Should I Hire a Business Consultant?
A Business Consultant can assist your business in growing to unimaginable heights. There are many minor nuances to business that may not be apparent to those who haven’t worked across various areas of business, been exposed to specific business situations, or even those who have not worked in specific industries. Business Consultants have typically traversed many different business landscapes and been exposed to much more than your average professional.
Despite this, a Business Consultant is not a sure-fire way to grow or rescue your business – there are many ways to grow a business, and a consultant might not be the right one for you. It’s important to understand what a Business Consultant does, what the benefits of hiring a Business Consultant are, and what the pitfalls are, before coming to a decision. First, let’s look at what a Business Consultant is.
What is a Business Consultant?
The explosion of the freelance industry has led to some confusion regarding the definition of a Business Consultant, with the word “consultant” being used interchangeably to describe any individual, performing any business function, consulting to a business.
A key difference, when comparing a Business Consultant and a general freelancer, is the role that they play in a business. A freelancer performs a specific function, generally offering an area of specialty as a service. At EBF, we define a Business Consultant as a transformation specialist, one who fulfills multiple roles and/ or functions to aid the business in achieving both turnaround and growth objectives.
A Business Consultant must be literate in the many areas of business, from finance and HR to operations and marketing. By understanding and offering expertise in the many areas of a business, a Business Consultant is able to take a holistic look at a brand and ensure that every key area, critical to the growth of the business, is catered to.
The benefits of hiring a Business Consultant
There are many ways in which hiring a Business Consultant could benefit you. These include:
- Access to unparalleled knowledge and experience: Business Consultants offer a high level of knowledge, experience, and skill, typically catered to identifying and achieving business goals. At EBF, for example, we offer Business Consulting Services grounded in our experience in financial services, planning, and turnaround. We have worked with a great number of customers facing financial turmoil or constraints and learned to navigate issues like these with proficiency. It is important that you ascertain whether the consultant with which you work can tackle the challenges that your industry or needs may pose.
- An unbiased approach: By bringing in an objective third party, you are gaining a perspective that you may not otherwise have access to. Doing so allows you to approach problems from a new angle, opening doors and opportunities that would otherwise be shut to you and your team.
- Financial expertise: This is, perhaps, a benefit offered to EBF clientele specifically, however engaging a Business Consultant offers you access to a high level of financial expertise. This includes not only effective financial guidance, but also high-level financial planning, strategic planning, and more.
- Procedure optimization: Using their broad experience, Business Consultants can easily identify procedural shortfalls and eliminate them to assist your business in streamlining procedures and, ultimately, save unnecessary cashflow expenses.
- Improved team collaboration: Business Consultants are experts in identifying where communication gaps, skills shortages/ under-utilizations, or ineffective synergies/ team leadership may exist in a business. Consultants may restructure teams or conduct team-building exercises to nurture more effective departmental and interdepartmental workflows.
- Effective, well-planned growth: Business Consultants not only aid in garnering growth for your business – they assist in planning for it too. Unchecked growth can be just as damaging as unchecked threats. Unplanned growth can lead to cashflow shortages, short staffing, skills gaps, unfulfillable orders, and more. Business Consultants understand these “growing pains” and know how to plan for and mitigate them.
The risks/ drawbacks of hiring a Business Consultant
- Mismatch of business culture: Every business has a work culture unique to itself. Unfortunately, not everyone will match the culture your business has. Because a Business Consultant is required to assimilate themselves into a business – to fully engross themselves in the brand and understand its inner workings at a deep level – a mismatch in business culture can result in less effective outcomes. The same can be said for a consultant who is not experienced in your industry. It’s important to try and find a consultant who is a good fit for the culture within your business.
- Potentially high costs: Business Consultants are business experts, and like all experts, come at a premium. While they will certainly aid in identifying and eliminating cashflow wastages and assist in growing your business, it’s important to understand what the cost of those functions will be.
- Accountability issues: Like any freelancer, a Business Consultant is not a permanent member of your team. This can lead to accountability issues. You must identify a Business Consultant or consultancy that has a proven track record, to ensure that they see a project through with success.
In summary
Business Consultants can be an important part of your business’ growth – not only in cultivating growth but also in ensuring that the growth your business experiences is healthy.
There are several other benefits to hiring a Business Consultant, like improved operating procedures, and many of these businesses will ultimately lead to an increase in income and cash flow.
That said, it is important to find a Business Consultant who understands your industry and who fits your business’ culture to ensure that you get the most from the investment.
If you are looking for a consultancy with experience in finance and business turnaround, our team at Express Business Funding would love to chat with you! We boast over a century of collective experience and a decorated track record. Book a meeting with us here to kick start your business’ growth!
