620 Profit First for MSPs: How Lori Hardtke Found Financial Clarity

Lori Hardtke is a solo MSP owner who has been in the IT industry for many years, working in various roles such as IT manager at large companies like Mayo Clinic. Over time, Lori realized that she didn't want the responsibility of managing employees and decided to run her business as a solo operation, leveraging subcontractors when needed.  

In 2018, Lori came across the Profit First book by Michael Michalowicz and was initially hesitant to implement the system. However, in 2019, she decided to give it a try and was able to pay off a $19,000 credit card within four months of implementing Profit First. Lori was so impressed by the impact Profit First had on her business that she decided to become a certified Profit First professional and is now building a Profit First Academy to help other MSPs achieve profitability.  

Lori emphasizes that the key to success with Profit First is trust in the system and the discipline to follow the recommended percentages for allocating funds to different accounts, such as profit, taxes, and marketing. She also highlights the importance of streamlining expenses and negotiating better deals with vendors, which can have a significant impact on the bottom line. Lori's own business is 100% remote, with her operating from Maui, and she has found success in presenting her business as part of a larger network of resources, rather than just a solo operator. 

Key Takeaways: 

• Implementing the Profit First system can significantly improve profitability and cash flow for MSPs
• Becoming a certified Profit First professional can help MSPs guide other businesses through the Profit First implementation process
• Streamlining expenses, negotiating better deals, and presenting the business as part of a larger network of resources can all contribute to the success of an MSP

Show Links:

• Lori's MSP Website: https://www.bytewize.net/
• Profit First for MSPs: https://www.profitfirst4msps.com/

=== Show Information

• Website: https://www.itbusinesspodcast.com/
• Host: Marvin Bee
• Uncle Marv’s Amazon Store: https://amzn.to/3EiyKoZ
• Become a monthly supporter: https://ko-fi.com/itbusinesspodcast