From Chaos to Clarity: The KPIs Every MSP Must Track to Increase Valuation
Too many MSP owners are flying blind.
They think they know how their business is doing — but they can’t point to the numbers that prove it. They’re making decisions based on gut feel, anecdotes, and their bank balance at the end of the month.
That works… until it doesn’t.
If you want to grow your MSP, improve margins, and eventually sell for a higher multiple, you need more than instinct. You need clarity — and clarity starts with tracking the right KPIs.
Why KPIs Matter More Than You Think
KPIs aren’t just “nice to have” metrics for a dashboard — they’re the flight instruments for your business.
Without them, you don’t know if you’re climbing, cruising, or stalling.
Here’s why KPIs matter:
They reveal problems early — before they become disasters.
They drive better decisions — you can act on facts, not feelings.
They increase valuation — buyers pay more for companies with data-driven operations.
Lesson: If you don’t measure it, you can’t improve it — and buyers won’t trust it.
The Core Financial KPIs Every MSP Needs
Let’s start with the money side. If you don’t know these, you can’t manage for profit:
Gross Margin Per Agreement – Which clients are profitable? Which are quietly draining your resources?
ARR (Annual Recurring Revenue) – What revenue is locked in and predictable?
Non-Recurring Revenue (NRR) – Are projects profitable and helping fund growth?
Pro Tip: Track these monthly. Don’t wait for year-end to discover you’ve been losing margin all year.
Operational KPIs: The Hidden Value Drivers
Buyers (and smart owners) don’t just look at the books — they look at how the business runs.
Operational KPIs show if your MSP is efficient:
Utilization Rate – Are your techs billable enough?
Ticket Velocity – How quickly are tickets resolved?
SLA Performance – Are you delivering what you promised clients?
Think of these like maintenance checks for the plane — ignore them, and you’re headed for turbulence.
Leading KPIs: Predict the Future, Don’t Just Measure the Past
Many MSPs only track lagging KPIs — financials that show what already happened.
But leading KPIs let you see what’s coming and course-correct in time.
Discovery Meetings Booked – Is your sales pipeline healthy?
Account Reviews Completed – Are you deepening relationships with current clients?
Project Backlog – Are you resourced properly for upcoming work?
Leading KPIs are like radar — they show you what’s on the horizon.
Key Takeaways
You can’t scale or sell an MSP on “gut feel” — KPIs create clarity.
Financial KPIs (like gross margin per agreement) show if you’re truly profitable.
Operational KPIs prove efficiency — and attract better buyers.
Leading KPIs predict the future so you can stay ahead of problems, not just react to them.
Want to see how your MSP stacks up?
Join the Value Creation Academy and start tracking the KPIs that matter — the ones that drive profit, growth, and a higher valuation.