08/ 04/ 2005
by Vicki Gerson
Consultants are specialized pros who function extraordinarily in the diverse management areas necessary for a successful business. Whether you’re a start-up or have been in business for years, you can most likely benefit from their advice.
Hiring a consultant is different from hiring any other kind of employee. Consultants can be expensive, sometimes costing several hundred to several thousand dollars a day. So, use one carefully and know your target goals.
Many consultants focus their efforts in one category, while others cover overlapping and allied areas. Categories where consultants can be helpful include:
- research/product determination
- financial/cost control
- sales/marketing
- promotion/public relations
- distribution/marketing
- production/productivity
- training
- administration
Many times, business owners don’t think about hiring consultants, especially if they own a small to mid-size business. However, if your business needs a fresh pair of eyes to solve a problem or point you in a new direction, here are some points to consider before hiring a consultant.
Determine what area of your business needs a consultant. A sales and marketing consultant can help you determine product and market acceptance as well as give information on correct pricing and acceptable inventory needs. Meanwhile, a research and product determination consultant will have knowledge of your competition and provide advice on developing your product. Define the areas you need help in, but don’t be too restrictive. Give the consultant some freedom because he or she may see a broader picture. However, if you need training consultants or instructors make sure they are certified like a Microsoft-certified systems engineer. Select a consultant or instructor who can administer a short tutorial or classroom lessons on-site.
Shop around. The best way to find the consultant who can help you is to shop around. Interview several candidates and look for a talented person who has experience in your type of business.
Find a consultant who asks questions. For a consultant to do a good job, he or she should be asking lots of questions as well as listening to your answers. Be specific about what you need. Avoid consultants who have turnkey solutions to your problems.
Beware the consultant who wants to never stop working for you. Be cautious of the consultant who wants to hang on forever. Write a letter of agreement or a contract determining how many days or months the individual will work on your project. Be sure to include the fee that is to be paid as well as what services you expect.
Check references. If you decide to hire a consultant, check out his or her reputation beforehand and talk to previous clients whenever possible.
Consider getting free help. For business owners on a tight budget or those lacking cash for a paid consultant, consider a free service. Many universities are members of the Small Business Institute, which is partially funded by the Small Business Administration. The SBA has contracts with numerous universities to provide free consulting services under the supervision of a faculty coordinator for small businesses that want them.
Consider talking to SCORE. Many members of Service Corps of Retired Executives serve as consultants to small-business owners. Some of their advice could be good; other times, you should take it with caution. It depends whether you wind up with an advisor who meets your needs. For businesses that can’t pay thousands of dollars for a consultant, SCORE can provide consulting advice.
