Episode 59 – Competitors: The 5 Competitors Boutiques Must Defeat to Grow – Member Case with Mark Riggs

There are 5 competitors’ boutique professional services firms must defeat to grow.  
Mark Riggs, CEO & Lead Strategist for Pemberton shares insights to win.

TRANSCRIPT

Sean Magennis [00:00:16] Welcome to the Boutique with Collective 54, a podcast for founders and leaders of boutique professional services firms. Our goal with this show is to help you grow, scale and exit your firm bigger and faster. I’m Sean Magennis, Collective 54 Advisory Board Member, and your host. On this episode, I will make the case that there are five competitors boutiques must defeat to grow. I’ll try to prove this theory by interviewing Mark Riggs, CEO and lead strategist for Pemberton. Pemberton helps liberate marketing, PR and communications agencies, as well as consultants across a variety of industries from the dreaded RFP. Turning over clients and chasing RFP doesn’t have to be that way. There is a better, smarter, more sustainable and satisfying way Mike counsels clients and growing their business by focusing on the clients they already have, rather than continually wooing new ones. Check out his podcast Agency Insurgents. Mark, great to see you. Welcome. 

Mark Riggs [00:01:29] Thank you, Sean. Thanks for having me. 

Sean Magennis [00:01:31] It’s a real pleasure. Mark, let’s start with an overview. Can you briefly share with the audience an example of how you’ve experienced and overcome competition? 

Mark Riggs [00:01:43] Yeah, I mean, you know, it’s so funny when I read the Chapter Chapter three in the book, you know, we talk about the cost of inaction. You know, for us, when we first started this company, that was a real challenge and that we, you know, it was it was a nice to have, you know, but we had to we had to find that pain pill, right? So for us, we came up with the cost of inaction calculator. Very good with now with agencies and say, Hey, listen, this is the actual amount of money that you’re either leaving on the table, especially the small and mid-sized agency Sean, that we work with. Yes, you know, those agency owners have a horizon in their mind, right, that they have a time horizon and they have a number in mind so we can ask just a few questions. And we’ve developed this calculator and say, Hey, listen, this is how many, you know, new clients over the course of your five year horizon, you would have to win per per year per month. And it just becomes an overwhelming number. And once you’ve illustrated form that way, their eyes really bulge. You’re like, you know, I didn’t realize, you know, we can’t get there along with new business, and we say, Well, hey, how? How do we get there? And it’s in as revenue expansion. 

Sean Magennis [00:02:56] Fantastic. 

Mark Riggs [00:02:57] So that’s the way we wrote it out. 

Sean Magennis [00:02:59] That’s obviously become a major competitive differentiator for you, Mark. 

Mark Riggs [00:03:04] Yeah, it has I mean, we’d like to think we’re a category one child, but, you know, I’m sure that we haven’t been able to pinpoint just yet. Yes. Other companies who do what we do, I don’t think they do it the way we do it. But you know, whether it’s the number of new clients, you would have to win about a thousand. All right. You’d have to win every opportunity that you find. You’d have to find the opportunities have no attrition. Yes. Over the course of time. But then when you calculate attrition, they really they realize like, you know, gosh, I’m not going to get better with net new business alone. And it has become an advantage for us. And since we’ve been able to develop this calculator, I can ask a potential client for questions and illustrate to them, you know, we can come up with what we call the prime number here based on the percentage. This is how much faster we can get you to your horizon goal with revenue expansion and taking that approach and really making it a priority as opposed to happenstance. And when we do that, it’s it’s definitely increased our win rate for sure. 

Sean Magennis [00:04:10] Outstanding. That’s a brilliant example, mark. Thank you. So I’d like to get your thoughts and some of the best practices we recommend in this area. We’ve identified five competitors in order of importance based on the frequency they show up in sales campaigns that we’re aware of. The first is do nothing. So this is a project that went away because of a competing client priority. The second is internal resources. So this is an internal client staff who think they can do what you do better than you do it and for free in inverted commas. The third is boutiques. So these are firms like yours in size and specialty, the fourth are market leaders. So these are the mega firms that have the offerings in your niche. And then there’s other. So this is the other ways clients can solve the problem. Often there’s more than one way to skin the cat, obviously. So I’ll walk you through them one by one and get your thoughts on each. So the first one do nothing. So this is, you know, 40 per cent of deals, whether you know it or not. And the way to beat do nothing is to calculate the cost of inaction. And you said this earlier, this dollar figure will prove to the client that your project deserves their full attention. It’s a priority. So what do you think of this concept? 

