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Profit and Loss (P&L)
Understanding Business Metrics: The Importance of Profit and Loss Management
Dave Sobel highlights the importance of understanding profit and loss (P&L) as the key indicator of a business's wellbeing. P&L is the main metric to which all others relate. He outlines his approach to explaining P&L to vendors and supply partners, emphasizing revenues and costs, particularly labor costs as the largest expense in managed services.
Dave discusses the concept of a 'healthy' profit margin for managed services providers (MSPs). He suggests that anything over 12-15% is good, and over 20% is very healthy. He emphasizes the importance of consistent quarter-on-quarter improvement and carefully monitoring costs and revenue to ensure business growth.
Dave suggests maintaining a strategic plan and setting incrementally-improving quarterly targets to achieve long-term business goals. The idea of merging and acquisition is briefly touched upon, though he recommends focusing on strengthening individual business first.
Today's sponsor is Comet Backup. Use the exclusive promo code: ROCKETMSP when you sign up to get $50 USD Free Credit for your first 90 days with Comet.
Start running backups in 15 minutes or less!
Get started with Comet Backup here.
Mentioned in this episode:
We’ve all been there – the phone rings, your largest client is on the line, totally panicked. Their CEO spilled coffee all over her laptop and it’s completely dead. Everything she needed for her investor presentation tomorrow was on that laptop.
There’s nothing more heart-stopping than losing business-critical data. Whether you get hit with ransomware, hardware failure or human error, data loss can be a business ending event.
Backups are your final stand when a threat penetrates your layers of defense.
That’s where Comet Backup comes in. Comet is a secure, reliable backup solution designed specifically for MSPs. Protect computers, servers, virtual environments, emails and databases.
You choose where the data is stored – backup to local on-prem storage or any of the leading cloud providers to slash your storage costs.
Comet grows with your business with scalable per-device pricing.
Test drive Comet Backup with a 30-day free trial. Get $50 free credit when you sign up with the promo code ROCKETMSP. Start running backups in 15 minutes or less at cometbackup.com.
Comet Backup, the backup solution that MSP’s trust.
Comet Backup
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By RocketMSP LLCUnderstanding Business Metrics: The Importance of Profit and Loss Management
Dave Sobel highlights the importance of understanding profit and loss (P&L) as the key indicator of a business's wellbeing. P&L is the main metric to which all others relate. He outlines his approach to explaining P&L to vendors and supply partners, emphasizing revenues and costs, particularly labor costs as the largest expense in managed services.
Dave discusses the concept of a 'healthy' profit margin for managed services providers (MSPs). He suggests that anything over 12-15% is good, and over 20% is very healthy. He emphasizes the importance of consistent quarter-on-quarter improvement and carefully monitoring costs and revenue to ensure business growth.
Dave suggests maintaining a strategic plan and setting incrementally-improving quarterly targets to achieve long-term business goals. The idea of merging and acquisition is briefly touched upon, though he recommends focusing on strengthening individual business first.
Today's sponsor is Comet Backup. Use the exclusive promo code: ROCKETMSP when you sign up to get $50 USD Free Credit for your first 90 days with Comet.
Start running backups in 15 minutes or less!
Get started with Comet Backup here.
Mentioned in this episode:
We’ve all been there – the phone rings, your largest client is on the line, totally panicked. Their CEO spilled coffee all over her laptop and it’s completely dead. Everything she needed for her investor presentation tomorrow was on that laptop.
There’s nothing more heart-stopping than losing business-critical data. Whether you get hit with ransomware, hardware failure or human error, data loss can be a business ending event.
Backups are your final stand when a threat penetrates your layers of defense.
That’s where Comet Backup comes in. Comet is a secure, reliable backup solution designed specifically for MSPs. Protect computers, servers, virtual environments, emails and databases.
You choose where the data is stored – backup to local on-prem storage or any of the leading cloud providers to slash your storage costs.
Comet grows with your business with scalable per-device pricing.
Test drive Comet Backup with a 30-day free trial. Get $50 free credit when you sign up with the promo code ROCKETMSP. Start running backups in 15 minutes or less at cometbackup.com.
Comet Backup, the backup solution that MSP’s trust.
Comet Backup