Your Profit and Loss statement might be the most underrated growth tool you own. Yet too often, it’s viewed as a passive report card rather than the powerful steering wheel it is.
In the latest Office Hours session hosted by Alternative Payments, Craig Fulton—longtime MSP leader, former Chief Customer Officer at ConnectWise, and now M&A Advisor at Evergreen Services Group—cut through the noise and gave MSPs a clear, actionable path to financial mastery. His core message was simple:
“There are only three ways to drive enterprise value: increase prices, reduce costs, and generate new business. Everything else is noise.”
This post breaks down the session, diving into Craig’s practical advice, his candid warnings, and his real-world examples of what it takes to turn your P&L from a liability into a lever.
The Framework: 3 Levers to Pull
Craig opened the session by focusing on simplicity. While many business leaders get distracted by complicated KPIs, flashy dashboards, or emerging trends, Craig encouraged MSPs to concentrate their energy on what actually moves the needle. He asked a powerful question:
“What actually adds enterprise value?”
The answer, he said, is refreshingly straightforward. It all comes down to three levers:
- Increase Pricing
- Reduce Costs
- Generate New Business
Everything else—operational distractions, overengineering, analysis paralysis—either supports or detracts from those three levers. That clarity isn’t just helpful; it’s liberating.
“If you’re doing something that doesn’t fall into one of those buckets, it’s probably not adding enterprise value.”
Craig explained that MSPs don’t need a dozen strategies—they need discipline in executing a few key ones. Whether you’re a solo founder or a multi-location operator, these levers scale. And when used together, their compounding effect can transform a business.
This foundational framework set the tone for the rest of the session, where Craig broke down how each lever works and how to apply it without breaking your business.
Lever #1: Increase Pricing (Without Raising Churn)
Craig was clear: small, steady price increases compound over time—and they’re one of the easiest ways to boost profitability without adding more work or clients. But raising prices effectively isn’t just about adding a line to the invoice; it’s about managing perception and reinforcing value.
Too many MSPs treat pricing updates as awkward necessities. Craig urged leaders to reframe them as opportunities—chances to remind clients of the business outcomes you’re delivering. The MSPs that execute this best approach the conversation from a place of confidence and empathy.
“The best MSPs don’t sell on price. They sell on the value they create for the client’s business. And they start by asking: ‘What drives value in your business?’”
He described one example where an MSP prepared for an annual price adjustment by conducting a brief quarterly review with the client. During the call, they pulled up the client’s service history: over 80 tickets resolved, four proactive upgrades executed, and zero unplanned outages. The client saw the data—how uptime had increased, response times had dropped, and critical systems were always operational. When the price increase was announced—just 3%—the client didn’t push back. In fact, they thanked the MSP for the transparency.
In another example, an MSP used pricing conversations as a moment to realign on business goals. They asked their client, “What are your top three objectives this year?” Then they mapped how the MSP’s services—especially new security add-ons—would protect revenue and reduce risk. It turned what could have felt like a cost increase into an investment in peace of mind.
These aren’t just good PR moves. They’re strategies that anchor price increases in real business impact—an essential step if you want to scale profitably without raising churn.
Real-World Example: AI That Saves Over 50 Hours
One of the most powerful moments of the session came when Craig shared a real-world AI use case from an MSP that helped a client automate a highly manual procurement process. The client had been at risk of churning—frustrated, slow to engage, and skeptical of continued investment. But instead of going defensive, the MSP leaned in.
“They were worried about losing the client. Instead, they walked in, sat down with the management team, and found a super manual process in procurement. Using Copilot and Azure, they built a machine learning solution in three months—and saved the client over 50 hours.”
That single automation project didn’t just save time. It restored trust. It proved value. And it sparked new conversations about other places AI could streamline operations. It was a brilliant example of how AI, when used with intent, can reinforce the client relationship and drive measurable outcomes.
Let’s digress for a moment—because this moment deserves it.
AI isn’t just the next shiny thing. It’s quickly becoming foundational to modern service delivery. Whether you believe AI will replace jobs or simply enhance them is beside the point. What matters is that today, right now, there are dozens of tasks—mundane, manual, repetitive tasks—that AI can handle faster, cheaper, and with fewer errors. And both MSPs and their clients need to get educated on this fast.
From analyzing massive Excel files to summarizing hour-long meetings, from streamlining ticket triage to automating client onboarding, AI isn’t just possible—it’s practical. The MSPs who start experimenting with AI now, who build a playbook of AI-powered wins, will be the ones clients look to when they’re ready to modernize.