Mark Riggs [00:05:33] Its spot on in the especially in our industry when it comes to public relations advertising agencies, right? We’re all busy all the time. There’s never a good time to start any sort of focused initiative. And so early on, what we found is, you know, this sounds great, guys, and this would be awesome to have. But you know, right, right now is not the time where we’re really busy with new business. We’re really busy with onboarding clients, et cetera. So we had to find, you know, that pain pill and the pain pills pointing out to them, I know you have business goals. You know, we’re in business too, especially in the agency business. We typically have this subservient attitude towards our clients, right, that we work for them when we’re in business too. We’re here to make money. And so we try to point that out to them. And that cost of inaction calculator allows us to do that. But we had to come up with that because it really poured people’s attention. And yeah, so. So doing nothing will get you nothing right? And so we try to point that out. 

Sean Magennis [00:06:36] Thank you. So the next one is internal resources. So as a reminder, it’s internal client staff, and I realize it’s weird to think about the client as a competitor, but they are about 30 per cent of the time. And the way to defeat them is to establish a deadline that the project needs to be completed by. So what’s your opinion of this? 

Mark Riggs [00:07:00] Well, you are giving them that, you know, defining the horizon, right? You know, when do you want to walk out of here? When do you want to sell? When do you want to pass this on to your children, whatever that may be? That’s one way. Yes. The other way is, you know, every agency we speak to, Sean says, Oh, we already do that. You know, we grow our business, right? But when you take a hard look at it, a lot of that happens through happenstance. You know, in our joke is that we’re a society of liberal arts vendors. You know, unless you’re the CFO or the CEO, you really don’t know how to rub two numbers together. And because you’re really good at churning butter, they eventually plate. you’re in charge of all the butter turners, so you get the VP level in the agency world. And all of a sudden you’ve got all these business you are responsible for. No one’s taught us that. Mm hmm. So our whole concept is let’s teach people the business of the agency before they’re in a position of responsibility. Right? And so if we can take that action, it becomes a very purposeful thing. And then, you know, most agencies have those handful of what we would call hunters. You know, typically we have hunters and farmers in our business. Yes. And you know, I encourage CEOs and COOs or get their senior staff as an investment portfolio. You know, you have assets and you have liabilities. Yup. The assets are the ones who are generating revenue. Hmm. The liabilities are those SDP EVPs, who have gotten to a position because they were really good at something. But are they generating revenue for your business? And we all know when you look at your investment portfolio, if there is a liability, those are things that are easy to cut. So as opposed to having five assets in the portfolio, let’s create a portfolio of 10 15 assets, right? Let’s teach people to grow business. And so we like to think we bridge the gap between hunters and farmers. 

Sean Magennis [00:08:51] I love that, Mike. I love that concept. You know, we have a concept, you know, where every member of your team should be an asset on your balance sheet, particularly when you’re thinking of selling your business one day. So what I took away from that is defining the horizon and look at every member of your staff as an important portfolio asset. I love that. So the third one is boutiques. So these are firms like yours in size and specialty. And our recommendation is offering your client a money back guarantee for any reason. No questions asked. Have you seen that? What do you think of that? 

Mark Riggs [00:09:28] We don’t do that. It’s a tough one right there. Yeah, we like to. We haven’t gotten there yet, but we are confident guaranteeing results. You know, when we first started this business, the tip of the spear was organic growth. Let’s grow the revenue. Yes, right? And as a byproduct of that, what we saw was personnel growth, human growth, executive growth rate. So as we’ve grown, we’ve kind of twisted that approach a little bit to let’s focus on the growth of the person in the in the team. And if we can focus on their growth as an executive, as a hunter, right, the new business will come. Now there are opportunities to come along and say, Hey, did you hear something? This is the this is an opportunity. Yes. But you know, we we feel like if we can do that right, what helps us differentiate ourselves from different boutiques that might do something similar to us is we don’t do train the trainer we don’t do. And after a full day training, as you and I probably both step in those trainings and you learn something great. Yeah. And then 48 hours later that it hits the fan and muscle memory takes over. Mm hmm. So our differentiator is we will only work with agencies who are willing to invest three to six months, at least in working with these executive, these teams, to change the muscle memory that makes them. Yeah, because we’ve been taught and account management to bend over backwards. Right? You know, do whatever it takes to keep them happy. So we got to change some of that muscle memory. 

