Every successful consultancy has a methodology - a repeatable process that delivers results for clients. The problem: it lives in consultants’ heads and spreadsheet templates, not in software. Productizing means turning that proven methodology into a scalable software product that generates recurring revenue and grows independently of headcount.
Why consultancies are ideal software founders
Three unfair advantages: a proven methodology (clients already pay for it - you have product-market fit), an existing client base (your first 20 customers are your current clients), and revenue to fund the transition (service revenue funds product development, no VC required).
Productize when you deliver the same core process to every client, clients need ongoing access (not one-time delivery), and your growth is capped by headcount. Do NOT productize when every engagement is fundamentally custom, the methodology changes every six months, or you have fewer than 10 clients running the same process.
The productization path
Step 1: Identify the repeatable part. The 20% of your methodology that delivers 80% of the value and can be standardised without losing effectiveness.
Step 2: Define the product boundary. Three common models: full self-service (client uses independently), software-assisted service (software handles data and analysis, consultant handles interpretation), or consultant-led with tooling (internal-only).
Step 3: Build the MVP. If your methodology has 50 steps, the MVP covers the 8 most valuable ones. See what is an MVP and how to build one in 12 weeks.
Step 4: Sell to existing clients first. They trust you, understand the methodology, and tolerate rough edges. Their feedback shapes v2.
The economics: services vs product
| Factor | Consulting | SaaS product |
|---|---|---|
| Revenue model | €150 - €300/hour | €200 - €2,000/month per client |
| Scalability | Linear | Exponential |
| Margins | 30 - 50% | 70 - 90% (at scale) |
| Valuation multiple | 1 - 3x revenue | 5 - 15x revenue |
| Client dependency | High (they need YOU) | Low (they need the PRODUCT) |
Year 1 of productization typically generates less revenue than consulting. By year 2 - 3, product revenue compounds. Run both in parallel: services fund the product while the product scales beyond what services can.
How we structure partnerships
Three models: You pay, we build (€15,000 - €50,000 for v1, you own 100%); Reduced cash plus revenue share (€8,000 - €20,000 cash plus 10 - 20% net revenue for 3 - 5 years, capped); or Cash plus equity (€10,000 - €25,000 plus 5 - 15% in the product entity). See how much custom software costs in Croatia.
Frequently Asked Questions
Will productizing cannibalize our consulting revenue? Short term, some clients may switch. Long term, the product reaches clients who would never hire a consultant - expanding your total market. Most consultancies find productizing grows the pie.
How long to break even on the product? Typically 12 - 18 months from launch. The product needs 20 - 50 paying customers to cover its own maintenance costs. Revenue growth accelerates from there.
Should the product be a separate company? If you plan to raise investment or sell it independently, yes. If it stays an extension of the consultancy, it can live under the same entity. Consult a lawyer either way.
Related Articles
- Internal tool to SaaS - If your internal tool is the methodology.
- From industry expertise to software product - The broader playbook.
- Build partner vs paying upfront - Funding the build.
Ready to productize your methodology?
Book a free Discovery call. We will identify the repeatable part, estimate the scope, and propose a partnership model that fits your consultancy. Reach out at [email protected] or via the form on our homepage.