader business audience and make introductions to local experts who can help them navigate through the various grant and loan applications.

Now is the time to be proactive and creative. What else can you do to support your clients and community and give people a hand up in this time of crisis? After the dust settles, you can worry about lesser things and refocus sales and marketing efforts, but for now, the best support you may be able to offer some clients is empathy and information. Help them weather the storm and develop even stronger relationships. In the end, with a sound financial plan and effective communications, your standing with clients will be higher, and revenue streams and cash flow will return.

The post After the Dust Settles: Are You Ready For The Tough Financial Discussions appeared first on ConnectBooster.

We are in the midst of troubled times for most, if not all, of your clients. Amid the COVID-19 outbreak and the various levels of quarantines, most organizations are either closed or are seeing a significant drop in revenue and cash flow, and those issues may linger for weeks, months, or longer. Even clients that appear to be thriving during the pandemic, such as grocery stores and delivery companies, could be experiencing a variety of issues relating to staffing, worker and customer safety, and personal health. The hard reality is that bad things are happening, and we may not see a resolution to this situation for quite some time.

On the positive side, the severe financial impact that many businesses are anticipating, including MSPs and their clients, could be somewhat softened by government (local, state, and federal) stimulus programs. Combined with a vendor and supplier incentive programs, it might motivate some organizations to invest in automation and other technologies, especially those that boost efficiency or create new service opportunities.

No one knows at this stage what will happen in the coming months. However, forward-thinking MSPs are going back to what they do best: creating proactive plans for a number of business-case situations. Those strategies will vary by industry and financial circumstances, as well as by technology gaps uncovered during the current crisis, including failures in their business continuity preparedness.

Take time to reflect and organize

While many MSPs continue to set up remote office applications for clients and complete other projects, most expect things to slow down for a while before improving and eventually begin returning to a level of normalcy. The period in between is a great time to assess the status of clients and solidify your sales and marketing business once business (and life) routines resume.

Tech upgrades are sure to be top of mind for many organizations. After quickly implementing backup and remote workforce plans, many MSPs are noting deficiencies in their clients’ systems and infrastructure that they would like to address after the health crisis lifts.

There will be question marks around timing and funding. When can these projects be safely scheduled? Will equipment and materials be available at that time? And will your clients be in a sound financial position to make those investments (including the cost of your labor)?

The former plan depends heavily on direction from government officials. While IT services companies are listed among the essential businesses able to operate freely (or with minimal restrictions) by virtually every municipal and state government, as outlined by the U.S. Cybersecurity and Infrastructure Security Agency, some if not most upgrades will be able to wait until the COVID-19 risks abate. Now, however, is the perfect time to begin planning those projects.

Hardware leasing options to the rescue

The funding side of the upgrade and replacement discussion may be trickier. Your clients’ financial situation may ebb and flow during the crisis, though Federal stimulus programs and incentive-laden lending packages should ease cash flow concerns for many businesses. Even organizations that appear to have consistent or improved cash flow through the duration of the outbreak may be somewhat reluctant to spend capital in the short-term.

Hardware leasing is an excellent solution in times like these. Manufacturers are sure to offer significant discounts, special financing, and other incentives to spur computer and other tech sales, and MSPs can take advantage of those promotions without requiring their clients to invest precious capital. A Hardware as a Service (HaaS) lease or financing option allows you to upgrade customers’ systems during a buyer’s market and better prepare them for other potential business interruptions in the future.

With purchasing cycles interrupted, those organizations may have other replacement needs as well. MSPs can work up multiple proposals to get their clients back on schedule, as well as make necessary improvements, with HaaS equipment leasing and other financing options available to address more conservative budget projections.

Offering leasing options on new hardware is a great way to get your clients back on track and give your MSP an edge over competitors who don’t provide those types of alternatives. HaaS is also a safe investment for the SMB since many of the latest devices last three to five years or more without requiring replacement.

Hardware leasing lessens the risks for MSPs

The problem with traditional hardware procurement and equipment leasing programs is that instead of your customer fronting the cash for IT infrastructure improvements, MSPs have to cover the cost upfront. Chances are you won’t have that much capital, credit to spare after life returns to some normalcy. If your clients require equipment upgrades, you’ll be searching for leases and other financing options, or tapping into your firm’s cash reserves.

If MSPs purchase or lease equipment on behalf of their clients and add the cost to the next month’s invoices, the financial risk falls on providers. That financing scenario puts you in an uncomfortable position if the customer struggles after making it through the pandemic (a real possibility) and ends up closing without paying off that hardware ‒ as well as any other services you provided for that project.

Working with a large provider to cover the upfront equipment procurement costs is the safest option when it comes to maintaining a healthy cash flow for you and your clients. There is no need to get money upfront or directly secure leases and other types of financing. Automation allows MSPs to easily track information from manufacturers and financial partners, including payment status and monthly invoices.

Leasing through a large hardware provider minimizes your exposure and can simplify collections. For example, HaaS allows MSPs to procure the equipment their clients need and pass on the payments in their monthly invoices. With ConnectBooster’s integration with GreatAmerica Financial Services, technology financing, providers can easily track payments to the finance company and automatically collect on those invoices. That helps you stay on top of A/R without the typical monthly collections headaches, and no MSP needs those hassles after dealing with the COVID-19 pandemic.

Craft a hardware leasing strategy

Now is the time to lay out a recovery strategy for your clients as well as your own business. Assess the current health and systems needs across your managed IT environment and develop an upgrade strategy, including financing options, to put into effect when all businesses resume normal operations.

Consider hardware leasing as an option for projects that may require substantial capital investments or for addressing smaller improvements for distressed or cost-sensitive clients. Pay close attention to the systems they need to operate after a disaster and long-term outage, or another pandemic.

Now is the perfect time to be proactive. Leverage the tools available from manufacturers and other suppliers, including HaaS and other equipment financing and leasing options, to better prepare your clients for what comes next. If you want to ensure your business accurately tracks payments from leasing hardware, see ConnectBooster in action.

The post How Hardware Leasing For SMB’s Could Strengthen Recovery Plans appeared first on ConnectBooster.

The reality is that there are never any guarantees in business. You can have the best-laid plans and a robust financial model and still run into problems that the most insightful entrepreneur would never anticipate. Running an MSP business presents many challenges, including fluctuating workloads and staffing issues, and managing multiple vendor relationships, all while struggling to achieve operational efficiency.

One of the biggest challenges for IT services entrepreneurs is managing the financial side of the organization, which often takes a back seat to the latest tech emergency. When sales are booming, and support staff is onboarding new clients at breakneck speeds, many MSPs feel energized and focus all their efforts on building off that success. The inclination is to keep ‘striking while the metal’s hot’ makes perfect sense ̶ as long as someone is properly managing billing and collections.

Cash flow is key to your MSP’s success

While the natural inclination of managed services business owners is to grow operations with new technical solutions and services to support the IT needs of existing and new clients, you still have to get paid. Without a steady stream of money flowing into your bank account, it can be hard to juggle payroll and checks for rent, electric, gas, and the other expenses that keep the operation running.

Of course, cash flow problems don’t just occur in companies with recurring income issues. Some of the most successful MSPs can find themselves with inadequate financial reserves after months of record sales. Growth often requires capital investments for new offices and equipment and money to hire staff and pay for training and certifications, in addition to providing sales commissions and bonuses.

Those expenditures help explain why expansion is one of the top reasons for MSPs to borrow other people’s money. Without deep financial reserves, many providers rely on lines of credit and bank loans to meet current payroll and expense obligations. That infusion of cash allows MSPs to execute their growth plans while carrying on their day-to-day operations. No sane entrepreneur wants to bounce checks and deal with all the negative repercussions from employees, business partners, and the general public.

The answer to most MSPs’ cash flow issues lies in their collections processes. Many continue to provide the same excellent service month after month while allowing their clients to delay making payments for that support continuously. Improving an MSP’s collections procedures can help put more cash in their bank account that they can use to pay bills or improve and expand their operations. Why pay interest to use other people’s money when you could leverage your own?

Develop an A/R ‘Plan Of Action’

As with any business-related activity, the best way to manage your accounts receivables is to follow a well-designed strategy. Developing a healthy accounts receivables plan doesn’t need to be complicated, and there are many resources and best practices available for virtually every type of business. The managed services space is no different, with a plethora of financial books, podcasts, webinars, and industry experts with great advice for those in charge of finance, especially the collections operation.

From CompTIA and the ASCII Group to the major industry distributors and peer communities, there is a wealth of expertise available to help your MSP tame that accounts receivables monster. Most of those best practices fall into one of the following five categories:

1. Create strict collections policies. The first rule of business is to ensure your company gets paid for the valuable products and services it delivers. MSPs are fantastic at the IT side of the house but tend to struggle the most with billing and collections. Money is a sensitive topic, especially when clients get more than 30 days behind on their monthly payments, and you need to pay your staff, utilities, and other expenses. Those conversations are even harder for MSPs who don’t also have a collections policy in place. This written document should be accessible to all employees and customers and strictly followed to ensure timely payment of outstanding balances. The best way to ensure success is to thoroughly review your company’s accounts receivables policy with prospective clients before closing in the sales process and certainly discussed before signing any contracts.

2. Develop and periodically strengthen collections processes. Like any part of your business, your A/R procedures will inevitably require some adjustments over time. The introduction of new technologies and banking policies may allow you to modify collections timelines or restructure current internal practices to improve efficiencies. Worsening economic conditions could force firms to raise late fees and other penalties. A good best practice for MSPs is to discuss collections procedures with accounting professionals and peers periodically, especially before significant contract renewal periods, and make improvements as needed.

3. Create and regularly review A/R aging reports. Which of your clients appear at the top of the overdue billing list most often? Identify and monitor the frequently delinquent customers and leverage incentives or penalties (see option 5) to convert those businesses to a monthly automatic payment system. Be sure to note any companies high on the aging report with expiring contracts; it’s the perfect time to assess the value of the relationship, have those tough discussions, and implement payment processes and terms more favorable to your firm. MSPs must stick firm to their policies and may have to play hardball with these clients ‒ some may simply walk away from the relationship to focus on more ‘financially friendly’ prospects.

4. Automate payments. Recurring revenue means nothing to your managed services business unless your clients pay their bills regularly. Automation makes that possible. As an MSP, the tools are readily accessible, including your PSA (Professional Services Automation) platform and accounting package, which, when properly integrated, can automatically generate invoices. Connecting those systems to a secure payment portal like ConnectBooster creates a seamless (and virtually hand-free) billing and collections process that can eliminate many of your team’s biggest headaches. This automated payment platform also makes it easy for your clients to access and review current and past invoices and securely stores their credit and banking information.

5. Leverage Incentives and penalties. Do your clients respond better to the ‘carrot’ or the ‘stick?’ As mentioned above, an excellent way to get buy-in when implementing new collections terms, processes, or systems with existing customers is to use incentives and penalties. A traditional business best practice is to provide discounts such as 1%/ 10 Net 30, which allows clients to deduct 1% from that invoice if they pay the full amount within ten days, or 30 days if not taking the discount.

Some MSPs are taking a slightly different approach to encourage their existing clients to sign up for autopay. Instead of charging a 5% price increase for renewals, they offer a smaller adjustment of 2-3% if the customer agrees to use a secure automated payment platform such as ConnectBooster.

The ‘carrot’ approach is more proactive and positive and, if presented the right way, makes your clients feel like they are receiving added value for taking part. Inflicting penalties for late payments, such as charging a percentage of the overdue invoice multiplied by the number of days it goes unpaid, should be considered a last resort. Rarely do those conversations go well, and the business relationships tend to suffer (if not fail).

Free yourself and your employees from A/R headaches

Put more joy back into owning an MSP business. Streamline your accounts receivables processes, strengthen your policies, and implement automation wherever possible.

With the right tools and a forward-focused attitude, you can create the financial freedom needed to grow the business organically. Why rely on other people’s money when you could be spending your own, interest-free? Curious how you can automate your entire billing process and strengthen your financials? See a free demo of ConnectBooster and see how effortless billing clients can be.

The post Five Tips To Tame Your MSP Business’ Accounts Receivables appeared first on ConnectBooster.

Work less while earning more. That’s the goal for any business owner. With the right offerings and partnerships, MSPs can readily increase their recurring revenue streams without stretching their resources to the limit or having to grow headcount.

Wouldn’t it be great if your clients were willing to pay handsomely for your services and sign multi-year contracts to solidify the relationship? Even better, imagine if you could pile on more customers with no concern about the ability to support infinite growth. That may seem like a dream, but many MSPs are turning that fantasy into reality with a robust portfolio of high value, low cost, scalable services, and products.

Like any worthwhile endeavor, growing and maintaining a highly profitable business isn’t easy. For most MSPs, revenue tends to ‘ebb and flow’ if you don’t focus closely on both existing and prospective customers, so you can expect to face many challenges while scaling your managed services operations.

Like it or not, winning more revenue is a battle all businesses face, and you have three options for generating the revenue and cash flow needed to scale your MSP:

1. Sell more to existing clients (increase “wallet share”)
2. Increase margins on the products and services you deliver
3. Target and win new business (close prospects)

Sounds simple, right? Unfortunately, most MSPs have limited resources to work with, including a shortage of people, capital, and time. Strategic growth plans need to take all of those factors into account, and some of your specific objectives may require some compromises. For example, you may need to scale back the product portfolio or partner with third parties to reduce support responsibilities and maximize your cash flow.

SMBs need payment processing as a service

Collecting payments is the lifeblood of every SMB, and savvy channel professionals are taking notice. With ever-increasing requirements to meet regulatory compliance and standards, organizations are pressed to identify and implement technical solutions to address the shifting conditions. Change can be frightening to many business owners.
Those unknowns tend to create more opportunities for savvy channel professionals, especially in the SMB space. The old IT industry adage “there’s margin in the mystery” certainly applies, and the opportunities in payment processing are often overlooked.

Traditional payment processes like sending invoices and checks via the mail service can be slow, costly, and add risk. In addition to all the manual steps required to print and fold paper, stuff, address, and stamp envelopes, it takes a fair amount of time to transport, sort, and deliver each bill and payment. As businesses grow their clientele and expand their services offerings, that process can become unwieldy. It doesn’t need to be that complicated since MSPs can provide more efficient and secure options.

Electronic billing and payment systems are the new standard. No longer do businesses have to rely on one of the slowest and most inefficient processes ever created to get paid each month. With centralized online systems and the option to automatically pay recurring invoices using ACH bank transfers or via credit cards, there’s no need for your clients to worry about postal delays, incurring late fees, or making up ‘lost in the mail’ excuses.

The latest generation of business professionals understands the value of automation. Raised in the computer era, those individuals typically have a higher level of comfort with technology and, in many cases, have a stronger desire to conduct online transactions. Those business leaders are seeking companies with the ability to provide more innovative options, including billing transparency and the flexibility to change payment methods easily. The market demand for those solutions is strong and trending upward.

Let the SMB sip from your champagne

MSPs may differ from their customers in that most providers already focus heavily on tech, security, and automation. Typical SMBs, however, often don’t know that better solutions exist and are usually quite receptive to the guidance of their trusted IT services partners.

After all, a secure payment portal offers many advantages, so why not pass those advantages on to the end-users? Top MSPs can save 10-20 hours each month by eliminating redundant accounting tasks, significantly reduce their accounts receivables, improve billing transparency for their clients, and minimize the PCI compliance responsibilities for their business.

As a bonus, a provider can significantly reduce credit card processing fees by transitioning its customers to ACH payments. With a secure platform in place, you can refocus on fine-tuning the solutions and services your clients pay for and forget the stress associated with collections.

Not only will Payment Processing as a Service (PPaaS) help your team generate new sales engagement opportunities and create a ‘stickiness’ that strengthens your firm’s customer retention efforts, it is an entirely scalable product. The resources required do not change as customers grow, but the revenue generated does. The total margin per customer can easily be increased by 5-10% with virtually no extra expense.

PPaaS is a valued and growing market opportunity for MSPs since they intimately understand the challenges of a service business model. If your clients deliver professional services and bill their customers on a monthly recurring basis, a secure payment portal with payment processing capabilities is no longer just an option. Think landscapers, accountants, advertising firms, architects, financial advisers, engineers, and consultants‒each generating a regular flow of invoices with little or no automated tools.

Summing it up

A secure online payment platform is essential for easing client collections headaches, strengthening cash flow, and meeting the high demands of PCI compliance. By partnering with reputable institutions offering a generous share of payment processing margins, you can leverage the latest technology to make all of those possibilities a reality for your clients.

The post Up Your MSP’s Recurring Revenue Streams With Payment Processing As A Service appeared first on ConnectBooster.

In other words, technology is not just the primary source of revenue for MSPs but valued tools that, when properly designed and implemented, can make life (and work) easier for you and your team members. The trick for busy providers is setting aside the time to ensure the right systems are in place and fully operational.

Unfortunately, MSP owners often have so many responsibilities that their own businesses get the least amount of attention. Between closing prospects, onboarding new clients, overseeing and training the technical staff, and putting out the inevitable client and workplace fires, there’s not much left in the tank at the end of the day for strategic planning.

On the IT side of the house, MSPs’ best resources are usually focused on managing systems for the top clients and handling major issues. Internal improvements frequently get delayed or forgotten. The saying ‘the Cobbler’s children have no shoes’ perfectly captures the situation of most IT services firms: they often put off making internal improvements until addressing all their clients’ needs first.

To be successful in a rapidly changing industry, MSPs have to break from that norm and invest more in the systems that can boost productivity and profitability in their businesses. The best way to ensure your IT services firm can support its clients for generations to come is by strengthening its long-term financial capabilities. Automation tools that boost cash flow should be a big part of that strategy.

Simplify and automate payments and collections

Some of the biggest time-wasting processes in an MSP business involve billing. From collecting information and generating invoices to accepting credit card payments days, weeks, or even months later, the payroll costs some companies incur to get paid for the services they deliver can be astronomical.

The reality is that few MSPs ever calculate the hours and total expense of their collections process. Some providers keep following the same methodology month after month until they experience a significant financial event, or their AR number gets so far out of whack that it becomes hard to ignore.

Automation can alleviate much of that pain. Owners, technicians, accountants, and other high-dollar resources can spend endless hours handling various aspects of the billing and collections process every month‒ mundane manual tasks that could be completed by a low-cost application.

In an industry facing extreme shortages of skilled labor, MSPs must leverage technology to create the greatest efficiencies possible in their operations. Providers need to streamline internal processes and automate as much of their business as possible. As with any organization, unless owners and other stakeholders take the time and make a concerted effort to implement those types of improvements, things will never change.