Sean Magennis [00:11:04] That makes total sense. The fourth one is market leaders. So these are the mega firms. They have offerings in your niche. You’ll run into mega firms only we we see about five per cent of the time. However, these are sizable deals and they can make or break a year. So what do you think of this? 

Mark Riggs [00:11:25] Honestly Sean, in terms of what we do, we haven’t run into that a lot. I think where we run into that is the mega holding companies, right? The IPG is the the omni columns. They have some of these resources built in. Yes. And so it’s it’s the idea of convincing them that we can help mitigate attrition because to them, their businesses are going to grow. They’re moving so fast from a new business perspective. But if they’re having to replace 30 or 40 percent of their business every year, you know, I can help get you. Pemberton can help get you to a spot of, you know what? Maybe it’s going to be five percent attrition because we’ve grown the existing accounts. So you’re not starting out so far back every year, year over year. So there are agencies or companies out there who who touch organic growth, that type of thing. Mm-Hmm. But we really haven’t run into that Bain or McKinsey, and I’m sure they may do some of this right. Their focus is on the marketing communications industry. And so it’s kind of wide open for us. It’s just a matter of getting in front of the right people and pointing out their pain and saying We’ve got a pain pill. 

Sean Magennis [00:12:35] And knowing distinctly your market, which I’m hearing clearly from you. So the final one is other. So this is the other ways clients can solve the problem. So clients often think they can solve a problem by firing somebody recruiting new talent, and we recommend beating other by doing a postmortem. So highlighting to the client and you’ve shared some of this the last time they took this approach, it didn’t work. So what else in this area can you share with the audience? 

Mark Riggs [00:13:06] Well, it’s very easy to look year over year, quarter over quarter of the impact of a client, especially if you’ve had a client for more than 24 months, right? I’ve had a client for more than 24 months, and I can I can identify the trends, the ebbs and flows. And were we able to fill in some of those gaps? Some level it out, right? Yes. Well, the other thing we were able to do from a postmortem standpoint is in the very beginning of our engagements, we do a senior leader. Scorecard. Mm-Hmm. So we have five criteria that these senior leaders have scored on, and we also do a proactive mis appraisal. Well, like that. So in our in our business, oftentimes we’re very reactive to the to the client. We have up the order taker type role and really that’s our fault and we let that happen. So for us from a postmortem, it’s either I can look distinctly at the revenue it has. The revenue changed as a number of opportunities with that client changed. Mm-Hmm. And I can score your people based on the senior leadership scorecard and the prior fitness appraisal and say, you know, here’s where they were deficient or we’re not confident, right? And we can go back and look, say after working with them for six months. Has that changed? And so it’s revenue, but it’s also the human growth because for us, it’s about sustained growth. Mm-Hmm. When they start working with Pemberton, we walk away from them. We want to be able to Sure progress and leave them in a good place. But what we have found is right. So when we started this, we said, Hey, three to six months of wear out, right? You know, but as I’m growing a company that I would like to sell next Sunday, yes, you know, how do I get recurring business? And so someone pointed out to me that, you know, hey, listen, after six months, an agency’s problems are not completely solved. They constantly have problems and challenges. So what we have done is we have morphed into other avenues that really the organic growth, the human growth is our Trojan horse. Yes, we can get in there. We can make an impact. We’re pleasant to work with. We develop deep relationships over the course of working with somebody, you know. Yes, we try to show them exactly what we’re preaching, which is deepening relationship with clients. And what that allows us to do is get into other challenges. 

Sean Magennis [00:15:22] Outstanding, Mark. Really, that’s you know, these additional insights to what we’re seeing is as recommendations are exceptional. So, Mark, thank you. This takes us to the end of the episode. Let’s let’s try to help listeners apply this. So we end each show with a tool. We do so because this allows the listener to apply the lessons to his or her firm. And our preferred tool is a checklist, a style of checklist as a yes, no questionnaire. We aim to keep it simple by asking only 10 questions in this instance. If you answered yes to eight or more of these questions, you’re on your way to defeating your competitors. If you answered no too many times, lack of a strategy to defeat your competitors is likely getting in the way of closing more business. So Mark has graciously agreed to be our peer example today, and I’ll ask Mark the yes no question so we can learn from his example. Let’s begin. 

