What do business consultants do, what function do they serve, and what tasks do they perform? These are questions you may be grappling with as an entrepreneur or startup founder.
Do you really need to talk to a business consultant about corporate structuring, incorporation, seed funding strategy, investor relations, and corporate governance? Business consulting means an additional item on your professional services fees, so you have to ask: Is it worth it?
This article will give you a detailed look at a business consultant’s role. Hopefully, at the end of it, you’ll be clearer on whether or not you need a business consultant.
Understanding Business Consultants
Business consultants are professionals who provide expert guidance in particular business areas. They leverage their knowledge to provide valuable insights and advice on how you can overcome specific challenges and accomplish your business objectives.
Business consultants are sought after for their ability to offer a fresh, objective perspective on issues. They can identify problems that may not be apparent from the inside and propose innovative, practical, and practicable solutions.
They possess a blend of analytical skills, strategic thinking, and practical experience, enabling them to not only advise but also assist in the execution and implementation of their recommendations.
Business Experience
Business consultants have first-hand, hands-on experience and field exposure.
- They can be former or current C-suite executives: chief executive officers, chief finance officers, chief operations officers, etc.
- They may have occupied key positions in government: central banks, the U.S. Securities Exchange Commission (SEC), the U.K. Financial Conduct Authority (FCA), and similar offices.
- They may have been formerly affiliated with industry-leading, multinational business consultancy firms, like McKinsey, Bain & Company, Accenture, and Deloitte, before establishing their own public practice.
Specific Expertise
Business consultants have sector, industry and location expertise. For instance, some have profound knowledge of global financial markets. They make excellent financial advisors, guiding you as you manage your assets and acquire, maintain and trade investments.
Some work or have worked in manufacturing. Their business advice will be useful if you need advice on your fabrication and assembly processes.
Business consultants can also come from all types of domains. Some specialize in management consulting, while others have expertise in business processes and operations. Domains can include finance, marketing, human resources, and technology.
Key Roles and Responsibilities: What Do Business Consultants Do?
Business consultants wear multiple hats and adapt their approach to meet specific client needs. Below are just some of their duties:
1. Providing Expert Advice and Guidance
Working with business consultants can mitigate your risks and help you save time. Business consultants know what can, cannot, and must be done, so you won’t waste your time or commit costly mistakes.
- Offering specialized expertise: Business consultants provide expert advice in their areas of specialization, such as finance, marketing, human resources, or technology. They can be experts in particular geographical markets, too.
- Giving Guidance: Consultants guide enterprises on what they must do to achieve a specific goal and avoid pitfalls.
Suppose you’re a U.S. entity incorporating in the UAE. Consider working with a UAE company formation consultant. Yes, you may eventually learn the intricacies of the UAE business setup, but that will take time. Meanwhile, you may commit mistakes and pay dearly for such missteps.
A business consulting company specializing in UAE business setup can provide specialized expertise and guidance. They can recommend the most suitable license type, legal structure and location (e.g., mainland versus free zone). Their involvement will also expedite the incorporation process because they know which government approvals to obtain and how.
2. Conducting Needs Assessments and Identifying Problems
Sometimes, you can be too involved to realize your business has problems. Since consultants are outsiders, they can remain objective and see issues insiders may miss. Their experience, expertise, and training also prime them to detect needs and problems.
Business consultants can assess where an organization is against where it should be. This will help direct your attention to gaps and missed opportunities.
- Analyzing business operations: Consultants thoroughly examine an organization’s processes and performance metrics. By doing this, they gain a deeper understanding of the company’s challenges and draw a picture of its current state.
- Identifying problems: They use their expertise to detect underlying issues that may be hindering the organization’s performance or growth.
Suppose your business is generating record revenue and registering exponential growth year over year. Your company has the biggest market share, an excellent brand name, and a solid customer base. However, you remain unprofitable.
At this point, you can consult an advisor to identify problems. Are you inefficient? Can your efficiency and productivity be improved? Can you minimize your tax liabilities and maximize deductions? Your business consultant can conduct a comprehensive evaluation to uncover and solve problems.
3. Developing and Proposing Strategies for Improvement
Even if you know what your problems are, you may need some assistance addressing them. Business consultants can help.
- Strategic planning: Based on their assessment, consultants devise strategic plans to address an organization’s unique challenges and objectives.
- Solution development: They propose innovative solutions and improvements for processes, systems, and management practices to enhance efficiency and productivity.
Suppose your startup needs seed capital. A business consultant can help formulate appropriate seed fundraising and investor relations strategies.
What if your business gets thousands of leads but converts only 0.5% of them? A consultant – especially one with marketing, lead generation, lead nurturing, and sales conversion expertise – can pinpoint the leaks in your funnel and suggest measures to seal them.
4. Implementing Solutions and Facilitating Change
Business consultants can go beyond providing advisory services. They can spearhead efforts to implement recommended changes.
- Guiding implementation: Consultants often play a hands-on role in implementing their recommendations, ensuring that their proposed measures are executed correctly and effectively.
- Change management: Business consultants can ensure a systematic and organized transition to new systems and processes.
Suppose you’re finding it challenging to source investments. Business consultants can introduce you to potential investors in their networks, lead your fundraising efforts, and administer your investment funds.
Do You Need Business Consulting Services?
Business consultants are guides and advisors, but they’re more than that. They are problem-solvers, catalysts for change, and a fresh set of eyes when needed. If you need help identifying inefficiencies, facilitating organizational change, or providing specialized expertise in a particular area, talk to a business consultant.