Download pptx - Creating a Cloud Business Growth Model

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

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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


Calculate thegrowth factorsof your business

1

Use them as your assumptions for modeling growth

2


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



What Are The Growth Assumptions?


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

2

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EXISTING BUSINESS TRAJECTORY

IDEAL BUSINESS TRAJECTORY

GROWTH!


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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…


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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])


Join the CSBcommunity!For more information, contact MSPexcellence:

[email protected]

And be sure to visit: www.csbcommunity.com

Copyright © 2013 MSPexcellence.com

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