Get these three ‘must-have’ MSP billing software options to automate collections

One area where providers can make the quickest, largest, and perhaps most crucial impact on their business is on the financial side of their operations. In most cases, MSPs allow their clients to take far too long to pay their bills, robbing providers of the cash flow needed to fuel their growth.

Without a firm collections plan, enforcement procedures, and the vital pieces of technology in place, your IT team may end up spending more of their valuable time chasing down payments than doing their actual jobs. MSPs are not banks.

As with your clients’ businesses, technology is the equalizer. The right tools can streamline the process, from invoice creation and delivery to enabling easy payments, making life a lot easier for you and your employees.

What software should an MSP implement to automate client collections? These three essential solutions will help you get paid faster and reduce those error-prone mundane manual tasks that drive up payroll costs each month:

1. Professional Services Automation (PSA): the brain of an MSP business, these platforms typically collect all the information needed for billing and can generate invoices based on recurring contracts as well as ancillary support and hardware procurement costs. No manual calculations or accounting requirements. MSPs can create a seamless collections process by integrating ConnectWise, Autotask (Datto), and other PSAs with channel-friendly accounting and secure payment platforms.

2. Accounting package: these systems no longer just calculate the Xs and Os, but through various integrations with other MSP tools, share key information to help automate billing and collections. QuickBooks, Microsoft Dynamics GP, and Xero are MSPs’ financial databanks. These systems can automatically pay invoices based on a one-time fee or recurring charges, and then reconcile those details across integrated solutions. Today’s online packages also provide owners, accountants, and other decision-makers with on-demand reporting options so they can monitor business metrics and alter collections strategies as needed.

3. Secure payment platform: generating invoices is the easy part; getting your clients to pay those bills in a timely fashion is considerably harder. Collections policies only go so far. SMBs need clear direction, including a firm time window, for paying their managed services bills and automation to ensure this mindless task happens each month. Platforms like ConnectBooster give your customers the ability to manage their credit card and ACH information and access current and past invoices in a secure online portal. Integrations with PSA and accounting tools ensure everything updates across all your systems in real-time, saving you a lot of time and headaches while strengthening your MSP business’ cash flow.

Additional ways to automate the invoicing and collections process

Of course, those three solutions aren’t the only options IT services providers can employ to boost their financial capabilities. Automation and integration opportunities for the channel continue to grow, making it easier than ever for you to save time, energy, and money with various processes.

For example, MSPs can create a highly efficient billing and collections platform by integrating quoting tools like ConnectWise Sell and QuoteWerks to simplify the billing process for new client projects. You can connect the GreatAmerica app to readily transfer equipment leasing information and add remittance payments to invoices.

These are fantastic options for automating any MSP business. Have you optimized your billing and collections processes with the latest tools? Adding and integrating a few key tools can save your team valuable time and a lot of headaches. Check out all the labor-saving ConnectBooster financial platform options today.

The post Invoicing To Payments: Three MSP Billing Software Options To Automate Your Collections Process appeared first on ConnectBooster.

Security is now (or should be) top of mind for every business owner.

While profitability and growth are essential for long-term success, most companies now realize that without the right security measures in place, their business is vulnerable to a multitude of issues. Cybercriminals may access, compromise, or completely shut down corporate systems. That’s the new reality for any business owner.

A single attack’s impact on a client’s organization can be substantial, including:

• Loss of crucial customer, employee, and business information
• Significant downtime, especially for computer-dependent companies
• Productivity loss
• Disruptions during data restoration (if possible)
• Potential damage to systems and information
• Damage to company brand and reputation

The security lapses that end up compromising customers’ payment or personal information can be catastrophic. Whether an incident ends up splashed across the news or is quietly relayed between various business clients, when an organization fails to protect its most critical data, it loses the public’s trust. Your customers’ reputations and financial stability can become casualties in no time.

Compliance can be complicated for SMBs

While often a source of frustration, government regulations, and industry standards are complementary to cybersecurity. Businesses that fail to meet requirements and mandates will likely incur significant fines and legal costs if hit with a breach or ransomware attack. If not properly addressed, those organizations could be just an audit or hack away from financial disaster.

Compliance is no longer optional or loosely enforced. Fines for non-compliance to many rules and regulations are quite considerable today, with penalties for HIPAA and PCI-DSS violations increasing and gaining more media attention these days. Companies that fail to meet the payment card industry standards, for example, are fined as much as $100,000 per month or $500,000 per security incident.

HIPAA failures regularly make the news these days and the cost of non-compliance continues to skyrocket, and medical offices and hospitals aren’t the only entities regulators penalize. Just last month a Georgia-based ambulance service was fined $65,000; following the loss of an unencrypted laptop containing protected health information (PHI) of 500 individuals and other long-standing compliance failures.

Not all industries openly discuss the penalties and the ‘powers that be’ tend to apply those levies randomly. For example, the PCI SSC administrators don’t dispense the punishment to offenders; it’s the individual credit card companies that collect the payment for non-compliance.

If your clients accept Visa, Mastercard, and American Express, they could be hit with three separate fines for failing to protect card-holder data and other security protocols. Violations for non-compliance could cost your clients $100,000 per month or $500,000 per security incident, and companies won’t know the total bill until months after a problem occurs.

Of course, fines aren’t the only pain that can be inflicted on companies that flaunt the rules and end up compromising customer information. This is where the attorneys step in to hit the ‘offenders’ with class-action lawsuits and individual claims, which could run into the millions if a business has been careless or negligent.

You’d think those financial risks would make it easier for MSPs to upsell additional protection and compliance-related solutions and serve as an incentive to reduce their own IT business’ risk factors. Unfortunately, many (providers and clients) don’t realize the true costs of data compromises until it’s much too late.

Protect your own house with a Secure Payment Portal

One place where IT professionals can “up their game” with regards to information protection is in the payment processing arena. From both an internal and external perspective, MSPs should increase their expertise and solutions offerings in that field to give their clients greater peace of mind.

As with any offering, cybersecurity begins and ends in your own IT services business. A secure payment portal is a perfect place to start as it shows your clients how serious your company is about protecting their most valued information (in this case, payment card data).

Safeguard that information while addressing relevant compliance requirements. Implement a platform like ConnectBooster that minimizes the risk of a data breach for your firm by locking down customer payment information in an encrypted PCI compliant payment vault.

That solution has numerous other benefits for your business, too. ConnectBooster reduces manual entry tasks for MSPs, which cuts labor costs, and the easy collection process can help boost your cash flow. No matter how you look at it, a secure payment portal shows your firm is serious about protecting their valued data.

The resale opportunity

Most businesses accept credit, debit, or ACH payments today. Traditional check usage continues to dwindle for several reasons, including the rising cost of postage, ongoing efforts to reduce paper and save trees, and inconvenience. It’s much easier to access an account on your computer or phone and then approve a credit payment or bank transfer. No time, no fuss.

The concern for MSPs is how their clients are processing those payments. Did they self-provision a system they found online or contract with a third-party to provide those services? In either case, do you really know if their payment processes are secure and PCI-DSS compliant?

Those unknowns could essentially leave your clients at risk. Not only could that be detrimental to their businesses, but as the IT services pro charged with supporting their systems, your company’s reputation might be at stake should their customers’ credit or bank information be compromised.

Are you offering secure payment processing options for your clients? Add to your solution stack and give small businesses a safe and easy way to get paid while broadening your MSP’s recurring revenue streams. See how you can make it a reality.

The post Why Payment Processing Belongs In Your MSP’s Security Services Stack appeared first on ConnectBooster.

In addition to its symbolic reference to “perfect vision,” providers are facing a number of new challenges and opportunities that must be addressed in the not too distant future. Why not kick that off that planning process today?

No matter how much success your MSP firm is enjoying, there always seems to be some apprehension about what lies ahead, even if you support high-profit business sectors and your employees possess the most in-demand skills. The unknown presents risk and most MSPs are exceptionally cautious when it comes to gauging market strength and future growth.

Nonetheless, providers have to plan ahead and make good investments. Understanding what business customers will want and need in the coming years is a responsibility every MSP must take seriously if they wish to maintain and grow their operations. Even when economic indicators trend downward, your clients will look to you for sage advice, skilled support, and technological innovation.

Most MSPs (as far as we know) are not psychic. Future planning for your business, as well as your clients’ operations, requires you to pay close attention to market trends, proposed legislation, and a host of economic factors ‒ from a national and world level down to the specific communities you support. No provider can afford to be caught off guard by an issue where all the indicators predicted trouble ahead.

The possible closure of a local manufacturing plant can be as detrimental to your customers and a significant drop in the stock market. It’s impossible to foresee every potential issue that might affect demand for your services. However, MSPs who take notice of industry expert predictions and carefully invest in services offerings that SMBs find useful, including those with a proven business case, will likely find themselves in a better position to succeed.

2020 Channel Predictions

So, where should MSPs focus their efforts and resources in the New Year? Naturally, as is nearly always the case in the traditionally conservative IT channel, none of the biggest trends is new for 2020. However, industry experts expect to see MSPs focusing on some of these topics with a higher sense of urgency in the New Year. Which trends will entice providers to make a shift in their business (or at least get the wheels in motion) in 2020? Five of the most talked-about prospects are:

1. Cybersecurity: from ransomware and phishing to social engineering and supply chain attacks, these threats are gaining momentum in the business community. Organizations are struggling to stay ahead of the security curve and will rely even more on the support of MSPs and MSSPs in 2020 and beyond. Those with extensive expertise in designing, implementing, and monitoring information security systems are in a better position, from both a competitive and client retention perspective. With a little effort, MSPs with strong security practices can expect their sales and profitability to climb substantially in 2020. High growth channel offerings include:

• Penetration testing- this new IT standard requires a high level of cybersecurity expertise (and the associated high salaries), so many providers rely on MSSPs or other specialists to deliver these services.
• 24/7 Advanced Support: data protection is not a part-time job, though MSPs don’t always have the bandwidth to have someone available around-the-clock to handle certain issues. An internal or outsourced SOC (Security Operations Center) will ensure your clients have people and technologies constantly monitoring and analyzing activity on their networks, servers, endpoints, databases, applications, websites, and other systems.
• Secure payment processing: what are you doing to protect the one thing cybercriminals want to access most or all (your clients’ financial resources)? MSPs can not only lock down those systems and minimize risks but drive new revenue streams for their own businesses.

Have you implemented these services internally? Cybersecurity experts consider these the mandatory areas for “eating your own dog food (or drinking your own champagne)” to best protect your end of the supply chain. Securing your own systems protects the “keys to the kingdom” that today’s cybercriminals are increasingly targeting.

2. Cloud/Digital Transformation: The naysayers predicted virtual technologies would be the beginning of the end of the channel. Sure, the MSP community experienced some challenges in the early days of the cloud transformation. Still, most IT pros quickly learned to embrace these platforms because of the business and financial advantages they create for clients and providers. After more than a decade of sales increases, the adoption trends continue to climb and many small businesses rely on MSPs to help them select, procure, implement, integrate, and manage it all. Those new recurring revenue streams help providers fuel their expansion plans and hiring/training efforts.

3. MSP Business Efficiency: doing more with less is crucial for maintaining a healthy competitive posture today. MSPs understand the importance of running a tight ship. In fact, CompTIA’s latest IT Industry Outlook report lists “increasing internal efficiency” as a top-five contributing factor for ensuring positive growth in 2020. Rising labor costs and recruitment difficulties, especially when trying to hire professionals with advanced technical (especially cybersecurity) skills in some areas of the country, are fueling automation and process improvement initiatives. Expect efficiency to remain a common mantra in the partner community in the coming year and beyond.

4. M&A: Those involved in buying and selling IT services firms have been busy this year, including a number of venture capital-funded organizations, and those activities are sure to accelerate in 2020. Few industries are as profitable and undervalued, and many MSP businesses could benefit from an infusion of cash or other resources. It’s the perfect time for potential sellers to tighten their financial controls to fatten the bottom line and strengthen the value of their businesses. Are you preparing for retirement or readying your firm for new investors? Focus on cash flow improvements (get paid faster) and enhancing/lengthening the terms of your clients’ services contracts to increase your MSP’s market value next year.

5. Recurring Revenue Enhancements: which services are you not currently offering that your clients need (or be willing to pay for every month)? In the cloud-first era, most MSPs are missing out on opportunities with their existing customers, and finding those “gaps” is often a matter of asking the right questions. What solutions and services are your clients self-procuring or getting from other sources? Some of the more common third-party options include:

• Phone services
• Physical security
• Payment processing
• Printer/MFP management
• Collaboration tools

Your clients may also be paying others for specialized consulting services without notifying the IT team (or you). For example, imagine a sales manager wanting to implement Slack or Teams to improve team communications and contracting with an outside expert to provide implementation and employee training services. While those situations may seem strange to some, those things happen in small businesses (or big businesses, for that matter), and savvy MSPs make sure to educate all decision-makers on their comprehensive services offerings.

Onward and upward

Smart providers constantly assess and strengthen their businesses. The decisions you make and the plans you put into place over the next twelve months will have a prolonged effect on your company’s long-term profitability and potentially its viability.

Periodically re-evaluate your MSP’s practices and portfolio, taking care to identify gaps and potential future growth opportunities. Look for ways to innovate and transform to keep pace with your clients’ shifting priorities, compliance requirements, and competitive environment.

The more you know, the less risk you’ll assume, and the easier it will be to make the best decisions for your clients and your own business. Ready to automate your entire billing processes? Schedule a demo of ConnectBooster, and make 2020 the year where you get paid on time, every time.

The post 2020 Vision: Five Trends MSPs Should Be Watching In The New Year appeared first on ConnectBooster.

Many of the brightest and highly skilled IT services professionals have seen their firms crash and burn despite having a strong business plan in place. Some encounter unforeseen circumstances such as the passing or sudden departure of key employees or business partners or run into issues they simply didn’t envision.

Client non-payment is one of those factors. While securing large dollar contracts can make an MSP business appear quite prosperous, those agreements are basically just promises that exist between two or more parties. Recurring revenue doesn’t truly exist until it shows up as a deposit on your bank ledger.

The steps between signing a contract with a new client and receiving that first initial payment are what can make or break your MSP business. Without effective processes and tools in place, invoicing and collections can easily get out of hand, and your cash flow can suffer significantly.

Many business owners get caught in that trap. Optimistic MSPs expect their clients to pay promptly after meeting certain terms of their contracts. After providing a month of managed services for a new customer and sending out an invoice in a timely manner, you might anticipate receiving a check or credit card payment within the next 30-days.

As well you should if a proper system is in place.

Create an airtight collections process

No matter how much time you devote to planning and operational improvements, your MSP’s financial success isn’t guaranteed. However, with the adoption of industry best practices and channel-proven tools, your firm can significantly improve the odds.

A proper invoicing solution is a perfect place to start. Popular channel options such as QuickBooks, Xero, or Microsoft Dynamics GP make it easy for providers to generate and send bills for monthly recurring services, as well as for any one-off projects, equipment, and other supplies. Every MSP should have an accounting package for invoicing, expenses, and other financial activities, even if they rely on outside professionals to handle some of those responsibilities, including tax filing and reconciliations.

Of course, a tool can only do so much. If your firm’s accounts receivables are approaching 90 days, QuickBooks alone won’t fix the problem. It’s time to tighten the collections processes.
The key good cash flow starts with getting your invoices out on a timely basis. After all, how can a client pay for a bill they haven’t received? When it comes to collections, following industry best practices such as sending out all

invoices within 48 hours of a month-end (preferably sooner) via email helps ensure faster payment.

While some clients may still prefer getting their bills through traditional snail mail, but the convenience and low cost of electronic messaging and secure online portals are making that archaic practice obsolete. Nudge the slow adopters to get them to convert as often as possible.

Beyond accounting

If your invoicing process is locked in and working well (meaning every client gets their bill within 48 hours), take time to research the other things that slow down collections and weaken your company’s cash flow. What’s keeping your clients from paying within the terms of your contracts?

SMBs often have rather unstructured processes for compensating their suppliers. While some pay invoices on a timely basis and within the confines of their contracts, usually 15 to 30 days, others simply send checks whenever the pile gets large enough to notice, or the person in charge has time. Another frequent strategy is to hold off until the company has enough money in the bank and pay off the oldest bills first ̶ essentially a FIFO strategy for their accounts payable inventory.

Whatever the cause, you can eliminate many of the delays that keep you from realizing the full benefits of recurring revenue with a few simple additions or tweaks to your company’s collections strategy. Automation should be one of the first considerations. Not only can ticketing, quoting, and payment-enabling tools help MSPs get paid quicker and boost their cash flow, but when properly integrated, these combined systems can save them a substantial amount of time, money, and headaches.

Address the major problem with collections

Automation minimizes the impact of one of the biggest points of failure in the payment process: people. When you successfully integrate your accounting software and PSA, quoting, email, and payment platforms, key information automatically routes through each system with little to no human interaction.

For example, whenever a technician closes a service ticket, your PSA can push relevant data to other linked solutions. No need to manually input the same information into multiple systems, tasks that tend to bore employees and create more human errors. Automating those repetitive and mundane processes will cut down on problems and payroll, and with the right tools, significantly trim your accounts receivables balances.

Financial tools can also address some of the people issues MSPs experience on the client-side of their businesses, including the procrastinators and poorly organized individuals in charge of paying your invoices each month.

Automation, in many cases, will take those responsibilities out of their hands and simplify the process.

For example, a safe and secure payment portal that lets your clients view current and past invoices and store credit and ACH information will minimize the need for human interactions in collections. Simply input contracts and dates, and their standard obligations will be taken care of automatically each month.

Connect the dots

Strong cash flow doesn’t happen by accident. MSPs need well-crafted customer collections policies and effective tools, as well as tough backbones to ensure clients pay on time each month. Automation simplifies the process without causing undue headaches and overhead costs.

Successful providers connect those dots. They review and strengthen policies on a regular basis and implement new solutions that can save time and money for all involved (MSPs and their clients).

Even with those standards in place, there are no guarantees. Problems will persist as long as there are people and profits at stake, but if you do everything possible to increase the cash in your bank account, you’ll be in a better position to pay your bills and invest in future projects and business growth.

The post QuickBooks Alone Won’t Fix Your MSP’s Cash Flow Problems appeared first on ConnectBooster.

