The Real Cost of Entrepreneurship | Episode 8 - Bill Poston & Prof. Joe O'Mahoney

Send us a textTom McMakin's path to consulting success began far from boardrooms – with a political philosophy degree followed by Peace Corps service in Africa. This unconventional start equipped him with unexpected skills that would later prove invaluable when leading a bread company to nationwide success and eventually purchasing Profitable Ideas Exchange (PI).Under Tom's leadership, PI has transformed from a small firm with six employees to a thriving business with 100 staff and approximately $15 million in revenue. Their unique value proposition? Creating meaningful connections between large consultancies and the executives they hope to serve through facilitated peer group conversations."We're sort of Match.com for businesses," Tom explains, highlighting how PI brings together CXOs facing similar challenges. This approach addresses a fundamental truth about professional services – they're sold through relationships and trust, not features or attributes. By positioning consultants as hosts of valuable peer discussions, PI helps them stay proximate to potential clients throughout lengthy sales cycles.The challenges Tom faced growing PI mirror those encountered by many professional service firm leaders. He needed to focus the business on what was already working rather than chasing new innovations, transform company culture by recruiting the right people, and build systematic approaches to business development beyond the founder's personal network.Perhaps most compelling is Tom's perspective on consulting's purpose. In an age where many professionals seek meaning beyond financial rewards, he frames the work as "connecting human intelligence with profound problems" – a high calling that involves cross-pollinating best practices across geography to solve significant challenges.Ready to transform how you connect with potential clients? Discover how relationship-based approaches can accelerate your consulting firm's growth by exploring Tom's books "How Clients Buy" and "Never Say Sell."Prof. Joe O'Mahoney helps boutique consultancies scale and exit. Joe's research, writing, speaking and insights can be found at www.joeomahoney.com

Send us a textBill Poston's remarkable journey from truck stop motel clerk to successful consulting entrepreneur offers a masterclass in professional services growth. With disarming candor, he shares how his farm upbringing and hospitality background instilled the relentless work ethic that became his competitive edge at Deloitte and beyond.After a decade at Deloitte that served as his "apprenticeship" in consulting fundamentals, Poston took the entrepreneurial leap to found Calypso, a firm focused exclusively on helping clients deliver on the promise of innovation. What began as a "bet on ourselves" quickly grew beyond expectations, with first-year revenues approaching $4 million. Yet success brought unexpected challenges – from the administrative burdens of running a business to the delicate balance of maintaining focus while pursuing growth opportunities.Perhaps most fascinating is Poston's candid assessment of their missteps: expanding internationally too quickly, venturing into training that became "a huge distraction and commercial failure," and attempting government work that "proved futile." These hard-won lessons underscore a crucial truth about entrepreneurship – recognizing mistakes early and pivoting before they become fatal is as important as getting things right initially.Today, Poston channels these experiences into LaunchBox, helping new founders launch professional services firms by providing both business infrastructure and capital. His screening process focuses on two critical questions: Do you want to build a business to scale rather than a lifestyle practice? And are you commercially viable – able to sell work, not just deliver it? This practical wisdom exemplifies why Poston has succeeded where many professional services entrepreneurs falter.Whether you're considering entrepreneurship, growing a consulting practice, or simply fascinated by the inner workings of professional services, this conversation delivers invaluable insights from someone who's navigated the journey from startup to successful exit. Ready to transform your consulting firm's equity value? Visit equitysherpa.com to discover how we help consultancies quadruple their worth over a two to four year period.Prof. Joe O'Mahoney helps boutique consultancies scale and exit. Joe's research, writing, speaking and insights can be found at www.joeomahoney.com

