Luk’s Bi-Weekly 'Think Piece' For Consultancies

EDITION #74

MAY 10, 2023

Dear reader, 

Here comes the 74th edition of my newsletter. 

In this edition, the topic I'm highlighting is client retention versus client acquisition – two processes that most consultancies manage simultaneously.

What always fascinated me is how different the revenue split is between the two in high-performing consultancies and average firms, as well as the approach to these essential processes. I dive into the subject in the featured post.

Another post I'd like to call your attention to is on the dangers of being guided by your ego as a consultancy owner.

The Ego. It's something that often goes unnoticed as it demonstrates itself in the unconscious way consulting leaders arrive at decisions, approach business development, and manage their firms. I strongly encourage my readers to process this post through a lens of introspection.

As always, I hope I can create a bubble of calmness with my bi-weekly ‘think piece’, a place of stillness in the face of everyday stress. A chance to reflect on what really matters in your consulting work.

Enjoy reading, 

Luk

FEATURED ARTICLE

How to Balance Hunting and Farming for Sustainable Consulting Growth

Client retention vs. client acquisition – what is a healthy balance between the two in consulting business?

Should they prioritize retaining clients and, therefore, ensure pipeline predictability and revenue reliability?

Or is it better to allocate the majority of time into acquiring new clients, thereby expanding the reach and adding client diversity to daily work?

My readers know: I am a huge proponent of nurturing and expanding relationships with current and past clients.

However, it’s not as simple as ‘prioritize client retention at all costs’. There is a lot more depth and nuance to it than that. When approached incorrectly, a consulting growth strategy that’s based almost entirely on client retention can undermine that very growth.

So in this article, I discuss the risks and benefits of client retention and acquisition – or farming and hunting in consulting – and how high-performing consultancies maximize the benefits of each while neutralizing the risks.

READ MORE

MY RECENT ARTICLES

CONSULTING MINDSET

How a Consultancy Can Get Crushed by the Ego of Its Owners

CASE STUDY

How This Consultancy Cut Back 30% of Its Services Yet Improved Profitability

POSITIONING

25 Positioning Lessons Every Consultancy Should Internalize

AUDIENCE EDUCATION

How Consultancies Can Reach the Unconverted Audience in 4 Steps

MY LINKEDIN POSTS

PROFITABILITY

What sets apart a profitable consultancy from one that's struggling?

STRATEGY

Too many consulting firms are selling ‘availability’ at too low rates.

BUSINESS DEVELOPMENT

Do you really need new services to grow a consulting business?

STRATEGY

Why 'hiring to scale' is a losing battle for mid-sized consultancies.

NARROW FOCUS

Let me challenge the notion that a 50-person consultancy can truly excel across numerous expertise domains.

QUALITY OF LIFE

Consultancy owners, tackle these 4 underlying mindset challenges.

MY SUNDAY SHOUTOUTS ON LINKEDIN

...to Adam Grant for another great quote. Time for reflection!

‘Unscheduled time’ is quality of life. And that’s why we are all in business, after all: to have a better life.

...to the research and content about the consulting industry by Source and Fiona Czerniawska.

Great article about the future of professional services. 

HERE'S HOW I HELP CONSULTANCIES

If you knew a way to become a high-performing consultancy, would you adopt it?

Stupid question, I guess.

My High-Performing Consultancy Review provides a 360-degree evaluation of challenges such as:

- market positioning and target audience;

- visibility and reputation in the market;

- new client acquisition;

- existing client development and retention;

- pipeline predictability;

- expertise differentiation;

- business performance measurement;

- key player retention.

You'll receive a detailed report of your strengths, weaknesses, opportunities, and areas for improvement, along with actionable insights to help unlock your consultancy's full potential.

Don't settle for mediocrity. Book your High-Performing Consultancy Review today and take the first step towards a brighter future for your boutique consultancy.

PS. My ideal clients: founder-led boutique consultancies with revenue between 2M and +/- 20M and/or between 20 and +/- 100 consultants. 

BOOK A CALL →

SEND AN EMAIL →

Not yet subscribed to 'The Authority'? Subscribe here.

Previous 'The Authority' edition: Edition #73

Wanna send The Authority to friends or colleagues? It lives here

Connect with me: LinkedIn