Sean Magennis [00:16:23] Number one. Can you calculate a client’s cost of inaction? 

Mark Riggs [00:16:29] Yes. 

Sean Magennis [00:16:30] Number two, can you find a compelling event that puts a deadline or horizon on the client’s project? 

Mark Riggs [00:16:39] Yes. 

Sean Magennis [00:16:40] Number three. Are you confident enough to guarantee your work? 

Mark Riggs [00:16:46] Yes. 

Sean Magennis [00:16:47] Number four, can you establish credibility in the eyes of the client? 

Mark Riggs [00:16:54] Yes, and I will expound on that one just Sean. You know, it’s we don’t hire any consultant who hasn’t been the agency business for more than 20 years. It’s hard to walk into any agency without some sort of gravitas, yes. And say, Let me show you how I’ve done it in the past, I’ve taken accounts and grow them into multimillion dollar accounts. So the answer is yes. But there’s there’s some specifics there. 

Sean Magennis [00:17:19] Excellent. Excellent. Number five, can you signal quality to the client by delivering a best in class proposal? 

Mark Riggs [00:17:29] Yes. 

Sean Magennis [00:17:30] Number six, can you deliver much faster than the market leaders in your niche? 

Mark Riggs [00:17:36] No. But let me expand there again. You know, like I pointed out, this is about sustained growth. Yes. This is about changing muscle memory. So while someone else may come in and immediately point out an opportunity and they’re upselling, our approach is solved dont sell. On solving problems, should take care of itself. So for us, it’s not about speed. It’s about sustainability. 

Sean Magennis [00:17:59] Excellent. And every situation is different. Every client engagement is nuanced. The services are different. So thank you. I get that. Number seven, can you earn healthy margins and still be 25 percent less than the market leaders? 

Mark Riggs [00:18:16] We believe so, yes. 

Sean Magennis [00:18:19] Are you more enjoyable to work with than the market leaders? 

Mark Riggs [00:18:24] Yes, we are in fact pointing that out every time we start working with a new client, the we’re going to have a lot of fun. We’re going to do a lot of laughing. We get to know them very well. And again, we like it. You know, you have to have empathy for your client. They have lives, they have things going on, too, so but but but yes, we have a lot of fun. 

Sean Magennis [00:18:43] Fantastic. Number nine, do you understand the alternative solutions to the problem you’re addressing? 

Mark Riggs [00:18:51] Yes, assets versus liabilities, happenstance. Attrition. Absolutely. 

Sean Magennis [00:18:58] And number 10, will a postmortem revealed to the client that these alternatives have a poor track record? 

Mark Riggs [00:19:05] Yes. 

Sean Magennis [00:19:07] Mark, fantastic. In summary, a boutique must win a high percentage of the time they are not in enough deals to allow for many deals to be lost. No one wins every deal, but that should be the goal by establishing a competitive playbook. You can make sure you can beat the competition. Huge thanks again, Mark, for sharing your expertize today. If you enjoyed the show and want to learn more, pick up a copy of the book The Boutique How to Start, Scale and Sell the Professional Services Firm. Written by Collective 54 founder Greg Alexander.

And for more expert support. Check out Collective 54, the first mastermind community for founders and leaders of boutique professional services firms. Collective 54 will help you grow, scale and exit your firm bigger and faster.

Go to Collective54.com to learn more.

Thank you for listening.

Episode 50: Are you Losing to “Do Nothing”? – Member Case with Beth Trejo

Beth Trejo, CEO, and Co-Founder of Chatterkick, discusses how to stop losing to a competitor we call “Do Nothing.” Boutique professional services firms lose more deals to “Do Nothing” than any other competitor. If you want to bring on new clients, you will need to defeat this competitor to grow your professional services firm.

Transcript

Sean Magennis [00:00:17]: Welcome to the Boutique with Collective 54, a podcast for founders and leaders of boutique professional services firms. Our goal with this show is to help you grow, scale, and exit your firm bigger and faster. I’m Sean Magennis, Collective 54 Advisory Board Member, and your host. 