So yes, we digressed. But it matters.
Back to the story: that MSP didn’t just salvage a relationship. They became a strategic partner. The success of the initial automation project led the client to invest more in their relationship—ultimately increasing their monthly recurring revenue (MRR) with the MSP. Why? Because they saw the value. They experienced a tangible return. And they trusted that this partner could help them modernize further.
This wasn’t a one-off win. It was the beginning of a deeper engagement—one built on outcomes, not just services. And it all started by identifying a simple, painful process and having the curiosity to ask, “What if we solved that with AI?”
Lever #2: Reduce Costs (Without Losing Quality)
Cost reduction isn’t glamorous, but it’s essential. Craig emphasized that most MSPs build forecasts and goals around revenue—but they don’t apply the same rigor or strategy to cost management. That’s a missed opportunity. Done right, reducing costs can free up margin, improve cash flow, and drive enterprise value without requiring a single new client.
Review payables monthly. Craig urged MSPs to “sign every check.” When leaders take the time to review payables on a consistent basis, they quickly identify unnecessary expenses, duplicate tools, and outdated vendor contracts. It’s not just about saving money—it’s about becoming more intentional with where the money goes.
Cancel the corporate credit card. One surprisingly effective tactic? Kill the company card. When teams don’t have auto-renewing or unchecked spending access, only the truly critical services come back. It’s a raw but effective way to surface what’s indispensable.
Negotiate hard with vendors. Craig noted that many MSPs are overspending on software and platforms they barely use. From security tools to automation platforms, it’s common to see licenses collecting dust. His advice: audit your stack and negotiate from a place of clarity. Consolidation is almost always possible—and often necessary.
Delay payables where possible. Cash flow management matters just as much as profitability. Delaying payments (within reason and within vendor terms) can keep capital in the business longer, giving owners more flexibility and a stronger buffer.
“A lot of MSPs have no idea what they’re spending each month. They’ve got tool sprawl, duplicate licenses, and legacy subscriptions dragging them down.”
But Craig also issued a strong warning: don’t go too far.
“You can’t kill the golden goose. Cutting costs can improve your margin, but don’t let it degrade service. The best reductions are invisible to the client.”
In the MSP world, your service is the golden goose. It lays the golden eggs—recurring revenue, referrals, and long-term client relationships. If you over-correct and remove the tools, platforms, or team members that underpin your service delivery, the fallout can be significant. Clients notice. SLAs slip. Confidence erodes. And that golden goose? It stops laying.
The smartest MSPs take a surgical—not sledgehammer—approach to cost containment. They preserve quality while trimming waste. They protect the client experience while tightening operations. And that’s where true margin expansion lives.. Cutting costs can improve your margin, but don’t let it degrade service. The best reductions are invisible to the client.”**
Avoiding the Trap of Tool Bloat
Tool bloat isn’t just an annoyance—it’s a silent killer of profitability. Craig flagged this as a growing issue across the MSP space, citing a Canalys report that estimates the average MSP now uses 33 vendors. That number might not seem alarming at first, but when you break it down into overlapping platforms, redundant billing structures, and fragmented support processes, it becomes clear: complexity costs you.
“Fifteen years ago, there were 15 tools to choose from. Now there are hundreds. And you’re not just managing tools—you’re managing vendor relationships, support, billing, and training.”
One of the clearest examples of tool sprawl gone wrong is when MSPs deploy two different cybersecurity platforms—one for “standard” clients and another, more robust tool for premium ones. On the surface, this might feel like a cost-efficient strategy. You’re tailoring solutions to fit client budgets. But in reality, it creates layers of hidden inefficiency.
Now your technicians need to support and stay up to date on two systems. Reporting becomes inconsistent. Onboarding and documentation take twice as long. Worse yet, the less comprehensive platform may lack the visibility or automation your team needs—making you more reactive and less proactive. What was meant to save money ends up increasing costs and risk.
Craig’s message was clear: reducing costs isn’t just about slashing expenses—it’s about eliminating friction. Consolidation isn’t just a strategic play; it’s a profitability move. The fewer platforms your team has to juggle, the more efficient—and profitable—your operations become.
MSPs don’t need 33 vendors. They need the right five or ten—chosen intentionally, integrated tightly, and evaluated regularly. And those choices should align with the services you want to deliver and the client experience you want to maintain.
If a tool isn’t actively helping you serve better, faster, or more profitably—it’s a liability, not an asset.
