Erick Simpson’s MSP Newsletter | February 2021

In the early 2000’s I transformed my IT practice into one of the first pure-play MSPs in the industry and was able to sell it a few years later at a high valuation. While I made my share of mistakes along the way, I wouldn’t have been able to achieve this success without a strong business planning discipline. A good business plan guides you through each stage of starting and managing your current business, and acts as a roadmap to structure, run and grow a new business. It can help you get financing for growth, or bring on new business partners and investors. It is the tool that can be used to help influence people to work or partner with you, or invest in your company.

Well, the world has changed dramatically since I sold my MSP practice, and the business plan I developed and put in place back then would be nowhere near as successful today if I simply dusted it off and tried to use it to grow a new practice. And as a result of the new and dramatically different, and still evolving market conditions you and your customers and suppliers began experiencing in 2020, I’m sure many of you are re-evaluating your business model, product and service portfolio, sales and service delivery processes, vertical markets, target customers and more to adapt to the “new normal”, and take advantage of new opportunities while reducing your overall business risk.

This is where an effective business plan can be instrumental in helping you achieve greater success and profitability in 2021 and beyond, as it can help you arrive at a clear understanding of your target customer and their changing needs. It will also help you document your strategy to adapt your overall product and service marketing and sales strategies to exploit new opportunities with current customers as well as new prospects, and help you forecast realistic financial milestones, and ultimately deliver a roadmap to help you achieve them.

A well-researched and organized business plan does not need to be lengthy to be effective, so long as it contains the essential components necessary to realize your desired outcome. And the more concise and easier to assimilate it is, the better. Your plan may serve many purposes, from defining your company’s vision, mission and goals, to identifying your marketing strategy and sources of revenue, analyzing your competition, developing sales and revenue growth strategies, and obtaining business financing or investment and more.

In fact, some business plans are written specifically to attract investment opportunities, or to seek business financing. An effective business plan will help you confirm the viability of your venture, set realistic goals based upon the market research that you conduct, and provide a roadmap to your success while minimizing risk. It will also detail the overall strategy your business will execute and the activities it will conduct to achieve your goals.

The essential components of your business plan will include an executive summary, your vision, mission and goals, a company overview, your competitive analysis, and your key alliances, partners, and vendors, along with your Marketing and Sales Plan and your Revenue Sources.

If you are seeking financing or funding for business growth, your plan should also include a funding request section that details how that funding will be utilized and repaid; and lastly, your business plan will include your financials to support your forecasts and build confidence in your strategy.

Join me at Channel Partners Virtual 2021 as I deliver an entire session on designing and implementing a killer business plan for your business, and get my MSP Business Plan Template as my appreciation for your attendance!