Turning Your Data into Your Secret Weapon for Growth and Profitability with Larry Cobrin

Sourdough, dog-walking, and listening to podcasts: meet Larry Cobrin, everyone! Well, there’s a lot more to him than that and we’ll get into it here. Larry joined us on a recent episode of the Stride to Freedom podcast to talk about how he helps Managed Service Providers (MSP’s) turn data into a secret weapon for growth and profitability!

Larry is the founder and CEO of MSPCFO, a data analysis software company that provides actionable insights for MSPs. He’s been leading the company for the last 10 years and shared his insights with us about the power of data, leading a company, and why it’s important to communicate in plain English.

Data-Driven Results for MSPs

Larry helps MSPs become more profitable. He compares it to a retail operations manager’s role: if a company has a number of stores, it’s up to the operations manager to figure out which ones make money and which ones don’t. In a professional services environment, determining those “unit economics” is a bit more challenging.

For MSPs, swap out stores for clients. Which clients, along with their projects, agreements, and engineers, are not making you money? You may aim to bill at $150.00 an hour, but time-consuming, high maintenance customers may eat up your time and bring that down to just $50.00. Did you know that?

Most MSPs simply don’t know their data. They know that there is a customer that’s frustrating to deal with, but they might not get the full view of how it’s impacting the bottom line.

That’s where MSPCFO comes in. Their cloud based software pulls and analyzes data from PSA (Professional Services Automation) software like ConnectWise Manage and Autotask so that MSPs know exactly what’s draining the business and what’s keeping it afloat. The business can then act and adjust through client management, operations, or other strategies.

Focus: Building a Business

Larry works exclusively with MSPs despite their software conceivably having applications in other industries. Why? Focus! Here is what focus gets you in the MSP segment:

• Ability to build for the unique problems of a segment. When you can “talk the talk” of an industry segment, you aren’t just selling software. You’re an industry partner that adds strategic value.
• A rich and connected community. Maybe more than other industries, MSP’s are very collaborative. That makes it a lot easier to learn and iterate on product to serve the segment. It also helps drive more referral activity.

MSPCFO received counsel from a trusted source to “stay in their lane,” and that’s been working for them. Focus affords companies the ability to drive a very clear value proposition and MSPCFO is nailing it.

How to Connect with Customers

When describing his zone of genius, Larry said he likes to answer problems in English. What he meant is that while data is behind every decision he makes or solution he gives to a client, it needs to be delivered in a way they understand!

This means no industry jargon or numbers to make their eyes glaze over. Use the data, get the solutions, deliver them to the client. You win client’s trust and business when you explain things in a way they understand—it signals empathy and understanding.

Larry Cobrin had so much more wisdom and insight to share with us. Make sure to check out his full interview on the Stride to Freedom podcast. You can also connect with Larry on LinkedIn and check out MSPCFO.

And while you’re poking around the internet, check out the other episodes and resources on the Stride to Freedom podcast! We’re hosted by Stride Services, a provider of back-office accounting and CFO services for the MSP market.

This Stride Live Webinar is hosted by Stride Services. Stride is a comprehensive financial solutions provider, specializing in outsourced bookkeeping, accounting, tax, and advisory services for Managed Service Providers.

If you’re interested in being a featured guest on our Live Webinars or if there’s a subject matter expert you’d like us to interview, please let us know!

Show Notes + Transcript:

Larry Cobrin: LinkedIn
MSPCFO: Website/LinkedIn
Larry Cobrin: Top 10 Takeaways
Larry Cobrin: Email

Webinar Transcript:

Turning Your Data into Your Secret Weapon for Growth and Profitability with Larry Cobrin