The Boutique: How To Start, Scale, And Sell A Professional Services Firm

The third lesson is that clients hire boutiques for one of three reasons. First, you can do what they can do better. Second, you can do what they can do faster. Third, you can do what they can do cheaper.

In chapter 3, we learned that there are five alternatives: (1) do nothing, (2) internal resources, (3) boutiques, (4) market leaders, and (5) other.

Are you offering a service that clients are already buying? __ yes __ no Are there many legacy firms providing this service? __ yes __ no Are these legacy firms ripe for disruption? __ yes __ no Can you use less expensive labor to deliver it? __ yes __ no Can you use technology automation to streamline it? __ yes __ no Can you perform the service b

State the problem you solve for clients. Determine that the problem is pervasive. Confirm that clients will be willing to pay to solve it. Prove that the problem is urgent.

The biggest opportunity for you is to disrupt the boutique professional services sector.

A subscription is paid by a client to a boutique to gain access to an asset. For example, many boutiques have proprietary data. Clients want access to this data and pay a subscription to a database.

A fixed-bid project is using a flat amount regardless of the number of hours worked. This is profitable work for boutiques if they can scope projects correctly. Clients are buying a deliverable, not the boutique’s time. If the boutique can produce the deliverable efficiently, this is very profitable.

based fees. But, when done correctly, it was very lucrative. Our mix evolved into one-third retainers, one-third fixed bids, and one-third performance-based fees, or thereabouts.

There are many different sources of revenue available to boutiques. You have a deep understanding of the problem you solve. You understand intimately who you solve it for. And you can articulate why you are the best person to solve it. Turn your attention to the monetization strategy. Develop a mix of revenue sources that pay you fairly for the val