Cash Confidence Is Your Recession Lifeboat
The looming recession has many MSP owners – including myself – on edge. Some of us remember the tough 2007-2008 recession. Most survived, but much of the rhetoric we hear lately from financial analysts is that the next one is coming soon and will be far worse. So, we better begin preparing NOW!
But how do you do that?
It begins with your profit from which you regularly take a percentage and turn it into “cash confidence”. That’s a portion of funding that will be a lifeboat to keep you and your business afloat while you ride the rough waters. Profit is a tool that helps you create cash confidence.
What percentage of profit do you put aside? That’s entirely up to you and the revenue that your business is generating ― and then adjust accordingly as your revenue decreases or increases. I spoke in more detail on this topic during my keynote speech at Build IT LIVE 2022 in July. I hope you were there to hear it and learn from it.
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While cash confidence is great ammunition to battle a recession, it also helps leaders build confidence for their teams and create a safe and secure company that can effectively survive rough patches. As a 20-year veteran MSP owner, I’m speaking from experience. Now my company, IT By Design, is proud to be a Master MSP (MMSP) and I was thrilled to see that SLI published a statistic that says MSPs who are using the services of an MMSP are more successful than those who are not using one. Using an MMSP is wise leadership.
So allow me to help you address any MSP challenges you may be facing. I truly want to help you. I’ve gotten pretty good at it and I don’t charge! It’s part of my belief in and passion for lifelong learning.