This is what I discovered after 18 years in the boutique consulting industry.
I’ve studied hundreds of boutiques, worked at Kin + Carta, Valtech, and another one which I cannot name. Understanding the evolving landscape is crucial.
First of all, find the consulting-market fit. Secondly, don’t jump growth steps.
1. Team size
People are the most important asset in boutique consulting, so your headcount becomes the primary indicator of scale. James O'Dowd recently wrote about Talent DD.
- 1 ~ 5 Independent Consultancy
- 6 ~ 50 Small/mid-size Boutique
- 51 ~ 100 Large Boutique
- 101 ~ 1,001 Small/Mid-Size Consulting
- 1,001 ~ 5000 Large Consulting
- 5001+ Worldwide consulting giant
2. Client Profile
Who you serve dictates what you can deliver, not what you want to deliver. Many new consultants pitch complex, expensive projects to clients who aren’t ready or target enterprises without the team to back it up. Patrick Petitti does a great job helping consultants level up client size.
- SME: up to $20M
- Lower Mid-Market: $150M
- Upper Mid-Market: $1B
- Large: $10B
- Enterprise: $10+
3. Offerings
Your track record sets the baseline for new projects. Price based on recurrence, complexity, and impact; that will show you the type of delivery team you need. Till Schmid offers great service to build your team.
- BPO: Monthly, operational, low margin.
- Advisory: Hourly based, structured methodology, high margin.
- Strategy: Project based, unique business challenges, very high margin.
4. Practice
McKinsey started with accounting in 1927, then engineering. Begin with what you do best; it’s the fastest way to build reputation. Beltrán Simó an ex-mbb publishes excellent content on consulting value.
- Corporate Finance
- Strategy & Growth
- Human Capital
- Supply Chain & Logistics
- Governance
- Digital
5. Industry
Choosing your industry positioning comes last. Economic cycles create the moments where consulting is truly needed; the first four perspectives tell you where you can be the best. Luk Smeyers has great content on this.
- Industry Agnostic
- Mining, Industrials and Chemicals
- Banking and Insurance
- Healthcare and Life Sciences
- Energy, Oil and Gas
- Retail and Consumer
- Software and Technology
- Defense and Aerospace
- Public Services
Finding your unique path through these five dimensions is how you stop competing on price and start winning on value.
