Empowered by a Supportive Community: How a Systems Integration Firm Doubled Margins

Today, we want to share an inspiring story of a member who joined our community in 2023 and experienced a remarkable transformation in her business and personal life. This story demonstrates the incredible impact that Collective 54 can have on boutique professional service firms, such as consulting firms, marketing agencies, systems integrators, lawyers, accountants, and others who thrive on marketing and selling their expertise.

Meet Sarah, the owner of a systems integration company that specializes in helping businesses maximize the potential of their HubSpot applications. After experiencing four years of impressive growth, Sarah’s firm faced a challenging year in 2023, with a downturn of 20%. Frustrated and determined to turn things around, Sarah sought guidance from Collective 54.

Her journey began when a fellow member, who had transformed her own business from a sleepy 10-year-old lifestyle company into a thriving boutique, recommended Collective 54. This member attributed her success to the invaluable insights and support she had received from our community. Intrigued by the possibilities, Sarah decided to join us.

One of the first steps Sarah took as a new member was participating in Collective 54’s Pro Serve Benchmark Survey. The results were a wake-up call, revealing that her profit margins were a mere 18.3%, half of what her peers were achieving. Initially, she was skeptical of the numbers, but after validating the data collection methodology, she realized the harsh reality. This was the moment she recognized that doubling her margins could double her personal income, a crucial factor with three kids heading to college.

To kickstart her journey, Sarah was matched with a mentor and became part of our “Blocks” program, a 90-day sprint designed to achieve specific objectives. She confided in her mentor, expressing her concerns about raising prices due to intense market competition. The mentor introduced her to a groundbreaking concept – “productizing the service.” This approach focused on replacing custom engagements with standard ones, offering benefits such as increased efficiency, reduced labor costs, enhanced tech automation, and the potential for offshoring routine tasks.

Working closely with her mentor, they ran financial models that showed project-based margins could triple through this approach. The key was to “proceduralize” the creation of deliverables, allowing part time freelancers to handle nearly 20% of the task-level work. However, when Sarah initially attempted this transformation, her clients resisted standardization, insisting on custom solutions tailored to their unique needs.

Feeling disheartened, Sarah reached out to Collective 54’s President, Jeff Klaumann, for guidance. Jeff asked her to share the objections raised by her clients and helped her craft persuasive rebuttals. By explaining the advantages of standardized work – reduced human error and quicker project completion – Sarah found that clients welcomed the idea of a “productized” service with open arms.

Fast forward to mid 2024, and Sarah’s business has undergone a remarkable transformation. She reports profit margins of 41%, placing her firm in the top quartile of her cohort within Collective 54. What’s even more exciting is that she’s saving her surplus income, ensuring her children will graduate from college debt-free. Today, Sarah has transitioned from a rookie member relying on mentorship to a mentor herself, guiding new members on their journey to success.

This incredible story illustrates the power of community, where members give and receive support in equal measure. We invite you to share this story with individuals in your personal networks who own small service firms, as they too could benefit immensely from becoming a part of Collective 54’s mastermind community. Together, we can continue to transform businesses and lives, helping one another reach new heights of success.

Thank you for being part of our remarkable community.