In this episode of the All Things MSP podcast, hosts Justin Esgar and Eric Anthony dive deep into the often-misunderstood world of profit margins. While many MSP owners focus heavily on top-line revenue, the guys explain why that number can be a "vanity metric" if your margins aren't healthy.

They break down the fundamental math of profitability: Revenue minus Expenses equals Profit. However, the conversation goes much deeper than basic arithmetic. Justin and Eric discuss the industry standard margins—typically sitting between 10% and 15%—and challenge listeners to aim significantly higher. You’ll hear why a 30% or even 40% margin isn't just a dream, but a necessary cushion for when things go "bump in the night."

The episode covers the difference between gross margin and net profit, the psychological relief of having a profitable business, and why you should stop comparing your "raw" revenue to others. Whether you are just starting out or looking to optimize a mature MSP, this episode provides a reality check on what it actually takes to build a business that supports your life and your team.

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Eric Anthony: https://www.linkedin.com/in/esanthony/

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