I encounter the same story almost weekly: boutique consultancy firms with a fragmented service portfolio trying to be everything to everyone.
They stretch their limited capacity thin and never get beyond small-ticket, one-trick pony consulting projects.
As a result, they’re stuck in a vicious cycle of constantly chasing new clients, leaving no time or bandwidth to develop long-term, profitable relationships with existing ones.
They keep inventing new services in a misguided attempt to land more significant projects and revenue, diluting their expertise and credibility even more.
It’s disheartening to watch, and it happens far too often.
The good news is that, like most vicious cycles in business, it can be broken with enough determination, strong internal alignment, discipline, and the right strategy.
Attracted clients thrive. Chased clients drain.
Chasing clients today will be a problem tomorrow
Before I dive into the solution—the steps a boutique consultancy can take to break the vicious cycle—I’d like to go over some of the most toxic consequences of relying on client chasing (vs. attracting) for business development.
- More non-ideal clients: If a boutique consultancy has to chase its clients, it likely says yes to many non-ideal prospects to stay afloat, leading to poor fit, mismatched expectations, and more headaches than wins. Chasing clients leads to regret, not results.
- Poor differentiation: Chasing new clients with a fragmented portfolio makes the consultancy indistinguishable. This usually results in more project complications and fewer process standardisation and productisation opportunities, draining the team’s resources in the long run. And not to forget: it erodes expertise perception.
- Reputation damage: Constantly chasing clients and working with non-ideal prospects can lead to suboptimal project outcomes. As a result, the consultancy may develop a reputation for inconsistent quality and impact. I’m not even going to mention that chasing clients is usually a red flag for prospects. I guess you don’t like all the ‘chasing emails’ in your inbox, either?
- Lower win rates: Win rates will drop if the consultancy lacks specific expertise. Scattergun targeting and vague market positioning don’t build trust or attract quality clients.
- Higher CAC: Chasing clients is expensive. Client acquisition costs (CAC) pile up as marketing, business development, and sales efforts are wasted on prospects who aren’t truly aligned with the consultancy’s services, resulting in a low ROI and inefficient use of resources.
- Poor client retention: It's a well-known statistic. Chased clients rarely stay long enough to develop profitable, long-term relationships.
- Pricing erosion: Chasing leads to pricing squeezes and lengthy, sometimes gruelling negotiations, often ending with unfavourable contract terms and extended payment cycles.
- Unreliable pipeline: If a consultancy is constantly chasing, its new project pipeline becomes unreliable, leading to chaotic revenue and cash forecasts, project planning and resource management. An unreliable pipeline makes it nearly impossible to staff and schedule effectively.
- Weak EVP: With a broad, unfocused portfolio and a constant scramble to chase clients, attracting and retaining top experts becomes harder. The consultancy appears reactive and generic rather than an attractive go-to expert in any field.
- Stifled innovation: When a consultancy is always in reactive mode, chasing clients and working on poorly aligned projects, there’s little room to innovate or develop proprietary methodologies and processes.
Fast forward two years: the consultancy owner hits burnout, and half of the overstretched team has left. This short-sighted, self-destructive mindset leads these consultancies nowhere, yet it’s a trap too many fall into.
Recommended reading: 9 Ways to Assess a Boutique Consultancy’s Expertise Reputation
Escaping the vicious cycle through intentional design
High-performing consultancies are intentionally designed rather than spontaneously occurring. Their foundations are purposefully crafted, and their operational framework reinforces their strategic choices.
I wholeheartedly believe that any average boutique consultancy can transform into a high-performing one that delivers outstanding client results.
I’ve seen it happen. I’ve experienced the impact of intentional design in consulting businesses first-hand. It’s not easy, but there is a blueprint.
Here are the critical components of intentional design I have experienced in the past decade that will enable boutique consultancies to transition from client-chasing business development strategies to the path of organic growth, where prospects seek out the consultancy’s services (client attraction - strong inbound motion).
- Differentiating signature methodology: Developing a unique and recognisable approach to problem-solving will distinguish the consultancy from competitors.
- Visible leading experts in the market: Positioning the consultancy's key members as recognised thought leaders through public speaking, published insights, and active participation in industry events will go a long way in shaping the market narrative.
- High qualification barriers: I urge boutique consultancies to establish rigorous standards that potential clients must meet. This will maintain quality in engagements and reinforce the external and internal alignment with the consultancy's expertise.
- High degree of expertise specificity: Focusing on a well-defined area of expertise that caters to a specific client problems or struggles will make the consultancy the go-to choice for particular types of clients or projects. It’s about becoming the go-to expert for specific challenges and becoming ‘the reference’.
- Unique, client-centric value proposition: The most compelling value propositions I’ve encountered are highly specific to a specific targeted audience, addressing their pain points and desired outcomes (issue-led and outcome-based). They are short, laser-sharp, and impactful.
- Internal alignment: Intentional design will not work until every senior leader, partner, or owner is aligned around the same parameters. Only by putting 100% of the force behind the strategy will the consultancy be able to push the rock up the mountain effectively.
- Innovative discovery and entry services: Offering targeted, value-driven entry-point services that provide immediate insights and build trust with potential clients is a proven method for developing the inbound motion.
- Service design centred around client retention: Once a prospect becomes a new client through a discovery/entry service, I encourage consultancies to foster and grow that relationship to establish long-term cooperation. Consultancies that derive most of their revenue from existing clients through recurring work aren’t as desperate to chase new clients.
- Outcomes-driven social proof: Flipping the script and getting prospects to come to you requires showcasing the transformative outcomes of the consultancy’s client work. This is best achieved through case studies, client stories, and testimonials – all communicated in a way that puts outcomes and the value the consultancy delivers front and centre.
Recommended reading:
I have yet to meet a high-performing consultancy that stumbled into their status.
There are no coincidences, no luck, no right timing. Every single consultancy I’ve spoken to, audited or worked with achieved its high-performing status through an unwavering commitment to see through a strategy based on the intentional design components I just listed.
Yes, it often takes a couple of years to see the results. But it does work. I’ve been there myself twice.
In conclusion: escaping the client chase trap
Breaking free from the toxic cycle of client chasing requires a fundamental shift in how a consultancy is set up for success.
By focusing on intentional design, consultancies can stop chasing and start attracting the right clients. It’s not an overnight process.
The journey from reactive to proactive, from chasing to being sought after, is challenging but absolutely achievable.
It’s a path paved with focus, discipline, internal alignment, and perseverance, and it turns consultancies into high-performing businesses that thrive in the long run.
If you’re chasing clients, you’re chasing headaches.
Two words to take away: Intentional design.