Send us a textCaroline Boston, reveals the talent acquisition secrets that help small consultancies grow exponentially in today's competitive market. With over 20 years in the consulting recruitment space, Boston offers rare insights into how boutique firms.The talent journey of a growing consultancy follows predictable patterns. Most firms begin with an associate model before taking the leap to permanent hires. Boston identifies the critical "engagement manager" role as the typical first key hire – someone who can anchor client relationships while delivering exceptional work. This transition represents not just a financial investment but a psychological shift for founders accustomed to controlling every aspect of their business.What drives top consultants to leave prestigious firms for smaller operations? Boston's perspective is fascinating – it's rarely about compensation. Instead, the appeal lies in escaping bureaucracy, gaining direct client exposure, and having meaningful impact on the business itself. "If you're looking for a smaller team with a less hierarchical way of working, you're more likely to find that in a startup than within Deloitte," she explains. This value proposition resonates deeply with seasoned consultants who feel constrained in larger organizations.The most counterintuitive insight? Boston identifies empathy as the fundamental consulting skill – more crucial than any technical capability. While methodologies and analytical frameworks can be taught, truly understanding client perspectives, pressures, and needs is what separates exceptional consultants from merely competent ones. This reframes consulting sales not as a necessary evil but as a natural extension of problem-solving abilities.As technology transforms consulting business models and skillsets, Boston's firm helps businesses navigate these changes. The demand for data analytics, AI, and coding expertise is reshaping recruitment strategies, forcing firms to look beyond traditional talent pools. Meanwhile, retaining talent requires deliberate focus on growth opportunities and authentically living company values.Want to understand how today's most successful consulting firms are building teams that drive exponential growth? Caroline Boston's insights offer the blueprint.Prof. Joe O'Mahoney helps boutique consultancies scale and exit. Joe's research, writing, speaking and insights can be found at www.joeomahoney.com

Send us a textWhat does it really take to build a successful global consulting firm from scratch without external investment? In this revealing conversation, Jeffrey Cronkshaw, founder and group managing director of Lancia Consult, shares the untold story behind growing his consultancy from a two-person operation to a thriving international business with offices in Singapore, the UK, and beyond.The journey began not with a meticulously crafted business plan, but with a practical solution to work-life balance challenges when Jeffrey's wife Isabella returned from maternity leave at Accenture. What started as a simple contracting vehicle quickly evolved into something much more ambitious when they spotted a significant gap in the Southeast Asian market – a vacuum between the Big Four firms and very small local consultancies that was begging to be filled.Jeffrey candidly discusses the realities of leaving partner-track positions at Accenture, the early cash flow challenges, and how they've built a distinctive culture with a remarkably young leadership team. His approach to growth has been refreshingly opportunistic rather than following conventional wisdom – deliberately avoiding London when entering the UK market, prioritizing process development before problems arise, and maintaining a long-term vision rather than focusing on a quick exit.Most compelling is Lancia's strategy for competing with industry giants. Rather than trying to beat them at their own game, they've created distinct advantages: giving consultants broader experiences and faster progression opportunities, maintaining deep connections between offices that would typically operate as separate entities in larger firms, and carefully diversifying their service offerings beyond pure consulting.Whether you're considering starting your own consultancy, looking to join a growing firm, or simply fascinated by entrepreneurial journeys, this episode offers valuable insights into building a sustainable professional services business in today's competitive landscape. How might Lancia's approach change your thinking about what's possible in the consulting world?Prof. Joe O'Mahoney helps boutique consultancies scale and exit. Joe's research, writing, speaking and insights can be found at www.joeomahoney.com

Send us a textBuilding a consulting firm from scratch requires more than expertise—it demands vision, resilience, and an unwavering commitment to culture. Edward Beals, founder of Loft9, demonstrates how these principles can transform a startup consultancy into an acquisition target in less than a decade.Starting with just two founders and modest investment, Loft9 achieved remarkable first-year results: 17 employees and $2.2 million in revenue. Beals attributes this success to their cultural foundation, what he calls the "trifecta of awesomeness"—hiring people who are smart, driven, and humble. This cultural emphasis wasn't just internal; it became their market differentiator when competing against established players."Clients are looking for a partner, someone who's going to roll up their sleeves and get in the trenches with them," Beals explains. "Not just someone to come in, tell them what to do, and walk away with a fancy deck left behind." This philosophy, combined with their co-delivery quality assurance model, helped them win business despite never being the lowest-priced option.When SIA Partners acquired Loft9 in 2019, the deal came together with surprising speed—just three months from letter of intent to closing. The acquisition offered strategic advantages for both companies: SIA gained a West Coast presence, while Loft9 accessed complementary capabilities in design thinking and data science without having to build them from scratch.For aspiring consultancy founders, Beals offers practical wisdom: invest in marketing earlier than you think necessary (particularly SEO), surround yourself with critical perspectives that challenge your ideas, and find deep personal motivation—for him, it was providing for his children—that will sustain you through the inevitable challenges of entrepreneurship.Want to transform your consultancy's value? Visit equitysherpa.com to discover how we help owners quadruple their equity value over a two to four year period.Prof. Joe O'Mahoney helps boutique consultancies scale and exit. Joe's research, writing, speaking and insights can be found at www.joeomahoney.com

