Depending on who you ask, there are anywhere from over 700,000 to over 1 million professional services firms in the U.S.

Many professional services firms begin growing the same way—solving problems for friends, family and referrals. But after you and your colleagues have exhausted your networks, your firm must reach a wider audience to continue growing. It’s at this time you’re faced with a question:

How the hell do we differentiate ourselves? 

There are a few routes to choose from on the way to differentiating yourselves—it’s up to you to make the right decision that yields more work and sustainable growth. No pressure! Here are some choices you’ll have to make along the way and some ways to think through them. 

Finding the Right Balance Between Expertise and Broad Appeal Across Industries

Is it better to appeal across industries or go deep in one or two? While this may not be a question you need to answer in the early days of your firm, it’s something you should consider as you seek continued growth beyond your network. 

There are some key questions you need to consider. Does going deep with expertise yield better financial outcomes? Are there enough prospects out there with the problem you want to solve? Conversely, if you want to appeal across industries, do you like working with companies in those industries? Are they insulated from economic swings? Are they crowded with other service providers?

At some point, you have to confidently choose a direction. This creates focus for your team in their work and in your new business efforts. Prospects in your chosen niche begin to clearly see who you are and what you offer. 

Once you’ve committed to a direction, the best way to demonstrate your knowledge is through thought leadership content. Thought leadership is how you can educate your audience about the problem you solve and demonstrate your deep understanding of their business, challenges and pain points. Creating thoughtful content that helps your prospects solve a problem will draw them to you. 

Clearly Defining Target Clients and Their Problems

You might have spent the early days of your firm experimenting with service models, building your team and discovering what type of work you like to do. But over time, to attract clients and build your firm in a scalable way, you have to begin leaving behind clients and companies that don’t suit you. 

As time passes, homing in on your ideal client will help you attract new clients. Get to know their specific pain points, goals and decision-making process so you can improve your messaging and your offerings. Develop messaging that speaks to specific business problems rather than your general capabilities. Narrowing your focus and truly understanding your ideal client will make your value proposition much clearer to them. 

Speaking to a client with a specific problem you can solve is as much about attracting them as it is repelling other types of clients. 

Making Sure You’re Different Enough Than Your Competitors

The final stop on the path to differentiation is setting yourself apart from your competitors.

Focusing on your process, approach or methodology is one way to set yourself apart. Clearly describing how you put your expertise into practice (and maybe even naming that approach or methodology) can help prospects understand exactly how your approach can help them solve their problem. 

Leaning on data and technology can also help you stand taller than other firms. Whether it’s collecting data from your clients or benchmarking them against others in their industry, data can help prospective clients see where they stand; it can help you make the case for helping them. 

Finally, developing a different look and feel can help you stand out. Resist the urge to use similar colors, fonts and imagery and create a visual brand that looks different than the rest. 

None of these challenges can be tackled overnight. But as you think about your next three to five years of growth, it’s vital to look at these issues and consider what will make your professional services firm stand out and stand the test of time. If you’re interested in chatting about how you can start making changes, don’t hesitate to reach out.