Should small businesses use consultants?

CEOs of large corporations have a wealth of resources and expertise that small business owners can only dream about. Yet, even the largest corporations regularly retain the services on advisors and consultant in almost any and every discipline.

The small business owner has little to rely on but his or her own wits, experience, and expertise, yet is often reluctant to bring in outside assistance. The reasons for resistance to consultative help are primarily ego, lack of knowing what resources might be available, and percieved cost.

Most small businesses could derive great benefit from calling upon outside expertise. By retaining an outside adviser the owner can often learn how to be more efficient, manage better, and develop a more profitable and productive business. An adviser can help the owner understand what he or she doesn’t know and either provide training to fill in the gaps, provide hands-on help, or suggest staffing changes to round out corporate expertise. Often a business owner benefits simply by having an objective party to run ideas across, or just vent the inevitable frustrations of running a business. Most important, by soliciting advice, and taking the advice, the owner may be able to perpetuate a business that otherwise might fail.

It is admittedly hard for an owner to put ego aside, as the strength of the person is what got the business started and built it to where it is today. But the smart owner recognizes that he or she does not, and can not, have all the answers.

Cost is an obvious consideration as most small businesses have a tight budget. But the fees for a consultant need to be placed in the context of an investment in growth and future profitability. Before engaging a consultant an owner needs to know exactly what the charges will be and what to expect from the consultant. The owner needs to feel totally confident that the consultant has the business’s interest at heart, and needs to have a good raport and comfort level with the consultant. Most importantly, the business owner must have an open mind and be willing to try new ideas proposed by the consultant.