The year 2012 marked several turning points for Jason Etheridge, president and CEO of IT service provider Logic Speak. It was during this period he was introduced to The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It by Michael Gerber. The author advises small business owners to be intentional about running their businesses, including determining how much profit they want to make.
“Most small business owners do what I used to do, which was to start with a revenue goal, then subtract employee expenses and other costs, and end with your profit margin,” says Etheridge. “The E-Myth flips this model on its head, challenging business owners to first decide how much profit they want to make and intentionally building a business model — including services, employee compensation, and all other costs — on top of that. This approach ends with a plan to accomplish the profit objectives set at the beginning.”
One of the first “intentional” changes Etheridge made to his company was retooling Logic Speak’s mission statement, something he says used to be long, overly wordy and formal, and above all else — inaccurate. “We originally created a mission statement because we had to put something on our website, not because we believed it,” he says. “Our mission statement now is: ‘To use our abilities and technology to have a positive impact on the lives of our clients and our employees.’ If we are doing that, we are succeeding. If not, we figure out why and change what we’re doing.”
Logic Speak’s new mission statement doesn’t say anything about shareholder value or profits. “If we accomplish our mission, I believe the rest takes care of itself,” he says. “That simplifying statement is hands down the biggest — and best — business decision I have ever made.”
After updating its mission statement, Logic Speak’s next move was to become a cloud services expert, which entailed engaging customers about their cloud fears and misconceptions via one-on-one lunch appointments and using this invaluable feedback to determine which cloud services it should sell.
Last year Logic speak achieved 15% revenue growth over 2012 and this year the eight-employee MSP is projecting 25% revenue growth over last year.
Be sure to check out the details of Logic Speak’s managed-services-to-cloud-services transition by reading, “Find Your Cloud Services Niche.”