| Hiring a Business
Consultant
By Patti Lind, The Abilities Fund, Inc.
Comprehensive planning for business start-up
or expansion will require you to take advantage of a range of
resources. Some of those resources may include group meetings,
training, books, the library, the Internet, and computer software.
Planning for start-up or expansion is different for everyone.
Several factors, including the specifics of the business idea
and your research and writing skills, will determine the types
of resources you will need to utilize. For some, the previously
mentioned resources will be adequate. Others may need the assistance
of a skilled business consultant. A business consultant can expedite
the process and assist you with the exhaustive professional research
and preparation needed to launch or expand a business successfully.
Paid consultants are likely to give you the comprehensive, unbiased,
and reality-based information needed to help you make smart and
informed decisions about how your business will develop.
It’s one thing to determine that your best
resource will be a paid consultant. However, when it comes to
spending your precious, hard-earned dollars to obtain their services,
you will want to be absolutely certain that the consultant gives
you the most for your money. The following are a few tips and
techniques to consider when hiring a business consultant:
1. Clearly define your consulting needs.
Prepare a list of all activities the consultant
will perform. With this list, you will be set to communicate your
needs to the consultants you interview.
2. Identify qualified consultants with expertise
in the area you need.
Often times, a barrier to hiring a good consultant
is the fact that you don’t even know any! Identifying reliable
resources for obtaining the names of consultants is the first
step. Your local banker is a great place to start, as he/she is
knowledgeable about consultants who have helped their other clients.
Local Chamber of Commerce officials frequently are “in the
know” about who’s who in the consulting world. Finally,
economic development officials in your state economic or commerce
agency should be knowledgeable of qualified, experienced micro
and small business development consultants.
3. Interview all consultants before making a
decision about who is the best for the job.
This tip assumes that you will interview more
than one consultant–and you should! Remember, their
business expertise is one thing; your
ability to communicate effectively with the consultant is another.
Hopefully, all consultants interviewed will have the fundamental
expertise necessary to complete the job, but don’t assume
anything. Ask for references, and follow through by investigating
those references. And remember, just because a consultant has
ten years experience in his/her own consulting business doesn’t
guarantee that you can communicate together effectively. When
selecting a consultant from the many you have interviewed, consider
the ease in which you were able to communicate together. Solid
skills and expertise coupled with an ability to communicate clearly
are the ingredients for a fruitful relationship.
4. Access to your consultant means everything.
If you hire a consultant who is part of a large
firm or agency, is there a thick wall of secretaries and assistants
to get through? Will the consultant you interview be the one who
actually provides your service, or will you have to work with
a designated associate who may be promising but doesn’t
have the background to support your needs? Ideally, when making
the final hiring decision, you want to make sure that you work
one-on-one with the consultant of your choice and that you have
a direct line to his/her desk so you can reach her/him as needed.
5. Understand the range of services the consultant
offers.
Is the consultant a full-time professional with
a specific area of focus? Or, will they have to “outsource”
any of the services claimed as available from their firm? Many
consultants boast a menu of available services and expertise that
is extensive, but actually mean that in order to provide all of
those services, it is necessary that they use, or “outsource,”
the services of an outside professional who will actually do the
work. This type of consulting arrangement can be very effective,
provided that you know up-front that the consultant you are interviewing
may not be the one providing all of the services. In this case,
make absolutely sure that you understand who will be the primary
person for contact purposes, who will provide each component of
service, and that one contract will suffice.
6. Remember–you are paying not only for
expertise, but ATTENTION as well.
It’s a fair question to ask how many other
clients the consultant will be serving during the period of time
your needs must be met. Talk with the consultant about his/her
ability to meet your timeline.
Having expertise is one thing–having enough time to share
that expertise is another.
7. Does the consultant specialize in one area?
When hiring a marketing specialist, determine
whether or not he/she works with only one
type of marketing (for example, a consultant who is a specialist
in on-line marketing or radio advertising). Or, is he/she spread
too thin by trying to be a “jack of all trades” in
order to provide whatever marketing services you want to buy?
The same applies to business planning consultants. Is their experience
in providing business planning services to micro businesses–or–is
their demonstrated experience working with large conglomerates
with hundreds of employees? In the end, make sure you match your
specific needs with their specific
skills and experience.
8. Ask the consultant to provide a proposal
for services.
Let the consultant know that in a proposal for
services, you need a specific listing of activities to be performed.
In this case, the more detail, the better. Clear expectations
lead to satisfaction. Not only should the proposal be detailed
as to activities to be performed, it should be equally clear regarding
the timeline for providing services and the fee. Some consultants
will propose services on an hourly basis and, therefore, you will
need to know the maximum hours anticipated for each activity.
Others propose services by an “outcome-based” fee,
meaning that there is one fee for all services detailed in the
proposal. Regardless of the method, be clear on the maximum allowed
dollar amount for the contract. Also, it’s important to
note that some consultants have specific requirements, such as
¼ of the total contract fee as a down payment before the
work begins. Be absolutely certain what their requirements are,
if any.
This may be a good time to hire your first consultant
(an attorney) to help you review the proposal and develop a contract
for accepting it!
9. Once the consultant’s services are
contracted, monitor progress.
The proposal for services should include regular
reports on progress. Whether the reports are made in writing or
through personal contact, monitoring progress is essential. Use
the timeline provided in the proposal to determine whether or
not activities are being performed at the promised pace. If a
face-to-face meeting is the method you use to monitor the consultant’s
progress, insist that you be provided with written notes regarding
the results of the meeting. This service should be noted in the
proposal.
10. Enjoy the outcome!
By clearly defining needed services, seeking
recommendations for qualified consultants, interviewing consultants
thoroughly (including checking references), requiring and reviewing
written proposals for services, and monitoring work progress,
you’re on your way to satisfying your business planning
needs and enjoying success as an entrepreneur!
Contact Information
Patti Lind
The Abiltites Fund
PRLIND1@aol.com
©2000-2001 The Abilities Fund, Inc. Reprinted
with the permission of the author.
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