creativeIT: From 'A Business in Flames' to Evolve and Beyond

Within just one week of contacting the Payments team, which also happened to be Caleb's first week of running the business, Caleb was completely set up and running. 

The implementation of ConnectWise PSA, Xero, and WisePay empowered Caleb to "identify two huge problems almost immediately." Caleb abridges the power of this solution stack as "The difference between having a business and not having a business. It's really that clear-cut."

By utilizing this real-time financial data, Caleb was able to quickly pinpoint areas where his business was not turning a profit through his immediate observation of payment trends. This newfound insight allowed him to identify and address the financial challenges his company was facing, including the "massively enormous hole" in their billing, together with a clear understanding of their actual earnings.

Ultimately, Caleb credits the continued survival and prosperity of his business, creativeIT, to the invaluable support of two essential tools: Evolve (MSP Peer Group), and WisePay.

• Direct cost-savings of $26K+ on scaled back financial admin
• Bookkeeper down from 20 hours each week to just 8 hours a week
• End of month process reduced from FIVE to just THREE days per quarter
• DSO (Days Sales Outstanding) exceeds industry average by TEN days

"We bill on the 15th, we pay on the 30th - and we're ready to provide service on the first. Our bookkeeper's gone from 20 to eight hours a week.
 
When I was looking to take over the business, I knew I needed a better view on cash flow and where we were making money and where we weren't making money—

And I needed that to be on a daily basis not a three-month basis because I also needed to know quickly whether or not things were working as they should or shouldn't."

In April of 2022, Caleb Anderson, known as the Managing Director, made a bold move by acquiring creativeIT. Though initially seeking only a 30% stake in the business, Caleb was presented with the opportunity for full ownership.

With his unwavering passion and extensive professional background, he embraced the challenge ahead to revolutionize the company.

creativeIT Australia is a dynamic Managed Service Provider (MSP) catering to approximately 600 users and a multitude of endpoints, with an annual turnover ranging from $1.8-2 million.

Despite being a compact team of six individuals, they exude prowess and efficiency, striking a perfect balance between scale and personalized service delivery.

creativeIT caters to a diverse range of industries, including the not-for-profit sector with a focus on mental health and disability, along with professional services and manufacturing organizations.

I wanted that daily update, I wanted to know what was happening. I looked around the market, and there was very little that could do that for me, except for WisePay.

In his quest for a solution to streamline financial processes and gain the crucial financial insights needed to steer his business away from the significant $5K monthly setback, Caleb discovered the unparalleled power of WisePay.

Wasting no time, in his inaugural week as business owner, Caleb swiftly reached out to our Payments team and got up and running within the same week.

Guided by our Payment Expert, Bec, he identified three vital steps to ensure survival:

• Implement Service Leadership (SLI)  
• Set-up WisePay for invoice and payment automation
• Become an Evolve member
  
  

Before integrating WisePay into his business operations, Caleb was limited to reviewing his financial data on a quarterly basis rather than daily. His primary focus was understanding the sales performance of different products – what was selling well and what wasn't gaining traction.

I would be wasting so much time. I don’t know how people do it without it. When anyone else says they’re not using a tool like WisePay (and they’re still invoicing out of their PSA), and they’re not automatically reconciling back in from their accounting package - I just think, "How much time are you wasting?"

A transformative journey with the Evolve MSP Peer Group

Being a member of IT Nation Evolve has opened Caleb's eyes to the reality that his business is actually an average-sized MSP, not the small player he once thought.

Through his participation in the MSP Peer Group, Evolve, Caleb has come to understand that "the big ones are the few, and the little ones are the many." This shift in perspective has been a game-changer for Caleb and his team, highlighting the value of their Evolve membership and the insights gained from being part of a larger community of MSPs.

When considering cost-cutting measures, the team unanimously agreed that maintaining their Evolve MSP Peer membership was essential. Caleb views this investment as invaluable, providing immense value to both himself and his team.

The one thing none of us chose to save money on, was the almost $1,500 a month we pay for the Evolve membership - even though that would have been a really easy $1,500 to put toward the $5,000 hole each month, no one wanted to that because it's really high value. We would rather spend the money on it than save the money from it.

Here are some of the valuable insights that Caleb has gained through his engagement with the Evolve community. These key findings have uncovered impactful strategies and opportunities for creativeIT to thrive in the MSP industry: 

1. Price Increase Management: "The one that everyone's afraid of," laughs Caleb. Caleb hadn't performed a price increase in four years, and when he finally took that leap - "no one batted an eyelid."
   
   
2. Service Leadership (SLI): This provided Caleb with "a maturity model for really helping us to simplify and define our stack."
   
   
3. Target Customer Profile: Evolve empowered creativeIT to pinpoint their ideal customer profile.

Caleb highlights these three key factors as crucial and consistently emphasized during the initial four meetings. He finds it fascinating that the core of their growth stems from these aspects. While other details certainly contribute value, honing in on these essentials has proven to be incredibly advantageous for creativeIT.

I bang on about how good WisePay is to anyone who will listen because it saved me so much time, so that I could fix a business that was going downhill.

Nobody likes chasing payments. There's a smarter way to do things, and it starts with WisePay—get in touch with our friendly team today.