Send us a textAre your consultancy's processes holding back your growth potential? In this revealing episode of the Consulting Growth Podcast, we dive deep into how Professional Service Automation (PSA) software can transform small and medium-sized consultancies.Guest Behram Khan, co-founder of Avaza PSA software, shares how the right systems can help consultancies escape the "spreadsheet trap" that drains productivity and profits. Born from his own frustrations as a project manager, Khan explains how fragmented processes using separate tools for tasks, communication, time tracking, and invoicing create costly inefficiencies that compound as businesses grow.The benefits of implementing a PSA system are substantial and measurable. Most consultancies see a 5-10% improvement in billable resource utilization – equivalent to gaining an extra team member without additional salary costs. Status meetings become more focused, email threads more manageable, and project profitability more visible. Perhaps most critically for growing firms, PSA systems significantly improve cash flow through streamlined invoicing and payment processes.Khan makes a compelling case for early PSA adoption: "Adopting a PSA tool should be part of the initial business setup." Starting with basic functionality and expanding as you grow establishes solid processes before bad habits form. The ideal solution balances ease of use with sufficient flexibility to adapt to your specific workflows.Beyond technology, Khan offers valuable advice for consultancy growth: invest time researching how to reach prospective clients, maintain consistent marketing messaging with clear calls to action, keep existing customers happy through clear communication, and automate repetitive activities wherever possible. Most importantly, ensure your business can function smoothly even without you present – a key indicator of a truly valuable consultancy.Ready to transform your consultancy operations? Listen now to discover how the right systems can unlock your firm's full potential and position you for sustainable, profitable growth.Prof. Joe O'Mahoney helps boutique consultancies scale and exit. Joe's research, writing, speaking and insights can be found at www.joeomahoney.com

Send us a textWhat happens when business partners who once shared a vision find themselves at odds over an exit strategy? The consequences can be financially devastating and emotionally draining—yet most consultancy owners postpone these crucial conversations until it's too late.Bill Bierce, managing attorney and co-founder of Beers Kenerson Attorneys, brings decades of experience resolving business partnership disputes to this eye-opening conversation about preparing for successful exits. Having witnessed countless "corporate divorces," Bill shares practical wisdom on how consultancy owners can protect themselves and their equity value through proper planning.At the heart of Bill's approach is a simple yet profound concept: start with the end in mind. From establishing veto rights and force majeure provisions to creating governance structures that survive personality conflicts, he outlines the essential legal frameworks that prevent catastrophic disputes. These aren't just legal technicalities—they're the foundation of healthy business relationships that preserve value for everyone involved.The discussion delves into the psychology of partnership, comparing business relationships to marriages that require shared values and clear expectations. Bill reveals how minority shareholders can protect themselves, how to maximize valuation during sale preparation, and why knowledge management systems dramatically increase a firm's attractiveness to buyers. His insights on Delaware corporate law, earnout structures, and due diligence processes provide a masterclass in exit planning.Whether you're just starting a consultancy or have been operating for years, this conversation offers invaluable guidance on structuring your business for maximum equity value. Take the first step toward a smarter exit strategy by learning from someone who's seen what happens when partners fail to plan—and how dramatically different the outcomes can be when they do.Prof. Joe O'Mahoney helps boutique consultancies scale and exit. Joe's research, writing, speaking and insights can be found at www.joeomahoney.com

