TABLEOFCONTENTS

AboutUs03

AboutOurReport

03

WhyMostFirmsAreStrugglingtoFindNewBusinessin2025

04

WhyBreakingThroughIsHarderThanEver

06

NewBusinessSatisfactionHitsaFive-YearLow

08

FirmsArePursuingMoreOpportunities—ButSmallerBudgets

11

HalfofFirmsAreFeelingthePain—AreYouReadyIfIt’sYourTurn?

14

It’sTypicallyTaking6MonthstoClose—Here’sHowtoStayTopofMind

17

WhenReferralsSlowDown,WillYourPipelineStall?

19

HiringforNewBusinessIsRisky—UnlessYouDoThis

21

OverallConclusion

23

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3

ABOUTUS

ThisreportisbroughttoyoubyRSW/US,werealeadingoutsourcedbusinessdevelopmentandleadgenerationfirmdedicatedexclusivelytoservingprofes-sionalservicefirmsofallsizesandspecialties.

Sinceourfoundingin2005,wevepartneredwithfirmsacrosstheglobe,actingastheirgo-tooutsourcedsalesandmarketingteam.

LearnmoreaboutourRSW/USoutsourcedbusinessdevelopmentprogramsat

.

ABOUTOURREPORT

The2025RSW/USProfessionalServicesNewBusinessSurveyReportwascon-ductedwithsenior-levelexecutivesacrossarangeofprofessionalservicesfirmsduringthemonthsofAprilandMay2025.

Typesoffirmsincludedmarketingserviceagencies,lawfirms,accountingfirms,ITfirms,softwaredevelopmentfirms,andengineeringfirms.

Thisyearhasbeenachallengingoneforprofessionalservicesfirmsandthissur-veyisintendedtohelpyouimprovethemannerinwhichyoupursuenewbusi-ness.

Wehopethefindingsandtakeawaysfromthisstudyprovidevaluableguidanceasyougearupyourmarketingandsalesplanningforthesecondhalfof2025.

Thesamplecamefromourdatabaseofover20,000professionalservicefirmsintheU.S.andCanada.95%ofthefirmsrespondingtothissurveyhadfewerthan50employees.

Ifyoudliketoreproduceanyofourfindingsinanyformat,pleasereachouttoLeeMcKnightorMarkSneiderat(513-559-3111/3101)orviaemailat

lee@

or

mark@

.

4

WhyManyFirmsAreStrugglingtoFindNewBusinessin2025

lsobtainingnewbusinessthisyearharderoreasierthanitwaslastyear?

NothinginLifeisEasy…IncludingFindingNewBusiness

FindingsRecap

Inoursurveythisyear,only13%ofrespondentssaidobtainingnewbusinesswas“easier”ora”loteasier”thanlastyear.Themajority(51%)ofrespondentssaidfind-ingnewbusinesswas“harder”or“alotharder”than2024.

WhileinrecentmonthsweatRSW/USareseeinganimprovementinthenewbusinesslandscapewithmoreofourclientswinningbusinessandmoreprofes-sionalservicefirmsentertainingtheideaofengagingwithouroutsourcedpro-grams,thelandscaperemainsachallengingone.

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ImplicationsforYourFirm

Withouttherightsetoftoolsandrightstructureandrightmessaging/position-ing,aprofessionalservicesfirmisgoingtohaveatoughgoatgeneratingnewbusiness.

Wehavefoundthatsinceourfoundingin2005,wehavehadtocontinuallyinvestinnewtechnologies,newintelgatheringtools,andimplementnewprocessestostayastepaheadoftheprospectswearetryingtoengagewithonbehalfofourclients.

ActionStepsforYou

Ratherthantryingtooverhaulyourentiresystematonce,pickitapart.

Thinkaboutyourpositioningfirst:

Isitcompellingandunique?

Howdoesitcomparetoyourcompetitors’?

Isitfocusedonendbenefitsorjustfeatures?

Doesitspeaktoyourprospects’needs—orjustdescribeyourfirm?Taketheseonestepatatime.

6

WhyBreakingThroughIsHarderThanEver

Whyitishardertoobtainnewbusiness?

