Hiring a business consultant costs a lot of money. But hiring the right consultant at the right time can be both valuable and impactful for your business.
And if you’re still not sure whether you need external help running your business, keep on reading.
In today’s blog, we answer important questions like when to hire a business consultant and how to measure the impact of consultancy.
But first things first….
Exactly who is a business consultant, and what do they actually do?
‘Business consultant’ is a word that gets thrown around a lot, but not many people understand what it means.
Very briefly, a business consultant is an individual or firm that offers expert guidance and training in the area of their expertise to help companies improve their operations, increase efficiency, and boost profitability.
Companies usually hire consultants when they need experts in areas like strategy, human resources, operations management, finance, and risk and compliance.
When to hire a business consultant
Businesses of all sizes need outside help every now and then, particularly when the required resources, skills, and strategies don’t exist in-house. Consultants are also brought on board when you need a second opinion, or to audit the infrastructure.
Here are some major occasions when a company can do with outside help:
- You want change
Introducing change in an organization is not easy. There is a lot of resistance and office politics to deal with. Also, you need to make decisions, such as reducing headcount or cutting costs. In all these circumstances, a business consultant can be an agent of change who can overcome the obstacles and make things happen.
- You want to improve processes
Instead of reinventing the wheel, many companies bring in experts to tackle specific operations. This is especially true when you are introducing and upgrading technology in the workplace. Having a consultant guide your company through these processes means lesser chances of error and greater chances of success.
- To generate ideas
As a business owner, you are emotionally invested in your company. However, a consultant will bring an outsider’s view, taking the big picture into account. In this way, consultants can help businesses generate new ideas and promote out-of-the-box thinking.
- To train your employees
Ultimately, business consultancy is all about training and coaching. A consultant shares his knowledge, research, and experience, and that is why they are the best people for conducting training, presentations, and coaching (both one to one and in groups).
These are some instances when you can consider hiring a business consultant. And this is where the money question comes in…
What to pay a business consultant?
The top consulting firms in America keep their prices a secret, but we can safely assume that they charge thousands of dollars by the hour. In fact, a 2017 research shows that even individual business consultants can earn up to $50,000 per project.
Of course, you can find mid-range consultants as well. But watch out for those who charge ridiculously low prices. In fact, if a consultant or consultancy firm have low rates as their USP, you are better to avoid their services.
What you can do is to set measurable goals at the outset, and also discuss ways in which you can measure the long-term impact of hiring a consultant.
Once again, when you know when and why you are hiring a consultant, the added cost will offer significant returns in the long run.
If you run a company in Los Angeles, California, and need external help, click here to book a session with Professional Success South. Headed by trainer and consultant, Bill K., our team will create customized strategies that will help you achieve a thriving customer base, efficient communication, and steady growth.