I will make the case that boutiques lose more deals to a competitor, we call “Do Nothing” than  any other competitor. I’ll try to prove this theory by interviewing Beth Trejo, the CEO, and co-founder of Chatterkick. Beth educates business leaders on social media tools and gets their digital recruitment, social media, and digital customer service efforts working. You can find Beth at chatterkick.com. Beth, great to see you, and welcome. 

Beth Trejo [00:01:14]: Thank you, I’m excited to be here today. 

Sean Magennis [00:01:16]: Likewise, we’re so excited to have you. So, Beth, our description of the competitor we called “Do Nothing” refers to the project that went away. The prospect did not hire a firm, any firm. They just decided not to move forward with the project. In other words, they decided to do nothing. Has this problem occurred for you in your line of business? 

Beth Trejo [00:01:40]: Yes, and we actually see this a lot. We focus on the social media platforms, and many times these are the first things that people set aside when they’re busy, or they hand their social media keys to an intern, and then the intern goes away. And so it’s one of the most overlooked opportunities that I think a lot of businesses have in multiple categories, not just direct retail. 

Sean Magennis [00:02:03]: Yeah, you know, that’s what we find, too. And so, just following up from there, do you feel that this is a top competitor that boutiques must defeat to grow? And why do you feel that way? 

Beth Trejo [00:02:16]: Yes, I do, and I think the “Do Nothing” competitor really does demonstrate a core value that a lot of the professional services firms have, which is expertise and their advice. And let me give you an example. 

Sean Magennis [00:02:30]: Yes, please. 

Beth Trejo [00:02:31]: One time that we had a particular customer and they were looking to recruit a salesperson, and this “Do Nothing” approach actually cost them millions of dollars. So, what happened was they were in this business. They were a manufacturing company, and their lifetime customer value is really high. So, they were looking to recruit a sales individual that, you know, they were super excited about when they found a candidate. 

This candidate had expertise in the industry, and they were going to take this new product line and really get it off the ground. He’s super excited about this candidate, the business buzz. And they got to the final stage of the interview process, and they offered the candidate position, and the candidate declined. And they were just completely perplexed. They couldn’t figure out what happened. 

And they asked the candidate, and the candidate said that they had multiple offers from this business and their competitor, and they felt like their competitor, the offer they accepted, felt more “modern” than this business. And this business was innovative. It was high technology-driven. It was all of the things. 

Sean Magennis [00:03:51]: Yes. 

Beth Trejo [00:03:51]: But online, they had a website that was old school. 

Sean Magennis [00:03:56]: Yes. 

Beth Trejo [00:03:57]: They had a social media presence that was pretty much nonexistent. And maybe a couple of tweets that were left from Happy Memorial Day a few years ago. And so it really was. They didn’t have a presence, so they didn’t get to tell their story, and their story was formed for them, which was that they weren’t a modern company, and they lost the candidate. 

Sean Magennis [00:04:22]: That is such an extraordinarily good example, and it just showcases the nuances and the importance of having all of these elements defined. And then, you know, there’s this concept of mystery shopping where, you know, I think it’s so critically important for people to mystery shop themselves so they know what candidates you know, think, and feel. Is that something you guys do? 

Beth Trejo [00:04:45]: Yes, we definitely just kind of take a customer journey approach. Can people find basic information about you? Do you have a presence online that is an authentic reflection of who you are?  I don’t think that people are looking for perfection, whether it’s candidates or it is customers. But, they want to feel like they have good information and they want that authenticity. So, stock photos – throw them away. I would rather have a candid picture of your team over lunch than a stock photo of people that don’t look like those who work at the business.

Sean Magennis [00:05:18]: Yeah, that makes total sense. So, OK, defeating this “Do Nothing” competitor. It sounds like it will save founders a ton of time and boost revenue. I’d like to get your thoughts on some of the best practices that we recommend in this area. 

There are four specific things I’ll walk you through, and I’ll have you share your thoughts on each? The first is to be sure you can state the problem you solve for your clients clearly. I often ask a professional services firm  founder what problem they solve for clients. And they typically tell me about their solution. So, what are your thoughts about this? 