SomethingOld…SomethingNew

FindingsRecap

Notunlikelastyear1ssurvey1thetopreasonsgivenwhenasked“Whyisithardertoobtainnewbusiness?”1were“Feweropportunitiesoutthere”and“Hardertobreakthroughtoprospects”.58%ofrespondentsselectedeachofthosereasons1whichwasslightlyhigherthanlastyear1sreported52%ofprospects.

Unlikelastyear1the“other”responsewasdominatedbycommentsrelatedtothestateofthemarketingeneral.32%ofrespondentsblamedtheslownessinnewbusinessonthingslike:

Uncertaintyinthemarket1slowtoclose

Governmentchaos1tariffs1andbusinessuncertainty

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Prospectsputtingmoneyonthesidelines

Longersalescycle

Tariffs

Fearabouttheeconomy

Prospectspausingspendingduetoeconomicfactors

ImplicationsforYourFirm

Asnotedabovewearebeginningtoseeabitofsettlinginthemarket,prospectsstartingtoopenupspending,andageneralacceptanceofthenewnormal.

Notunliketheyearsofthepandemicwhenspendingcametoagrindinghalt,prospectseventuallyhadtoturnthingsbackon.Theycouldntnotinvestinprojectsornotentertainchangesintheprofessionalservicessupport.

Webelievewereseeingthesamethinghappenhere,butonashortertimeframe.

Newbusinesscantsitonthesidelinesreallyatanypointinaprofessionalserviceslifecycle.Ifitshardertowinnewbusinessbecauseitshardertobreakthroughtoprospects,dosomethingaboutit.Ifbudgetsaresmallerortherearejustgenerallyfeweropportunitiesoutthere,changethewayyoulookatopportunitiesorthewayyoupitchforopportunities.

ActionStepsforYou

Ifyouredoingnothingrightnowand/orturnedthingsoffasthemarketsstabilitywaschallenged,startsmallifthatsallyoucando.

ConsideradoptingaCRMandcreatingasimplemonthlyfollow-upplanusinglight-touchcontentlikearticles,recentwins,orindustrytipstostayonprospectsradarwithoutalwaysmakinganask

Takeahardlookatyour1stlevelLinkedInconnectionsandstartgettingalittlemoreaggressiveaboutreachingouttothem.

Imsureyouhavepastclients.Wefindthatthey(and1stlevelLinkedInconnections)arefertilelandtoprospect.Goafterbothoftheminapolite,yetpersistentway.

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NewBusinessPlanSatisfaction

HitsaFive-YearLow

IngeneraI1areyousatisfiedwiththesuccessofyournewbusinesspIan/program?

PIeasebrieflyexpIainwhyyou1renotsatisfiedwiththesuccessofyournewbusinesspIan/program.

RollercoasterofLove

FindingsRecap

It1sup.It1sdown.It1supagain.Andnowit1sdown.

ThepercentageofprofessionaIservicesfirmsthatreportedbeing“satisfiedwiththesuccessoftheirnewbusinesspIan/program”tookadeepdivethisyear1drop-pingfrom52%Iastyearto43%thisyear一theIowestIeveIinthepast5years.

9

2021

52%

2022

49%

2023

44%

2024

52%

2025

43%

Reasonsforthedropinenthusiasmfortheirnewbusinessprogramswerewide-rangingandnumerous.Herearejustahandfulofrepresentativecom-ments.

?Nobodyisdrivingthenewbusinessprogram/nostrategy

?Ithinkourleadershipisntasconfidentastheycouldbe

?Takestoolong

?Poorpipeline

?Lackofqualifiedpersonstohelpmanage

?Strugglingtodevelopnewbusinessmindset

?Reactivenotproactive

Aswethinkbacktothingsliketherecessionof08andthepandemicin2020,thesituationwasdifferentthanitwastoday.

In2008,thepainsfeltbyprofessionalservicesfirmswaslimited.Theimpactofthehousingbubbleburstingwaslimitedtoonlycertainkindsoffirms,notthebroadermarketlikeishappeningtoday.

Andthepandemicof20wassomewhatcushionedbyPPPmoney.Ithurt,butwasntquiteaspainfulasitcouldhavebeen.Withoutthatmoneyalot(more)businesseswouldhavefailed.

