CRACKING THE CODE: What the 2025 High Growth Firm Study Means for B2B Professional Service Firms

The Hinge Research Institute released the 10^th edition of its High Growth Firm study which examines the characteristics, trends and approaches of high growth professional service firms.

In this article, I will discuss the key findings from this study as well as provide implications for what this means for Small and Medium B2B Accounting, Technology and Law Firms.

**NOTE**

While this is a comprehensive and detailed study, it has a strong focus on marketing and business development as they pertain primarily to client acquisition.

It is important to recognise that while Marketing and Business Development are critical elements, an holistic Go-to-Market strategy is necessary to drive growth. Such a strategy contains other critical growth elements such as client retention and expansion, solution development and client experience which are not addressed in this study.

What Is a High Growth Firm?

In this study, a high growth firm is defined as those with a minimum of 20% compounded annual growth rate over a 3-year period. When comparing these firms to those that have little to no growth, specific strategies and practices have been identified that are associated with higher growth and profitability.

The Growth Rate of High Growth Firms

High growth firm grow 4 times faster compared to average growth firms and are also 30% more profitable.

In terms of the actual growth rate itself, high growth firms were found to have a median growth rate of 11.6% which is comparable to pre-pandemic levels of 11.1% back in 2019.

Top Challenges for High Growth Firms

Two key issues are emerging as professional service firm leaders look to 2025 and beyond.

1. Incorporating AI and Automation

Over 50% of firms are still trying to figure out how to put this rapidly evolving technology to work.

2. Increased Competition

A new pool of firms is emerging run by entrepreneurs with innovative and disruptive ideas and approaches

Key Advantages of High Growth Firms

The study found that high growth firms have advantages in 4 key areas:

• Marketing and Business Development
• Strategy
• Talent
• Technology

Each of these are discussed below.

1. MARKETING AND BUSINESS DEVELOPMENT

There has been a strong trend among high growth firms to going back to using “traditional” in-person techniques in conjunction with online approaches.

This is likely driven in part because as other B2B research studies have shown, buyers of B2B professional services are conducting a significant amount of self-education and research which now extends beyond online searches to tapping into networks such as industry experts, peers, groups and associations to gain the insights and recommendations they seek.

Top 5 Marketing Techniques Used by Most High Growth Firms

This year’s study has found that the following are the most used by high growth firms

• BD materials such as proposals, pitch decks (54%)
• Networking on social media (53%)
• Networking at targeted conferences, events (46%)
• Speaking at targeted conferences, events (46%)
• Email campaigns (45%)

Most Impactful Marketing and Business Development Techniques of High Growth Firms

• Live product and service demonstrations
• Providing assessments and consultations
• Speaking at conferences and events
• Networking at conferences and events

2025 Marketing Priorities

The leaders of high growth firms recognise that being the Visible Expert firm is essential to  driving client acquisition and revenue growth.

As a result, building the Reputation and Visibility are the priorities of high growth firms.

To achieve this, high growth firms reported are focusing on the following:

1. Creating Content
2. Brand Differentiation
3. Social Media Marketing
4. Developing thought leaders
5. Outreach for Speaking Opportunities

Implications for SME Firms

Remember EXPERTISE is one of the key criteria of buyers of B2B professional services

The key to business growth is for firms to immerse themselves where their clients and prospects where go to for  “A-I-R” i.e. Advice Insights and Recommendations for their key challenges, objectives and priorities.

Suggested steps for B2B firms include:

• Identify your target audiences (e.g. prospects, clients and partners)
• Identify the network components where your target audience go to for “A-I-R” (e.g. their preferred industry experts, groups, events, associations, publications)
• Develop a plan for how prospective clients can engage with your firm and experience its expertise. Some options include articles, assessments, workshops, videos, strategy sessions
• Be visible where and with WHOM your target prospects go when seeking advice, recommendations and solutions. Consider opportunities to collaborate with these trusted sources

To gain further insights on how to make your firm visible, check out my short video:

3 Ways to Grow Your Professional Services Firm

2. STRATEGY

High Growth Firms have a strong focus on research

• Almost 50% conduct marketplace research quarterly
• Over 40% conduct client research monthly

In addition, high growth firms are also expanding their knowledge on the following topics:

• AI
• Client Experience
• Content Creation
• Strategy

With buyers often struggling to choose among similar firms, many high growth firms are differentiating through specialization based on one or more of the following:

• Services offered
• Types of Problems Solved
• Business Function
• Industry
• Location

Implications for SME Firms

• Develop a program to regularly conduct Client and Market research
• Use the research findings to:
  • Increase your firm’s knowledge and expertise in its specialist areas
  • Develop assets and tools to demonstrate your firm’s expertise such as articles, playbooks, templates
  • Identify opportunities for clients and prospects to engage with your firm and experience its expertise. Some options include demonstrations, workshops, panels, roundtables, assessments
  • Consider opportunities to collaborate with relevant industry experts, associations, groups and communities that your target audience regard as trusted advisors

3. TALENT

In order to focus on their core business, high growth firms outsource functions and duties that are necessary but beyond their core capabilities including:

• Website content management
• Podcast and Video production
• Marketing Implementation support

Implications for SME Firms

Consider alternatives to gaining the skills and knowledge needed for important, non-core functions that are beyond your firm’s area of specialization and expertise. Options to consider include:

• Virtual assistants
• Freelancers
• Independent consultants
• Specialist Marketing Agencies

4. TECHNOLOGY

High growth firms monitor a variety of marketing and business development metrics and use the information to make adjustments and improve performance.

Metrics used by High Growth Firms include:

• Social Media
• Leads by Source
• Client Retention
• Client Lifetime Value

Firms also set aside time regularly to analyse the data and determine if there are any strategic or operational changes that need to be addressed.

CREATE THE RIGHT GROWTH ROADMAP FOR YOUR FIRM

To develop a comprehensive Go-to-Market Strategy to acquire, retain and grow the clients you seek, get the playbook designed specifically for Small and Medium B2B Professional Service Firms.