Independence by Design™ #417: Mastering Profitability in a Professional Services Firm with Marcel Petitpas
In this episode of Independence by Design™, I sit down with Marcel Petitpas, a visionary in operational clarity and profitability for professional services. Marcel's journey as the CEO of Parakeeto has been marked by solving one of the most complex puzzles in professional services—mastering profitability through operational data. We explore his personal story, dive deep into the challenges of scaling service businesses, and uncover practical insights that any owner-operator can use to create scalable, profitable growth.
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Marcel shares actionable frameworks for understanding and improving delivery margins, aligning operations and finance, and transitioning from operator to strategic leader. Whether you’re stuck in the weeds of your agency or looking to build a business that works for you, not the other way around, Marcel’s insights will give you the clarity and tools to design independence and unlock sustainable cash flow.
Marcel Petitpas is the CEO and Co-Founder of Parakeeto, a software and consulting firm that helps agencies and professional services firms improve their profitability. With a passion for financial clarity and operational excellence, Marcel has worked with businesses around the globe to align their operations and finance for sustainable growth. As the host of the Agency Profit Podcast, Marcel shares his insights with thousands of listeners every month, making him a trusted thought leader in the professional services space.
Chapters:
- (00:00) Intro - Marcel Petitpas’ journey
- (05:30) Scaling professional services firms, transitioning from traditional to outcome-based service models, profitability killers
- (15:00) Tackling financial puzzles in service-based business models, how to identify and fix utilization problems
- (22:33) Aligning operations and finance for success, ensuring company-wide alignment on KPI's, metrics and business models
- (31:00) Business model and forecasting for success, utilizing plans and data for business performance insights, shared delivery expenses
- (43:11) Evaluating pricing models based on client value and risk, understanding delivery margin for profitability, choosing the right pricing model in the pricing quadrant
- (0:54:11) Evolving professional service pricing models, adapting pricing strategies for evolving project requirements, sprints and deliverables, transitioning from time and materials to defined pricing models
- (01:02:00) Capacity forecasts and staffing alignment, balancing staffing with project demands for profitability
- (01:07:00) Marcel’s vision for the future of Parakeeto, professional services, and planned books, final thoughts
- Share with the owner/operators you know!
Ryan Tansom is a seasoned entrepreneur, speaker, and the founder of Independence by Design™, a transformative ownership framework for growth-oriented business owners. After turning around and selling his family business in an eight-figure exit, Ryan spent over a decade dissecting the lessons learned from his journey. His mission is to help other business owners avoid the pitfalls he encountered by providing them with the tools and knowledge to align their business operations with their personal and financial goals.
With a deep understanding of the challenges faced by owner-operators, Ryan developed Independence by Design™ to empower owner-operators to create sustainable cash flow, grow their company’s equity value, and achieve true independence. He has shared his insights on hundreds of stages, including Vistage, EO, and industry associations, and has reached over 500,000 listeners through his podcast.
Ryan is passionate about helping business owners get unstuck from the day-to-day grind and design a business that serves their life, not the other way around.
Resources:
Website: Parakeeto.com
Agency Profit Podcast: https://agencyprofitpodcast.simplecast.com/
LinkedIn: Marcel Petitpas
Free Agency Profitability Toolkit – Free tools for measuring profitability https://parakeeto.com/toolkit/?utm_source=Podcast&utm_medium=GuestAppearance&utm_campaign=Ryan+Tansom
Parakeeto Foundations Course https://parakeeto.lpages.co/the-foundations-course/?utm_source=Podcast&utm_medium=GuestAppearance&utm_campaign=Ryan+Tansom
New Book: Software as a Science: Unlock Limitless Recurring Revenue Without Losing Control
https://www.amazon.com/Software-Science-Limitless-Recurring-Revenue-ebook/dp/B0DGDHK69F
Independence by Design™ Workshop: https://ryantansom.com/independence-by-design-workshop
Independence by Design™ Ownership Coaching: Ryan Tansom’s Ownership Accelerator programs and coaching https://ryantansom.com/coaching
Ryan Tansom Website https://ryantansom.com/
Ryan Tansom LinkedIn https://www.linkedin.com/in/ryantansom/
Ryan Tansom Twitter https://twitter.com/RyanTansom
Ryan Tansom YouTube https://www.youtube.com/@ryantansom
Ryan Tansom 30-Minute Ownership Strategy Call https://calendar.app.google/tsKk7z6ohugDchWq8
Sound Bites:
"You can’t scale your business—or your freedom—without the right financial and operational systems." – Ryan Tansom
"When operations and finance are siloed, businesses end up with two different stories about their profitability. That disconnect is dangerous." – Marcel Petitpas
"Utilization problems aren’t solved by telling your team to work harder—they’re solved by understanding your business model and focusing on high-leverage changes." – Marcel Petitpas
"Clarity on cash flow, profitability, and equity value is the foundation of independence as a business owner." – Ryan Tansom