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If you are planning to start or scale a CSB business, then you should start with a sound financial model that will project the growth of your business based on key assumptions. This presentation provides an overview of the CSB Business Growth Model that is available at no charge to CSBcommunity members ($129 value). Just register at www.csbcommunity.com and download the model. A video of this presentation is also available at the website.
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Creating a Cloud Business Growth Model
This video provides a quick overview of the Business Growth Model
and how to use it to build your own CSB financial Plan
Dave Zwicker, MSPexcellenceNovember 2013
CSBcommunity Mini-Tutorial
Copyright © 2013 MSPexcellence 2Page
Why Create a Financial Plan?
• How big of a business can you build and how fast?
• What are the performance goals for key contributors?
• What is the cash flow impact and investment required?
• Where should you focus to maximize your success?
- Pricing changes - Sales expansion
- New services - Cost reductions
- New markets - Recurring revenue
www.CSBcommunity.com
Copyright © 2013 MSPexcellence 3Page
Know Your Existing Business
Average Deal Value: Average users per deal Revenue per user (OTR and MRR) Revenue per deal (OTR and MRR)
Sales Productivity Number of sales reps OTR/MRR deals per month per rep OTR/MRR from same or different deals?
Customer Acquisition Cost Sales rep compensation Cost per lead Conversion rates Other S&M expenses
Average Gross Margin GM% for OTR GM% for MRR
www.CSBcommunity.com
Calculate thegrowth factorsof your business
1
Use them as your assumptions for modeling growth
2
Copyright © 2013 MSPexcellence 4Page
What Is Your Growth Strategy?
• Sell to larger, more profitable customers
• Add new services to increase deal value
• Expand your sales force and increase productivity
• Reduce your customer acquisition cost
• Increase margins with higher operating efficiency
• Transition from one-time to recurring revenue
www.CSBcommunity.com
Copyright © 2013 MSPexcellence 5Page
What Are The Growth Assumptions?
www.CSBcommunity.com
Increase Deal Value:
– Target larger customers – what size?
– Add new cloud services – which ones?
Increase Sales Productivity
– Add more sales reps – how many?
– Accelerate the sales cycle – by how much?
Customer Acquisition Cost
– Reduce salaries/change comp plan?
– Increase marketing effectiveness?
Average Gross Margin
– Raise service fees?
– Reduce cost of service delivery?
Create achievable growth factors
1
Input assumptions into a financial model
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EXISTING BUSINESS TRAJECTORY
IDEAL BUSINESS TRAJECTORY
GROWTH!
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Copyright © 2013 MSPexcellence 14Page
Build Your Own Growth Model
• Visit www.CSBcommunity.com
• Register as a member (it’s free)
• Download the CSB Growth Model at no cost ($129 value)
• Read about all 3 Critical Success Factors (CSFs)
• CSF#1 covers Creating a Cloud Business Growth Plan
• You will find a link to the model there…
www.CSBcommunity.com
Copyright © 2013 MSPexcellence 15Page
Accelerate Your Transformation
• CSBaccelerator Program– 5 Sessions that cover all 3 Critical Success Factors– Online workshops, business coaching and toolset– Course Fee: $1199– Enroll today!
• CSBadvisor Service– Direct consulting engagement with MSPexcellence– Customized Success Plan– Project Fee: Tailored to your budget and timeline– Contact MSPexcellence ([email protected])
www.CSBcommunity.com
Join the CSBcommunity!For more information, contact MSPexcellence:
And be sure to visit: www.csbcommunity.com
Copyright © 2013 MSPexcellence.com
