Small Business Consulting

Number one question folks.

Is the person or company honest and capable of providing you the root answer to your problem? For me, It does not matter if they are certified, liscenced or otherwise. It only matters if they can ferret out the problem and provide a solution.

Do they know what they are talking about and will they bill me fairly? Nobody questions paying a man for his work. Everybody KNOWS when they have been gouged.

This is not a tough question and there is an easy answer.

If you have run into a roadblock in building your business, and you have racked your brain for a solution, and not found one, OBVIOUSLY YOU NEED A SMALL BUSINESS CONSULTANT.

I would start with your lawyer or accountant. They may have seen your issue before and have a ready answer. Sometimes, accountants take on a project, depending on it's nature, and provide services of information gathering, analysis and proposed solutions.

If your accountant and lawyer aren't helpful, they may know someone who is.

I look at consulting as an investment NOT a cost.

Your business has stalled, or decreased or possibly grown to fast and major issues are causing other problems. I remember years ago, when I was learning the accounting trade, I would have a question about a clients problem and the Senior Accountant would answer me by pointing at his nose. As if to say, your to close to the problem to being able to recognize it or it's solution. Which meant you have to step back to see what is going on.

That is what a consultant can do for you. He/She can see the problem because they are not involved and are objective.

Of course it's worth the investment, especially if not fixing the mess will bring your business down.

Commercial Consultants or Business Coaches

Typically these are fee for service small business consultant or business coach , either hourly or value based.

These consultants are usually sticking their neck out by taking on the engagement. This is good for you in that they have personal or professional vested interest in coming up with a solution. In other words, they could get sued for providing wayward advice.

Because this consultant has to be careful, it will be a little harder for you to find an appropriate one, but not impossible.

These types do not come a dime a dozen. If their fees are too low I would be suspicious.

Government Consultants

These consultants tend to be retired business people or staff who work for Federal, State, or Government owned banking and business related services.

If you are on a limited budget, just beginning to start a small business this type of consultant may help you out.

There is probably a love/hate relationship between these 2 groups of consultants. However they seem to both provide needed services to the small business owner.

The larger your company gets the more likely you will choose a non government consultant.

Time Based Fees

Consultants usually charge by the hour. And their fees range from $75-300 per hour. This equates to $600 to $2,400 per day.

So, for a one week engagement your looking at a $3,000 to $12,000 Fee.

The low end of the scale is close to the amount needed for an average consultant to earn a living to feed his family. Therefore if you find a consultant who is charging you less, I would be suspicious.

Value based Fees

These fees are based on the profit saved or made based on the consultants work to find the problem. Lets say a consultant found a $50,000 savings for you, how much is that worth to you? Would it be worth $10,000 to save $50,000? I think so. Would it be worth $25,000?

In researching this article I went to youtube and looked at a bunch of small business consultants offerings. I often ran into this guys videos.

From a gut feeling, no, based on my years of business experience, and listening to what he has to say He sounds credible. I didn't research his fees but because I believe he can possibly help me based on his youtube videos(I watched others too) I would be willing to chat with him about my business problems. The fee issue would be discussed and hopefully he would not be to outrageously expensive for me.

I think you get the picture here. You need to meet and talk with the consultant you are considering engaging to help you.