That’s why automation and managed services-oriented integrations are so crucial. When properly implemented and maintained, these connections and technological innovations can create a direct route for sharing critical information between applications and platforms. That saves MSPs time and frustration and can help ensure your clients remain online, productive, and fully operational.

IT services professionals who don’t understand the value of automation are doomed to mediocrity today. With so many great tools at an MSPs disposal, from RMMs and PSAs to cloud and security management platforms, if not exploring all their options, they could find themselves at a major competitive disadvantage.

Peers will surely pass them by (if they haven’t already). That’s because automation helps providers and their clients improve efficiency, reduce costs, increase margins, and scale their businesses. Innovation creates a win-win opportunity for everyone.

Automation is an MSP enabler

With the right technologies and integrations, channel partners can accomplish a great deal with the least amount of resources. Linking somewhat disparate systems helps MSPs better manage their collective IT environments (internal and client-sided) so everything runs at peak performance, or as close to as possible.

Integrations reduce the complexities involved in running an IT services business and make it easier to scale without massive investments in people, real estate, and other resources. To maximize those efficiencies, MSPs need all the various automation systems to speak the same language; to share the right data at the perfect time so it initiates the correct sequence of activities. A quality managed services integration will do that.

Automation reduces task duplication and virtually eliminates the need for manual data entry or human intervention. MSPs need those capabilities to counter the rising costs of hiring and retaining quality employees today, in addition to the many other benefits it provides to the business and its clients.

From prospects to long-term clients, technology can fuel the funnel

Automation should be a cornerstone of every operation in an MSP firm. From lead generation and sales prospecting to onboarding and long-term client support, whenever there’s an option to implement a tool or configure an integration, the opportunity should be thoroughly evaluated.

Of course, those solutions need to be cost-effective, providing some level of benefit that justifies the time and expense involved in their set up and ongoing operations. Automation done right is a solid investment for any business.

So, what technological innovations should MSPs consider implementing to streamline critical processes and save more of their limited and highly valued resources, including their cash, time, and attention?

Here are ten examples that can help IT services businesses grow their client base and improve operations and support.

1. Marketing automation

Billboards and postcards still have a place in the channel, but today’s marketing departments rely on purpose-designed technologies to effectively promote their services and solutions. These platforms allow MSPs to automate email and social media campaigns and drive traffic to company websites to meet lead generation and SEO objectives. An effective solution collects leads from specific channels and then routes that information in real-time to the appropriate members of the sales and marketing teams. MSPs can integrate platforms such as HubSpot, Unbounce, Sendinblue, and Prospect.io (though the latter is more sales than marketing) with their CRMs and similar solutions to simplify lead funnel management.

2. Sales: Customer Relationship Management (CRM)

Serious companies employ automation throughout their client acquisition, onboarding, and management processes. In their most basic form, CRMs allow MSPs to input and maintain a database of useful information on prospective and current customers, an essential tool for sales and account managers. The more advanced solutions give providers even more features and integration options, including with the tools MSPs use to run their businesses like PSAs (i.e., ConnectWise, Autotask), hosted VoIP solutions, and Office 365. When properly designed and managed, these automations help providers land new clients, keep them content for the long haul, and create upsell opportunities.

3. Quoting tools

The busier your MSP business, the more clients and prospects will be asking for service, project, and product price estimates. While that’s a great thing for the bottom line, your team can easily be overwhelmed without an effective process in place for creating, distributing, and converting quotes into contracts. Automation eliminates those headaches and gives providers the ability to track and alter these documents as needed. When MSPs integrate their quoting solutions with other key managed services tools ‒ such as billing, accounting, and payment platforms ‒ they speed up quotes and the sales closing process.

4. Professional Services Automation (PSA) Platforms

Essentially the brain of an MSP business, these solutions allow providers to coordinate key operational activities, track employee utilization and company performance, and create valuable reports for their clients. PSAs are also integration hubs. These systems are the ultimate connectors for MSPs, allowing them to create a “single pane of glass” management platform that communicates with a variety of business and client-critical solutions. In other words, PSAs help providers deliver quality support to their clients and efficiently manage their back-office operations.

5. Remote Monitoring and Management (RMM) Solutions

These are the other foundational pieces of an MSP’s tool kit. While PSAs are the brains, RMMs are a provider’s eyes into clients’ computer systems, sending back real-time data on the status of each device. From real-time alerts and service ticket creation to software patching and OS updates, these solutions give MSPs remote capabilities that reduce downtime and boost efficiency.

6. General Cloud Solutions

The web is the perfect automation tool. Thanks to the cloud, MSPs can leverage resources from virtually anywhere in the world to support their operations, as well as their clients. The opportunities are endless, including:

• Business productivity tools (i.e., Office 365, G-Suite)
• Backup and business continuity applications
• Collaboration suites like Slack, GoToMeeting, Flowdock, and WebEx

7. Hosted VoIP

Yes, voice solutions can provide automation options for MSPs. As a web-based application, hosted VoIP can be utilized by employees in the office or on the road, through traditional-looking phones or a host of mobile or stationary devices. Those remote capabilities make it easier for your team members to work effectively from virtually any location, and when integrated with CRM and email systems, these solutions can automatically provide employees with key account information. Whether it’s sales handling an incoming prospect call, or a tech reaching out to a top client, that instantaneous access to critical data makes it easier to complete the tasks at hand.

8. Accounting

Financial systems are often set up as an island within a business’ IT system. However, even if security requirements dictate certain access restrictions and information firewalls, accounting integrations with PSAs and other managed services tools can be huge time-savers for IT professionals. For example, connecting quoting, billing, and automated payment systems with QuickBooks, Xero, Microsoft Dynamics GP, or other financial software can eliminate double, if not triple data entry. It’s a great way to reduce headaches for MSPs owners (and your accountant).

9. Payment platforms

Very few people enjoy asking their clients for money, especially when invoices are long past due. Automated payment platforms like ConnectBooster can make that unnerving task-irrelevant. With a secure online portal to store credit and ACH data and retrieve current and past invoices, your clients gain access to a PCI compliant system for paying their monthly IT services bill. MSPs benefit just as much, if not more, by eliminating redundant accounting tasks, improving cash flow, and increasing billing transparency.

10. Customer satisfaction systems

Consider this a tool of awakening in a managed services business. While the best way to get actionable feedback from your clients is to engage and ask them the right questions, customer satisfaction applications are a great safety valve. MSPs can leverage automated solutions like AskNicely, Qualtrics, and Promoter.io to assess the value clients place on their firm’s technical prowess, team members, key services, and other business processes.

Technology makes life easier

Automation can eliminate many of the mundane tasks that your team members despise, freeing up time so they can help with more important (and more profitable) activities. Technology is an enabler.

Automation allows even the smallest MSP to scale to great heights. Using fewer costly resources, providers can leverage internal and client-facing applications and integrations to do the work of many with little or no manual effort.

What solutions are you planning to implement this year to help maximize the efficiency of your IT services business?

The post 10 Ways Automation Helps MSPs Land, Onboard, And Support New Clients appeared first on ConnectBooster.

There are hundreds of online billing portals MSPs can use that claim to have recurring billing. However, if you look closely at the available options, one vital piece is missing: the automation, rendering the software’s purpose ineffective.

How can a recurring billing software lack automation? Well, most software that offers recurring billing doesn’t integrate with the PSA/CRM and accounting tools MSPs use.

Why is integrating with your tools important? MSPs, as well as other IT services providers, typically sign support agreements with their clients that last 12 months or longer. Those documents define the relationship, the services to be delivered, remedies for non-compliance, and perhaps most importantly for providers, the frequency and amount of the recurring payments. MSP billing is typically a monthly activity, which means most firms are sending out hundreds of invoices each year and making a similar number of transactions.

Overlapping processes breed chaos. The more clients MSPs support, the more difficult it is for their team to control its billing methods, accounts receivables, cash flow, and customer satisfaction levels. Invoices get overlooked, and bank deposits dwindle. If you’re using a recurring billing software that can’t adjust amounts based on the service agreement it’s going to create a significant amount of extra work on your team.

If your company struggles with any of those issues, it’s time to implement an MSP billing solution that automates the payment process. These systems empower your clients and minimize the manual steps and problems associated with collections. In addition to making fewer (if any) stressful collection calls, your employees won’t waste hours every month manually adjusting invoices.

Automated recurring billing solutions work behind the scenes transferring information and accepting collections each month without your team having to do anything. These systems are both seamless and effortless, offloading some of the most demanding yet critical tasks from MSP business owner’s responsibilities.

From invoice to bank deposit

Most MSP billing solutions claim to be fully automated, but even the most popular platforms require a customer to open an email message and click on a link before they can make a monthly payment. That might not seem like a big deal, but what if they never receive the message, the attachment gets switched or altered, or your client fails to notice or open the email? How much of a delay will that cause in the billing and collections process? Will your MSP ever get paid for that invoice?

A billing system that requires your customer to take some manual action can NOT be considered fully automated. Most MSP clients with recurring monthly obligations want simplicity. They prefer to input all their account details at the beginning of an annual agreement and not have to think about other processes until the contract comes up for renewal. An automated recurring billing system can fulfill that objective faithfully for customers and the MSP.

Each invoice posts on the client’s portal and the payment processes on the appropriate date. No fuss, and most importantly, no stressful billing problems for the customer or the MSP.

Prompt payments strengthen cash flow

A billing solution that is not fully automated also does not guarantee that the MSP will get paid on time every month. Why would anyone invest in a system that sends out an invoice at a prescribed time? Without process automation that directly impacts cash flow, its value is negligible.

Those solutions give your customers an opportunity to forget or delay their payments each month, which puts the MSP in an awkward position, essentially turning various team members into collections agents. How many of your employees would enjoy calling or emailing clients to discuss a long overdue invoice?

Without a proactive payment feature, MSP billing systems are no better than snail mail. Just print out each invoice, slap it in an envelope with a stamp, and save some money.

Simplify account management

Another feature that many of the so-called “automated” billing solutions leave out is the ability of the system to update contract information on its own. Many MSP customers end up adding or altering services and other deliverables at the midway (or other points) of their agreements due to expansion, contraction, and other business activities. Those fluctuations can significantly affect their monthly invoice and the billing process.

Most autopay solutions force an MSP to start from scratch and input a new agreement. MSP businesses with numerous clients can spend a lot of time and energy, updating billing information in those types of systems. Fortunately, you have other options.

Adopt an MSP billing solution that automatically updates agreements to reflect adjusted services and payments. For example, ConnectBooster doesn’t require you or your clients to intervene in any of those processes ̶ it changes the information in real-time with no human interaction.

Integration is the key to MSP billing

There is one final point to consider when an MSP is shopping for automated recurring billing software; a fully automated solution should connect seamlessly with other financial and service-oriented systems. Changes to contracts should reconcile automatically with whatever CRM, PSA, or accounting software your company uses.

No MSP should require its employees to manually enter clients’ credit, account, and other billing information across multiple applications. Technology is a more cost-effective option.

A truly automated MSP billing program integrates with the systems IT services professionals use to manage their operations. Those links help save time and money by automatically transferring relevant invoice and payment-related data to the appropriate place in each tool.

That “One Thing” can help grow your MSP

A completely automated monthly recurring billing process is the new Channel standard. Every MSP should be leveraging technology to streamline operations and improve its bottom line. Automating MSP billing methodologies, from contract changes and invoice generation to payment processing, addresses both objectives.

Technology has a way of fixing problems for your clients, so why not leverage those innovations to improve our internal processes? Collections present the perfect opportunity. MSP billing processes are repetitive and can be tiring and tedious for the employees charged with creating, managing, and accepting payment for each invoice.

No one has that much time to waste (especially an MSP). And billing certainly doesn’t need to be complicated. Most importantly, you deserve to receive on-time payments for the services your firm delivers each month.

Automated MSP billing is the answer. Solutions like ConnectBooster combine efficiency with best-in-breed collections technologies to make your job easier and customers happier.

It’s the perfect win-win option.

See what true billing automation would look like in your business.

The post The Most Common Mistake MSPs Make When Choosing An Automated Recurring Billing Software appeared first on ConnectBooster.

Demand is unusually heavy in the SMB where IT resources are fewer, and the competitive need is just as strong as in the enterprise space. Most small businesses can’t keep up with the pace of technological innovation and ever-evolving security concerns without third parties that can design, implement, protect, and support their systems.

That’s great news for MSPs that can meet those needs. The trick to catching those potential revenue-enhancing opportunities is that your team has to keep pace and adapt to meet clients’ continually growing requirements. While MSPs are always on the lookout for new ways to create efficiencies in their operations, expansion can be a daunting task, and many owners struggle with the financial side of that process.

That latter issue can be especially difficult for managed services providers that support a variety of clients with different services. Expansion can be a cumbersome process. Between finding technical professionals with the right mix of skills and identifying a profitable target audience, MSPs must assess which new practice opportunities make the most financial sense.

What would you invest in first, and where would you find the money? Knowing the answers to those two questions is essential when building your long-term growth strategy.

Address your growing pains (and fund them)

Expanding a business requires focus and a plan, as well as the financial resources to put it into action. Cash flow and timing are the two essential pieces of that equation, as MSPs must have enough money on hand at the critical points of their business growth.

For example, MSPs often increase their payroll expenses for weeks, if not months before onboarding major clients or introducing new services. Those costs may include hiring and paying overtime for training, testing, and implementation, often without new revenue streams to refill the coffers.

Capital improvements are another concern during expansion. To increase market presence and support capabilities, IT services companies frequently require additional office space, new vehicles, equipment, and other supplies. Acquiring those things limits the cash and credit available to enhance sales and marketing activities, which are critical for attracting new clients and keeping the money flowing.

The hard part for MSPs, or any business owner, is assessing the opportunity costs when building out their future growth strategies. What could your business miss out on when choosing one option versus another? Those “big dollar” decisions on the company’s direction and resource utilization are never easy, and without significant capital reserves or steady cash flow to fund those activities, it won’t take long to deplete your coffers.

Effective expansion plans are all about the Benjamins. MSPs with robust cash flows and strong customer loyalty will be in a much better position to grow their firms organically, with minimal or no outside investments. That financial independence leaves providers in firm control of their own decisions and destinies.

Reduce cash flow pressures

The best way for MSPs to put (and keep) their financial house in order is to strengthen their billing and collections processes and then implement accounts receivable automation. Those who commit the time and energy to complete those tasks tend to receive big dividends for their efforts.

The first step is establishing a collections policy. No matter how big or small your MSP, do your clients genuinely know when their payments are due each month and all their options for settling the bill? If not, review and update the terms and conditions listed in new sales contracts and, when possible, revisit and revise the agreement details with existing customers.

Communication is essential. Acknowledge that your customers, like any businesses, may run into financial issues from time to time. The goal of any good credit and collection policy is to make it easy for your clients to get back on track quickly without damaging the business relationship. MSPs must track invoice payment dates closely and, whenever one goes overdue, contact that client directly (phone is preferable) within 3-5 days to discuss the situation and find the quickest (and hopefully least painful) solution.

Monthly recurring revenue is a process that isn’t complete until you receive the payment. If you provide managed services to a business on a 24/7/365 basis and that client’s accounts receivable balance is more than 90 days out, would you count that as MRR?

By definition, this revenue stream is the portion of your firm’s income that is expected to be booked each month and continue for the life of the contract. “Recurring” is the key part of the term. Your team must stay on top of invoicing and payments to realize the actual benefits of MRR. With a little attention and an efficient collections process, you can alleviate many of the cash flow issues experienced by other IT services providers.

Cash flow is all about efficiency

The first step in scaling an MSP business is to strengthen, streamline, and lock down your operational procedure. Process improvement and best practice adoption are crucial in all aspects of your business. Maximizing your efficiencies now will save you time and grief correcting what could turn into more significant issues in the future.

That’s especially true when it comes to collections. Minor issues that cost your firm a few dollars a month in lost revenue or interest could turn into a money pit when you double or triple your client base and service delivery options. For example, an hour of lost time per client each month may not matter when you have two accounts, but when that scales across 20 customers at a $100 hourly rate, that’s big money.

The same holds for accounts receivables. Scaling an MSP business that has an out of control A/R balance (90 days + and growing) is not only inadvisable but a potentially fatal mistake if management can’t correct its collections issues. Those problems are likely to carry over to new clients, if not escalate as employees spend more time onboarding and putting out fires than following up on late payments. When sales are on the rise and new services are rolling out, it’s easy for everyone, including the management team, to overlook adverse cash flow trends.

That’s why continual oversight of the collections process is so important. Someone must be responsible for tracking and periodically (i.e., weekly, monthly) reporting cash flow statistics to management and suggesting, if not implementing, enhancements to policies and procedures.

Leverage cash flow to fund expansion

An efficient collections process contributes significantly to a company’s bottom line and helps fuel future growth. While there’s an appeal to using other people’s money to fund expansion plans, the costs, both direct and implied, reduce profitability and limit the organization’s true potential.

Unpaid customer invoices are another problem. As your firm’s aging accounts receivable balances climb, your ability to leverage your own money to pay for new hires and additional resources diminishes. A healthy cash flow erases many of those financial roadblocks also allows MSPs to control their destiny. When your company’s revenue is fueling expansion plans, you don’t have investors or lenders watching over your business or putting the brakes on future-minded projects. Self-funding also frees up your credit lines in case unexpected new opportunities come along (like onboarding a significant client, buying a rival, etc.).

Those are just a couple of the reasons why MSPs work so hard to boost their cash flow. When you collect every earned dollar from your clients in the shortest amount of time, it builds a larger pool of money for reinvesting in your business, and that can save you thousands in interest in lost opportunity costs each year!

For example, an MSP that bills $100,000 for delivering managed services each month and takes 60 days on average to collect payments could benefit significantly from improvements to its collections processes. Trimming the payment lag time to 30 days for just half their clients would allow the company to put $50,000 more in its bank account: the money they can use to hire one or more new sales or technical staff or fund a major marketing program. That lead time can help the company expand or deliver additional revenue-generating services quickly without having to use other peoples’ money.

Practical accounts receivable automation tools

Fixing the collections process is just the first step in the cash flow improvement process. After tightening all those procedures and creating policies to back them up, it’s time to automate. Adding 21st-century tools to the mix, especially for MSPs who understand the value of automation and thrive on these systems, frees up resources and provides greater accountability of the accounts receivables’ operations.

Payment platforms play a significant role in accounts receivables automation, as do their integrations with an MSPs’ PSA billing system, accounting package, and quoting tools. Combined, they can remove hours of tedious labor each month; trimming your payroll costs and eliminating many of your collections-related headaches.

