Business consulting is the process by which a business consultant uses their expert knowledge, skills, and experience to help businesses succeed.
Similar to health professional, the term itself is very vague, often requiring further digging to find a consultant that specializes in the type of business consulting best suited for your specific business and situation.
So, let’s break things down and take a look at both the general and specialized qualities of business consulting.
How Is Business Consulting Initiated?
When most people think of business consulting, they envision the hiring of a third-party business consulting firm or individual consultant. The business consultant most likely has no prior connection to the business or its owner(s) in need of help. This is referred to as external consulting.
While this is generally the case, especially as it pertains to small and medium businesses, many corporations make use of internal consulting. As opposed to repeatedly bringing in a third-party business consultant, which can quickly add up, many larger companies hire full-time internal consultants to assist in the ongoing needs of all the different divisions and departments within the business.
What Does Business Consulting Entail?
Business consulting generally entails working with a business for a predetermined period of time to identify areas of opportunity and provide recommendations for solutions. As a result, the business consultant will receive compensation for their work via the payment method that was outlined in the agreement.
Although business consulting always involves working with a business, this is where a business consultant’s involvement can vary. While some business consultants perform the actual hands-on work that needs to be done within the business, others prefer to assume more of an advisory role. In this scenario, business consulting entails relying on the business owner(s) or employees to implement the business consultant’s recommendations outlined in their report.
Why Is Business Consulting Useful?
One of the general reasons why businesses opt for business consulting is due to a business consultant’s objectivity. It’s extremely difficult to assess one’s own business, department, or division with an unbiased and unemotional perspective. In fact, one of the drawbacks with internal consulting is that it is naturally more susceptible to bias and pressure because the internal consultant may fear stepping on management’s toes or upsetting others within the organization, thereby hindering their objectivity.
Business consulting can be exponentially more useful if you find a business consultant that specializes in an area that meets the exact needs of your business. Beyond internal and external business consulting, business consultants can specialize in a number of fields and categories – industry, location, business size, growth stage, and more.
Therefore, when you bring a specialized business consultant onboard, you’re getting much more than an objective set of eyes. You’re getting a collection of expert knowledge and experience tailored specifically to solving your business’s pain points.
For performance-based business consulting, contact The Business Turnaround Group.