LEADERS IN CONSULTING B2B Blog Stories: Florian Wassel and TOWA - how the digital growth company reached $10 million in revenue through tech partnerships and in-person events.
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TOWA's journey from pitfalls to prosperity is a story of resilience.
Led by CEO and co-founder Florian Wassel, TOWA faced challenges, learned from mistakes, and achieved remarkable growth.
This case study explores TOWA's transformation, including how they reached $10 million in revenue through tech partnerships and mastered in-person events for business growth. This story is a must-read for consultancy leaders looking to grow their firms.
The desire to be everything to everyone has claimed many victims in the world of consulting. TOWA, a consultancy firm founded in 2012, fell victim to this common pitfall, and it nearly cost them everything.
"2018–2019 was the hardest time, and that was also the hardest time for me personally as an entrepreneur. Now we are on the good side again, and I'm always joking that these 2 years were my personal MBA."
“2018 to 2019 was the hardest time,” Florian recalls. Their attempt to cater to every client led to unstable growth, unprofitable projects, and a near brush with bankruptcy. They even lost a co-founder during that period.
These were dark days for Florian and his company.
Despite the hardships, he and his co-founders never considered quitting. The burden of liabilities and the responsibility they felt for their team kept them pushing forward.
However, they knew they had to change their approach.
To ensure the long-term vitality of the company, Florian and his team made some key changes. They:
These shifts laid the foundation for TOWA's journey towards rapid growth.
One of the key drivers behind TOWA's impressive growth is their strong technology partnerships.
Collaborations with companies like Spryker, Story Block, and Salesforce have allowed them to tap into broader markets and provide value-added services. As these technology companies grow, they rely on solution partners like TOWA to spearhead product integration and implementation.
"We have really strong technology partnerships with companies like Spryker, Storyblok, Salesforce, that really help us with the go-to-market activities. So we do joint sales. We run projects, and we are known for certain technologies." - Florian Wassel, Co-founder & CEO at TOWA
These tech partnerships have been lucrative for TOWA, accounting for approximately 50-60% of their total revenue. This means that just 40% of their revenue is generated by traditional, non-tech-related consulting services.
TOWA's story is a perfect example of how consultancies can leverage multiple revenue streams to accelerate growth.
It isn't just innovative tech partnerships that accelerated TOWA's growth. Their marketing strategy also took an intriguing turn in the form of in-person events.
In an age dominated by digital marketing, they recognized the value of creating in-person touchpoints. Rather than solely relying on their own brand, they partnered with complementary organizations like universities and consulting firms.
"The main goal for us was always to be the host of the community. To invite leads, clients, and prospects, and have a very interesting, 'non-salesy' touchpoint that helped us stay top-of-mind." - Florian Wassel, Co-founder & CEO at TOWA
These events aren't your typical consulting gatherings; they're designed to inspire and inform, providing a platform for diverse perspectives.
Here's how they work:
These “roundtable” events, as Florian refers to them, help him to build trust with prospective clients and generate leads.
Florian's approach to client relationships may raise eyebrows in the consultancy world... He firmly believes in putting employees first.
While clients are undeniably crucial, Florian understands that a company's true strength lies in its people.
"Of course, we want to make our clients happy because they pay our bills, but it doesn't help us if we lose great people along the way because clients are toxic or the projects are not healthy." - Florian Wassel, Co-founder & CEO at TOWA
The thought process looks something like this:
Better clients lead to... a better working environment... which leads to... happier employees... which leads to... better margins... which leads to... more profit!
Toxic projects and clients can jeopardize not only the well-being of employees but also the company's bottom line.
TOWA's commitment to protecting its team from such situations and maintaining a healthy work environment has led to better client relationships and improved profitability.
TOWA's story reminds us that in the unpredictable world of consulting, adaptability, innovation, and a commitment to people can be the keys to achieving remarkable growth and client satisfaction.
Could these valuable insights and strategies serve as a roadmap for success for your consultancy?
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