Are Business Consulting Companies Worth Your Time And Money?

Are business consulting companies worth your time and money? - 1

First things first, if you're not running a business, then you don't need to pay for a business consultant. If you have one of the following qualifications:

-Have an MBA or other graduate degree in marketing, management or related fields. 

-Have 5+ years of experience leading and managing teams in the services industry. 

-Worked as a director level employee at another consulting firm and want to change firms

Then they might be worth it to get unbiased input on how your company is actually doing.

Often the problem with business consulting companies is that they are not, in my opinion, offering you anything different from what you can do on your own. They are selling to you a solution for the ills of your company rather than helping you solve them (ok, it's not exactly a problem if you're getting paid for it). I would also say that industry experience is very valuable in business consulting firms, but if you've worked for many years at a few different companies, then that doesn't mean much. You should be able to tell which firms offer value and services above others.

A good business consultant should be able to answer these questions:

-How much money are you making? 

-What benchmark revenue and margin goals do you have set for the upcoming year? 

-What cash reserve do you have set for the upcoming year? 

-What is your exit strategy? Are you prepared to walk away from a big enough client or if it were to fail, what can you move over to a new company that stands a chance of keeping and growing, yet at a lower cost structure? 

-Are there any marketing or sales growth plans in the upcoming year? What are the current numbers and how are they doing against the goals that were set at the beginning of the year (or for previous. year)? 

-What steps are you taking to make sure that you are setting your company up for growth? Are you bringing on new people if so, what kind of profile is needed and how will they be qualified to provide value added services to your clients? 

-Who do you need on your team? What tasks do they perform and how will they help grow your business this year.

   

So, can a business consulting firm help a small business owner become successful? Absolutely. It just depends on the firm and the consultant. Again, one of the best ways to evaluate a company or consultant is to get referrals from people in your network who have used them in the past. For example, here are a few business consulting companies I've worked with and would recommend.

- Ingenio Consulting Group- This is the company I work for and I think we do a great job. Why do I like working here? Because no one gives me instructions on what to do, but rather they are coaching me and getting me to grow as an entrepreneur. Unlike the "old days" when you went to a consultant to get told what to do, but asked to make sure your company was ready for the changes that the consultant will make. We like pain totally painless. 

- Kinaxis Inc. - They specialize in supply chain software solutions and are very solid on implementing systems that help companies run better. This is where I started my consulting career, as a project manager. They transitioned me into a business development role and also did an amazing job at developing my skills in sales.

- The Sales Group (no website)- This is a very solid company that specializes in software sales. While they are not technically a business consulting company, I did learn how to sell software before I joined the field and the senior consultants there were fantastic. Tom Hawkins (Read his blogs on the subject) was one of my early mentors who taught me how to close deals with customers and give value to them before we even ask for the sale.

- Engauge - This was another great resource for me. They have a strong focus on social media and SEO for small businesses. They are also very good at helping out with the “behind the scenes” marketing issues that could potentially kill growth for your company. 

- Impact Marketing - This is a company that focuses on digital marketing, mainly SEO and are very solid in getting results.

- Cascade Sales - A great sales consulting firm (They were one of my early mentors before I joined business consulting).

- PGA Learning Center (no website)- If you want to learn how to manage people, then this is a great place to start. Their leadership program will get you thinking about how to lead teams and manage client relationships.

- Business Growth Solutions - A strong marketing consulting firm that specializes in lead generation. They will also help you with training your sales team on how to sell and service clients.

- Pinnacle Advisors - Specializes in marketing and sales for technology companies.

- Catapult Marketing - Strong social media marketing company.

I'm sure there are many more, but I'll stop here before I start naming every company that has helped me over my years of experience. I also know some of the consultants from these companies and would hire them again in a second.

Now you may have noticed that I didn't mention any of the big business consulting firms like McKinsey, Bain, etc. This is because I think their services are overpriced and they do not necessarily focus on small businesses like many of the other companies listed above. So, if you're looking for a good consultant and want to help your business grow, check out some of the ones I've mentioned above. Also, if you want to know more about how to get clients or how to manage employees effectively, then check out my blog at http://www.joshevansconsulting.com.

About the Author: Jason Evans is the CEO of Ingenio Consulting Group, a California based business consulting and marketing firm specializing in assisting small businesses grow with value added services and products. He is also the author of “101 Things I Learned as an Entrepreneur” and is a contributor to several business publications on topics that include, but are not limited to, marketing & sales, corporate growth and development and doing business in China. His latest book, "The Business Consulting Playbook," can be purchased from Amazon or from the publisher at www.businessconsultingplaybook.

Conclusion

Business consulting firms are becoming increasingly popular, particularly because of the fact that they help small businesses in their growth and success. However, not all business consulting firms are equal. As a small business owner, you should look into which business consulting firm is right for your company and its needs.

If you are interested in the development of your company, this article will tell you about the benefits of working with an external business consultant. Reading this article, you will learn what is a consultant and how to find one who can contribute to the development of your business.