Brian Hoppe credits peer groups as one of the three most impactful moves for his MSP. They teach financial fundamentals like normalized charts of accounts and gross margin by line of business, then benchmark you against the top 25% of performers. Better metrics mean higher profitability and valuation.
It's one of the 3 biggest things I ever did as well was joining a peer group. And specifically around what you're talking about with having financials that are easy to digest and all of that, like, that's where I learned how to do all that understanding. Hey, what does a normalized chart of accounts look like? And how do you accurately measure gross margin by line of business? And how do those things compare to what everyone else in the industry is doing? And what does best in class look like? What are the top 25% doing? And it allows you to, Well, increase your profitability now, but also by increasing your profitability now, your valuation is going to be higher. You know, it's— they're very correlated.