For example, offering your clients a secure portal like ConnectBooster allows them to set up automatic ACH or credit card payments for recurring services. This is a win-win scenario for customers and MSPs. A platform like ConnectBooster not only speeds up and strengthens the collections process for firms like yours, but provides customers with greater control, allowing them to view current and past invoices and update payment options as needed.

Accounts receivable automation as a business expansion tool

MSPs can benefit significantly from changing their mindset on collections. Stop considering the process a burden that comes at the end of each month ̶ chasing down customer payments one invoice at a time, and start focusing on proactive steps to make it your business growth fund.

Automation is a vital part of that process. The only sure way to convert aging A/R into real monthly recurring revenue is to lock down your collections processes and give your clients the tools they need to pay their invoices automatically (and on time) each month.

Once those systems are in place, your company will be better positioned to achieve its accounts receivables goals and begin fueling additional expansion projects. Automation is the driver, allowing MSPs to:

1. Increase available funds

No more interest-free loans to clients. When invoices go out, and the billing window closes (i.e., net 15 or 30), that cash essentially belongs to your company and every day of delay is an opportunity cost to your business. MSPs provide millions, if not billions of dollars to their customers interest-free every year that they should be employing in their own operations. And relatively few of those firms charge late fees for that service.

On-time payments increase MSPs’ cash flow, giving you instant access to money that can be used to make capital improvements, fund marketing campaigns, and onboard new clients. Why settle for promises when accounts receivables automation can turn customer invoices into real monthly recurring revenue?

2. Get more time to focus on business

You’re an IT services professional and, if you’ve been in business long, you’re likely better at managing and protecting networks than you are making collections. The latter is a time-consuming and unappealing process to most people, and your time would be better spent supporting the computing needs of your business clients.

Accounts receivable automation can help reduce those unpleasant collections calls and emails and keep your team focused on IT, not worrying about outstanding invoices and processing credit card transactions. Our research shows ConnectBooster users enjoy significant time savings, with 84% reporting they save two or more hours per week on their billing processes (and 64% indicating they trim four or more hours off those activities).

Automation lets MSPs spend more time on essential tasks like developing business plans, closing large managed services deals, and preparing to launch new services.

3. Save on collections expenses

Time is just one of the costs associated with past-due invoices, and the longer it takes MSPs to collect, the higher the price tag. When you add in the fees for accounting and legal support, as well as discounts you might give to collection agencies for the slowest paying clients, it won’t take long to rack up a lot of expenses trying to recoup money owed to your business.

That’s one reason some MSPs don’t try too hard. Fearing that an aggressive collections play will negatively impact their client relationships, those firms wait out late payers. Unfortunately, hope is a harmful and potentially costly business strategy.

Other collections expenses include increased payroll costs (i.e., employees making follow up calls and sending email and snail mail messages), postage, and reimbursement for gas and mileage. Payment automation helps MSPs trim or eliminate many of these incidentals and boost their margins. They can reallocate that extra cash to expansion-related activities.

4. Improve customer relationships

No business owner enjoys making collections calls. Asking for payment for overdue invoices is uncomfortable for most, and excruciatingly painful for others. Accounts receivables automation simplifies the collections process so much for your customers that they’ll start asking other suppliers for automatic payment options.

The best part is your limited time with clients can be used to talk upgrades, not collections! Automation reduces your stress levels and allows MSPs like you to focus on essential business tasks such as sales, customer service, and long-term growth.

5. Create an aura of professionalism

Business owners tend to put more faith in suppliers with high-level presentations that demonstrate their technical capabilities. Most are more willing to spend more for quality and expect their MSPs to employ technology liberally in their operations. Yes, appearances matter and can promote your expertise — from the company website and contracts to its easy to use payment processing platform — innovation can raise your firm’s credibility and attract new clients.

It’s not about the flash. Prospects often vet multiple MSPs before signing a long-term contract, so you need to stand out, and a payment processing system can be that professional differentiator that seals the deal. Better yet, your company can realize actual monthly recurring revenue by establishing and communicating payment expectations with your clients. Professionalism helps you land new clients, increase the size of deals, and drive margins —a sure way to expand your business!

Clear the road for future success

Once you decide to implement payment automation, the collections process must change. Implement payment policies that will ensure your company gets paid on time every month.

First off, include strict language on payments in all new contracts and encourage existing customers to upload their information into the online portal. Speed adoption by communicating the benefits of an automated platform and offer incentives such as giveaways or discounts if needed.

The key for MSPs is to build a client onboarding plan and follow through. With close attention and commitment to converting all your contracts (and clients), they will eventually fall in line and boost your cash flow. That income stream, in turn, will help fuel your firm’s development plans.

Accounts receivable automation makes dreams come true

With today’s tools, MSPs don’t have to depend on other people’s money to grow their businesses. Leveraging a secure payment processing platform will allow your team to collect its accounts receivables more efficiently and quickly convert invoices to cash.

Give your clients a more comfortable and more professional way to pay their bills. Put accounts receivable automation to work in your MSP business with a payment processing platform like ConnectBooster —and start self-funding your expansion plans.

The post The 5 Ways MSPs Can Use Accounts Receivable Automation To Fuel Their Expansion appeared first on ConnectBooster.

FARGO, ND: ConnectBooster announced to users they can now manage their ticketing and billing from their ConnectWise Manage screen by using their billing portal integration.

Executives from ConnectWise broke the news during IT Nation Explore on June 14th, in front of thousands of attendees. “We are incredibly pleased to share this newest version of our software, as it’s been something we have been pursuing with the ConnectWise team for some time,” said Ryan Goodman, President of ConnectBooster.

The integration creates a shared login for partners to utilize a fully automated billing portal within a single software. Instead of switching between two softwares, the integration with ConnectBooster allows users to manage their invoicing and billing all inside ConnectWise Manage.

“Both our brands are always striving for the newest way our software can create a better experience for partners, either by saving time or improving accuracy. That is what this expanded integration is about, and we are excited to continue putting our partners’ needs first,” said Travis Vigneau, Director, Solution Partner Strategy for ConnectWise.

The feature is now widely available to all ConnectWise Manager users, and users can access the new integration at https://connectbooster.com/integrations/connectwise/.

About ConnectBooster: ConnectBooster is a SaaS and automated payments processing solution for channel partners. Their software is designed to help MSPs take control of their finances and connect their accounting and PSA tool. Learn more about their business at https://connectbooster.com/

The post ConnectBooster Announces New Billing Portal For ConnectWise Manage appeared first on ConnectBooster.

Unfortunately, the channel hasn’t traditionally placed a lot of emphasis on the financial side of IT services businesses. Sure, tech is an extremely crucial part of the equation, but having money in the bank is just as important to those who want to keep the lights on and pay their other bills. MSPs understand that part and are increasingly looking for new and better ways to manage their cash flow.

One sure-fire way to make that happen is to focus more attention on the collections process ‒ specifically around reducing accounts receivables. The best way to improve an MSPs bottom line without adding new contracts (though selling more services is typically encouraged), is to decrease the time between sending invoices to customers and receiving their payments.

The quicker they pay, the more cash you have in the bank. That increase in capital means MSPs won’t have to borrow as much of other people’s money (a costly endeavor) when expanding their businesses or taking on new projects. When your clients pay promptly at a set time each month, it not only gives you the peace of mind knowing the company has the resources needed to maintain its operations, but it provides the funds necessary to fuel portfolio expansion and other strategic initiatives.

Why autopay is the only way

MRR (Monthly Recurring Revenue) doesn’t happen without prompt payment for the services your team renders. Accounts receivables are just that; financial promises based on existing contracts. Sending out invoices each month is just the beginning of what can be a long and painful process for MSPs who don’t have a well-planned and automated collections process in place. Autopay is the engine that fuels MRR.

Getting your clients on an automated payment platform does require a little work, but there are a couple of things channel professionals can do to overcome almost any objection. First, have a conversation with your clients about future rate increases. Begin those discussions by justifying a 5% bump (if not more) to cover the rising costs of service delivery, including advanced technology and compliance requirements and the expense of the latest cybersecurity protections. You get the picture.

A great time for those conversations is during QBRs (quarterly business reviews), especially around contract renewal time. Tie autopay into those negotiations by offering to eliminate part or all of the increase for a certain period, such as two or three months, or longer if your firm isn’t seeing significant growth in its expenses.
The set-up is crucial. MSPs who openly discuss minor increases during a contract renewal year, and then dangle a carrot that softens the financial impact even more, enjoy a greater chance of success. Speak to their wallet. Instead of a five percent increase on monthly cost for services, they just need to agree to set up and continue to use autopay as long as the agreement is in place.

Waiving the increase for a year or less is offset by the value of getting paid on time each month. Autopay lowers AR quickly and gives MSPs faster access to the money they earn and reduces the time spent making collections calls and sending follow-up emails and letters to slow paying clients. No one enjoys that last activity (not even the accountants).

Provide options to your clients

Here’s another idea to get clients on board with autopay. If they agree to use a credit card to pay their monthly service charges, their monthly payment would only rise a fraction of the total proposed increase. For example, agreeing to that stipulation would eliminate 3% of a 5% (or even a 7-10%) hike in their monthly service charges. Essentially, your clients pay your credit card fees and still feel like they received a discount.

See how that works? MSPs can speak to their clients’ wallets while covering their own credit processing costs. It’s a win-win scenario.

Do what it takes to get your clients to buy into autopay. Make them understand how the automation process benefits their businesses and give them incentives that make the decision makers feel good about signing on the dotted line.

The post How To Migrate Your Clients To Autopay (It’s Easier Than You Think) appeared first on ConnectBooster.

That’s why organizational leaders adopt industry best practices and follow the standards established by their peers and predecessors. Why blaze new trails when you can implement the proven processes of others who successfully navigated their way through similar situations or added comparable solutions?

The rapidly changing tech industry provides a perfect example. Before the introduction of PSA (Professional Services Automation) tools, most MSPs managed their service tickets and account information using a combination of email messages, spreadsheets, and customized documents. Creative providers crafted their own technology solutions, often integrating them into services platforms intended for multiple industries.

Those inventions allowed MSPs to scale their operations and better support their clients’ daily needs. When companies such as ConnectWise, Autotask (Datto), and Tigerpaw developed PSA platforms specifically for IT services providers, with integrations to other valuable managed services-related tools, maintaining those “homegrown” solutions no longer made sense.

A tool that is built to service a variety of different industries can only cover surface level problems but will fail to solve any specific pain an IT service provider would experience. Due to this, here are three major reasons why MSPs should use managed services industry-specific tools.

#1 Cost-Effective

As soon as they became available, MSPs quickly discovered how much more cost effective it was to switch to these channel-specific vendor designs over the alternatives. Self-supported solutions required continual updates to ensure links with integrations wouldn’t break and to add functionality, consuming resources that could have supported new clients.

The same issues apply to more general options not built with channel professionals in mind. Providers often have to create and support necessary integrations and may have to do without certain features that make life easier for an MSP, like management portals and performance reports.

Why compromise? The budget required to implement and manage the channel-built solutions is, in most cases, much less than customizing platforms designed for broader applications and other industries.

#2 Standardization

Money isn’t the only reason IT services professionals should leverage tools purposely built for their business needs. Your clients rely on top quality care regardless of suppliers, technicians, or location.

That’s where industry standards come into play. These guidelines bring everything together ‒ the tools, processes, and philosophies ‒ to ensure providers get the most out of their limited resources while their clients receive top-notch service and solutions. Consider them ideal goals that every business in that particular industry should strive to attain.

Why not strive for that managed services utopia for your business? While achieving that ideal requires a firm commitment and valuable time and resources, the new operational efficiencies and expanded revenue opportunities resulting from those investments make it all worthwhile.

That process is simpler for IT services pros today. CompTIA members created four sets of free channel-specific industry standards and best practices that you can download for free from the association’s website.‒ MSPs can review the materials in each category ‒ IT Solution Provider, Managed IT Solution Provider, Managed Print Provider, and Cybersecurity ‒ and implement any or all of these time-tested recommendations to address their own business needs.

These guidelines also highlight the value of industry-specific tools to streamline your operations and best support your clients. For example, the CompTIA IT Solution Provider Channel Standard Connected Systems suggests MSPs must be able to demonstrate how they integrate business processes and systems to benefit customers. “That end-to-end automation enables you to work in a team manner, reduce costs and improve customer relationships.” Their Managed IT Solution Provider Channel Standard further expands on those concepts by discussing the value of adding specific accounting and cash management systems.

Differentiation is still a crucial part of a services business. While standardized business practices and tools are vital to operational efficiency and service quality, creativity allows your team to meet the unique needs of every client and sets your business apart from the competition. That “special sauce” is invaluable to customer retention and sales.

#3 Integrations

Mixing creativity with specific service and solution standards is key to MSPs ultimate success. Another valuable ingredient in that equation is automation. Linking various tools to share crucial system information saves everyone valuable time and a lot of headaches, including MSP owners, employees, clients, accountants, and other suppliers.

Integrations are one of the top reasons for using tools designed for channel professionals. Vendors in the IT services space understand the players and ecosystem, and the value of sharing vital information between platforms. That knowledge helps their management and development teams prioritize integration projects and develop relationships that most benefit their partner network. The advantages include:

• Efficiency gains: time is money in business. Integrations that reduce or eliminate manual tasks often provide a quicker ROI ‒ especially with the cost of wages and benefits skyrocketing.
• Greater management insight: the proverbial “single pane of glass” is essential to IT and cloud services providers. It’s easier for owners to evaluate options and make critical decisions when they can access all their important operational information in a single portal. Quality MSP tool integrations give them that ability.
• Boost in reporting capabilities: The more operational data you can share with clients, the easier it will be to pinpoint potential issues and suggest upgrades. Connecting all your managed services tools makes it easier to set priorities and plan future investments.
• Elevate the firm’s professional profile: automation can be an image-enhancing differentiator. Quality integrations allow IT services firms to show off their technical expertise as well as their business prowess. Management portals, comprehensive reporting capabilities, and multiple customer service communications platforms are a few of the things that could impress prospects ‒ and encourage them to sign long-term contracts.

One of the best ways to reduce the learning curve for your team is to work with companies that understand what you do and develop their products, services, and programs to suit your specific business needs as well as those of your clients. Why waste your valuable time and resources and create more of the headaches that come from running a busy IT services business. Don’t compromise, get channel-empowered solutions with the integration options, partner management capabilities, and professional-grade quality you and your clients deserve.

The post Three Reasons To Use Tools Built Specifically For MSPs appeared first on ConnectBooster.

It’s an exhilarating time to be a part of the IT industry. From emerging technologies like artificial intelligence and the Internet of Things to advances in the recurring revenue model that drive healthier cash flows, the channel is alive with opportunity. Of course, an opportunity is meaningless unless you have a plan to take advantage of those prospects.

As Benjamin Franklin said many years ago, “an investment in knowledge pays the best dividends.” Business owners who study the future trends and figure out how to utilize the latest options find themselves in a better position than those who don’t look ahead. MSPs should always have a three to five-year strategy to ensure their business is as relevant in the future as it is today!

What’s involved in a long-term plan? MSPs build their business strategies with a variety of factors in mind, including the nature of the ownership team (conservative or aggressive-minded), available resources, market needs, and customer requirements. Those influences tend to change over time, forcing leaders to adjust their activities, plans, and timelines continually.

Many industry experts, including the CompTIA research team, suggest the next year will be no different when it comes to MSPs being asked to take on new challenges and shift their priorities. Many of those changes will be the result of customer requests, and as in past years, providers will have to figure out how all those “moving parts” fit into their business plans in the coming months. What investments are required to tackle those new opportunities and how will the changes affect their current priorities?

2019 Channel Trends

Which industry development should MSPs pay close attention to in the coming days, weeks, and years? Change is afoot on many fronts, and providers are required to deliver a growing list of services to meet the shifting needs of their small and mid-size customers.
Based on the experts’ predictions, providers should focus on these industry trends in 2019:

1. Explosive growth in cybersecurity

With the increasing commoditization of traditional managed services and the resulting pressure on profits, MSPs must put more emphasis on higher demand (and higher value) offerings. Cybersecurity sits at the top of that list with Gartner conservatively forecasting $170.4 billion in spending by 2022 with a five-year CAGR of 8.5%. Other researchers predicted growth between 10% and 15% per year or more as cybercriminals up their attacks and regulators increase compliance requirements and fines for companies disregarding industry standards and rules.

2. Emerging technologies/ help wanted

Complexity drives business opportunities for MSPs. When technology or a specific process is hard for SMB owners to understand and manage, it increases the value of third-parties who possess that knowledge and those support capabilities. The Internet of Things, with a projected market valuation of $520 billion by 2021 (double 2017 sales) according to Bain & Company research, is one of those high-impact options for MSPs. In the next few years, SMBs are also expected to begin adopting artificial intelligence and virtual reality solutions, as well as drones, blockchain, and whatever new technologies come along.

3. Consultation as a Service

Channel professionals are deriving more of their business revenue from advice and guidance than ever before, according to many industry experts. Some of the most valued areas for aiding the SMB in the future will include:

• Compliance/cybersecurity
• New technologies
• Process/workflow improvements
• Technology training
• Policy development and implementation
• Long-term planning
• Emergency response and DR, IT (expansion, new tech, long-term infrastructure improvements), employee training, etc.

4. Increased M&A activity

With venture capital and market valuations at all-time highs, consolidation is expected to remain rather robust in 2019, according to many industry insiders. For those looking to retire or cash out, it’s the perfect time to build and refine exit strategies and enhance their operational efficiencies. Other value-improving options include:

• Strengthen the language and length of client contracts
• Review and refine internal processes
• Improve cash collection methodologies to speed payments
• Automate systems
• Eliminate needless expenses

The most critical part of the equation

Opportunity comes to those who prepare. A lot of legwork goes into building a successful business to take advantage of the latest prospects. Securing cash from new and existing prospects is necessary to fuel growth.

MSPs have to perfect every process, from completing preliminary assessments and signing initial contracts to collecting payment for all services delivered quickly and efficiently. A tight balance sheet, optimized systems, and a healthy cash reserve will allow your company to take advantage of new opportunities that come your way in 2019.

Make it a very successful year. Set realistic goals and focus on your top priorities. With a healthy amount of cash in hand, you’ll be able to invest and focus on the things that make your business better for years to come. If you’re looking to make 2019 the year your MSP tackles your cash flow issues, see the tool thousands of MSPs are using to transform how they bill clients. 

