In a recent episode of the expert interview series hosted by John Golden, guest Eric Fiegoli, co-founder of Exbo Group, shared his journey of establishing and growing a consulting firm.
This blog post summarizes the episode’s main ideas, sharing straightforward tips and valuable insights for business owners and leaders.
Bootstrapping a Business: The Exbo Group Story
The Origins of Exbo Group
Eric Fiegoli and his co-founder, Kevin, identified a significant gap in the market while working with growth-stage companies in New York City. These companies had strong operational leadership but lacked strategic financial guidance. Recognizing this need, they founded Exbo Group in 2017 to provide financial operations and strategy support.
Transition to Full-Time Commitment
Initially, Eric and Kevin balanced their consulting engagements with full-time jobs—Eric at Amazon and Kevin at Ernst & Young. However, the growing demand for their services and the success of their initial projects prompted them to leave their jobs and fully commit to Exbo Group. This transition began their journey as a bootstrapped company, relying on their expertise and organic growth.
Key Takeaways for Bootstrapping
- Identify Market Gaps: Look for unmet needs in your industry and tailor your services to address them.
- Leverage Existing Networks: Use your professional network to gain initial clients and referrals.
- Commit Fully: Transitioning from part-time to full-time can significantly impact your business’s growth trajectory.
Lessons Learned and the Importance of Focus
Early Mistakes and Course Correction
In the early days, Exbo Group offered a broad range of services, including business planning and legal support, areas where it lacked deep expertise. This lack of focus hampered its growth. It wasn’t until it honed in on its core competencies in finance and operations that it began to see significant progress.
The Power of Specialization
Eric emphasizes the importance of focus in business. An explicit specialization allows for better storytelling and positioning in the market. By narrowing their service offerings, Exbo Group could present themselves as experts, building trust with potential clients.
Actionable Advice for Maintaining Focus
- Define Core Competencies: Identify and focus on your strengths.
- Transparent Communication: Be clear about what you do and do not offer to manage client expectations.
- Continuous Improvement: Regularly assess and refine your service offerings based on client feedback and market trends.
The Changing Landscape of Startups
Technological Advancements
Eric notes that the startup landscape has evolved significantly since 2017. Advanced technology and software solutions have made it easier and more cost-effective for startups. Tools leveraging machine learning have streamlined processes, allowing companies to scale more efficiently.
Shift in Investor Expectations
The era of cheap capital has ended, and investors are now looking for sustainable growth strategies. This shift has prompted Exbo Group to advise clients on balancing growth with efficiency, emphasizing the need for a clear path to profitability.
Recommendations for Navigating the Startup Ecosystem
- Leverage Technology: Utilize advanced tools and software to streamline operations and reduce costs.
- Focus on Sustainability: Develop growth strategies that prioritize long-term profitability.
- Stay Informed: Keep abreast of changes in investor expectations and market trends.
Balancing Growth and Profitability
Understanding Key Metrics
Eric stresses the importance of understanding key metrics, such as customer acquisition cost (CAC) and lifetime value (LTV), to make informed decisions about growth strategies. These metrics help analyze sales efficiency and understand the trade-offs in pursuing aggressive growth targets.
Developing a Balanced Approach
Exbo Group emphasizes helping clients develop a balanced approach to growth. This includes analyzing sales efficiency metrics and understanding the trade-offs in pursuing aggressive growth targets.
Practical Tips for Balancing Growth and Profitability
- Monitor Key Metrics: Regularly track CAC, LTV, and other relevant metrics.
- Strategic Planning: Develop growth strategies that align with your profitability goals.
- Iterative Improvement: Continuously refine your approach based on performance data.
Client Retention and Quality of Service
Importance of Strong Client Relationships
Maintaining strong relationships with clients is essential for long-term success. Exbo Group focuses on delivering high-quality work, often leading to referrals and new business opportunities.
Client-Driven Service Expansion
As Exbo Group has grown, it has expanded its service offerings based on client feedback. This client-driven approach allows it to remain focused while also addressing its clients’ evolving needs.
Strategies for Enhancing Client Retention
- Deliver Quality Work: Consistently provide high-quality services to build trust and loyalty.
- Responsive Communication: Be attentive to client needs and responsive to their challenges.
- Client Feedback: Use client feedback to guide service expansion and improvement.
Strategic Growth and Market Positioning
Moving Upstream
Exbo Group’s strategic decision to move upstream and work with larger clients was driven by the quality of their work and the increasing complexity of client needs. As their team gained experience and expertise, they became better equipped to handle larger contracts and more sophisticated challenges.
Maintaining Focus Amidst Growth
Eric acknowledges the temptation to diversify services when working with larger clients. However, he stresses the importance of maintaining focus and not straying too far from their core competencies.
Best Practices for Strategic Growth
- Identify Core Strengths: Focus on areas where you have the most expertise.
- Listen to Clients: Pay attention to recurring themes in client needs to guide service expansion.
- Stay True to Your Mission: Ensure growth initiatives align with your core mission and values.
Conclusion
Eric Fiegoli’s insights provide valuable lessons for entrepreneurs and business leaders. His journey with Exbo Group illustrates the importance of focus, adaptability, and understanding the evolving landscape of business. As startups navigate growth and profitability challenges, Eric’s experience reminds them of the need for strategic planning and a commitment to delivering quality service.
Listeners are encouraged to check the details in the episode description for more information about Eric and the Exbo Group. This episode is a rich resource for those looking to understand the intricacies of building and scaling a consulting firm in today’s dynamic market.
Our Host
John is the Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. A globally acknowledged Sales & Marketing thought leader, speaker, and strategist, he has conducted over 1500 video interviews of thought leaders for Sales POP! online sales magazine & YouTube Channel and for audio podcast channels where Sales POP! is rated in the top 2% of most popular shows out of 3,320,580 podcasts globally, ranked by Listen Score. He is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist.
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