ImplicationsforYourFirm

Wetellourclientsthatifsomethingisntworkinginourprogram,werenotgoingtositidlybyanddothesamethingoverandoveragain.Weregoingtorefineitandaimtofixit.

Sameholdstrueofyourownefforts.Ifakeyprincipal(orowner)inyourorganizationischargedwithnewbusiness,butisfindingithardtofocuson,somethinghastogive.Arethereothersinthefirmthatcanpickupthemantle?Canyouparseoutdifferentpartsoftheprocesssoitdoesntalwayssitonasingleindividual?Allthingsyoucanconsiderifthingssimplyarentworkingwellforyou.

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ActionStepsforYou

Dowhatothersaren’tdoinganddon’tletmarketinstability(thatseemstobegettingalittlemorestable),rattleyourcageandputyouinastateofinertia.

Givethispostaread

anditjustmighthelpyougetonyourway.

AndgivealistentoourteamatRSW/UStalkabouthowtheynavigatetheprospectjourneybefore,during,andafteraprospectmeeting.Nosittingidlybyoverhereforsure!

11

FirmsArePursuingMore

Opportunities—ButSmallerBudgets

Relativetolastyear1haveyouseenthe

numberofopportunitiesfornewbusinessdecrease1increase1orremainthesame?

Relativetolastyear1haveyouseenthe

dollarvolumeofnewbusinessopportunitiesincrease1decrease1orremainthesame?

DollarsandSense

12

FindingsRecap

WhiIethebuIkofthepainsfeItinthemarkettodayhavebeendrivenbytheun-certaintyoftariffsandtheuncertaintyofoveraIIeconomicpoIicy1thechaIIengesdidn1tbeginatthestartof2025.

2024presenteditsownsetofchaIIengesandquestions.TheuncertaintyabouttheeIection1whatchangesinpoIicymightensue1concernsaboutarecession-aIIpiIedontoourpsycheandaffectedthebusinessofnewbusiness.

Thisyear149%ofrespondentssaidthatthenumberofopportunitieshaven1tin-creasedordecreasedthisyearcomparedtoIastyear.

ImplicationsforYourFirm

WebeIievetheopportunitiesareoutthere.TheprobIemisthevaIueofthoseopportunitiesaren1tasIargeastheywereIastyear.CIoseto40%ofrespondentssaidthatthedoIIarvoIumeofnewbusinessopportunitieswasIowerthisyearthanitwasduringthepreviousyear.

We1reseeingithereatRSW/US.Projectopportunitiesarethere…butthevoIumeofthoseopportunitiesaresIightIysmaIIerthaninyearspast.Whatthismeansforyourfirmisthatyouhavetofighthardertogetmoreofthoseprojectoppor-tunities.Anditmeansyouhavetotreateachandeveryoneofthoseopportuni-tiesasthegatewayforfuturework.NoIongercanprofessionaIservicefirmstreatsmaIIprojectsasanuisanceorignorethembecausetheydon1tpayenoughordon1tmakeyourfirmenough.Prospectsareusingprojectworktoday1evermorefrequentIyasawayto“sampIe”yourfirm.Sodon1ttakeitIightIy.

ActionStepsforYou

LookateveryopportunityIikeit1safinanciaIinvestment.AskyourseIfsomekeyquestionsabouteverythingthatknocksonyourdoor:

Istheremorebehindthisfirstproject?EitherwithinthegrouptheinitiaIprojectcamefromorarethereothergroupsordivisionsthatIcanworktofindopportunitieswithin?

HowshouIdIpricetheopportunitysoitmakesthemostsenseformyfirm.

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WhileImightusehourlyratesformostofwhatIdo,project-basedpricingmightmakemoresenseforaninitialopportunity.

HowcanIfindsimilaropportunitieswithinthefirmsIcurrentlyworkwith?CanIproductizethisprojectandofferitasapackagetootherfirms/cur-rentclients–whichcouldhelpdrivehighermarginsformyfirm?

Hereisa

recentvideointerview

werecentlyconductedwithTimWilliams,anex-pertonpricingandproductizationintheprofessionalservicesindustry.