The post Four Trends Every Managed Services Provider Should Be Watching For A Successful 2019 appeared first on ConnectBooster.

It’s a massive cost for a small business to pay for the necessary tools they need to run their business. Whenever a company is shopping around for an MSP, they are going to ask if you can provide their business with hardware.

Offering your clients leasing or other financing options on new hardware is a fantastic way to make revenue and get an edge over a competitor who doesn’t provide hardware. It’s also a safer investment since many devices last upwards of three to five years without requiring replacements.

The problem is, leasing or financing hardware can get expensive if you’re not careful about it. You’re sparing your clients the burden of funding their hardware all upfront, but that can put your company at risk.

So how do you offer hardware without ruining your financial security? Here are some of the main things to keep in mind before leasing hardware to a client.

Financing hardware vs. leasing hardware

Before we get into best practices about offering hardware to your clients, let’s discuss the differences between financing and leasing.

Financing hardware means you bought the hardware yourself, and are going to calculate out the cost your client will need to pay to cover the cost and roll it into their monthly service payments.

The problem with financing is instead of your customer fronting the massive investment in their IT infrastructure; you have to cover the cost upfront. It’s not likely you’ll have that much spare cash laying around to cover the cost, meaning you’re going to have to take out a credit loan.

Buying the equipment yourself and offering for a client to pay it back puts you in an awkward position if you bought all that hardware for your customer, and then they close down without paying off the cost of the equipment?

So what about leasing the hardware?

Leasing through a large hardware provider is an excellent option for MSPs who need to offer hardware without buying all the equipment yourself. Working with a provider like GreatAmerica Financial, you can afford the hardware and roll the costs into your client’s monthly service agreement.

Working with a large provider to cover the upfront cost of hardware is the safest option when it comes to maintaining a healthy cash flow when leasing hardware to clients.

Now let’s discuss the common problems an MSP will run into when trying to provide hardware to their clients.

#1 Not getting the money up front

It’s a bad habit to count your chickens before they hatch, and that’s especially true when it comes to business deals. So often we’ve seen MSPs set up a client’s hardware and begin offering support before receiving a single payment for the equipment.

You can cripple your cash flow if you give up hardware without requiring payment upfront. Payment expectations need to be set up in your sales and onboarding process. But a lot of MSPs are hesitant to ask for payment for their hardware upfront.

Always make sure your company is not footing the costs for leased equipment. It’s a best practice to require a down payment before installing and configuring any hardware.

If you’re working with a third-party hardware company like GreatAmerica Financial, ask for their recommendations. Take the time to add up the costs and make sure you’re getting enough of a payment to cover your expenses.

Always get the money up front and have contracts protect yourself from the worst case scenarios.

#2 Tracking finances and cost

If there’s a problem as bad as failing to require a down payment, it’s failing to track all those hardware leases.

It’s surprisingly easy to lose control of your finances, especially when it comes time for your customers to pay their leasing bills. Communication with your hardware provider is vital to stay on top of tracking unpaid equipment invoices.

How you handle your billing can be a little complicated, and you might feel left in the dark if your clients are paying on your hardware equipment leases, as your hardware company will not always notify you of received payments.

It can be hard to track invoices from your client if they are paid to your third-party provider. Your A/R can balloon out of control pretty quickly if you don’t stay on top of your incoming money owed from leasing out hardware.

Most MSPs are running thin profit margins on renting out hardware, so it’s crucial to make sure your clients and you are making payments on time. Developing a proactive approach to managing how you handle those payments can make a huge difference in keeping your A/R under control.

If you use ConnectBooster, you can avoid all that pain by using our integration with GreatAmerica Financial. It automatically tracks payments made to GreatAmerica Financial from your customers and makes sure to collect on those invoices automatically. Our software integration helps you stay on top of your A/R, without tracking down clients for payment every month.

Lease hardware without sacrificing your A/R

Those are some of the main items you should watch for when working on leasing out hardware to your customers. Offering hardware provides a much-needed service to your clients, but you shouldn’t have to sacrifice the financial security of your MSP.

Lay out a good strategy for managing the issues we covered, and use the right tools to streamline a lot of the pains of collecting on invoices through a hardware leasing company.

If you want to ensure your business accurately tracks payments from leasing hardware, see ConnectBooster in action.

The post What You Should Know Before Leasing Hardware As An MSP appeared first on ConnectBooster.

Often, an MSP is limited to two ways to process payments when using software to accept a quote. Either you’re stuck using a check, which as we’ve discussed before are dangerous and outdated, or forced to use credit card processing and pay a lot of various fees.

Credit cards are the way of the future, but when you’re a small MSP trying to make it, all those extra costs per transaction can chip away at your profit.

ACH payments are gaining popularity. More business tools, and payment processing companies are beginning to offer them to a lot of companies, but many MSPs aren’t sure if ACH payments are an option for them and will work with their existing tools.

So today we want to discuss the benefits of ACH payments, and whether or not they’re a practical option for your business.

What do ACH payments cost?

One of the main appeals of ACH payments compared to credit card processing is it’s cheaper, but is that true?

Let’s crunch some numbers.

Credit card processing can be a bit complicated as there are base interchange rates, and on top of that, there could be a flat monthly fee. So you could average anything between 2%-3% per transaction (or higher depending on your processing company), which adds up. 3% of a $1000 is still $30 a transaction.

What about ACH?

Well, there are still some costs associated with ACH payments, mainly some start-up costs of $200, and usually a minimum fee for not processing over a certain amount. But other than that you could be paying for under $0.80 per transaction! That sure beats the percentage cost for running a significant transaction with credit cards.

ACH is also a great way to accept payments from a security standpoint. Safer then checks, if you use a secured method of saving payments, you can easily keep your customer’s billing information securely on file, with the convenience of auto-pay for your MSP and your customer.

So is ACH worth it? Even though there is an initial set up cost, ACH payments are traditionally a cheaper option for many small businesses looking to save on credit card processing fees.

Do ACH payments work in quoting tools?

Traditionally, one of the main reasons a business wouldn’t take advantage of the low rates of ACH was primarily due to two factors.

#1 ACH wasn’t available through their payment processor
#2 ACH didn’t integrate with the other software products an MSP uses

Low costs are great, but not if it sacrifices the efficiency of your operations. ACH low price to accept payments is not worth sacrificing the time and inconvenience of working without your favorite software tool.

QuoteWerks is a great tool many MSPs use because it makes sending and accepting quotes to clients easy. In the past, you had to swallow the cost of credit card processing to use a tool that you loved and made your business run more efficiently.

Now, you don’t have chose between QuoteWerks and ACH; you can use them both!

QuoteWerks has partnered with us to provide your business with a cheaper method of accepting payments through QuoteValet.

We know that all businesses have many avenues of incoming cash flow from payments on quotes, invoices, service agreements and in person. Because of that, we worked to centralize the systems you use and have all your tools working together.

You can then add that payment record in QuoteWerks when you want to set up an auto agreement. You’ll never have to ask a client to submit a payment method or log in to your payment portal, ever again.

If your business is interested in switching to ACH payments to save money on your credit card processing rates, find out more about our integration.

The post Hate Paying Credit Card Fees When Using A Quoting Tool? Switching To ACH Can Save You Money appeared first on ConnectBooster.

Many of you already use QuoteWerks or other popular quoting tools and are probably wondering why this is such a big deal since the top quoting tools have had integrations to ConnectBooster and BNG Payments for years. We will explain detail below, however it all comes down to two major advances, ACH and Saved Payment Methods.

ACH payments in QuoteValet

When you present a quote to a client in QuoteValet, after they approve the quote they are able to pay for the quote directly in QuoteValet. In the past this was limited to just credit or debit card payments. With the new integration, ACH payments are now an option.

The game changer here is that ACH processing is a fraction of the cost of credit card processing.

This opens up instant payment on quotes to companies that saw it hard to pay credit card processing fees on quotes for products or services with razor thin margins.

What is a Saved Payment Method?

When you go to a major e-commerce website to buy a product you are given the option to save your credit card for future purchases, this is a saved payment method. Now imagine that same concept, but in your quoting software.

With this new integration you are given the option of using BNG’s secure and PCI Compliant Customer Vault to store credit card and ACH profiles for your clients, the same industry leading technology used by ConnectBooster to store payment data for auto pay on invoices.

When you client approves a quote and fills in their payment details they are prompted with an option to save it for future use. The next time you present a quote to them they can select any of their previously saved payment methods, no need to fill in the same info over and over again.

The easier you make it for someone to pay you for something they already agreed to, the faster you get paid and the less friction your client feels.

We are focused on improving your cash flow

If you have been a ConnectBooster partner for any length of time, you have probably felt our passion to get all payments into your business as easily as possible. This integration with QuoteWerks is a big step towards this goal.

We know that all businesses have many avenues of incoming cash flow from payments on quotes, invoices, service agreements and in person. The more we work to centralize the systems and get all the tools involved to talk together the better it is for you. It becomes a more consistent, fast and secure experience for your clients.

How do I get ACH and Saved Payment Methods in QuoteWerks?

If you are like many and already have ACH for ConnectBooster and also have QuoteWerks, all you need to do is follow a couple steps to configure the new features in QuoteValet. You can request instructions by emailing support@connectbooster.com

If you would like to get pricing and more info about ACH processing request that here.

The post Getting Paid on Quotes just got more affordable, easier and better with ACH appeared first on ConnectBooster.

It’s important for MSPs to follow best practices; especially when you’re working on your business’ security. One of the biggest oversights you can make pertains to how you handle payment and credit information. That data creates a significant risk for IT services companies.

There’s a cost to those who mishandle that information, including harm to their corporate image, customer loss, and other potential financial and legal consequences (i.e., lawsuits, fines for regulatory non-compliance). If your company is not doing everything possible to keep its clients’ financial information secure, your reputation and very livelihood could be at risk.

Security is always a bit of a moving target. However, when it comes to handling payments, there are a couple of business practices that privacy and data protection experts no longer recommend that you and your clients should know.

One of the biggest changes is to stop accepting checks as a form of payment. Those information-rich papers are not safe for you or your clients. In fact, according to security experts, it might be the least secure payment method for exchanging money and completing business transactions.

Why paper checks are risky

It would take hours to list all the problems that come to those who write and accept paper checks. Let’s focus on the main business concerns for MSPs and their clients.

Paper checks include a lot of personal information that, the wrong hands, can have dangerous implications for your clients. They contain a variety of information that could compromise their privacy and security, including account and routing numbers that anyone could copy down and use for fraudulent purposes.

Checks are also pretty simple to forge. Someone with rudimentary photoshop and copying skills could easily replicate these forms that have barely changed over the past 30 years. Compromising your clients’ bank account information won’t take much effort ‒ all it takes is one opportunist with bad intentions with access to a single check.

These payments also tend to go through a lot of hands on the way to the bank. Clients’ checks may be delivered through the mail, dropped on your front desk, passed along to the accounting department, and may sit for a while before being processed, deposited, and (hopefully) shredded.

Every minute of delay increases the risk. Anyone entering the office (including cleaning crews, contractors, visitors, etc.) could swipe a check or quickly write down your clients’ account information.

When you start thinking about all the ways someone could easily steal that small piece of paper, you begin to doubt the security of these payment transactions. There are much safer and faster ways for your MSP to get paid.

Security experts don’t recommend paper checks

There are a lot of reasons for concern. While checks are one of the oldest forms of payment ‒ other than cash and precious metals (such as gold and silver), the latest transaction options are more secure.

Fraud experts are sounding the alarm on the safety of checks. Frank Abagnale, the former master-criminal and check-forger, who later became FBI security consultant, points out a few of the problems.

“I personally write very few checks. Here’s the reason: if I write a check at Walgreens or CVS, I’m leaving that behind with the clerk. And on that has my name, address, phone number, my bank’s name, and address, my bank account number, routing number, and my signature. And if that store clerk writes down my driver’s license on the front of the check, in nine states—including the one I live in—that’s my Social Security number, too. Then, next to it he writes my date of birth.”

Your company’s image is everything. If your business accepts paper checks and someone captures and misuses your clients’ account information, it will cause significant damage to your reputation.

Not only does that payment process feel outdated, but your customers have to hope their payment doesn’t go missing in the mail or something doesn’t happen after delivery. Having their account information copied and their bank account drained won’t be good for business.

There are lots of other ways checks are risky, but what we mentioned above are some of the main concerns. Fraud experts warn of the security risks of checks. Frank Abagnale, the former check forger, turned American security consultant, points out the problems with checks.

“I personally write very few checks. Here’s the reason: if I write a check at Walgreens or CVS, I’m leaving that check behind with the clerk. And on that check is my name, address, phone number, my bank’s name, and address, my bank account number, routing number, and my signature. And if that store clerk writes down my driver’s license on the front of the check, in nine states—including the one I live in—that’s my Social Security number, too. Then, next to it he writes my date of birth.” Frank Abagnale.

Your image is everything, and you can damage your image if your business keeps accepting paper checks and someone nabs your clients account information. Not only does it feel outdated, but your clients have to hope that their check doesn’t go missing on the way to your business, or have their account information copied and their account drained.

Not only does that payment process feel outdated, but your customers have to hope their payment doesn’t go missing in the mail or something doesn’t happen after delivery. Having their account information copied and their bank account drained won’t be good for business.

Better options are available

Paper checks elevate the risks for both you and your clients. With that in mind, many MSPs may not want to pay extra to accept and process credit cards. The good news is it’s relatively easy to sign up for a secure payment gateway solution for ACH transactions.

That switch makes it impossible for anyone in your business to access clients’ bank account and routing information. Those funds can be quickly deposited instead of waiting for checks to arrive via the mail and go through the manual transaction process.

There are easier and more secure ways for your clients to pay their bills. Checks are risky, simple for forgers to copy, and have a higher chance of being lost en route. The sooner your clients have a better option for paying your invoice, such as a secure payment gateway, the quicker you can lower your mutual risks.

Want to see how secure accepting payments can be? Contact us for a demo, and give your clients the peace of mind their payment information is protected.

The post Why Paper Checks Are Not A Secure Form Of Payment appeared first on ConnectBooster.

When we encourage MSPs to streamline their cash flow, we’re not using it as a trendy catchphrase. Our intent is to stress the importance of automating all your business processes so you get paid as much as possible.

In an ideal world, customers would always pay every bill on time, and your business wouldn’t have to do anything to make that happen. But we all know that’s not the way it actually works.

For most service businesses, collecting payment for the work they perform can be a tedious and painfully slow process. It often requires a lot of manual effort and tediously long waits, with many opportunities for human error. All of those work against streamlining your cash flow.

So how do you actually simplify those processes? In many cases, all it takes is a few small changes to your operations.

Adapt to streamlined solutions

Now we all know automating any process does not happen overnight. Any change will usually be met with some sort of roadblock or pushback, especially from end users.

For instance, some teams might actively resist any modifications to their routines or being forced to use new solutions. Or you may find it’s going to take your accounting department a couple days or weeks to set up a new payment processing and collections platform.

All of the initial steps will take time, and there may be some complaints along the way. But the momentary hassles should far outweigh the tedious manual processes your business may have dealt with in the past.

It all comes down to accomplishing your long-term goals.

Replacing the most tedious, mundane tasks with automated solutions and tools will allow you to focus on more important things. Manual payments slow cash flow and keep MSPs from scaling their businesses. Handling each and every process is costly and inefficient, and unsustainable for companies with aggressive expansion plans.

What your cash flow should look like

The transition doesn’t have to happen overnight. Your business can start making the switch by onboarding all new clients on autopay, and slowly move existing clients over as contracts renew or get upgraded.

With 80% of your customers on autopay, you’re suddenly able to forecast your revenue and track your growth.

Then you no longer have to argue about cash flow problems in company budget meetings. No need to spend hours figuring out why the firm is hundreds of thousands of dollars short of its goals. Automation helps you make more sound business decisions and determine the best time to hire staff or develop new services.

The less time you have to spend on managing your cash flow, the more you can focus on adding new customers or improving support options for existing clients. That’s the power of automation.

Once you take time and sort out your cash flow, everything becomes easier.

Ready to enjoy the benefits from streamlining your cash flow? Contact us today and we’ll help your business make the switch!

Check out how to cut your AR by 30 days and save hours every week with ConnectBooster!

The post Streamline Your Cash Flow: Focus On The Big Picture appeared first on ConnectBooster.

In an industry where hard work, expensive equipment, and a high skill set is a requirement, most IT service providers do not give themselves enough credit. Their labor often goes unrewarded thanks to their chronic late paying clients.

One of the biggest reasons is IT providers do not treat their business as a utility and tend to let payments slide. If someone doesn’t pay their internet bill, services get shut off, but MSPs frequently go ninety days or more, waiting for a client to pay for the thousands of dollars owed for equipment and support.

Providers offer high-impact services with the associated costs. That may be people, software, hardware, rent, or other expenses – just like any other business.

The truth is managed service providers should consistently receive money in a timely fashion for the services they provide. That expectation has been set in other industries that are just as business-critical, so why shouldn’t channel partners fall in line?

They can, and should. The first step is changing the way your business sets expectations in the sales process. Getting the payment conversation out of the way up front will improve the process and ensure IT companies have a much more reliable cash flow.

Build the infrastructure for fast payments

Often, a lack of structure in an MSP’s sales process leads to problems later in the partner relationship.

In general, providers do an excellent job explaining what their clients should expect from them. They develop, and layout fantastic SLAs and discuss all the finer points and processes associated with their IT services. However, they usually fail to set their expectations on payments and due dates.

It’s relatively easy to roll into the pricing conversation and discuss timelines, and whether billing will occur via ACH or using a credit card on file. That discussion needs to happen upfront; before any time or money is invested in a new client. An ACH authorization form should be presented along with the master services agreement.

This small change could have a significant impact on a managed services providers. It simply makes more sense to have the money talk before investing $10,000 into a client already sixty days in arrears on its support and hardware contracts.

If your company delivers great products and services, people trust your business, they will agree to your payment requirements. If they won’t, your sales team probably has not done a good job convincing them that your business is trustworthy.

There is no reason an MSP should not establish its payment expectations upfront in the sales process before the relationship has a chance to go south.

No processes? There will be consequences

In addition to souring the relationship, when the sales team fails to set payment expectation, MSPs often experience growth problems.

A lack of liquid assets or an unbroken line of credit will prevent you from hiring and retaining talent. When an MSP is financially unsound, it also tends to crush morale and lead employees to seek work elsewhere.

