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Home/r/Entrepreneur/2025-07-10/#consulting-firm-business-trends-strategies
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Is anyone here running a consulting firm?

r/Entrepreneur
7/10/2025

Content Summary

The post discusses current trends in consulting businesses, with multiple consultants reporting economic pressures from tariffs and interest rates. Key observations include increased price sensitivity among clients, budget freezes, and inconsistent lead generation. Strategies mentioned include tightening client qualification processes, shifting to value-based pricing, and forming strategic partnerships. Some consultants are transitioning to retainer models while others explore new ventures like AI platforms. Regional differences and niche specializations (IT, ERP, cybersecurity) show varied business impacts.

Opinion Analysis

Mainstream opinions indicate economic factors (tariffs, interest rates) are causing client budget constraints and project delays. Most consultants agree on tightening qualification processes and value-based pricing. Conflicting views exist on market outlook: some report growth (software agency up 20%), while others face significant declines (cyber consulting projects down from 65 to 12). Debate centers on business models - project-based vs retainer, with experienced consultants advocating for recurring revenue models. Geographical differences show US/UK consultants more focused on partnerships, while EU/AU respondents emphasize niche specialization. Emerging debate about AI's role in consulting services versus human expertise.

SAAS TOOLS

SaaSURLCategoryFeatures/Notes
AWSCloud ComputingMentioned as infrastructure for software agency
LinodeCloud HostingUsed by software agency alongside AWS

USER NEEDS

Pain Points:

  • Economic uncertainty due to tariffs and interest rates
  • Budget freezes and reduced client spending
  • Inconsistent lead generation (e.g., dry spells followed by surges)
  • Difficulty refining pitches and pricing models
  • Challenges in converting engagements to recurring revenue

Problems to Solve:

  • Adapting to economic shifts impacting client budgets
  • Managing unqualified leads and price-sensitive prospects
  • Maintaining stable revenue during market fluctuations
  • Transitioning from project-based to retainer models
  • Building partnerships for cross-border consulting operations

Potential Solutions:

  • Tightening client qualification processes
  • Implementing value-based pricing strategies
  • Focusing on capitalized/long-term clients
  • Developing recurring engagement models
  • Strategic partnerships to expand service offerings

GROWTH FACTORS

Effective Strategies:

  • Sharpening Ideal Customer Profile (ICP) and client triggers
  • Separating service offerings for different revenue segments
  • Building partnerships for geographical/domain expansion

Marketing & Acquisition:

  • Conference networking for industry insights
  • Leveraging existing professional relationships
  • Focused positioning for specific client tiers ($1M-$20M revenue ranges)

Monetization & Product:

  • Transition from project-based to retainer pricing
  • Value-based pricing over hourly models
  • Developing AI platforms for B2B markets

User Engagement:

  • Community building through cross-border partnerships
  • Knowledge sharing between consulting professionals
  • Client education about long-term strategic value