Why Do I Need a Business Management Consultant?

stressed businessman      Are you the type of CEO or small business owner that says, “Why should I pay for a business consultant?”  As a small to medium size business owner you may convince yourself that whatever I need I should be able to come up with the solutions myself or the other managers employed by the organization— Right?  Well, not necessarily quite so.  Why do you think top CEOs know how valuable a consultant can be to an organization.   As your business begins to grow there are going to be more challenges that arise.   Once you allow all those egotistical thoughts to leave your mind the reality of how beneficial a consultant really is should surface.  Even when you are starting a new business there are so many scenarios that have to be planned in the initial phase of start up in order to be effective in your targeted market.

In a world where technology changes sometimes faster than we can get dressed, this can create problems beyond what an organization can sometimes handle on their own.  We all know the saying, “You are never too old to learn something from somebody.”  The methodologies in business are also constantly changing at rapid rates as well.  According to Harvard Business School’s Shikhar Ghosh, 75% of all start-ups fail.  As the chief executive officer, you wear many hats just like a surgeon or medical doctor.  It can become overwhelming and frustrating to say the least, not to mention how the stress can affect your health.  Therefore, visualize the consultant as a certified nurse that constantly preps and monitors the patient while the doctor is taking care of other demanding duties.

What is Management Consulting?

Management consulting is an independent professional advisory service assisting managers and organizations to achieve organizational purposes and objectives by solving management and business problems, identifying and seizing new opportunities, enhancing learning, and implementing changes. Professional management consultants are primarily contracted by organizations to provide advisory services in an objective and independent manner.

Some duties of a business management consultant include:

  • Define the nature and extent of the project by gathering information (which may include conducting research to determine the current efficiency and effectiveness of managerial policies and procedures).
  • Analyze the data collected and use their background knowledge to develop proposals for improving methods, systems, and/or procedures.
  • Present their recommendations to the client organization and, if their recommendations are accepted, implement those recommendations.

Important qualities of a business management consultant:

  • Intellectual ability that can observe, listen, select, and evaluate facts.
  • Inductive and deductive reasoning.
  • Creative imagination; original thinking.
  • Ability to anticipate and evaluate human reactions.
  • Courtesy and good manners
  • Ability to persuade and motivate various types of people

3 Reasons a Consultant Can Really Pay Off:


man dollar sign

  1. Give a fresh unbiased perspective external objective advice— Companies are often amazed at the amount of value consultants can add based on the most mundane observations and insights. Most employees and managers will tell you it can be easy to fall into daily routines without a critical eye focusing on measurements, analysis, and improvements.
  2. Training and staff augmentation–training clients is regarded as a major ingredient in the success of a company’s mission.  The best recommendations are worthless if clients can’t implement and maintain suggested changes.  Don’t be distracted when employees often argue that the actions are not beneficial and do not reflect day-to-day business realities. Consultants are equipped to educate client employees on necessary knowledge, skills, and mindsets.
  3. External Change force or Political Cover—Sometimes it is difficult for companies to do what’s right when it comes to job layoffs, salary reduction, or major operational and strategic shifts.  Hiring a consultant can be the best way to reach the desired conclusions with sufficient political cover in case certain interested parties are displeased (e.g. board of directors, disgruntled employees, or displeased customers).


2 heads thinking

Remember any CEO or entrepreneur can fall into the trap of finding every excuse in the world on why not to hire a consultant.  The key in conquering this type of skepticism is to quickly realize that two heads are always better than one.  Hiring a consultant does not mean your not competent to run your business, it basically means you are aware of the demanding needs in your business.  Yes, we all know you will have an additional business expense, however, a consultant can save you thousands if not millions in potential liabilities circulating in your business!

When a business starts to look at hiring a consultant as the missing piece to their puzzle, it can be a rewarding experience not only in terms of profits but most importantly sustainability.  Quite often business owners need to come up with creative ways to hire a consultant even if capital is low.  Perhaps, a simple solution for a small to medium size business owner would be to hire a consultant for certain projects or shorter periods of time.  Management consultants ultimately gives the business owner that extra horsepower and flexibility it requires to run a successful business!




http://www.cmc-canada.ca/ About Management Consulting


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