Send us a textRobert Garner's journey from KPMG partner to successful consultancy entrepreneur offers a masterclass in professional services growth and value creation. Drawing on his experience founding Avail Consulting (which he successfully sold) and later serving as Group CEO of Tribal Group, Garner shares the strategic frameworks that transformed his businesses from startups to multimillion-pound enterprises.At the heart of Robert Garner's approach is a disciplined focus on what he calls the "four-by-four matrix" – aligning four specific service offerings with four target markets to create sixteen strategic focal points. This clarity of purpose allowed his team to methodically track progress and avoid the common trap of unfocused expansion. "Too many smaller organisations spend too much time working IN and not enough time working ON," Robert Garner explains, revealing how he and his co-founder limited themselves to 40% utilization to preserve crucial time for business development.For consultancy owners preparing for eventual sale, Robert Garner offers invaluable insights into what buyers truly value. He emphasizes the importance of developing annuity revenue streams where possible, building robust operational systems well before they're critically needed, and cultivating leadership teams that extend beyond the founder. His operational due diligence work with Garwood Solutions has given him unique visibility into the common pitfalls that diminish consultancy valuations.Perhaps most reassuringly, Robert Garner challenges the widespread fear that growth inevitably dilutes company culture. His experience demonstrates that with intentional leadership, strong values can be maintained through significant scaling. The real threat to culture isn't size but rather leadership that fails to create appropriate frameworks – or as Garner puts it, "It's okay to take risks; it's not okay to take uncontrolled risks."Whether you're growing a boutique consultancy or preparing for eventual acquisition, Garner's systematic approach to professional services growth provides a blueprint for building firms that deliver exceptional client value while commanding premium valuations in the market. His insights reveal why some consultancies plateau while others achieve remarkable exits.Prof. Joe O'Mahoney helps boutique consultancies scale and exit. Joe's research, writing, speaking and insights can be found at www.joeomahoney.com

Send us a textWhat makes a consultancy truly valuable to potential buyers? It's far more than just impressive EBIT DA figures and client lists.David Blois, a certified accountant with 25 years of M&A experience in the professional services sector, reveals the three critical boxes every successful acquisition must tick: chemistry between the parties, cultural alignment in working practices, and an outstanding combined business proposition. His insights challenge the conventional wisdom that focuses solely on financials."Buyers are fairly simple creatures," Bloys explains, highlighting their preference for straightforward acquisitions that align with strategic objectives without requiring complex restructuring. This reinforces why niche-focused consultancies typically attract more interest and higher valuations than generalist firms.For consultancy owners planning an exit, timing is everything. Engaging with M&A specialists 2-3 years before your intended sale allows you to systematically address value-limiting factors. Common weaknesses include absence of second-tier management, inadequate margins, poor systems, and over-reliance on referral business. By understanding what creates premium factors versus discount factors in your valuation, you can strategically enhance your firm's worth.Perhaps most valuable is Bloys' practical advice on earnouts - keep them to 2-3 years maximum and ensure targets are realistically achievable. The success of these arrangements hinges on that initial chemistry and cultural fit established at the deal's outset.Whether you're running a £5 million or £50 million consultancy, these principles apply. The gap in valuation multiples between smaller and larger firms isn't as dramatic as many believe, particularly when smaller firms find buyers who recognize strong synergistic benefits.Want to maximize your consultancy's value? Focus on building a distinctive, specialized business with robust fundamentals rather than prematurely orienting your strategy around potential buyers. When sale time arrives, work with specialists who can connect you with multiple potential acquirers - finding not just the highest price, but the right match for long-term success.Prof. Joe O'Mahoney helps boutique consultancies scale and exit. Joe's research, writing, speaking and insights can be found at www.joeomahoney.com

Send us a textRichard Brackstone, the managing partner of Moorhouse Consulting, and I talk about growing consultancies. We talk about his time at Andersen Consulting and spearheading projects in the Blair-Brown government era to leading major projects at Lloyds.We'll explore the interesting evolution of Moorhouse Consulting, tracing its rise from Dom Moorhouse's vision to the fast-paced expansion that followed their management buyout. We explore how leadership changes, a commitment to diversity, and service line transformations fueled the firm's expansion to a powerhouse of nearly 300 dedicated professionals. Richard also offers an insider's perspective on the nuances of ownership transitions in the consultancy sector, illuminating the management buyout process when BT sold Morehouse. He discusses the strategic decisions that shaped the firm's future, from choosing between private equity and independent ownership to the cultural shifts that ensued. We delve into the importance of a robust operational structure, highlighting the role of a strong leadership team and strategic systems to support sustained growth. Prof. Joe O'Mahoney helps boutique consultancies scale and exit. Joe's research, writing, speaking and insights can be found at www.joeomahoney.com