14

HalfofFirmsAreFeelingthePain—

AreYouReadyIfIt’sYourTurn?

Howhavemarketforcesingeneralimpactedyourbusiness?

Howhavetariffsspecificallyimpactedyourbusiness(ifatall)?

Hopeful,butStillPainful

15

FindingsRecap

53%ofrespondentssaidthat“marketforces”hadnotimpactedtheirbusiness.Nicetoseesomanyfirmsunaffected.

Unfortunately,47%offirmsrespondingsaidmarketforceshadcausedtheirbusi-nesstoeitherbe“downsomewhat”or“downsignificantly”.

Andwhenaskediftariffshasimpactedtheirbusiness,53%offirmssaid“notatall”with47%sayingtariffshadeitherimpactedtheirbusiness“somewhatnegative-ly”or“significantlynegatively”.

So,thesilverliningisthattheinstabilitymanyhaveexperiencedthisyearisnotaffectingeverybody.

ImplicationsforYourFirm

Regardlessofwhetheryourfirmisoneoftheonesaffectedornot,youneedtoalwaysbeontheready.

Whenthepandemichit,certainindustriesfeltanenormousimpact,whichaf-fectedprofessionalservicesfirmsthatfocusedmorecentrallyonthoseindustries(e.g.travelandtourism).Givenoneneverknowswherethenextcurveballisgo-ingtoland,it’simportanttothinkaboutallthepotentialvulnerabilitiesofyourfirmandtryyourbesttoprepareforthem.

ActionStepsforYou

Wehaveseenfirmsthathave800-poundgorillasasclients,andtheyhavewaitedtoolongtobroadentheirportfolioviaabroadenedpositioning.Somuchoftheirday-to-dayexistenceiscenteredonkeepingthegorillahappyandtheymakesolittletimefornewbusiness.

Lookatyourportfolioanddeterminehowandwhereyoucanleverageitintooth-er,morediversifiedareas.

WedidthisatRSW/US.Ourcompanywasbuiltbyfocusingexclusivelyonthemarketingservicesspaceandwehavesincebroadenedourpositioningtoin-cludemanyotherprofessionalservicesfirms,leveragingtheworkandsuccesses

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wehavehadinthemarketingservicesspace.

Thinkaboutyourownbusinessthesameway.

Arethereadjacentcategoriesorservicesyoucancarryintootherregionsortypes/sizesoffirms?

Changeslikethatwilltaketime1butthere1snotimelikethepresenttostartmak-ingthemove.

17

It’sTypicallyTaking6MonthstoClose—Here’sHowtoStayTopofMind

Howlonghasittakensofarin2025(onaverage)tomovefromafirstmeetingtoclosingapieceofbusiness?

SlowMover

FindingsRecap

Soyougetthatfirstmeetingwiththatidealprospect...andthenyouwait.

Thewaitcanbealongone.78%offirmsinterviewedsaiditcantakeupto6monthstocloseapieceofbusinessafteraninitialcallormeeting.

Andmostofthoseinterviewedfeltthatthingsreallyhavenotgottenbetterthisyear,butratherhaveeitherstayedthesame(61%).

ImplicationsforYourFirm

Slowermovingclosesmeansyouneedtokeepthatpipelinefullofopportunities.

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Youcantmakeyourwaythroughthisnewbusinessworldmethodically.Youhavetobeaggressive(inagoodway)alwaysstayingwithyourprospectsasyouneverknowwhentheyllbereadytomakeamove.

ActionStepsforYou

Whileyoucantmakeprospectsmovefaster,youcandothingstohelpyourfirmgentlymovetheprospectdownthelinefasterthantheymightotherwisewantto.

Iftheytellyoutotakeyourtimegettingaproposal(orwhateverthedeliv-erableis)donttakeyourtimemoveitallalong.

Beforethenextmeetingortouchbaseyouhavewiththeprospect,sendthemsomethingofvalue(ImnottalkingaRolex)likeagreatpostyouvewrittenoraninterestingarticle.Showthemthatyourenottheretowintheirbusiness(eventhoughthatswhyyoureengagingwiththem),butshowthemthatyoucanandwouldbeagreatvalueaddedpartnertohelpthemmovetheirbusinessdowntheline.

