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Cyber Security Industry | Bennett Financials
Cyber Security

You protect your clients' data.
Who's protecting your margins?

Cybersecurity firms scale fast but bleed margin quietly — through over-hiring, underpriced contracts, and tool sprawl. We install a financial operating system that turns technical excellence into profitable growth.

Free diagnostic for cybersecurity firms doing $1M–$20M in revenue.

Security Spend Dashboard Last 12mo MRR GROWTH $680K Jan Apr Jul Oct Dec COMPLIANCE 78/100 AVG ENGAGE. $185K SOC2 AUDIT At Risk ! Delivery cost gap identified: $126K untracked
Revenue vs Security Delivery CostLast 12 months
Revenue Delivery Cost
JanMarMayJulSepNov
The Problem

Revenue keeps climbing.
So why are margins shrinking?

You’re winning contracts and adding clients, but your margins tell a different story. SOC analysts are expensive. Tool licenses compound. Scope creep on retainers goes untracked. You’re pricing based on what competitors charge, not what it actually costs to deliver. And your monthly close is 30+ days behind — so by the time you see the bleed, it’s already happened. That’s not a growth problem — it’s the same visibility problem we fix in every service business.

The 60-15-15 Standard

We diagnose in order. COGS, S&M, then G&A.

60% gross margin. 15% sales & marketing. 15% overhead. That leaves 30% operating profit. Here’s how we get your cybersecurity firm there.

Contract Profitability
MDR Retainer
$680K
Analyst Cost
48%
Gross Margin
52%
Delivery cost gap identified$126K
Step 1 — COGS

Analyst & engineer delivery costs, by contract.

In cybersecurity, COGS is analyst headcount, SOC staffing, and tool licenses tied to delivery. Before we touch margin, we reconcile every contract. Your delivery cost must match across timesheets, billing, and finance — or every downstream number is wrong.

Gross margin by client, contract, and service line
Analyst utilization and cost-per-hour tracking
Scope creep identification on retainer agreements
Channel & BD Economics
Partner Referrals4.2x ROI
Direct Outbound2.1x ROI
Conference/Events0.8x ROI
Events payback: 22mo (target: 12)Action needed
Step 2 — S&M

Know your cost to acquire — by channel.

Target: 15% of revenue on sales and marketing. Most cybersecurity firms overspend on conferences and events while underinvesting in partner channels that actually convert. We break down acquisition cost by channel and deal type — so you stop subsidizing what doesn’t pay back.

Customer acquisition cost by channel and deal type
Partner referral ROI and revenue attribution
Conference and event spend vs. pipeline generated
Tool Spend Analysis
SIEM Platform$4,200/mo
EDR Licenses$2,800/mo (38% unused)
Threat Intel$1,600/mo
Reduce tool waste$42K/yr
Step 3 — G&A

Tool stack & overhead that survives scrutiny.

Target: 15% of revenue on G&A. SaaS sprawl hits cybersecurity firms harder than most — SIEM platforms, EDR licenses, threat intel feeds, and a growing tool stack nobody audits. We track every tool cost against the revenue it supports and model overhead under multiple scenarios.

Tool cost per client and per engagement
License utilization and redundancy analysis
Vendor contract negotiation support
Tax & Entity Strategy
R&D credits documented
S-Corp election optimized
IP structure reviewed
Estimated savings$94K/yr
Deployed Alongside

Entity structure & tax strategy for security firms.

Cybersecurity firms often qualify for R&D credits and IP-related deductions that most accountants overlook. We turn improved unit economics into real after‑tax wealth through entity structure and proactive tax planning.

R&D tax credit identification and documentation
Entity structure optimization for founder compensation
Proactive quarterly tax projections
Case Studies

Don’t just take our word for it.

Eden Data

“We grew from zero to $300K MRR with Arron’s leadership.”

Taylor Hersom Chairman, Eden Data
Read case study
VirtualCounsel

“A team we can rely on, with rapid-fire responses and consistent support.”

Daniel Goodrich CEO & Founder, VirtualCounsel
Read case study
RHFL

“He brings creative ideas and valuable insights that have transformed our business.”

Daniel Passarelli Co-Founder, RHFL
How It Works

From first call to deployed system.

1

30-Minute Assessment Call

We discuss your current state, your goals, and whether we’re the right fit. No pitch deck — just an honest conversation.

2

Scale-Ready Assessment

We stress-test your books, margins, cash position, tax strategy, and operational dependency. You get a Scale-Ready Report with green/yellow/red scoring and the top blockers prioritized.

3

System Installation

Full financial operating system: clean books, reconciled metrics, deployed tax strategy, live dashboard, and monthly CFO cadence. Typical deployment: 90 days.

Results

The system works. Here’s what it looks like.

90 days

Time to full financial system deployment.

$402K

Tax liability eliminated through entity restructuring and R&D credit capture.

$110M+

Revenue under active management across client engagements.

Sound Familiar?

Three signals your security firm has a margin problem.

If any of these hit home, the 60-15-15 diagnostic will show you exactly where the leak is and how to fix it.

Revenue is growing but you can’t tell which contracts are actually profitable.

Your MDR retainers look healthy at the top line. But when you factor in analyst hours, tool costs, and scope creep, two of your eight contracts are running below 30% margin — and nobody flagged it until renewal.

Your tool stack costs more than you realize — and 38% of licenses are unused.

SIEM, EDR, threat intel, SOAR, vulnerability scanners. Each vendor renews annually and nobody audits utilization. You’re paying $8,600/month in tools and can’t tie half of it to specific client revenue.

You hired ahead of revenue and now every new contract needs to cover the overhead.

You brought on senior analysts to win bigger deals. But utilization is at 54% for junior staff and your fully-loaded cost per analyst is $185K. Nobody modeled when those hires break even — just assumed the pipeline would fill.

Get Your Free Diagnostic

Free for cybersecurity firms doing $1M–$20M in revenue.

FAQ

Common questions.

Everything you need to know about our CFO services for cybersecurity firms, MSSPs, MDR providers, and compliance consultancies.

Yes — MSSPs, MDR providers, IR firms, vCISO practices, compliance consultancies. We understand retainer economics, SOC staffing models, and the tool stack cost structure unique to this space.
Absolutely. If you’re building detection rules, automation workflows, or proprietary tools, you likely qualify. We document and claim these credits as part of our tax strategy.
We track both separately with distinct margin profiles. Retainers get monitored for scope creep and delivery cost drift. Projects get margin analysis at completion.
60% gross margin, 15% sales & marketing, 15% general & administrative. That leaves 30% operating profit. It’s the target for every service business we work with — including cybersecurity. We get you there through the diagnostic sequence: fix COGS first, then S&M efficiency, then G&A.
$5,000/month — the full financial operating system including bookkeeping, tax strategy, CFO meetings, dashboard, and reporting. The Scale-Ready Assessment is free.
Get Started

Stop making decisions on gut feel.

The Scale-Ready Assessment shows you exactly where your business stands — profitability scorecard, tax strategy overview, and a clear picture of what to fix first.

Book Your Scale-Ready Assessment

Free for US-based cybersecurity firms doing $1M–$20M in revenue.