How To Select the Right Business Consultant

There are a number of reasons for retaining a business consultant:  need an expert’s advice on how to identify your target market? Trim your operating budget? Or determine the best method of setting up your business?  The list is endless.  The bottomline is you must find the right person to fill those needs.

Hire a consultant.  The right outside specialist can give you an unbiased view of your business, help you identify the problem areas and recommend strategies to keep your business on track.  There are consultants for almost any business need from accounting, management and marketing to better business writing and even image development.  Utilizing the services of a consultant can be cost-effective.  You only use them when you need them so you don’t add to your payroll.  In addition, you don’t have absorb the cost of training an employee because the consultant is already trained.

Adopt these seven strategies to ensure you get the most from a business consultant:

1.  Understand the consultant’s role.  The consultant is an advisor, not a miracle worker.  If your marketing campaign hasn’t increased sales for some time don’t expect the consultant to have a “quick fix” to turn business around overnight.  If a consultant promises to do this, be leery.  Remember, they won’t have all the answers, but they should know where to find them.  You want  a consultant who is knowledgeable in your industry or field and can offer a workable solution, not a “quick fix”.

2.  Identify your needs.  Determine beforehand what you want to accomplish. The more specific you are, the better.  Don’t just tell the consultant you’re not happy with your marketing campaign.  Tell them you’d like to increase sales by 10% or more this year so that the both of you will have a clearer picture of what needs to be accomplished.

3.  Know what you’re willing to commit.  Be prepared to tell the consultant what resources you will make available to him or her do the job.  This could be background information on your business, records, plus any office space, equipment, supplies, or even employees you can make available.  Be proactive and do a little research to supply the consultant with as much information as possible to help solve your problem.  It can save you a good deal of money in the long run!

4.  Establish fees upfront.  Consultants have different ways of collecting compensation.  Some charge by the hour, others have a flat rate, and still others charge by the day or the project.  Some have a retainer which guarantees you will receive a specified number of hours each month.  Others charge a contingency fee, in which the amount paid is based on the results.  For example, if a consultant increases your sales by $10,000, they might receive 10% of the savings as their total fee or as a bonus in addition to their flat rate.

5.  Develop a list of questions.  Interview a prospective business consultant before you hire him or her.  Questions to ask include:  “What’s your experience in my industry or field?  Can you describe problems similar to mine that you’ve handled?  Can you offer me full confidentiality and represent me without conflict of interest with your other clients?

As you evaluate a consultant’s experience and skills, consider the possible working relationship.  Do you like and trust the person?  Do you have a good rapport with them?

6.  Check references.  Ask for at least three (3) recent references—and call them.  You want to know if the consultant accomplished what was promised, if they communicated regularly, and if the company would hire them again.

7.  Put it in writing.  The business consultant should prepare an agreement that clearly spells out the terms of your arrangement.  It should define the services to be performed, the starting and ending dates (if possible), the fee and how it will be paid, expenses and how they will be paid, and the services you will provide.    It’s a good idea to have your attorney review and approve the agreement.

If you follow these tips a consultant can be the “shot in the arm” your business needs!

Tracey Lowrance is the President/CEO of OutSource ConneXion

© OutSource ConneXion, All Rights Reserved.