Market Positioning & Specialization

Video Transcription

Hi, I’m James Graham, a Director with MarshBerry out of our California office, here today to talk about the importance of growth, and specifically organic growth.

In today’s fast-paced and ever-changing market, growth remains one essential thing for businesses who look to thrive. Growth provides firms flexibility options and ultimately more control over their future. We’ve identified three key areas to focus on in order to drive growth.

Number one: develop niches. As businesses grow, they often develop expertise in niche areas naturally. It gives them a competitive advantage to specialization. By leaning into a niche, you can differentiate yourself in a crowded market. You can create referable experiences and become the go-to source for tailored solutions.

Number two: manage producer and sales funnel capacity. With growth, you have to manage capacity. If you analyze books and businesses as they grow, you’ll likely find some variation of the 80/20 rule, with a minority of your clients driving the majority of your revenue. To create a sustainable growth model, we encourage clients to go through producer books and the firm’s books to allocate smaller accounts to the right service staff, to allow the key sales and high growth sales individuals to focus on larger and more growth-oriented accounts.

Number three: build a service and support team that can service your clients. It is important to have a robust human capital strategy. This is a people business, and your people are your greatest asset. Building service teams, investing in top talent, providing career pathing, and creating a culture of excellence is crucial to allow your firms to scale. We’re seeing an aging workforce industry and now is a great time to future proof your team and out compete your competitors.

If you want to discuss your organic growth strategy, and how to align it with your long-term goals, contact me, or your MarshBerry advisor today.