A small business consultant brings a range of benefits that help a business grow
A small business owner often thinks long and hard about who to bring into their business to further its growth. Having not previously used a consultant, they hesitate to pay a consultant’s high hourly rate.
This article delves into the pros and cons of hiring a small business consultant, hiring steps, and types of small business consultants.
Pros and Cons of Business Consulting Services
Pros
A consultant:
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- May be hired for a short-defined period versus the commitment required to find, hire, and pay an employee for similar responsibilities,
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- Bring a high-level skill base to a company,
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- Be a specialist who works specifically on an underperforming area of the company,
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- Bring a network of professional contacts that may be helpful over time,
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- May be qualified to become a permanent hire, and
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- Contribute without the company being required to pay payroll taxes, health insurance, etc.
Cons
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- Trial period or contract that may not work out, and
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- May make employees uncomfortable depending upon the business situation, and
- Charge high fees for their work.
There are a few steps the entrepreneur or small business owner can take to feel more confident about hiring a consultant.
Twelve Steps to Hiring a Business Consultant
1. Formulate the company’s overall business goals to help the consultant understand their role.
2. Identify the challenges or underperforming areas where outside professional advice is under consideration. Define the issues as precisely as possible to the prospective consultant for a greater chance of success.
If challenges are occurring in particular areas such as sales, marketing, human resources, or finance, look for consultants with expertise in those areas to benefit from their depth of knowledge.
3. If there is an existing business plan or other plans such as sales, marketing, company operations, etc. this is a good time to refresh before an initial meeting with a consultant. If no plans exist, this may be the opportunity to create one collaboratively with the consultant.
4. Preliminarily decide there is a willingness to pay for the services and are open to hearing another opinion. Surprisingly, some businesses do not grow because the owner has a fundamental problem with spending money. They seek “free advice” on issues that are much too complex to be addressed in that manner. Other owners only see others’ mistakes, not their own, slowing the efficacy of the consultation.
5. Learn how knowledgeable the consultant is about small businesses and qualify them through the length of their services and/or direct experience of running a small business.
6. Explore the consultants’ backgrounds by visiting their websites, learning client testimonials, and reviewing their qualifications. If possible, do these actions before the interview to gain a deep knowledge of their services.
7. While it is natural to be concerned about the financial costs of hiring a consultant, it is important to remember that the right consultant can bring significant value and ultimately generate a positive return on investment. A good consultant shows their value when they give timely expert guidance and navigate past challenges effectively.
8. When interviewing potential candidates, use the opportunity to discuss areas in greater depth and gauge the consultant’s expertise.
9. For the interview prepare questions for the prospective hire to answer, seeing how their responses match the company’s areas of concern.
10. Ask the consultant about their problem-solving approach and strategies for helping small businesses grow. This will display their methodology and whether it aligns with their vision of the services and the results sought.
11. Upon selecting a consultant establish clear expectations and goals for the consulting engagement. Regular communication and/or reports are essential to ensuring the consultant remains aligned with the established business’s objectives.
12. Be open-minded and willing to implement the consultant’s recommendations and strategies. Small business owners should be receptive to change and willing to adapt their practices to achieve sustainable growth.
Types of Business Consulting
Startup Business Consulting Services: focus on the creation of the business plan and execution of the business idea or business model. Common challenges startup-businesses face are addressed and a business strategy is developed with key milestones as part of a strategic plan.
Human Resources Consulting: addresses the personnel needs of a growing company that includes documentation, job descriptions, hiring processes, benefits, company manual, and more.
Marketing Consulting Services: cover a range of marketing efforts for a growing business, including establishing and implementing a marketing plan, setting marketing strategies including marketing campaigns and PR campaigns, conducting marketing research about the target audience for determining potential market share, providing specialized marketing services to optimize market opportunities.
Digital Marketing: focuses on the Internet and online digital technologies encompassing desktop computers, mobile phones, and other digital media to promote products and services, enhancing the company’s brand.
Content Marketing: focuses on the range of content formats from print, video, audio for distribution of the internet and social media channels.
Social Media Marketing & Social Media Strategy: promotion of company brands and products and services via the various social media channels using well-defined strategies.
Business Executive Coaching: guides the owners and C-suite team as they scale the company, including leadership development, team building, and time management skills.
Business Operations & Strategic Planning: focuses on the company structure and business processes associated with delivering products and services. Includes overall business planning and strategy consulting.
Sales Consulting: covers sales strategies, personnel hiring and training, and integration of sales-related technologies such as Customer Relationship Management (CRM) software.
Financial Consulting: provides an advisory role for the use of financial statements and the creation of the company’s financial structure including debt and equity, cash flow projections & liquidity management to support the growth of the business.
Five Interview Questions to ask Small Business Consultants
- Ask for examples of prior extensive small business experience or consulting clients worked on,
- Pose a business situation and ask the consultant how they would approach the problem,
- Ask how communication will be made and how often,
- Learn which people and/or positions will be engaged for the project. How and how often? and,
- How are the consultancy goals established and how will success be measured?
Summary
Seeking professional assistance from experienced consultants can open up new pathways for a small business to grow. The right consultant can be an incredible resource, providing valuable insights and guidance to help company leadership overcome obstacles, make informed decisions, and ultimately achieve their goals.
Experienced professionals help owners avoid costly mistakes while laying out a plan to move forward to have a successful business.
Jeanne is the Founder and Publisher of American Entrepreneurship Today, a web site dedicated to helping entrepreneurs and small business owners to succeed. She also hosts the podcast series Experienced Voices, a platform for interviewing highly successful people open to sharing what was key to their success. She is the founder of AEP LLC., where as a growth strategist she steers entrepreneurs and small businesses past the challenges and pitfalls of starting and growing their businesses. She previously built a display business in the cosmetics industry and a nationwide tech services company.
