4 Reasons Why Smart Businesses Hire A Business Consultant
If you’ve been wondering why it’s a smart decision to work with a business consultant, you’re not the only one. It’s a question we often hear; why can’t business owners manage everything themselves when they know the business inside out?
What can a business consultant do for you?
No matter how talented and experienced you are, you can’t stay on top of everything. Changes in the market, technology or the business itself can leave you in a quandary. What to do? How to do it? When to do it?
When you’re up against a situation you can’t deal with, you foresee problems, or you don’t have the cash flow you need, working with a business consultant can get you back on track.
Four vital reasons to hire a business consultant
When you create and manage your own business, it’s difficult to be objective about it. When issues arise, it’s hard to separate your emotional response from your objective. Having a lopsided view of business restricts your thinking, and it’s almost impossible to find an accurate solution when you can’t see the situation clearly.
A business consultant doesn’t have an emotional connection with your business, so he or she can offer you a clear perspective on the matter. You’ll also be able to tap into the consultant’s previous experience with similar situations and discover possible new solutions.
Understand the data
Many business owners are ideas people and don’t enjoy the admin or data-driven aspects of the business. Even if you’re interested in the data, it’s not always easy to understand what it’s telling you. One of the most common mistakes in business is to measure the wrong thing.
A business consultant will work with you to change that, starting right at the beginning by making sure you measure everything you should. You can’t gauge your profits if you don’t measure the rest of your expenses and cash flow, as an example.
Once the right measures are in place, your business consultant will show you how to monitor them, how to read the reports they provide and understand what they are showing you. They’ll show you how to track cause and effect, so you know which of your actions are producing the right results. When you know that, you can repeat it or build on it to boost your profits.
Spot the problems
So, you’re working with someone who can see your business objectively and understand the data you collect. What does that give you? It gives you a person who can see where things aren’t working and where things are going very well.
In other words, they can see beyond the symptom you’re worried about – such as low productivity. The consultant can spot the problems and trace them back to the probable cause. They can also predict issues before they have a chance to occur. Imagine what this ability might save you in dollar terms, not to mention business reputation.
Save your time and your money
How much time and effort would it take you to come up with the kind of data a business consultant will find for you? How long would it take you to work out a solution?
Financially you are far better off spending your time on other areas of your business where you can get a good return on your efforts. Investing your time in things you’re not good at will cost you in the long run, and probably produce a decision that’s not going to bring the results you’d hoped for.
For example, if you earn $75 per hour and spend two weeks – a conservative 80 hours – working on your data, understanding it and working out a plan of action, it has cost you $6,000 in time. Then there’s the dollar cost of lost sales and productivity on top of that. When you hire a consultant, you leave your time free to make money. The consultant will do a better job in a quicker time period and will produce a plan of action which will increase your long-term profits.
Why do smart businesses hire a business consultant?
- It’s a wise financial move
- It lets you quickly act on the situation
- It sets you up for a solid financial future.
Stop trying to do it all yourself and take advantage of a business consultant to help take your business to the next level. As part of our commitment to small businesses and creative entrepreneurs in Australia, we offer a business consulting service to help make your business as successful as it can be. Stay ahead of your competition by contacting The Accounts Studio for an obligation free meeting today.