During my practice, I’ve come across a number of people who didn’t know what a business consultant does. Here is my top 5 things business consultants are NOT:
1. Business Consultants and Business Coaches Are NOT the Same
Business coaches focus on the business owners and help them reach their potential and goals as individuals. Business consultants focus on the business problems to device solutions and provide personalized, objective, and expert information.
2. Consultants Must be Very Experienced in Their Clients’ Type of Business – Not necessarily.
Real objectivity is often hard for people WITHIN the business. A part of what business consultants provide is a fresh prospective. For that reason, there’re actually advantages when the consultant is new to the field. Consultants will never know the full complexity of your business. What we bring is the focus and the process. Business owners bring the content.
3. Only Large Corporations Use Consultants – Not true.
Big companies often times outsource certain functions of their businesses to consultants because it’s more cost effective. The same principle applies. Often times what a small business need may be on a one off basis. It’s more cost efficient to hire a consultant than to try to figure it out on your own, or hire an employee to carry out a sporadic activity.
4. Consultants Are Expensive – Let’s compare the value added to the costs incurred.
More often than not the costs are highlighted, but the value added is not measured. If the value of a marketing project will bring an additional $50,000 into the company, a $3,000 fee is a small cost relatively speaking.
Some consultants charge by hours and the rate is between $75/hr to $250/hr. On a per hour basis, yes, it appears that the consulting businesses are cash cows, but they also have to cover their overheads and administrative hours that they can not charge.
5. Being a Consultant is Easy – Not True.
A consultant’s job is to solve a client’s problem, and as an “outsider”, solving a problem involves intensive investigation/research, long hours, and total dedication and focus. A lot more is expected of consultants, but a much shorter learning curve is allowed. The consultant’s ability to problem-solve and get a job done fast and efficient is what sets one apart.