If you're leading a consulting firm, you know that growth is never linear. It’s a delicate balance of seizing opportunities while remaining laser-focused on what sets your firm apart.

Jürgen Bauer, Executive Chairman and Co-Founder of Tenthpin, offers a masterclass in this balancing act. In just a few years, he and his co-founders have helped transform Tenthpin from a fledgling startup into a 400-employee powerhouse serving 14 of the top 20 pharma companies worldwide.

“We have almost 400 employees now, working in eight countries. We have, on average, grown between 20-25% since our foundation in 2017.”–Jürgen Bauer

The secret?

A strategic focus on digital transformation in the life sciences sector—a decision that wasn’t just about capitalizing on a profitable industry, but about deepening expertise and delivering unmatched value.

In this article, we’ll unpack the strategies that have made Tenthpin a leader in its field and explore actionable insights you can apply to your own firm. You’ll encounter direct quotes from our interview with Tenthpin Executive Chairman and Co-Founder Jürgen Bauer, as well as an actionable 9-step checklist for replicating their success at your own consultancy.

From Concept to Cash Flow Positive: The Strategic Focus on Life Sciences

Starting a consulting firm is a risky endeavor, but Jürgen and his co-founders knew that their deep industry experience would set them apart. From day one, Tenthpin focused on becoming cash flow positive, a goal they achieved in just 3–4 months.

This early financial stability was crucial, allowing them to scale without relying on third-party investors.

“It was very important to become relatively quickly cashflow positive and to stabilize the situations at our clients. That was the ‘go-live’ portion of our strategy. We were lucky, and we achieved it within the first three to four months.”

But what truly set Tenthpin apart was its strategic focus on the life sciences sector. Many consulting firms make the mistake of spreading themselves too thin, taking on clients across multiple industries.

Tenthpin did the opposite.

They doubled down on life sciences, a sector ripe with innovation, regulation, and demand for specialized knowledge. This focus allowed them to build a strong reputation and achieve a higher client win rate than more generalized firms.

“We believe that there is a need and a demand for a consulting company that can go much deeper in terms of the very specific industry challenges that life sciences is facing.”

By sticking to one industry, Tenthpin didn’t need to convince clients of their expertise—they were the obvious choice. If you're considering narrowing your focus, look for an industry that’s not just profitable but also evolving, with plenty of opportunities for consultants to add value.

Balancing Quality with Strategic Expansion

One of the biggest challenges for any growing firm is maintaining quality while scaling.

Tenthpin’s approach? Steady, controlled growth. The firm targets a 20-25% growth rate annually—a pace that allows them to expand without diluting their company culture or sacrificing client satisfaction.

“We could probably push the envelope and grow a bit faster. But I'm afraid that we might lose quality and our DNA.”

In the first few years, the company’s growth strategy was built on what they called the “Go-Go Strategy,” focusing on four pillars:

1. Go Live:Achieve cash flow positivity quickly by focusing on core clients.
2. Go Strong:Build on your core capabilities to strengthen your firm’s foundation.
3. Go Deep:Develop specialized solutions that address specific industry needs.
4. Go Beyond:Expand beyond consulting by developing proprietary products and solutions.

“We called it go live, go strong, go deep, and go beyond... It was very important to become relatively quickly cashflow positive.”

This strategy is all about focus, patience, and perseverance.

It’s about sticking to your core strengths through the good times and the bad, and gradually expanding your offerings as your expertise deepens.

Product Development and Proprietary Solutions: A New Era for Tenthpin

Tenthpin didn’t just stop at consulting.

They identified gaps in the market and worked with SAP to develop industry-specific products, such as Clinical Trial Supply Management and Cell and Gene Therapy Orchestration. These solutions address critical needs in the life sciences sector, further solidifying Tenthpin’s reputation as an industry leader.

“We helped SAP to develop three new products... and then we have also started to develop our own products for very, very industry-specific needs.”

But Tenthpin’s innovation didn’t end there. They moved into developing proprietary solutions, which became a game-changer. By creating unique products that address specific challenges in the life sciences, Tenthpin has differentiated itself from competitors and opened new revenue streams.

This shift has given Tenthpin something their competitors don’t have—a truly unique offering that enhances their consulting services and strengthens client relationships.

Competing as a Boutique Firm: Challenges and Strategic Advice

Competing against larger firms is always a challenge, especially when it comes to justifying your prices, attracting top talent and securing high-profile clients.

“Clients to a degree take a risk if they work with a boutique company. And that's why we need to have the A-players that we put in front of the client.”

Tenthpin’s solution has been to build a global team, strategically hiring in cost-effective markets like India, Poland, and Portugal. This not only keeps HR costs down, but also give them access to a broader market of top-quality talent.

If you’re leading a boutique consultancy, Jürgen’s advice is simple but powerful:

1. Build a strong network in your chosen industry.

2. Assemble a team that shares your vision and has the right expertise.

3. Remain focused on your core strengths, even when times are tough.

“Build a team around you that shares that vision and has that same capabilities and network.”

Future Outlook: Balancing Consulting and Product Development

Looking ahead, Tenthpin plans to maintain its consulting focus while gradually increasing its revenue from proprietary solutions. Jürgen expects that in the next few years, 20% of their revenue will come from products, with the remaining 80% from consulting.

“Ultimately, I would probably expect in the next three years, maybe 80-20 at the most... 80% on more consulting and maybe 20% Annual Recurring Revenue (ARR) on the solution side.”

One of the key reasons for Tenthpin’s success is its independence. Without pressure from financial investors, Jürgen and his team have the freedom to make long-term decisions that align with their values and vision.

“That’s the nice thing of being independent... You also make your own faults. You have to take the risk.”

Jürgen Bauer’s journey with Tenthpin offers invaluable insights for any boutique consultancy looking to grow and differentiate itself in a competitive market. By focusing on industry expertise, maintaining controlled growth, and innovating beyond traditional consulting, Tenthpin has carved out a unique space in the life sciences sector.

For Managing Directors, Partners, and CEOs, the lessons are clear:stay focused, build on your strengths, and don’t be afraid to innovate. With the right strategy, your firm can achieve sustainable growth and lasting success, just like Tenthpin.

9-Step Checklist: How to Drive Consultancy Growth by Focusing on an Industry

If you’re ready to elevate your consulting firm by applying the insights shared by Jürgen Bauer, this checklist will guide you through the process. Follow these steps to replicate the strategies that have driven Tenthpin’s remarkable success.

1. Identify and Commit to a Niche:Choose an industry where you have expertise, connections, and a growing market need, and focus your efforts exclusively on serving that sector.

2. Start Cash Flow Positive:Secure early projects that generate immediate revenue and provide financial stability to support sustainable growth.

3. Build a Core Team of A-Players:Hire talented individuals who align with your vision and foster a culture of collaboration, innovation, and continuous improvement.

4. Strengthen Core Capabilities:Focus on refining your firm’s strengths to deliver exceptional service in your niche without diluting efforts across multiple industries.

5. Develop Specialized Solutions:Leverage your industry knowledge to create tailored solutions that address the specific challenges of your niche clients.

6. Expand Beyond Consulting:Develop proprietary products or tools that complement your consulting services, creating new revenue streams and adding value for clients.

7. Hire Strategically:Build a cost-effective, high-quality team by leveraging global talent and flexible staffing options like freelancers or subcontractors.

8. Maintain Controlled Growth:Grow your firm steadily while ensuring you maintain quality, protect company culture, and strengthen your core capabilities.

9. Justify Premium Pricing:Position your firm as a specialized expert to command premium fees by showcasing the unique value and results you deliver in your niche.

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