by Brian Gabel, CEO and Senior Consultant
When it comes to making strategic decisions for your business, sometimes it’s helpful to bring in an outside perspective. That’s where management consultants come in – they can help you evaluate your business and make recommendations based on their expertise. Here are some of the benefits of hiring a management consultant.
They Can Save You Money In The Long Run
Management consultants can be expensive. That fact cannot be hidden, but the average small business does not utilize consultants on a full time basis. Small businesses utilize consultants hour by hour, sometimes only an hour at a time. This can be done to minimize cost but is also done because the task or assistance needed may only take one hour to accomplish. On the other hand, you may request a consultant to complete a task that you would normally hire someone to do, such as human resources, but do not need them full time. You minimize payroll, benefits, associated costs and taxes, and get the same return as you would with a full time employee.
Consultants build their business on networking. Nearly half of their clients come from referrals from their established network. This benefits their client because they have a network of professionals that provide business services that they trust. These professionals are well vetted and have proven themselves to add benefit to the businesses they serve.
Management Consultants Can Pay For Themselves
That is correct, they can pay for themselves…in savings that is. Management consultants have a strong network of professionals that they work with on a regular basis and can find better pricing on services for your business. For example, we had a client who was looking to have a website done for their e-commerce business and was getting quoted $2900 just to get that webpage set up. This did not cover hosting fees, domain, merchant services, or any other services they may need, just the appearance and functionality. We were able to find a professional to develop their site for $900, saving them $2000. The savings in that one connection alone covered what they were billed for one month of consulting. A consulting engagement for process improvement has been known to add up to $4,000 savings or more per day for a larger company which exceeded what was billed for consulting. After the consulting fees have been paid, that savings still exists during operations and can be seen as profit for that business.
They Can Set You Up For Growth From The Beginning
Management consultants take the time to get to know your business before they get to work. They see your concept, envision where it will take you, and adjust your growth plan to fit that vision. This is important for new startups who are expecting to see rapid growth. They will make a plan for your future, set you up for a large workforce from day one, and implement strategies that will reduce time and frustration later down the road when it time to match that growth. The process will be perfected early on so you will only see a larger volume of work rather than taking the time trying to reinvent a new process. This way reduces future costs and expenditures to ensure your business is more profitable.
They Have Seen The Worst That Can Happen To A Business
A failure in business is a hard thing to face and is something that can devastate a person. It happens to many businesses in all industries. You need someone who understands these failures, associated fail points, and the warning signs that accompany them. Our consultants are not even considered for hire until they have faced a failure for these reasons. We know what to look for because we have gone through failures and come out successful. Early identification and mitigation is key to the successful operation of your business. Through consultations with our clients, we have seen what has happened to them, know what to look for, and how to avoid these problems or recover from them.
If you feel we can help your business, please contact us!