Top Metrics For MSPs In 2020

By Jonathan James, IT Glue

The New Year is arguably an arbitrary dividing point for making personal resolutions, but for a business whose financial year ends and begins at this point, there’s a strong rationale for setting goals and implementing positive changes. Accurate year-over-year business performance comparison is then possible, giving an apples-to-apples look at whether the changes you made for 2020 worked for you. I can’t tell you what your business goals for the New Year should be, but what I can do is highlight some useful metrics that will help pinpoint problem areas and measure improvement. Here they are, logically categorized, and offered for your benefit. 

Business Health

Revenue Sources Breakdown

You’re probably already looking at big metrics such as your bottom line and EBITDA margin, but what could a more granular metric uncover? What’s your bread and butter? Looking at each revenue source in relation to the whole presents a stark look at which of your services make substantial contributions to your total gross revenue. Consider which are the most consistent and the most lucrative.

Gross Profit Margins Per Revenue Source and Service

Does a revenue source entail disproportionate expenses? Are the expenses worth the revenue that’s brought in? Are there opportunities to optimize the labour and expenses that go into providing this service? Monitoring profit margins across services is essential to determine this.