Beth Trejo [00:05:56]: Yeah, and I really think from our angle, the power of social media really lets you cross multiple operational areas of your business. Yes. The first is it does give you a competitive advantage because if you have a microphone, you can tell your own story. And it’s not just the story that your employees that maybe left in an unfavorable way could tell about you. It’s not the story that your history necessarily defines you. 

But, if you have these channels, they really are a communication channel. And so it can build loyalty, gain a competitive advantage, and help you build real connections. Yes, because I do think that that is the currency of our future. It’s how deep can you connect with your audience? 

Sean Magennis [00:06:41]: You’ve hit the nail on the head. The second thing to do is to determine if the problem you’re solving is pervasive. So to grow your professional services firm, we need lots of sales opportunities. What are your thoughts on this concept? 

Beth Trejo [00:06:55]: So, I think for as it relates to social media, I think and even just creating a digital presence, we really are living in a world of you need that existence online, and you need to make sure that you have proof or validation. 

It’s funny. Testimonials are not as important in terms of the word testimonials. People like the word review because review feels less forced than testimonial. And we want as consumers, again across all categories, to feel like we have control to source information about our businesses and the people that we work with, and we don’t want it dictated to us in, you know, a non-authentic way. 

Sean Magennis [00:07:39]: I like that. So the concept of reviews rather than testimonials that’s very powerful. Number three that we recommend is it’s a problem proving the problem is urgent. So when a founder pitches a prospect, a prospect of determining what he or she, you know, is hearing is worthy of making it on the priority list, what do you think of this idea? 

Beth Trejo [00:08:03]: I think, especially as it relates to the “Do Nothing” competitor, urgency is really important because what can happen is if you’re complacent and you just let your presence exist online, or you’re not actually trying to make it better, your story gets told for you. And people are really busy picking up little pieces of breadcrumbs. 

We see this all the time with reviews and again, especially in professional services industries. They don’t collect and capture reviews as much as maybe retail businesses may. But what happens then is if you get two bad ones and you had zero, now you have two two-star reviews. And you start making that times ten, and all of a sudden, you’re not ahead of that, and it’s a really difficult thing to fix.. 

So, my recommendation from an urgency perspective is you have to get ahead of it because this is our world of people leaving reviews and talking about your business. And so, if you’re not getting ahead of the curve and it is urgent, you’re going to be missing out. 

Sean Magennis [00:09:10]: And it’s a 24-7 all on environment. So having the discipline to look at those to respond, to capture them, to learn from them, I guess, is equally important. 

Beth Trejo [00:09:22]: Hundred percent. 

Sean Magennis [00:09:22]: Yeah. So the fourth recommendation to defeat “Do Nothing” is to confirm that a prospect is willing to pay for the solution. Often founders make the pitch, the prospect says yes, and then they see the price, and then that yes, becomes a no. What are your thoughts on this? 

Beth Trejo [00:09:39]: Yeah, I think there’s a little bit again, especially in the professional services category of the what is the cost of “Do Nothing” right? And this is a pure cost of losing a critical employee or losing your current employees because, you know, the grass looks greener on the other side. 

Yes, the cost of PR mitigation strategies, I can tell you that’s very expensive, very expensive. And we see this example all the time. And I mentioned this on the review side of things. But if there was something said about you, and there was a swarm of people that just really hurt your reputation, you’re going to need not only just an outside person to help navigate that, but your employees are also going to have to spend a lot of time. 

So there are definitely resources internally that you’re probably going to have to put on that. And I’m sure that those all could be calculated into a total cost analysis. 

Sean Magennis [00:10:34]: Yeah, I think that’s an excellent answer and unpacking of that. Beth, this has been fantastic. There are four ideas: state the problem clearly, pursue only pervasive problems, prove the problem is urgent and use a cost justification to increase the prospect’s willingness to pay. These will defeat “Do Nothing”, and they’ll help our audience members grow. 

OK, so this takes us to the end of the episode. Beth, let’s try to help listeners apply this. We end each show with the tool. We do so because this allows the listener to apply the lessons to his or her firm. Our preferred tool is a checklist, and our style of checklist is a yes or no questionnaire. We aim to keep it simple by only asking 10 of these. 

In this instance, if you answered yes to eight or more of these questions, your strategy to defeat “Do Nothing” is working for you. If you want to know too many times, not identifying the problem is likely getting in the way of your attempts to grow. So, Beth has graciously agreed to be our peer example today. Beth, I’ll ask you the yes, no question so we can learn from this example. 

