Challenges of diversifying and growing a professional services firm
In this episode of Lunch Money, Daniella Mancuso (General Manager, Nationwise Group) and Ian Hyman (CEO – Hymans Asset Management) discuss the challenges of growing professional services firms, specifically commercial finance brokerages.
One of the biggest assets of a business is its people.
Finding the right staff to fill the roles within your business can be a challenge. Many businesses are considering hybrid working and offshore employees to reduce costs and grow their business. Ian shares his personal experience of using an offshore team.
Another strategy is business acquisition, you are often not only buying the client base and business assets but the people too. How do you mitigate the risk of key personnel leaving after the acquisition?
Changes in business
Commercial finance has changed over the years, with turnarounds going from weeks to days with advancements in technology such as video inspections of assets. Our society is so fast-paced, everyone wants everything yesterday.
Running a small business is challenging. Business owners often get so involved in working in the business, rather than on the business, that they can miss opportunities for growth, leading to overwhelming and high stress. So how do we solve this problem?
It was a wide-ranging discussion full of insights gained from the many years of practical experience of all our speakers.
This episode is summarised below – click on the time prompt to view sections of the discussion that might interest you most!
00:00 Growing Professional Services by acquiring and retaining the right employees is a challenge.
04:02 The importance of networking – it’s never too late to make new connections.
07:46 The evolution of the Professional Services industry over the years and current challenges
11:24 The role of drones in valuations – they can be used in solar and wind farms for surveillance and inspection purposes.
15:02 Long-term acquisitions are a challenge in the brokerage industry due to valuation issues.
18:35 How to make sure that when buying a brokerage, it’s still in alignment with the group’s values and getting a fruitful partnership?
21:53 Expanding your existing customer base or looking at new markets and products to diversify your business is important.
29:00 Offshoring is one way to leverage smaller firms to grow
32:32 How service firm principals can leverage themselves to manage growth.
35:50 The role of technology in mining site inspection and equipment maintenance.
39:34 Tips on starting a Professional Services firm in the current environment