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My Blog

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Why Small Businesses Might Need Consultant

Posted on May 3, 2014 at 12:30 PM
I was having lunch recently with a potential client when the topic came up of business credo that "you need to spend money to make money". While it is an easier discussion for large companies, for precious smaller margins in small to medium sized businesses, it is a much harder question. But while many small businesses respond by NOT spending any money, I believe this is a wrong decision as I believe the credo is not just  for large companies but small and medium ones also. 
 
So why would a small business need or want to spend money on a consultant. My answer to the potential client was the same as the attached link which I agree with completely.
 
 
When to Hire a Business Consultant
Let’s start by taking a closer look at some of the specific reasons why you would want to hire someone from outside your firm to come in and help your small business:
  • Outside Expertise – If you don’t have someone on staff who is an expert to get one specific task accomplished, it can make you less competitive when bidding against larger firms.
Christopher: Many Small Businesses waste time and energy trying to get one of their staff to learn or suddenly gain expertise, taking them away from their skill set and potentially creating a small Peter Principle situation. Be Careful.
  • Quick Action – In other cases, you may find that you need the help of an expert really quickly. This can be solved by hiring a skilled consultant on a part time basis for as long as you need them.
Christopher: Again many small businesses will thrust a new XY project on an un-suspecting employee because "they have are very good at ZZ projects, so they can just adapt to XY work. Thus, the employee loves the overtime pay but burns out due to lack of expertise and knowledge. Be Careful.
  • Costs – While hiring a consultant might seem expensive at first, if you consider that you won’t need to provide your consultant with health insurance or the other benefits that come with full time employment, there’s a good chance that a consultant is actually going to cost you far less money than any other options.
Christopher: One of my clients was paying alot of money for a FT 40 hour + benefits person who was expected to complete four roles, which he did very unsuccessfully, causing much internal strife, as they did not know what to do with their "employee". No work was getting done, he was always complaining how the role was too big for one person and he needed to be paid more for all the hours he was spending. Also, in response, he gravitated to the one role he liked which was the least part of the job that had value add to the mission. After he left out of frustration, they trusted and brought me in as a consultant. I now manage the four roles, bringing in outside PT expertise for the four roles and managing them.....ready for this....for half the hours per week and half the cost and 10x the work being completed......and no employee benefits or workers comp for the client.
A hard paradigm for many small businesses to comprehend. 
Hiring business consultants makes sense for smaller firms who are looking to compete and grow their market share.
 
What are your thoughts?
 

Categories: Small Business Consultant

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10 Comments

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3:59 PM on July 7, 2018 
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11:48 AM on August 28, 2018 
Good blog post !!The issues you’ve raised in this blog are very real. People usually hesitate to write on such topics but you did wonderful work. Keep it up!
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6:13 AM on January 8, 2019 
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1:58 PM on April 18, 2019 
I need a consultant because I don't have a great experience yet. That's all.