Proactivelyshareareferencewiththeclient.Isawthisdoneonceinafi-nalpitchpresentationoneofthefirmshadoneoftheirclientsonstand-bytoserveasalivereferenceduringthepresentation.Helpedthemwinthebusiness.Youdonthavetowaituntilthefinalpitchhavetheclientofyoursreachoutproactivelytothepersonyouretryingtowinbusinessfrom.Theyllbeimpressed!

19

WhenReferralsSlowDown,

WillYourPipelineStall?

What3marketingtoolshavebeenmosteffectiveatgeneratingnewbusinessoverthepastyear?(Selectupto3)

What’sDrivingtheTrain?

FindingsRecap

NotsurprisinglytheapproachesthathavedriventhemostamountofbusinessforProfessionalServicesFirmsoverthepastyearhavebeen:

Referrals(73%)

Businessfromexistingclients(51%)

Networking(38%)

Conferences(23%)

OrganicSearch(19%)

Thisissotypicalofwhatweseeeveryyearwhenweaskthisquestion.Thisisthe

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waymostfirmsarebuiIt-throughnetworkingandreferraIs.It1swhenthesethingssIowdownthatitaIIreaIIybecomesaprobIem.IwasjustonthephonethismorningwithasoftwaredeveIopmentfirmwhosepipeIineofreferraIsweresIowing1andtheyneededtofindotherwaystokeeptheirbusinessgrowing.

ImplicationsforYourFirm

Evenifthingsaregoodnow1atsomepointintime1IcanaImostguaranteeit1thepooIofreferraIswiIIsIow.

SoassumingyoutakethistobefactandnotjustaremotepossibiIity1youneedtostartthinkingabouthowyou1regoingtodeaIwithit.

ActionStepsforYou

OrganicgrowthfromexistingcIientsisaIwaysagoodwaytogoanditrequiresIittIerawsaIestaIent1justagoodpIanandgoodreIationships.

Thinkabout:

Whothecoreaccountsare1

WhichofthemhasthegreatestpotentiaIforfuturegrowth1and

BuiIdthecommunicationsandoutreachpIandesignforeachkeyaccount.

Andgivenit1shighIyunIikeIyyou1regoingtosingIe-handedIymanageoutboundnewbusinessveryweIIonyourown1mightbeworthexpIoringoptionsinthisworId.Keyismakingsurethatwhateveryouuse1thatyoueffectiveIyvetthepro-gramandmakesurethey1redoingaIItheycantonotonIybringinnewbusinessbutrepresentyouandyourfirm1sbrandequityexquisiteIy.

21

HiringforNewBusinessIsRisky—UnlessYouDoThis

Thinkingaboutyourlastnewbusinesshire,howsuccessfulorunsuccessfulwouldyousaythenewbusinesshirewas/is?

ALuckyStrikeEveryNowandThen

FindingsRecap

Weseethiseveryday...aninternalnewbusinesshirenotcuttingitandultimatelygettingletgo.

Ithappensforavarietyofreasons:

?Noorlimitedexperiencesellingservices(versusproducts)

?Managementexpectationstoohighgoingintotherelationship

?Noorlimitedsupportingstafftodothingslikebuildlists,fashionmessag-ing

?Inconsistentoutreach

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?Generalmassoutreachwithoutpropertailoring

Inthisyearssurveyalmost60%ofinternalhireslastnolongerthan2years,with35%ofthosesurveyedstatedthattheirhiredidntevenlastayear.

ImplicationsforYourFirm

Ifbringingsomeoneonboardinyourownfirmisthewayyouwanttogonoquestionsaskedyouneedtobeveryparticularaboutwhoyoupickandhowyoupickthem.

Someofthethingswedowhendeterminingwhotobringonboard:

Findtheneedleinthehaystackof100sofresumes.Bediligentaboutlookingforcandidateswitharobusthistoryofsellingintheservicesspace.Dontcompromise.

Alsomakesuretheyhaventjumpedfromjob-to-job.Itskindoftheinher-entnatureofsalespeoplebutyoudontwantorneedthat.Theaverageten