Sean Magennis [00:11:47]: So, number one, can you explain the problem to your family? Do they understand it? 

Beth Trejo [00:11:55]: Yes, social media is relevant in multiple categories and industries. 

Sean Magennis [00:11:59]: Outstanding. Number two, when you explain the problem to your friends, do they understand it? 

Beth Trejo [00:12:06]: Same answer, I don’t think that anybody would argue that social media isn’t baked into all of our lives. 

Sean Magennis [00:12:11]: Number three, does the problem exist in more than one industry? 

Beth Trejo [00:12:17]: It’s a human-to-human  world these days, and we need to make sure that we’re not just living in a B2B or B2C space. 

Sean Magennis [00:12:23]: I love that answer. Number four, does the problem exist in companies of all sizes? 

Beth Trejo [00:12:30]: Absolutely, from a small little retailer to a large manufacturer. 

Sean Magennis [00:12:35]: Yeah, to a one-man band up to, you know, a global multinational. Does the problem exist in many geographies? 

Beth Trejo [00:12:43]: Yes, and I would argue that it connects us to more geographies than we don’t even probably realize we’re connected to. 

Sean Magennis [00:12:49]: Again, completely agree with that. Number six, are clients paying to solve the problem today? 

Beth Trejo [00:12:57]: Yes, they’re either paying with their time, or they’re hiring someone to help them. 

Sean Magennis [00:13:01]: Number seven, have clients been paying to solve the problem for years? 

Beth Trejo [00:13:07]: As long as social media has existed, they realized that it takes a lot of work, and the trickiest part about it is it doesn’t shut off. 

Sean Magennis [00:13:14]: Yep, that’s 100 percent. Number eight, if the client does not solve the problem, are the consequences severe? 

Beth Trejo [00:13:22]: Very much so, we gave that example with that PR crisis or just losing a key candidate. 

Sean Magennis [00:13:26]: Yep. Number nine, is there a trigger event that puts the client into the market for your solution? 

Beth Trejo [00:13:34]: I think if you start a business, you need to have a presence online. 

Sean Magennis [00:13:37]: Yeah, I think that’s a baseline. That’s table stakes today, right? 

Beth Trejo [00:13:41]: Exactly. 

Sean Magennis [00:13:42]: And number ten, when clients have the problem, do they work to get it solved by a certain deadline? 

Beth Trejo [00:13:49]: Yes, and I think from a deadline perspective, it really does kind of come in waves. But, the consistency is half the battle of social media, and it’s more than just posting on the holidays. 

Sean Magennis [00:13:59]: You know, I love that, and that’s such an important lesson for listeners to understand and then to model. I’m assuming that there are great examples out there that people can, you know, fast follow. What are your thoughts on that? 

Beth Trejo [00:14:12]: Oh, there are so many businesses that are doing it right, and they’re upending different categories. These smaller companies are really competing against large behemoth brands just by connection. And that’s the thing that I would encourage your listeners to do. Social media isn’t just about pushing information. It’s about really listening and building true relationships with your audiences and developing a community. 

Sean Magennis [00:14:37]: Beth, thank you. I mean, this has been extraordinary. And again, I would encourage our listeners to reach out to you if they have any needs in this particular area. So, in summary, “Do Nothing” is defeating you at least 50 percent  of the time, whether you know it or not. 

To beat this competitor, be sure to pick a problem to solve that is pervasive, it’s urgent, it’s one that prospects are willing to pay to solve and be sure you can explain it simply. In other words, start with the problem, not the solution. And in the context of social media, make sure that you are very prepared and that you are literally following it 24-7. Big thank you to Beth for sharing these great examples for us today. 

Sean Magennis [00:15:23]: If you enjoyed the show and want to learn more. Pick up a copy of the book “The Boutique: How to Start, Scale and Sell the Professional Services Firm”, written by Collective 54 founder Greg Alexander.

And for more expert support, check out Collective 54, the first mastermind community for founders and leaders of boutique professional services firms. Collective 54 will help you grow, scale and exit your professional services firm bigger and faster. Go to our website to learn more. Thank you for listening. 

Episode 50: Are you Losing to “Do Nothing”? – Member Case with Beth Trejo