It may not seem your MSP business will ever reach a point where it’s growing in a way that negatively impacts operations, but this danger is very real to the tech industry. Forward development is intrinsic to IT, and so many MSPs try to outpace it, pushing growth beyond reasonable boundaries.
There is a natural stress that will be put on any business looking to reach sustainability. Sometimes, being in a taut position isn’t bad. Following are three determining factors you can use to help determine if you’re operating at a proper balance:
Cash Flow Which Doesn’t Meet Your Needs
Your MSP business needs to have finances at hand to manage resources and client needs. It’s expected that you’ll have to take out loans on occasion, but if you dig yourself too deep, you’re sunk. If your business is good but cash flow is bad, growth is likely too ambitious, and you need to dial it back.
A Marked Decline in Team Morale
If you’re growing too fast, your team must take on additional responsibilities. This means working harder. Certainly, they may be making more money on an individual level, but that doesn’t mean that natural fatigue won’t set in. When you’re always pushing growth, you increase that fatigue. Tiredness begets ill-tempers, and morale will steadily decline. Keep an eye on your team, and if morale dips, get it back where it was before pushing more growth.
Impacted Customer Service
Low cash flow means you have to delay certain service provision or product distribution. It also means your team is stretched thin, limiting their ability to properly serve clientele. These things diminish customer service. If you’re getting an increase in avoidable complaints, you may want to look at growth strategies.
An MSP business that maintains balanced morale, customer service, and cash flow is likely in a place of sustainable growth. Keep an eye on factors like these to keep operations perpetually in proper balance.