It’s tough to keep top talent, let alone recruit new workers. Turnover is a horrendous waste of time, money and other valuable business resources.

MSPs who continue to build recurring revenue and leverage automated payment systems reduce a lot of those pain points. They may not lose as many clients overbilling concerns and keep their staff in place, thanks to a more stable cash flow.

Once an IT provider has a process in place to set proper expectations and execute automatic payments, a lot of their pain goes away. Inconsistent cash flow is a thing of the past and growth ensues.

If you find yourself struggling to try to transform your MSP’s finances, please give us a call or contact us.

Check out how to cut your AR by 30 days and save hours every week with ConnectBooster!

The post Why You Deserve Consistent Payments From Your Managed Services Clients appeared first on ConnectBooster.

When I first entered the channel working at a Dynamics VAR, everything was very project-based. Time tracking, project-based billing, receiving of payments were all straightforward.

Automation wasn’t a key thing we were concerned with when we were billing on a project basis.

As things evolved within the VAR, we started to look at how to build more and more recurring revenue streams. Recurring revenue is where value is really built in a business and was a new concept to many traditional VARs.

Challenge of automated invoicing

One of the biggest challenges when transitioning to this recurring revenue model was how to automate invoicing.

Unfortunately, there were not that many great solutions to help provide this type of functionality.

While there were recurring invoicing solutions for Dynamics GP, they didn’t handle payments – meaning we could generate the invoices on a schedule, and even deliver them to the customer, but we had to manually handle the actual collection of payments.

Add that to the overall collection process, and we found this struggle was less than ideal.

Other solutions that required recurring billing and automated payments were expensive, old, and not fully integrated to the tools we were using to run our business. As a Microsoft partner we were leveraging both Dynamics CRM (pre-Dynamics 365 days) and Dynamics GP. We would manage our sales process and book orders in Dynamics CRM that would be integrated to Dynamics GP. To create a new recurring billing agreement we would have to go to other systems after booking the sale, set up the agreements, and have no tie to our CRM process.

As more and more partners are moving to this recurring revenue model, through CSP or as an ISV, we wanted to make sure ConnectBooster supported these processes with the tools partners are using.

Dynamics 365 for Sales

With that in mind, I am excited to announce the upcoming release of our integration with Dynamics 365 for Sales.

With this new integration, you will be able to leverage the lead to cash process of Dynamics 365, and when placing the order, simply fill in a few values to create a recurring billing agreement.

This agreement flows to ConnectBooster and can be setup for AutoPay, with a saved payment method. Once that invoice is generated on the schedule you defined in Dynamics 365, it will be automatically paid and the payment synced to your accounting package.

No more collections or manual entry of payments, saving you time and getting you paid quicker and more efficiently.

Come see us at CRMUG/GPUG Summit in Nashville in booth #768 and find out more about our great solutions for Dynamics 365 and Dynamics GP.

The post The Importance Of Recurring Payments for Dynamics Partners appeared first on ConnectBooster.

When running an MSP, we are expected to stay ahead of the trend and remain leaders with current technology in all aspects of our business.

But in reality, I know that’s not true.

Sometimes we let certain parts of business remain stuck in the past. My business, I-M Technology, especially struggled to manage the financial side of our business when it came to processing ACH payments.

We faced the same problems other MSPs do, and that was the slow and inefficient method of our clients’ payments were trapped at our bank, which cost our organization precious time and valued resources.

Small local banks are not the best

We previously worked with a smaller bank to handle our large volume transactions, and boy did that throw a wrench into our finances.

The biggest issue was managing our client’s transactions. The payment processors and banks didn’t understand my business, and wouldn’t budge when it came to limitations that affected our cash flow. Again and again, I was told to restrict the volume we were processing, and our bank and processor added gratuitous fees to enforce their strict policies.

If that wasn’t enough, the bureaucracy and “old school” manual methodologies slowed down payments for our work, which caused our A/R to rise and our cash flow to tank.

Processing ACH payments through our bank also negatively affected our customer and vendor relationships. When we had our money tied up at the bank and limited deposits due to their ineffective process, we had difficulty paying our suppliers and supporting our managed service clients.

Don’t get me wrong, our bank was full of good people, but they weren’t meant to handle our type of businesses.

When it came to things like ACH processing, local banks typically don’t have the facilities, technology, and mechanisms that MSPs need.

With a local bank here are some of the pitfalls:

• Fees are high as are transnational costs.
• Extra (and unnecessary) expenses because of fee’s that eat away at profits.
• You can’t scale your company with inefficiencies like this, and as you grow, you need a payment solution that delivers more.

Cash flow is everything. If you don’t have money available, it’s much harder to manage your business. As the Bible says, “the borrower is the servant to the lender.”

If you have to ask for your money and be stuck with the bank’s terms, it puts you in a weaker position. That can lead to begging and borrowing, and figuring out which vendors to pay each month. No one wants that.

We found a better way take process ACH payments

Eventually, our company ditched the slow process our bank offered for ACH and turned to ConnectBooster.

We now have a client portal where our customers can manage their transactions and review their statements and invoices. And the integration with ConnectWise also gives them access to their individual billing information.

Everybody who does business with us pays on an ACH managed services agreement, because it’s cheaper than credit cards…and our clients love it. From a collections standpoint, our transaction rate has dropped to an average of 20 days (or less).

It blows away our old method of handling ACH payments out of the water. Eliminating the fees from our bank more than paid for ConnectBooster. The cost of entry was less than what we used to spend on ACH fees at our bank. We gave up nothing and added some benefits for our clients.

Between adding ConnectBooster and integrating it with ConnectWise and our accounting software, our cash flow is transformed. From the initial invoices to the last bank deposit, each step in the billing and payment process is handled by the applications with minimal oversight.

Banks and processing companies often put up unnecessary hurdles and make it difficult for MSPs to manage their money. We made the switch to position our company as a technology leader in the MSP world and transitioned away from the old, inefficient way of processing ACH payments.

Final thoughts

Being an MSP means being a leader in the world of technology, automation, and security.

You can transition your business like I did and save all the pain that come from using a bank to handle your payment processing. There’s a better way to operate your finances, and your money doesn’t have to be tied up.

About Stuart Bryan

President of I-M Technology, LLC, a leading managed IT services provider serving CT, MA, and RI. Stuart has a broad base of knowledge in the areas of business, and IT infrastructure. Frequent IT commentator with articles published in leading industry magazines. He lives in the quiet corner of CT with his wife, daughter, a cat and a dog.

To learn more about his company, click here.

The post How to Avoid Bank-Instituted ACH Payment Restrictions appeared first on ConnectBooster.

In fact, it’s the one process virtually every business owner dreads having to do, especially when they have to go through it so often.

Anxiety over billing is one of the many reasons why MSPs need to shift their approach. Instead of taking time out of their busy schedules to create and send invoices, they could be closing new deals and securing renewals.

Or proactively expanding their support team and figuring out to manage more of their clients’ information systems. MSPs have too much on their plate to deal with repetitive back-office activities.

The shift toward automation explains why a growing number of MSPs don’t waste time on paperwork. In fact, many MSPs are beginning to follow the best practices of their peers.

The advice shared by other MSPs who have already “been there and done that” is highly valuable to those who haven’t — and this part of an IT services business is no exception.

After all, implementing a payment processing solution is relatively easy to do today. Many accounting packages already offer it as an option, and dozens of companies are more than willing to help your firm accept and process credit cards.

Virtually any type of billing and payment service you’re interested in is available with a few simple clicks of your mouse. But that doesn’t make the vast majority of them especially useful for MSPs.

In fact, relatively few are designed specifically for the IT services community, and they don’t integrate well with the tools and systems tech businesses rely on.

Payment processing is not a one-size-fits-all proposition. What works for a small (or even a large) retailer may be a poor fit for a managed services firm. MSPs deserve better — and have better options to choose from.

Emphasis on control, monitoring cash flow

Retailers are about quantity.

They need to process a high number of transactions in a short amount of time. That’s an important thing for the tech community, too. MSPs have to be able to get their cash quickly, just like high-volume industries like retail.

But you also need to have control.

Ideally, you must adopt a method where you can manage your billing, accounting, and payments processing, all from one place.

The concern has less to do with converting charges to bank deposits (most systems are quite similar on that end), and more to do with governing the timing and building an MSP’s backend workflows.

The real value for IT services firms is being able to manage it all from a single, user-friendly portal.

Cost-effective and purpose built

When the quantity of payment processing is large, the charges can be astronomical.

Large retailers often negotiate fees downward based on the volume of business they do.

Small IT services firms have less leverage and in some cases, actually, end up paying processing companies thousands of dollars just for converting credit card charges into bank deposits.

ConnectBooster is a much more cost-effective option that also auto-reconciles all your transactions. MSPs never have to wonder which payments are applied to which invoices, ever again.

Credit card and ACH payment processing is part of the solution, and the gateway is all theirs (not a 3rd party organization). It truly is an all-in-one solution purpose-built for managed services businesses.

Connections

Retail-oriented payment processing companies are a dead end for IT companies.

They offer little value other than the ability to make a transaction. Basic customer information may be downloaded or imported into other applications, but those extra steps just add to the frustration and list of tasks MSPs need to deal with.

IT companies rely on automation.

With ConnectBooster, payment processing is a seamless endeavor for MSPs, with all transactions immediately updated and available for review. It maximizes cash flow, and the personnel costs associated with billing and account receivable virtually disappear.

Integrations are crucial

For example, ConnectBooster links your agreements, your billing, your payment processing, and your accounting details into one seamless dashboard.

It’s easily integrated with Autotask and Connectwise, as well as most the most popular accounting platforms in QuickBooks cloud and on premise, Xero, and Great Plains. The benefit to you is creating a seamless platform where MSPs can set it and forget it. This solution even auto-adjusts for variable billing, one-time payments, as well as recurring billing.

To save you time, you need to be able to leverage key managed services tools to improve your cash flow and reporting options.

Payment processing solutions designed for retailers just don’t offer all those valuable benefits to MSPs.

Take a look at this demo

Check out the ConnectBooster demo page to see how the ConnectBooster platform can make that happen with your specific PSA and accounting package.

The post Are You Still Using Payment Processing Programs Built for Retail Stores? appeared first on ConnectBooster.

My company has been doing ConnectWise consulting for about 11 years.

In that time, we’ve seen dozens of good tricks. And I mean dozens of them. Really good ones that you won’t find published anywhere online.

In my consulting practice that I’ve had the privilege to be a founder of, we’re big fans of sharing.

So I want to share my top 5 time-saving factors an MSP can use to automate their PSA software. These are really good tricks, direct from our clients and our colleagues, on the best ways to utilize ConnectWise.

#1 Map your default agreements

When setting up agreements in ConnectWise, you want to make sure that document is the default on any new service tickets created for a company. This will prevent billing mistakes with your technicians.

When technicians go to enter their time on a service ticket for a client, they’re not thinking about what agreement should be applied, and the service manager or dispatcher may be too busy to do an accurate time check. If that ticket hits the bookkeeper’s desk and they start running that invoice with incorrect information, they will have to go back later and change everything.

If you make it part of your workflow when creating a new company to attach the proper agreement, it just hid a seamless manual task and automated a task that normally takes up your precious time.

#2 Workflow annual increases

Nobody likes forgetting to up your annual increases for clients.

It’s a loss of profit when you do, and you should be increasing your profit gains every single year.

Your clients do not want to be reminded about price increases, and you can’t count on them to bring it up. Create a workflow rule that alerts you via an email and activity that an agreement anniversary date is coming up in the next thirty days. That gives you plenty of time to go in and add that two and a half percent increase. You can even use a pre-formatted email with language giving you that nudge to increase a client’s Agreement. You put it in the contract or talk to a customer about it, just that little reminder to do it.

It may seem simple, but remember you could be missing out on a 1-2% automatic profit increase on each of the clients you serve without it.

#3 Minimize your work roles and work types

You never want to put yourself in the position where you’re making custom work roles and types for every single client.

You don’t want to start making work roles based on individual deals you negotiate with people. Keep your core work roles, and customize those at the point of assigning them to that individual customer.

Keep your work types to a minimum and fairly generic, and customize at the company level, not the setup table. The more options you give technicians and dispatchers, the more likely they are to select the wrong one.

Let them be expert technicians, not expert admins.

#4 Invest time upfront in invoicing email templates

We want to spend the time up front in different invoicing email templates.

Make sure, especially when starting to use the ConnectBooster payment automation tool, that you have an email message templated. Something like “thank you for your payment, your credit card on file will be charged.”

You don’t want a template that’s confusing or vague. Instead of using the generic message from ConnectWise, customize the process using a variety of email templates with clear and detailed language.

Avoid any excuse for your customers to delay payments. Your bookkeeper’s job will be much easier if the messaging is clear and concise right from the beginning.

#5 Build out your Charge Codes to avoid redundant tickets

Many MSP’s create internal service tickets. They have the weekly company meeting service ticket, or internal support services as a ticket. This leads to endless clutter on your service board and doesn’t reflect how long each department is spending on internal work.

You want to minimize the internal tickets by using Charge Codes. There are two reasons for this:

1). The process keeps service boards clear and makes the job much easier for the dispatcher. Charge Codes eliminate all the tickets they would need to keep track of for internal activities.

2). Owners or business managers can see exactly how many hours are on each Charge Code on their financial dashboards, eliminating the need to run multiple reports.

Charge Codes allow leaders to see exactly how much time is spent on each activity, and let them know what can be cut down on.

Final thoughts

It’s critical to implement these automation steps to get the most value out of your PSA.

If you don’t set the tools up correctly, and use all the functions properly, you might as well not have them at all. You might as well just use yellow legal pads and keep life confusing. It’s worth the time to get your PSA properly configured and save tens of thousands of dollars each year, and remove all the frustration and headaches. Once you have your PSA software set up for success, schedule a demo of ConnectBooster and see how we manage invoicing all of our clients. 

About Josh Peterson

Josh Peterson is the founder and CEO of Bering McKinley. With over 15 years of management consulting experience in the industry, Josh has worked with 1000’s of IT firms. Josh loves taking companies over that Million Dollar mark and beyond. Since IT firms are the only focus, Bering McKinley is the go-to expert for all things Financial, Sales, and Service Delivery.

The Bering McKinley team serves the community through direct one on one consulting, workshops, and Peer Teams. Bering McKinley is also the oldest running ConnectWise consulting firm serving their users for over ten years.

Beyond consulting, Josh loves playing poker and recently played in his first WSOP event. He recently completed (ran would be an exaggeration) his first NYC Marathon and is currently learning how to fly airplanes.

The post 5 Secret Types of Automation That Will Save You Time In Your PSA Software appeared first on ConnectBooster.

Money in your bank account, not tied up in accounts receivables, looks good on paper but it doesn’t help when it is time to write the checks.

Not to mention when that money isn’t in your bank account, you can’t spend money on the things that will help you grow your business like sales, marketing, payroll, etc.

We make your cash flow better.

ConnectBooster is designed to help your business maintain consistent cash flow, and help you manage aging invoices.

Our payment automation software lets clients pay you directly, at any time of the day. It also allows for the convenient choosing of payments preferences in ACH or credit card, and even handles recurring billing from agreements and contracts.

Unlike other autopay software, ConnectBooster creates a secure payment gateway, allowing clients to settle their bill with ease.

ConnectBooster allows for flexibility, so your clients can authorize payments for recurring agreements with an adjusted monthly rate, a percentage of the payment amount, and a ‘do not exceed this amount’ of payments.

If you want to increase your cash flow, it’s easier than you imagined. Manage your income with ease, and take the work out of getting paid.

Here’s what one partner has to say about increasing cash flow. Cris Schalleur, partner Christo IT Services had serious cash flow problems before ConnectBooster, now it’s a completely different process.

“Our invoicing prior to ConnectBooster was a nightmare. We would spend over eight hours per month manually processing invoices and credit card payments. Now it’s just minutes” -Chris Schalleur, Partner.

Christo IT Services also does not have to worry about whether or not they are being paid correctly every month. ConnectBooster gives Christo IT Services to have peace of mind that they are being paid correctly.

The post My Cash Flow is Better With ConnectBooster appeared first on ConnectBooster.

In our research and conversation, we’ve found QuickBooks users to be less than thrilled with the change. And in the IT channel, we’ve found complaints on various forums.

Our sales team is hearing it too. They’re hearing things like “Intuit Payment Network shutdown and I need to find an alternative.”

Why are there so many complaints about Intuit’s payment solution, and what can you do about it?

What we’ve found is this issue stems from two majors problems. Let’s explore the two flaws.

Software problems.

At the present time, Intuit has difficulty with the software randomly shutting down mid-session.

This problem persists even if you update to QuickBooks 2016.

For this reason, many users are frustrated since you need to enter invoices manually.

This is a massive hurdle for your accounting staff. Imagine being almost finished with reconciling invoices and suddenly losing all of your progress.

Support problems.

In addition to random crashes, Intuit Payment Network has serious support problems and is slow to address them.

They either do not have helpful answers for solving payroll and invoice problems, or are difficult to get a hold of.

A lot of the forums mention QuickBooks only responds to service calls on weekdays. As a small business, if you’re an owner and also acting as an accountant, you’re most likely trying to catch up on administrative finances on weeknights and weekends.

Another complaint comes from withholding funds. There are several complaints of merchants finding if they run a large transaction, QuickBooks can hold your funds for up to 180 days!

There’s a better solution.

For example, our software handles two very important parts of your overall payments process.

First, we work with your PSA like ConnectWise and Autotask, to simplify your company’s accounting and reduce the workload. We execute this by auto-reconciling all your transactions. You’ll never have to reconcile or wonder which payment gets applied to which invoice, ever again.

Second, our solution not only automates the reconciling process through our SaaS, but the actual processing of credit card and ACH payments is a part of our solution.

We run and manage our very own payments gateway, so you’re not using another 3rd party solution. It’s all one solution.

• We save you time by automating your billing through ConnectWise and Autotask.
• We save you time and money through the ability to process payments in our own gateway.
• We save you the minor annoyances of never again having to reconcile accounting transactions.

Want to fully integrate your PSA with your accounting and billing?

Interesting in switching to a better solution?

Click here to see a demo of how our software integrates with QuickBooks and QuickBooks online.

The post QuickBooks Intuit Payments: Why There’s a Better Option appeared first on ConnectBooster.

We recently surveyed our customers and asked them what benefits they needed in a payment solution for their IT firms.

You and your peers answered by telling us that you need a payment solution that had the ability to offer multiple and flexible payment methods (including ACH).

