When you think about sales for your MSP business, it’s natural to want as many as you can get. The problem is if you haven’t measured your operational capacity, you might not be able to handle too many sales.
Your staff will be overwhelmed and stressed. You could also fall behind on your orders making for unhappy customers.
Do you know your business’s maximum capacity? If you don’t, you won’t know how many sales you can produce without adding more resources or hurting the business you have.
How to Figure Out If You’re at Maximum Capacity
Understanding your MSP business capacity lets you estimate your future performance. It helps you define your output with your available resources.
- Potential Sales – The first thing to calculate is your potential sales. Consider how long it takes to move buyers along the sales funnel. Calculate how many sales you could convert per week with the staff you have now.Also, identify how many sales your staff could convert running at full capacity each week. Is your goal reasonable? Can your current staff keep up running at full capacity?
- Factor in Downtime – When you measure your full capacity, factor in reasonable amounts of staff downtime. Not everyone will be performing at full capacity every day.You’ll have some employees that need to work from home or take personal days and sick time. Calculate a reasonable amount of downtime for your employees each week and deduct it from your full capacity number.
Even after you make your best estimates for projected growth capacity, they won’t be completely reliable. Especially with online marketing which is impossible to gauge the effectiveness of the campaign.
You can do this by analysing the worst-case scenario. This will tell you your limits when it comes to sales and customer service.
You’ll always have times when you’re running over capacity or under capacity. But having a capacity plan will help you stay on track for the best business performance.
Using capacity planning, you can ensure you’re always managing your MSP business resources, which helps you plan for the future.