Tuesday, May 15, 2018

Why Hire a Business Consultant?


Typically, most small to mid-sized business owners find themselves involved in every aspect of their business, from running the business to doing the brunt of the administrative duties. They are required to be great multi-taskers out of necessity. I have found that most business owners struggle to delegate many of the tasks needing to be done, even when they have access to the resources to do so. The upside of that, by their logic, is that they know it is getting done the way they want it done. That doesn’t always mean it is getting done correctly, just that they know it is getting done.

There is a downside to this as well. If as a business owner is spending too much time on the back office work and not on the core business activities (those that run, operate, and grow the business), it is probably time to ask the question - do you need to hire business consulting services? This is not limited to just smaller companies. It applies to businesses and organizations of all sizes.

The challenge for a business owner is to recognize when they should consider hiring a consultant, understand what the role of a business consultant in their business is, and to determine when it is cost-effective to hire one.

What does a business consultant do?
A business consultant is basically an outside expert you hire to solve an internal business problem. A consultant brings knowledge, skills, experience, and expertise to improve their client’s condition. Unlike in-house employees, consultants are hired on a contract/project basis.

Business consultants are there to help you achieve your business goals. A consultant can help you with determining a business strategy, the associated planning, and operational process development and/or improvements required to achieve those goals. They can help with setting a marketing and sales strategy. A business consultant can help with business expansion and other improvements. And while the list is consulting services is virtually limitless, a business consultant can also help implement and execute their ideas and recommendations.

Why hire business consultant?
Most business owners hire consultants as an economical way to bridge a gap in knowledge and/or skills within their company, or a as a way to bring an objective and professional perspective to the company.

Here are the main reasons for which I have seen most businesses hire consultants:

  1. Help finding the problem(s): A consultant has only one focus and can come in observe your business objectively, and determine the root of the problem(s).
  2. Help crafting the solution(s): Perhaps you have a goal that you can’t achieve because there is a skills gap or because it is simply not within your company’s core competency. Hiring a consultant can bring those missing skills and, in the end, help achieve the desired outcome.
  3. Managing future business growth:  Every business owner wants to succeed for the long term. But where does your future growth come from? How do you get there? Hiring a business consultant can get you pointed in the right direction.
  4. Improving operational processes: Let’s say your company has grown very rapidly and there are lots of things you know could be done better. Maybe you don’t know where to start, or don’t have the resources to start. A consultant can bring in some fresh perspective, evaluate any or all areas of your business, and determine the processes and procedures to increase operational efficiency.
  5. Your strategies aren’t working:  When things don’t seem to work out most people will either go for quick, often wrong solutions, or they go ask for help. Businesses are no different. They can either keep going down the road they’re on and continue to lose revenue and market share, maybe go bankrupt, or they can hire a business consultant who can be a game changer that can analyze the strategies and make changes that benefit your company.
  6. You need a certain expertise:  A business consultant is an expert in business strategies. They possess the expertise that your business may not have in order to identify problems, find solutions, create new strategies, and they can even implement those solutions or the necessary changes to your overall business structure.
  7. You’re short on expert staff:  Companies that are short on expert employees hire business consultants who can do both jobs – be an employee and be an adviser to the company. Hiring a business consultant is usually less expensive and more cost-effective because consultants don’t require benefits or withholding.
  8. You’ve lost focus:  It’s not unusual for business owners lose their focus whenever an unforeseen situation arises. This is where you need a business consultant that can adjust your focus towards your goals and objectives and help you make the right decisions.
  9. Help save you time and money:  If you’re still doing too many of the non-core business activities a consultant can take over some those tasks and save you money. They are there to deliver their service and help you run your business more efficiently, effectively, and profitably. A consultant can also provide insight that can enable you to seize new opportunities while avoiding spending time and money on activities that could derail your success.

While those are the most common reasons I have seen, the list above is my no means all inclusive. There are many ways for you to work with consultants throughout your business lifecycle. Perhaps most importantly, business consultants can be cost-effective resources that can give you the valuable time needed to focus on what you do best: developing and growing your business, and being an expert at whatever it is that led you to start your own company.


The Cobalt Group can help you with this. Ask us how.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2018 The Cobalt Group LLC. All rights reserved.

No comments:

Post a Comment