As a result, taking payments through ACH is a huge win for your IT firm and clients. However, it usually adds an additional step into your workday, and additional hassle not worth the effort.

Accepting ACH payments is not that hard.

Adding ACH as a payment option for your clients is not as difficult as it seems. If you have the right integration tool with your PSA, it’s a breeze.

Because ACH payments with ConnectBooster allows for flexibility, your clients can authorize payments for recurring agreements with a adjusted monthly rate, a percentage of payment amount, and a ‘Do Not Exceed’ this amount of payments.

Flexibility and scaling are important.

PCI Compliance is critical.

Finally, another example of how easy ACH can make your life easier is by being PCI compliant. With ConnectBooster your customers log in into a secure, PCI compliant portal. Consequently, while in the customer portal, they simply enter their payment information, and this data is then saved or entered on a one-off, single invoice basis.

The beauty of this PCI compliant portal is the protection it gives both you and your clients. It also tracks IP addresses, in the case of fraud, when someone else logs in.

An added benefit to you is the ability to use our parent company, BNG Payments., for the actual payments gateway. This gateway moves money directly into your bank account by the payment processor.

Say the word.

ConnectBooster offers immediate relief. Let us help you take control of your finances and streamline all your payment options. Learn more about ConnectBooster by checking out our demo videos.

The post How Your IT Firm Can Avoid ACH Hassles Through Integrations with ConnectBooster and Your PSA appeared first on ConnectBooster.

Whether your IT solutions business uses ConnectWise, Autotask, or Tigerpaw Software, there’s more to your PSA than using it to manage your monthly expenses and support tickets.

While they usually do a lot for your business, chances are, you’re not using your PSA to it’s fullest potential.

There are vast amounts of tasks a PSA can perform for your IT company that you’re simply not aware of, might be aware of, and are using in a very limited way. We often see businesses only scratching the surface of all the ways a PSA can assist in automating their business.

Today, we’re dedicating time, just for you, to cover a few of those features you may overlook. In the end, we’re going to explore four easy ways you can use these tactics in a PSA to their fullest potential.

Tracking your time

In another post we stated this:

“100% of an employee’s time is billable…It’s costing the company that you work for or it’s costing the customer…as long as it’s tracked, we can evaluate whether or not how someone in the company’s time is billed properly” (ConnectBooster).

Using a PSA to track every minute of time is one of the best ways a business can grow. Treat everyone’s time as a billable asset to your company, from your interns to the president of your company.

Don’t just fill in that you worked 8 hours for the day, break down your time on each project for maximum efficiency.

Autotask prides itself on it’s automation of project workflows to consistently hit targets with increased visibility for project and event tracking.

Detailed ticketing

If you’re just using tickets to receive IT service requests, you’re missing out.

Service tickets can be used for more than simple IT requests for service. You can create service tickets to track employee projects, time that owners spend on specific tasks, and even marketing.

When you take the time to create specific tickets for projects and services, you’ll be able to have an accurate account of all the time spent.

What’s more, in Connectwise for example, you can add costs and expenses into the service ticket, so you’ll ultimately know exactly all the work or installation costs that went into that specific service ticket.

The devil’s in the details. Let detailed ticketing help your business. You’ll be glad you did.

Managing projects

Use the benefits of your project functionality in your PSA to help plan for your events.

For example, when you are going to run a promotion through sales or marketing in ConnectWise, you can enter the completion of the “yes” to attend event, contracts signed, the amount of money spent on the event, and even the actual cost for that specific promotional sales event.

You can also build custom projects under the tabs in your PSA and budget report along with it.

Managing projects and tracking time has never been easier.

Simple invoicing

We work extensively with companies like ConnectWise and Autotask and their billing integration into their software.

If you’re using tickets and time tracking features correctly in your PSA, billing annoyances should become a thing of the past.

For instance, ConnectWise puts important financial information at your fingertips, allowing you to manage your service agreements through agreement automation, then automate the collection of time, expenses, and products.

This data is then available for simple invoicing, and it all sync’s your clients data directly into your accounting package.

This way you’re tracking every aspect of your client’s invoice to be as detailed and correct as possible. This creates a peace of mind for your billing office, and the client on the receiving end of the bill. Your IT client can see an account for every step you took on their project, through the specific service ticket.

Want to fully integrate your PSA with your accounting and billing?

Read here how your peers learned how to further improve their IT businesses through what ConnectBooster did for them, along with a fully utilized PSA software.

The post 4 PSA Features Your IT Firm Is Not Using To Their Potential appeared first on ConnectBooster.

It’s sole existence is based on waiting for problems to arise, and then fixing those problems. It can bring out the worst in people on both ends of the issue.

As an MSP, your business thrives on customer service being at it’s best to retain customers.

So if you find that your company is struggling, here’s our cheat sheet to having amazing customer service for your IT clients.

Do you have a goal for your ticket resolution time?

Do you have a turnaround ticket time for your company? And is your team actually meeting that goal? What is your goal?

A lot of times, MSP’s set unreasonable goals for their technicians to resolve a problem. Try timing your team and see where they are falling, timewise.

If they’re struggling to resolve service tickets in a reasonable time, try investigating into what’s causing the delays.

For example, is the CRM/PSA you’re using not notifying your team of the tickets sitting in the que? These are all issues that could be preventing your team from solving service requests quickly.

Do you have an automated email followup?

This may seem like a small detail, but having an automated email that sends immediately after a client submits a service request can give your clients a bit of peace of mind. Ensuring this email is going to the right people is also critical.

That email, even if it’s automated, shows that your clients’ ticket has been received, and assures your clients that you’ll be following up with them. It’s a simple task, but it goes a long way in creating a trusting relationship between you and your clients.

Are you fixing problems before they start?

What’s your business model for your IT firm? Are you a company that likes to wait for people to call, and then bill out per problem? Or do you have a managed service contract in place that covers your clients, from a billing perspective? In your managed service agreements, are you proactive with an RMM tool that you’re billing, or are you simply waiting for your IT clients’ to call you?

You’re going to have more stress and frustration coming from your clients, without having the proper expectations set up front.

For example, instead of waiting for problem calls, do monthly tests and check ups. This means your IT clients will not be afraid to call you for smaller issues, and less likely to let small issues become massive ones.

Are you recycling problems?

Are you noticing multiple calls coming in about one particular problem? Are businesses on this side of town are experiencing power or broadband outages? Are specific types of servers malfunctioning? Are your IT clients’ struggling with broadband because they don’t have network redundancy?

Pay attention to themes and patterns, and make a sort of quick guide to fixing them problem.
Even better, if you can, send out a “heads up” email to your clients, mentioning the problem, and giving instructions on how to fix the problem, helping you lower your call times. Use email marketing services like MailChimp to do this, or better yet, use the Campaign Director function inside of ConnectWise to help you deliver this “heads up” message.

Are you making it easy for clients to pay you?

If you don’t have any sort of automated billing setup, it can be a pain for your clients to pay you.

If your business model is a wait-and-break-approach, and you take the same wait-to-get-paid-approach with your invoicing, then you need help. Automation within your PSA, like Autotask or ConnectWise, can help you setup your billing for faster collections than you ever thought possible. As an added bonus, the automation we offer can help your IT business by integrating into your PSA as well as QuickBooks on-prem and QuickBooks cloud.

When you have a payments solution that integrates with ConnectWise or Autotask, you avoid those uncomfortable collections conversations from the very beginning.

It creates stability for your customers, and for yourself.

Learn more about simplifying your billing

Read here about how your peers have solved their ticketing, and payments issues. These free, downloadable case studies are sure to educate your MSP on how to alleviate your most basic A/R annoyances.

The post The Ultimate Cheat Sheet On A MSP’s Customer Service appeared first on ConnectBooster.

QuickBooks is one of the best-known accounting software available today. Over the last several years they have continually received praises for their stuff, and have a quality product.

But is QuickBooks a good fit for your business?

Let’s compare and contrast

Anyone who loves making a pros and cons list, you’re little heart is going to overflow with joy (We love it too).

Just a heads up, since there are multiple packages of QuickBooks, we’re going to give a general overview of the software.

[Authors Note: We actually consulted our company accountant for this, we wanted an insider view into what it’s like from a user standpoint].

The pros and cons of QuickBooks

QuickBooks Pros:

• User friendly
  Integrates with other programs
  Cost efficient
  Great for an SMB

Cons:

• Not robust software
  Not great for a larger business

That’s a quick summary, let’s go deeper into each aspect.

#1 QuickBooks is user friendly

QuickBooks has the reputation of being a user-friendly accounting software. It’s been developed to be great for those who aren’t master accountants. It’s easy to use, even for individuals without accounting backgrounds can figure it out (although, a background still helps dramatically).

#2 Integrates with other programs

QuickBooks can easily work with other programs to make your accounting records smoother. One of the great benefits of QuickBooks is you can take a CSV or Excel file report and integrate it into QuickBooks.

This feature makes your accounting far more accurate and less likely to miss any expense reports. It also allows you to create multiple reports for multiple companies (great for tracking different locations’ expenses).

#3 Cost-efficient

QuickBooks is very affordable for small business owners. Ranging from $9.99 for the basic option, and $39.99 for the more advanced edition. Any small business owner knows that’s a pretty small chunk of change for an essential service to run your business efficiently.

#4 Great for small-to-medium-sized businesses

This is a bit tied into the points above, but QuickBooks is ideal for smaller businesses since it’s easy to integrate with everyday programs and does require a lot of advanced study to use.

When you’re first started your business, simplicity, and ease of use is vital. As you grow, you may want a more complex accounting software, but for starters, it’s a great fit.

Now, let’s get into some of the cons.

#5 Not great for larger MSPs

As much as we love QuickBooks, we can’t honestly say it’s a great solution for larger businesses.

QuickBooks is limited in what it can or can’t track, and if you’re a company of over 100 employees, or growing close to that, QuickBooks will not serve your company the best.

When you have a company that large, you need accounting software that can pull off some complicated reports, and QuickBooks is just a bit too simple for that (even the most advanced option).

#6 Not a robust software

Connecting to the above point, QuickBooks does not have some of the advanced software features that a larger business needs to keep running smoothly.

While a more sophisticated program is more expensive, it will better serve the needs of your company and keep track of every cost.

#7 What about the variations?

We love the Enterprise edition of QuickBooks, and they are a step above the basic QuickBooks model. It has some more advanced features that your accountant will need to run your company’s accounting. It’s still a user-friendly experience, but more suited for those with an accounting background.

QuickBooks Online is the newer edition and has some benefits, such as being a traveling option. You do not have to be chained to your desk to work on your accounting.

How does QuickBooks work with billing?

QuickBooks integrates with multiple billing solutions on the market. If you want to see how QuickBook users are saving countless hours a month on tedious billing tasks, see a free demo of ConnectBooster. 

The post 7 Pros and Cons of QuickBooks for Your IT Firm [Part 2] appeared first on ConnectBooster.

Our friends at ConnectWise recently published a blog about the trials and tribulations that may be standing in the way of your business gaining profit. As stated in ConnectWise’s blog:

“You put a lot of time and effort into your business, so you desire to see your profits reflect that hard work.”

We couldn’t have said it better ourselves. Your passion for technology and business growth and development shouldn’t be crushed by obstacles that can be prevented.

Friendly Advice from ConnectWise

• Time is Money! Track all of your time. It is easy for techs to spend their time solving a problem, but forget keep record of that time and make it billable. Don’t let that extra time slip away from you!
• Master your cash flow. We also stress this point. Critically evaluate spending. It is like personal spending, little things add up.
• Ensure your price is right. Know the market and pay close attention to it. Your clients know what they want, so make sure you are reaching out with surveys, calls, or emails to find out what they need most. Compete on VALUE, not price.

Implementing these best practices is critical when focusing on business growth and success.

Read more about what ConnectWise had to say at https://www.connectwise.com/blog/whats-standing-between-you-and-your-profits/

Help Your Business Succeed- Get Paid On Time

What do you do when your business implements all of the above, yet still has aging A/R and non-paying customers? These are everyday headaches for some businesses. ConnectBooster’s mission is driven by our commitment to automate your MSP’s most important business function: getting you paid on time, every time.

ConnectBooster automates the manual process that might be digging your business into a hole and makes it easier for your client to pay you, so you can focus on other ways to grow your business.

You are not alone

The ConnectBooster integration helps you get paid faster, while also making the payment process easier for your clients. Feeling struggles within your billing process? You are not alone. Your peers overcame the same obstacle and even lived through it to talk about them.

“The process before ConnectBooster was a manual one. We would have to process each credit card transaction, then go into Quickbooks to process each transaction. With ConnectBooster, we were able to cut our payments processing time from half of a work day to minutes,”  Joy Beland, managing partner of LA IT Girl, told us.

See what other IT professionals had to say about their billing process. Check out case studies here.

Learn More

Learn more about what ConnectBooster’s integration can do for your IT company, call us to schedule a free demo at 877-733-6584 or email: info@connectbooster.com

The post 3 Methods to Contribute To Ultimate Growth and Success of Your Business appeared first on ConnectBooster.

As times continue to change, so does technology.  Changes in technology generally ends up making things easier, like getting paid! ConnectBooster is the exact change you need to make to help shrink your A/R. If you are already smart enough to be using ConnectWise and QuickBooks why not take the next step and automate the whole enchilada. Learn how ConnectBooster can turn your business system into an automated streamlined system so efficient you won’t know what to do with your extra time.

My Generation (people try to put me down…)

I recently reflected on the age difference within the company that I work at, ConnectBooster. To begin, you should know that I am 53 and blessed to be working with people half my age and this age difference creates many opportunities for humor, learning & did I mention humor?

When my generation built something it was done with concrete and steel, this generation uses 0’s and 1’s. We built things to last for decades they build things that can be changed in a moment. We bonded with jokes during coffee breaks they bond during Nerf Gun Battles. We used pencils and calculators to balance the books; they use mobile devices and automate the process. We created Classic Rock, they’ve got….nothing. (Sorry, but I call them as I see them.)

Come as you are, as you were.

Now here’s where I really begin to show my age. Back in the day, shortly after stone tablets were replaced, balancing the ledger was done with a calculator the size of an Otis Elevator. It would stream out paper like a Charmin factory on crack and the process could take days. Today’s generation doesn’t even use computers to receive payments; they have them but don’t use them. They automate their payment processing with software like ConnectBooster and they do it while they sleep! Dwell on that for a moment!

Taking Care of Business.

Making money while you sleep. I’ve often thought that would be a career I could excel in. This ConnectBooster idea is about leveraging your time. It frees you up to do other things like paint the garage or eliminate that nasty slice in your golf game. (By the way, both of those are in our next software upgrade, but only if you order today!) You know, time moves slowly and unless we move quicker than those around us we will never create separation. Now is the time to commit to getting paid without expending additional energy calling on past due debts. That gets old faster than Mick Jagger.

Start Me Up.

The ConnectBooster integration helps you get paid faster, while also making the payment process easier for your clients.

Learn more about what ConnectBooster’s integration can do for your IT company, call us to schedule a free demo at 877-733-6584 or email: info@connectbooster.com

The post Time To Make The Change To ConnectBooster appeared first on ConnectBooster.

Consider the scenario of an IT service provider accepting ACH payments through their business bank…

Let’s say they have 50 recurring monthly agreements with their IT clients that must be charged out of 50 different checking accounts.

This means that every month, this ITSP must go into their online banking account and modify a schedule for the dollar amounts out of those accounts that they want money withdrawn.

These dollar amounts can fluctuate from month to month, depending on usage, and depending on how many employees that end user has being supported at that time.

One month, an IT client’s recurring agreement invoice might be $1,000. The next month, it might be $1,100. This means that each and every month, the ITSP must go in and manually update the ACH file with the appropriate dollar amounts for each one of those clients.

You can imagine how much time that takes.

But wasted time isn’t only issue with accepting ACH payments through your business bank. Manually processing ACH payments also increases the potential for human error.

Think about it. If your ACH payments are being manually modified, there’s a greater potential to make a mistake.

Maybe you update the wrong account with a new amount.

Or an account that should have been modified is overlooked.

That ITSP is going to bill its clients the wrong amount.

Your ACH provider (business bank) has no idea that a dollar amount has changed on an invoice unless you go into the account manually and tell it so.

Depending on how many contracts an IT service provider has, you can imagine that it’s a pretty labor-intensive process. And it’s a process you have to go through each and every month if you accept ACH payments through your business bank.

Now, that doesn’t mean you want to avoid ACH altogether, because it does offer some serious benefits – namely, it allows you to avoid the 3-5% or higher transaction fee you face with credit card payments.

So, what are your options?

Instead of going through your business bank, you can implement an automated payment processing solution like ConnectBooster, which utilizes a third-party ACH service provider.

The benefit to this is that everything you would have to do manually, in terms of accepting ACH payments, can now be fully automated.

When looking for an automated payment processing solution, just make sure that the one you choose will automatically recognize modifications to the dollar amount on your IT client’s recurrent contract. If it doesn’t, you’ll still have do update any invoice amounts as they change from month to month.

You’ll also want a solution that is able to integrate fully with any PSA or accounting software you use (such as ConnectWise and QuickBooks).

With this capability, you can avoid auditing that ACH file every single month to make sure everything is correct on the billing. A solution such as ConnectBooster will automate and take care of the entire ACH payment process for you.

 3 Ways to Apply This Information Now

• If you’re wondering how ACH might work for your IT company call ConnectBooster at 877-733-6584 to explore how you can utilize ACH to automate your process of getting paid. You can also email info@connectbooster.com.
• Download the Take Control Of Your Business Finances ebook for more tips that will help your ITSP get paid on time…every time.
• Click to share this article on LinkedIn. Sharing quality content increases your visibility and credibility with your existing contacts, creating conversations and potentially new business.

The post The Secret to Effortless ACH appeared first on ConnectBooster.

One of the most obvious downsides to accepting ACH payments is that their funding times are generally slower than credit cards.

While a credit card transaction is typically deposited into the customer’s account within 24 hours (and rarely later than 48 hours), in the ACH world, the typical funding period ranges from 3 to 5 business days.

Not a great turnaround, for sure, but for many IT companies, it can be worth the wait to avoid the 3-5% fees that each credit card transaction costs them.

ACH also suffers from a more complex problem known as “late return.”

If a customer pays your IT company via ACH, but a previously written paper check written hasn’t yet cleared, that check, once it does clear, can overdraw the account. When this happens, banking regulations state that the ACH provider must fund the customer back to make good on those paper checks.

