INSIGHTS

When it comes to assessing a company's financial health, the Debt-to-Equity (D/E) ratio is a powerful metric. It tells us how much of a firm's operations and growth are financed by debt versus its own equity. A high ratio generally suggests greater reliance on external creditors, hinting at higher financial risk, especially during economic downturns. Conversely, a lower ratio often indicates a more conservative financial structure. However, the definition of a "good" or "norm

Is More Always Better? The Truth About Headcount, Revenue, and Efficiency in Knowledge Services In the world of knowledge-intensive businesses—think consulting, law, and creative agencies—the relationship between the size of a team and the money it generates isn’t as simple as it seems. It's often assumed that more employees will automatically lead to more revenue. While a general positive correlation does exist, our new report, "The Non-Linear Correlation: An Analysis of Hea

Boutique knowledge services firms (consulting, advisory, agency and broker, etc) have seemingly forever faced the conundrum of making the strategic choice: Should we be a specialist? Or, should we be a generalist?  Not a new question to be sure although with the onset of AI it seems it is now becoming more acute. The answer to this question has always had a direct impact on profitability, client acquisition, and a firm's overall value. And, we may add survival into this mix.

The journey of a boutique knowledge services firm is not a smooth, upward climb; it’s a series of distinct stages, each with its own unique set of challenges and opportunities. While many firms successfully navigate the initial start-up phase, the most challenging period is a critical transition from a founder-led, project-based model to a scalable, team-driven enterprise. This phase, we refer to as "Traction," typically occurs when a firm expands from 1-10 people to a size o

If revenue feels like it’s lagging — and for many boutique firms it often does feel that way — here are three projects you can start immediately. You don’t have complete control over how fast results show up, but if you execute on any one or all of these, you will see results. 1. Have lunch with your best clients “Clients” here means broadly: current clients, past clients, or even strong past prospects where you built real trust. At these lunches, ask one question: “If you

Feeling stuck? You’re not alone. Many boutique firms eventually hit a common wall: the $3 million revenue plateau. Interestingly, this is not an arbitrary or invented number. In fact, this is a well-documented inflection point or "messy middle," typically occurring between $2.5 million and $5 million, where the informal, entrepreneur-centric model that fueled early growth simply can't support further scale. Fortunately, as our report, “The $3M Revenue Plateau: A Strategic Blu