Business Consultancy

Business Consultancy

A business consultant is a professional with a wide array of skills who assists business owners with their endeavors. Consultants are knowledgeable because of their education and previous experience. 

Additionally, business consultants provide management consulting to help organizations improve their performance and efficiency. These professionals analyze businesses and create solutions while helping companies meet their goals. 

Business owners should consider hiring business consultants when they need help or perspective on their chosen path, or a catalyst for change in their companies.

Why hire a business consultant?

There are several reasons business owners should consider hiring consultants. Consultants offer a wide range of services, including the following:

• Providing expertise in a specific market
• Identifying problems
• Supplementing existing staff
• Initiating change
• Providing objectivity
• Teaching and training employees
• Doing the “dirty work,” such as laying off staff
• Reviving an organization
• Creating a new business
• Influencing other people, such as lobbyists

Tip: If your company services any customers in the European Union, consider finding a GDPR consultant to help you comply with the GDPR’s requirements for transparency and consumer control of data.

What does a business consultant do?

Generally, there are three stages of a business consultant’s process: discovery, evaluation and implementation. 

1. Discovery 

The first step for any business consultant is the discovery phase, where the goal is to learn about your business. A good business consultant takes the time to learn as much as possible about a business from the owner and employees. The consultant will do the following things:

• Tour your facilities.
• Meet with the board of directors and employees.
• Analyze your company’s finances.
• Read all company materials. 

During the discovery phase, the business consultant will uncover the details of your company mission and current operations.

2. Evaluation 

Once the business consultant has developed an in-depth understanding of your company, they enter the evaluation phase, with the goal to identify where change is needed. This phase includes identifying your company’s strengths and weaknesses as well as current and foreseeable problems.

• Examining established problems and identifying new problems: The consultant should study problems that owners and management have already identified. Because of their objectivity, consultants can also pinpoint new or unforeseen issues.
• Finding solutions: A business consultant should strategize solutions to the problems they identify and outline ways to capitalize on opportunities to grow the business, increase profits, and boost efficiency. For example, say your company has a particularly strong sales department but a weak marketing department. This is an opportunity to increase your marketing resources and capitalize on your sales staff.

There are two crucial elements to focus on during this process: communication and feedback.

• Communication: During the evaluation phase, your entire team must maintain clear, open communication with the consultant. 
• Feedback: You and your team members should take the business consultant’s advice as constructive criticism. The consultant’s feedback isn’t meant to be personal. While you and your employees are personally close to the business, this lack of wider perspective can hinder positive change and growth; the consultant brings objectivity and a fresh viewpoint. Of course, you should offer your own feedback and opinions to the business consultant, but keep your mind open to new ideas.

3. Implementation

Once your company and the consultant agree on a plan, the consultant should enter the third phase: the restructuring stage, or implementation of the plan. In this phase, the consultant builds on your assets and eliminates liabilities. They also monitor the plan’s progress and adjust it as needed.

Did you know?: A business consultant can help you conduct a competitive analysis to learn pertinent information about market saturation, new opportunities and industry best practices.

Types of business consultants

There are various types of business consultants specializing in different business aspects.

Strategy and management consultants

Strategy and management business consultants can bring industry expertise to your business to help you scale, acquire new opportunities, and drive revenue. 

Consultants with a focus on strategy and management can help your business do the following:

• Expand into new markets or increase awareness in your current market.
• Reorganize your business model to create a cost-effective strategy.
• Increase your business’s capabilities.
• Acquire a new business venture.
• Merge with another business or change your business’s structure.
• Stand in as middle management during a transition period.

Operations consultants

Business consultants who specialize in operations can help you improve day-to-day processes. These business consultants take inventory of your current business model and figure out the best way to produce the same high-quality results at a fraction of the cost and time. These consultants also help through quality control and understanding how to tweak and optimize your production for better results.

Financial consultants 

A financial consultant can show you the broader scope of the your business’s financial health. They mainly assist in investment decisions and help you find the best way to handle your business’s assets and debts. Financial consultants may have even further specializations, including financial planning and advising your business on taxes, daily expenses, and the best retirement plans. 

Human resources consultants

The best HR outsourcing companies and independent HR contractors can assist you with your HR functions. These consultants can take over your day-to-day HR tasks, such as recruiting and retaining employees, processing payroll, performing administrative tasks, and managing employees’ performance. 

Marketing consultants

Marketing consultants help businesses identify their strengths as a brand and expand upon them to create brand awareness and exposure. Whether your business needs a new logo or a social media strategy, a marketing consultant can be an asset in expanding your business’s reach.