Because ACH providers are on the hook for funds when a transaction goes bad, the late return policy can make it more difficult for ITSPs to get approvals for high dollar ACH transaction. Credit cards don’t have that problem because funds are automatically verified when the initial transaction takes place.

Setting up to receive ACH

IT companies who want to accept ACH transactions have two options. The first is to go through their business bank. They may also choose to use a third-party ACH provider.

The bank option will sometimes result in faster funding because the bank owns the depositor’s account and can place a hold on incoming deposits and seize available funds to make good on a failed transaction.

Third-party ACH providers carry a higher risk, because they don’t have the same access to the IT client’s account like their business bank would. Because of this, funding is slower.

So why would you want to use third-party ACH rather than your business bank?

• Automating your payment process. The biggest reason for using a third-party ACH provider is automation. If you want your monthly payment processes to become more automated, you’ll want to implement a software solution, such as ConnectBooster, to handle that. Automated payment-processing solutions like ConnectBooster (which works through a third-party ACH provider) removes all of the manual labor from accepting ACH payments. Because a business bank will not work with payment processing software, you will end up processing and reconciling your ACH payments manually – a very time consuming (and ultimately costly) task.
• Limits on volume. Another advantage of third-party ACH is that business banks aren’t always as liberal when it comes to setting ACH limits on volume.

Choosing your payment processing solution

If you want to accept ACH payments, and automating your payment process is important to you, you’ll need to be careful with the solution you choose. While many payment processors restrict businesses to very low limits for ACH (around $1,500 per transaction), ConnectBooster has been able to get IT clients approved up to a $25,000 high transaction limit.

The reason, according to ConnectBooster president, Ryan Goodman, is relationships. “ConnectBooster makes a difference because of the sales process with the IT clients that work with us,” he explained. “We rarely have issues with bad checks, funding, and not being able to work with the IT client to make things right. So, the ACH provider not losing money on our client portfolio.”

 “Our IT clients still have to go through approval process and have good credit, but they will generally get approved for much higher limits with ConnectBooster than with other payment processors using third-party ACH,” Goodman added.

And while business banks may offer much higher limits because of their reduced risk in holding the depositor’s account, Goodman says it is rare for IT companies using third-party ACH to qualify for the limits that ConnectBooster can get for them. “We make third-party ACH useful to IT companies that must have these higher limits.”

Coming Up:

Stay tuned as we wrap up our four-part educational series on ACH. In our final installment, we’ll reveal the secret to making the ACH process easier for IT service providers.

 3 Ways to Apply This Information Now

• If you’re wondering how ACH might work for your IT company call ConnectBooster at 877-733-6584 to explore how you can utilize ACH to automate your process of getting paid. You can also email info@connectbooster.com.
• Download the Automate Your Payment Process ebook for more tips that will help your ITSP get paid on time…every time.
• Click to share this article on LinkedIn. Sharing quality content increases your visibility and credibility with your existing contacts, creating conversations and potentially new business.

The post How to Avoid Common ACH Payment Pitfalls appeared first on ConnectBooster.

Certainly, paper checks and credit cards do offer some advantages, but both have serious drawbacks as well. And while ACH is not a perfect solution either, most MSPs would benefit by making it a more prominent player in their payment arsenal.

Credit cards and paper checks have played a major role in most people’s lives for years, but the world of ACH remains less familiar. The most common experience many of us have with ACH is through direct deposit of our monthly salary by an employer. But as a business owner, our understanding of how ACH works is less clear.

ACH in a Nutshell:

What it is– ACH stands for Automated Clearing House transaction. It is the process of moving funds electronically from one bank account to another through a unique routing number.

How it works– ACH transaction delivers a request to debit a certain dollar amount from you customer’s bank account and credit it to your business account electronically.

ACH vs. Credit Card

If most of your IT customers are paying for their services by credit card, you may be leaving a great deal of money on the table. In the world of credit card transactions, a 3% fee per transaction is a very competitive rate – and one that many MSPs would be happy to have.

“The way that we run credit cards in the MSP/IT community is never as a face-to-face swipe. It’s always what’s called a “keyed in” transaction,” explained Ryan Goodman, president of ConnectBooster. “I’ve seen many examples where people are paying up to 4% to 5% to run a credit card. And, even if you’re lucky enough to get a 3% rate, that still means losing 3% of your gross total on each transaction.”

Accepting ACH in Your Business

In order to automate your payments using ACH, you will need the help of a payment processing solution like ConnectBooster. And, although you will pay a monthly service fee for the software (around $200/month for ConnectBooster), you will only be charged a flat $0.35/per transaction of any size. Compare that to what credit card companies are charging, and ACH becomes an even more attractive payment option for MSP companies.

“Consider if you are accepting a credit card payment of $5,000 from a customer,” said Goodman. “Take that times 3%, and you’re already looking at a hefty fee. On the flip side, if you are getting paid through ACH, you can run that same $5,000 transaction for a flat 35 cents. Even if you increase that transaction to $15,000, your ACH fee remains a flat 35 cents, whereas if you’re being paid by credit card, your transaction fee would be tripled.”

One of the biggest complaints most companies have about ACH is that the process is archaic and slow. However, even that has changed now that the NACHA – The Electronic Payments Association® has voted to approve Same Day ACH. This amendment to the ACH rules will make this payment method more attractive for MSPs who want to move their money faster.

Coming Up:

Stay tuned for part two in our educational series on ACH, where we’ll talk more about the benefits of ACH including how it compares to other payment methods, such as paper checks.

3 Ways to Apply This Information Now

• Get answers to your autopay questions by scheduling a free ConnectBooster demonstration. Call 877-733-6584 or email info@connectbooster.com.
• Download the Automate Your Payment Process ebook for more tips that will help your ITSP get paid on time…every time.
• Click to share this article on LinkedIn. Sharing quality content increases your visibility and credibility with your existing contacts, creating conversations and potentially new business.

The post Why you should be taking ACH payments if you’re an MSP appeared first on ConnectBooster.

Once your client accepts your proposal, you’re on your way to getting paid, but neither your PSA or proposal software will get you all the way there without the addition of an automated payment solution.

Why isn’t my PSA enough?

Quosal and QuoteWerks help you manage the proposal.

Autotask and ConnectWise will help you manage the project, through contracts and agreements. (your MSP can also use these solutions to send out payment notification via email, once the quoted project has been completed)

But, your PSA provider won’t get the money into your bank account.

To do that, you will have to wait for your customer to respond to your email notification and send you their payment.

If they don’t, you will have to follow up by phone or email over and over again until you get paid.

And when you finally do receive payment, you will have to process and reconcile those payments manually.

And who likes manual work, that can be done automatically?

The key to getting paid on time

The good news is, there is an automated payment solution that does this for you.

A solution that can make the process of getting paid much easier and less painful – and not just easier for your ITSP, but for your customer as well.

And aren’t we here for the customer anyways?

Your MSP needs a solution that has an integration with Quosal and QuoteWerks to provide a unified login solution for your payment gateway. It’s with this kind of collaboration which will allow users to login to one consolidated portal for all your payment processing needs.

ConnectBooster, for example, allows Quosal and QuoteWerks users to have multiple free users on one payment gateway, not only giving you access to easily reconcile your payments with ConnectBooster but also to add mobile payments, E-commerce solutions and more through the same gateway.

And, when you integrate ConnectBooster with QuoteWerks and Quosal you will be able to:

• Get paid for anything, anywhere, anytime. This means that your clients pay you quickly and that’s always a good thing.
• Eliminate duplicate merchant accounts; this definitely simplifies your collection process.
• Get unparalleled customer service that we guarantee you’ll love!
• Make it easier for you to get paid. Our goal is to bring PSA software full-circle by automating the most important business process – getting paid.

Ready to get paid on time, every time?

The Quosal/QuoteWerks/DeskDirector/ConnectBooster integration helps you get paid faster, while also making the payment process easier for your clients.

Learn more about what ConnectBooster’s integration with Quosal and QuoteWerks can do for your IT company, call us to schedule a free demo at 877-733-6584 or email: info@connectbooster.com.

The post Want an easier (and faster) way to get paid on time? appeared first on ConnectBooster.

“How is ConnectBooster different from other automated payment solutions, like Intuit, Authorize.net or Bill.com?”

You are probably familiar with the big names – Paysimple, Intuit and Authorize.net – but did you know that ConnectBooster is the only solution that is fully integrated into multiple PSA tools like ConnectWise and Autotask, as well as accounting software like QuickBooks, and Great Plains.

What does that mean?

For starters, ConnectBooster works differently in that it is intelligent with what’s happening with in your PSA and accounting software, which means it is able to determine if an invoice is a one-time or recurring billing amount.

Even Authorize.net, one of the most widely recognized payment gateways, requires you to go in and manually audit your monthly payment amounts, because it won’t automatically recognize changes to invoices inside of ConnectWise, Autotask or your accounting software.

Because ConnectBooster fully integrates with your PSA, payments are automatically driven from recurring contracts or agreements, then reconciled in your accounting package.

Once your managed service customer sets their payment data into ConnectBooster, the intelligence of the software does the rest by billing and depositing the money owed to your IT company for recurring contracts.

For example, when a ConnectWise agreement or Autotask contract is adjusted by $500, ConnectBooster automatically adjusts the client’s next automated withdrawal correctly.

This eliminates any chance the client won’t be billed correctly, and the need to create a manual process to make sure that doesn’t happen, as necessary with other automated payment systems that compete with ConnectBooster.

Another popular payments solution, Bill.com, relies upon creation of a trigger within the software in order to carry out a function. Bill.com requires you to go in and set up a recurring billing schedule.

Even then, it still won’t recognize if the monthly recurring billing amount has changed within your PSA or accounting package. You will still have to manually reconcile any changes, and do so before the billing goes out for that month in order to avoid billing mistakes.

Newton Technologies streamlines its payment processing

“ConnectBooster has simplified my accounting, reconciliation, and collections significantly. Now everything just seems to work. I recommend it to anyone.” – Mark Newton, owner of Newton Technologies.

Prior to using ConnectBooster, Newton Technologies was unable to sync data between customer billing in ConnectWise, QuickBooks and their credit card processor. There was no automation to help alleviate this pain point.

Before implementing ConnectBooster, Newton Technologies would run payments manually, and then attempt to sync information from their bookkeeping software.

Now, thanks to ConnectBooster’s integration between ConnectWise and QuickBooks, Newton has streamlined its payment processing and found unpaid invoices that were more than a year old.

Christo IT gains time and peace of mind

“Our invoicing prior to ConnectBooster was a nightmare. We would spend over eight hours per month manually processing invoices and credit card payments.” – Chris Schalleur, Partner, Christo IT Services

Before implementing ConnectBooster, Christo IT’s accounts receivable process was completely inefficient. The company typically spend more than 8 hours per month manually processing payments.

Because Christo IT Services uses ConnectWise as their PSA solution, the fact that ConnectBooster fully integrates into ConnectWise and QuickBooks was a huge win.

ConnectBooster also reconciles with invoices in QuickBooks automatically, saving customers tons of time each month. This takes manual entry away from the accountant to reconcile invoices, reducing the time spent each month from hours to minutes.

With ConnectBooster, Christo IT doesn’t have to worry about whether or not they are being paid correctly every month. Contract billing, driven by MSP contracts inside of ConnectWise, update automatically with any changes, giving Christo IT the peace of mind that they are being paid correctly.

Download our E-book now.

Now that you’ve had a glimpse of what ConnectBooster can do for your ITSP, stay tuned for the rest of the series.

And if you really want to improve your cash flow, and get educated on how to alleviate the manual tasks involved in your daily invoicing, click here and download our E-Book for Autotask users.

The post This Isn’t Your Grandma’s Automated Payment Solution for IT Firms. appeared first on ConnectBooster.

It was devastating to them.

It was not a typical hardware sale, but the ITSP didn’t think anything bad could happen.

After all, they have IT clients that place large equipment order all the time, right?

The difference: this MSP did not know the person who was ordering the hardware from Adam on the street.

Hardware orders via an online form and over the phone come with risk.

To eliminate this risk, MSP’s need to seek wisdom from those who can help.

IT owners can’t and shouldn’t expect assistance from credit card companies or financial institutions.

And if credit card companies and financial organizations won’t offer guidance, who will?

We are here to help guide you.

Here are some ways that your MSP can get rid of fraudulent credit card transactions once and for all.

1. Get all applicable information from the front of the physical credit card.

   Your IT company needs to make sure you do all you can, on your part, to decrease risk.

   This starts by getting all the info you can re: the credit card transaction.

   Start by getting the potential IT client’s cardholder name. You need to get the name exactly how it appears on the front of the credit card! 

   The next step is to get the 16 account digits, along with the card verification number from the back.

   Or in the case of an Amex, the 4-digit code on the front of the credit card. 

   Be sure to get and validate the credit card expiration date, as well as the complete address and phone number associated with the actual account holder.

   Most importantly, do not ship goods to customers who are unable to or refuse to provide a full name and billing address.

   Fraudsters will typically give a bogus name and address, such as Donald Smith or 111 Main Avenue.

   Be sure your IT billing team gets the credit card verification number!

   Because the three and four-digit codes do not appear on credit card receipts, many fraudsters will attempt to use stolen credit card numbers, as they are in possession of a stolen number rather than a stolen card.

   Fraudsters are less likely to have the three and four-digit codes when in possession of a stolen card number, rather than the card itself.

   With this info, your IT company will now be able to use the address verification service. This service works by comparing the billing address given by the IT prospect with the financial institution or bank’s database.

   We would also strongly recommend that your MSP call the card-issuing institution to ask them to make a courtesy call to the customer in order to verify the potential charge.

   According to Visa, businesses that use credit card verification services and methods reduce charge backs by as much as 70%!

2. Be careful of hardware orders that use different bill-to and ship-to address.

   This is a telltale sign of a fraudulent credit card situation.

   If this happens to your IT company, request a phone number where you can call to validate if the customer wishes to ship the order to a different ship-to location.

   With the data your IT team has collected, the next step is to use a website like www.anywho.com, which checks for bogus billing addresses.

   The site also integrates phone numbers, maps and email addresses as a validation tool.

3. Watch out for larger-than-normal orders that demand next-day delivery.

   Fraudsters will typically try and place orders for next-day delivery that are larger than the typical size.

   For example, fraudsters will order 15 monitors, or 20 laptops, 10 expensive toner cartridges.

   Orders like this should raise a red flag for your MSP.

   Fraudsters need to have their orders approved and delivered before credit card fraud is discovered, and the order canceled. Fraudsters are also not concerned with cost of items or to ship, next day, which can get expensive.

4. Control what you can control: validate the order before shipped.

   As an IT company you need to do everything within your power to make sure you validate orders.

   For hardware orders that are not placed in person, we would suggest having the customer securely email copies of both sides of the credit card.

   Here are some great options for secure email apps.

   To take things step further, we’d highly suggest requesting a copy of a state-issued ID card.

   This provides your IT company an additional proof-source that the potential customer is the true credit card holder.

   And never give out ConnectBooster credentials to anyone you don’t know or trust!

5. Take immediate steps if fraud is discovered.

   Call the police to report any credit card fraud crime.

   After that, call the credit cardholder’s issuing bank or financial institution to ask someone to place a courtesy call to the actual credit card owner, alerting them of a possible fraudulent occurrence.

   Be sure and tell the bank representative that you have the shipping address where the charged product is being shipped.

   Most importantly, trust your gut!

   If the caller does not seem confident about any of the information they are providing, or you feel awkward about sending merchandise, then don’t!

   It is always better for your IT business to say ‘NO’ than risk giving away pc hardware for free.

Make the nightmares of fraudulent credit card transactions go away.

If you are an MSP or IT company that wants to be educated on how to establish a payments processing method to help you prevent fraudulent credit card transactions once and for all, schedule some time with us by clicking here.

The post Get Rid Of Fraudulent Credit Card Transactions Once and For All appeared first on ConnectBooster.

That method is to never accept credit cards.

Which is completely unrealistic.

Your managed service business will need to keep accepting credit cards, in order to accept payment from your IT clients. And as your MSP keeps running transactions via credit card, fraud will continue to be a serious problem that affects you and your clients.

Fortunately for you and your IT business, we have developed ways to minimize your payments processing risk and ultimately help you avoid falling prey to potential credit card fraudsters.

How to identify shady credit card transactions.

Credit card fraud is theft. Plain and simple. It is critically important to identify this fact up front and how this circumstance will affect your IT business, in order to avoid it.

When a person contacts your MSP and wants to order a larger-than-normal quantity of monitors or desktops computers, using a stolen credit card as payment, this person is committing credit card fraud and theft.

This type of crime damages two parties.

1. The cardholder, with which a nefarious character is attempting to illegally use the cardholders stolen credit card.
2. And the business that sold the products or services, aka your IT business.

The cardholder will lose credit card funds for the transaction, and the IT business will lose much more.

Your MSP will lose the transaction revenue, will be negatively impacted by chargeback fees, and potentially lose face with the IT hardware supplier.

Identify this ahead of time to run from the pain of this happening to your ITSP.

Repudiate the repugnant.

Preventing credit card fraud will require multiple methods for your MSP.

• Your IT team will need to validate ID’s and signatures.
• Your MSP billing team will need to ensure the cardholder’s account information matches the verification of the billing address, zip code and phone number that you are given.
• We would highly recommend verifying the 3-digit codes from the back of the credit cards, as verification for both online and non-online transactions as part of your IT companies payments process.
• Check your gut. If it walks like a duck and talks like a duck, it’s a duck. If your ITSP has received a large order from a new customer, which you’ve never done business with, we would strongly suggest that you do some extra checking before placing that hardware order.
• And be specially cautious about collecting on international orders and be ready to call the credit card’s issuing bank to verify the credit card data that your IT company has received from the potential purchaser.

And there is Twitter.

And then there’s the social media aspect and online review sites to consider in the credit card fraud conversation.

It is extremely difficult for your IT company to manage comments and reviews left on Google places, Twitter or Facebook, from an angry cardholder, who’s stolen credit card number was mistakenly used by your MSP to process a fraudulent order.

As you can see below, these images are of other IT companies, who have their IT companies listed online.

If a specific cardholder had their credit card stolen, then charged by your IT company, they could easily leave a review for the whole world to see.

Prospective managed service clients would see this. Existing managed service clients would see this.

Everyone would see these potentially nasty comments.

(This IT company has zero negative reviews because they are awesome)

Imagine when someone leaves a negative comment, for the entire world to see, how that can affect your IT business.