Follow These Simple Guidelines When Hiring a Consultant

From time to time as a small business owner you’re likely to bump up against a problem you can’t solve yourself. That may be because you don’t have the right experience or knowledge to correct it. Or it may be because you a perfectly capable of meeting the challenge but can’t justify the time it will require of you, given your many other responsibilities.

 

Tabling that problem or challenge until a quieter time may not be an option if the goal is to move the company forward. So how do you know when it’s time to hire a consultant to find the solution, to remove a major distraction from your business day, and perhaps to avoid a costly mistake?

 

Much like an independent contractor, consultants come in on a short-term or project basis. For an agreed-upon fee, they will agree to

 

  • analyze or solve a problem
  • set up a new procedure or system
  • conduct research
  • advise on a one-time activity, such as setting up a corporation

 

The general advantage of using a consultant is that you pay only for the information and guidance you need. An example of a situation where a consultant might make sense is when you need to create a marketing and advertising program. A consultant can develop your advertising plan and then leave it to you to implement it. However, the same consultant may undertake certain tasks within the plan—perhaps having to do with creating ad messages or finding the right graphic designer.

 

Some day-to-day activities and situations may require short-term consulting help, such as making a fix in a proprietary software program. Identifying, purchasing, and implementing a comprehensive computer system, by way of contrast, would require a software consultant on a longer term basis.

 

For better cost control and a more reliable estimate, have a completion date in mind for the project. An open-ended consulting relationship may create dependency while becoming a financial drain. In addition, use caution when considering a more generic management consultant, who may not be able or willing to specify the work he or she is prepared to do to focus on a problem area.

 

To begin the search for a consultant, tap into your own network for recommendations, then check references. You’ll want to know what problem the consultant was engaged to solve, whether the work was completed on time and within budget, and whether the consultant produced a quality product.

 

And for other perspectives on your involving outside experts in your business, contact SCORE “Counselors to America’s Small Business.” If you would like to discuss this topic or business planning, business growth strategies or a specific business issue, contact SCORE® “Counselors to America’s Small Business.” To contact the Greater Binghamton SCORE® Chapter 217 for assistance call 607-772-8860 or 1-800 -920-6972. You may also contact SCORE® for person to person counseling appointments at the above telephone numbers. If you are already in business onsite assistance is also available.