Lever #3: Generate New Business (The Smart Way)
Revenue growth is the goal—but not all new business is created equal. Craig emphasized that MSPs need to grow deliberately, not reactively. Adding new clients, services, or projects without strategic intent can create more chaos than value. The key, he said, is targeted expansion.
It starts with accountability. When everyone on the team is “responsible” for new business, it usually means no one actually owns it. Craig encouraged MSPs to assign clear ownership—whether that’s a sales leader, a founder, or a dedicated account manager. Without this clarity, opportunities slip through the cracks.
He also stressed the importance of disciplined CRM use. An accurate, up-to-date pipeline isn’t just a sales tool—it’s a decision-making asset. MSPs should track which clients have incomplete service packages, what upsell opportunities exist, and which prospects are stuck in limbo. That level of visibility allows for proactive—not reactive—growth.
Speed and pricing strategy also came into play. Craig pointed out that the most successful MSPs aren’t necessarily the cheapest—they’re the fastest to quote and the clearest about their value. Instead of spending days crafting the perfect proposal, they respond quickly with a premium offer. This communicates confidence, keeps deals moving, and positions the MSP as a leader—not a commodity.
“The most efficient MSPs know who doesn’t have the full suite, and they prioritize those upsell conversations. That’s revenue hiding in plain sight.”
Ultimately, Craig’s message was this: grow where you have leverage. Expand in ways that build on your existing strengths. The smartest new business strategies are less about hunting for strangers and more about activating what’s already in front of you.
Why Simplicity Wins
Throughout the session, Craig came back to one theme over and over again: clarity. In a world flooded with flashy metrics, marketing buzzwords, and complex tech stacks, simplicity isn’t just refreshing—it’s powerful.
“You should be able to explain what’s driving your margin in a sentence. And you should be able to show it in Excel.”
That line might sound quaint in an age of AI dashboards and predictive analytics, but it’s the backbone of disciplined financial leadership. Craig wasn’t just talking about simplicity in your P&L—he meant simplicity in your decisions, your client offerings, and your internal priorities. Because when everything is a priority, nothing gets done. And when everything is measured, nothing is understood.
Simplifying operations doesn’t mean dumbing things down. It means removing the friction that prevents execution. It means knowing exactly what drives profitability and focusing on those levers relentlessly. It means saying no to distractions—whether that’s the latest software tool you don’t need or a vanity metric that doesn’t influence outcomes.
Craig challenged MSPs to resist the urge to overcomplicate. To stop chasing the next silver bullet and start refining the things they already know work. The MSPs who win aren’t the ones with the biggest dashboards—they’re the ones with the clearest vision and the fewest blind spots.
Because when you understand your numbers—and can explain them simply—you’re in control. And control is the foundation of both profitability and peace of mind.
Craig’s Final Ask
To close the session, Craig asked attendees to make it real:
“Put time on your calendar to pick a value creation lever—and commit to acting on it.”
It sounds simple, but it’s a bold challenge. Because while most MSPs understand their financials at a high level, very few are intentional about using them to create value. Craig wasn’t asking for a dramatic transformation—he was asking for a first step.
Put it on the calendar. Literally. Block 30 minutes. Choose one of the three levers. Then ask yourself: Where am I under-leveraged? Maybe your pricing hasn’t moved in two years. Maybe your tool stack is bloated. Maybe your pipeline is stale.
Craig’s point was this: Action beats intention. Improvement starts with attention. And if you pick one lever and give it focus, the ripple effects will show up in your margins, your valuation, and your day-to-day stress levels.
You don’t need to fix everything overnight. But you do need to start. That’s how momentum builds—and that’s how financial mastery begins.
Key Takeaways
- Price smarter. Small, regular increases add up.
- Cut the waste. Most MSPs are overspending without realizing it.
- Grow with focus. Not all revenue is good revenue.
- Leverage AI. But tie it directly to business outcomes.
- Simplify your stack. Complexity kills margins.
- Act now. Pick a lever. Make a move.
If you’re building toward an exit—or just trying to run a more efficient business—this is where you start.
Mastering your P&L doesn’t require a finance degree. It requires attention, intention, and a willingness to take action. Craig’s advice wasn’t theoretical—it was grounded in decades of real MSP experience. And the path forward is refreshingly clear: choose a lever, commit to it, and let that decision shape the way you operate.
Whether you’re planning a sale or just trying to sleep better at night knowing your margins are strong, these three levers will always be worth your time. They’re simple. They’re effective. And they’re yours to pull—starting now.
