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6 Pros and Cons of Consulting Business Services

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6 Pros and Cons of Consulting Business Services

We are already halfway through 2022. For business owners, it’s the final stretch towards the end of the year, and the perfect time to set some concrete business goals for the remainder of the year and for 2023. Are you looking to grow your business in 2022/2023? Do you have problems you want to solve, or moves you need to strategise for? Do you have a blind spot in your business knowledge you’d like to address? If you’ve answered yes to any of these questions, you could probably benefit from Consulting Business Services.

If you’ve ever asked yourself “Do I need Consulting Business Services?” but weren’t sure whether it was a prudent or necessary move, it may help you to learn six significant Pros and Cons of hiring an External Business Consultant.

 

What are Consulting Business Services?

Consulting business services is a term that can encompass many different things. Business consultants may be extremely knowledgeable about a particular market or area of business, or they may offer a range of different services. For example, if you need assistance with financing, are looking to create a capital-raising business plan, or you’re looking to expand into a different market, these are all things a business consultant might help you with. The true value of a business consultant is that they can offer guidance and assistance in order to help you make the best decisions for your business. There are also, however, other benefits of consulting business services as well.

 

Pros of Consulting Business Services

  1. Save Valuable Time: Running a successful business requires hard work, acumen, and most of all, a lot of time. Hiring a business consultant can help to lighten the load and free up time for work on other important issues.
  2. Offer an Outsider’s Perspective: Knowing what is the best decision to make in business can often be tough. An often overlooked and underestimated benefit of hiring a business consultant is that they can come into a situation with fresh eyes and see things from a new and objective angle.
  3. Fill in Gaps in Your Knowledge: Every business person has strengths and weaknesses. If there is a particular area of business in which you feel you might need help, it can be a good idea to hire someone with expertise in that subject, to fill in gaps in your knowledge.
  4. Save Money: Many businesses choose to take on a business financial consultant in order to help streamline their processes or identify inefficiencies in the way the company is running. This results in both better business practices and bigger financial savings.
  5. Achieve Goals: Every business owner has goals they would like to achieve. Be it obtaining business acquisition financing, launching a new product, or hitting set KPIs for the quarter, a business consultant is trained to help businesses to accomplish their stated objectives in both the short and long term.
  6. Offer Expertise: The role of a business consultant is to stay on top of market trends, possess a wealth of experience and knowledge in different areas of business, and have a skill for strategizing and thinking outside of the box. Their job is to possess a level of expertise that allows them to advise and help business owners to make the best decisions for their business.

 

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Could Your Business Benefit?
The above advantages of hiring consulting business services cannot be overstated. A good business consultant provides guidance, answers, solutions, and so much more. But, let’s look at the disadvantages as well…

 

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Cons of Consulting Business Services

  1. Availability: A consultant usually services multiple clients at one time, which means their availability is limited. There might be times when you may need them on an urgent basis and they might not be able to abide by your requirements immediately. Also, a consultant only gives you a strategy; they do not execute it, which means you will still need an internal team in place to implement the same at all hours.
  2. Uncertainty: Consultants do not come with guarantees, so there is always a possibility that you might not achieve the results you had planned when you hired them irrespective of the cost. You can minimise the risk by looking at their past work/record and conducting a thorough reference check, but if you are someone who is uncomfortable with uncertainty, you are advised to not hire a consultant.
  3. Brain drain? Consultants bring vast amounts of knowledge and experience to the table, but there is a risk that they take that with them when they leave the project and organisation. For organisations to reap the full benefits, it is important to ensure that knowledge is transferred to the standing organisation and that consultants participate in this handover process.
  4. One-Size-Fits-All: Facing unique challenges due to a client organisation’s unique DNA, consultants should in theory create customised and tailored solutions. However, in practice, many consultants still approach their role with a one-size-fits-all mentality. Rather than tailoring their advice and support to the client, they can be inclined to re-use pre-cooked methods and toolkits, enabling them to deliver faster and more cost-effective, but with the risk of adding less value to their client.
  5. Limited Company Knowledge: A downside of consulting is that consultants often lack knowledge of in-house procedures. This can create work conflict, as their mode of operation may affect workflow for your regular employees. You typically have limited control over independent contractors; they are guided only by what is contained in the contract.
  6. Expensive: The biggest disadvantage of hiring a business consultant is that you are going to have to pay her a sizable amount of money. Most consultants have reached their positions because they are very good at what they do. Because of this, they are going to charge a premium for their services. A business consultant is very often more expensive as compared to an employee. When the project is running on a low budget, a consultant should be hired only if you are sure they will help multiple the productivity/profits. Either way, there is always a financial risk involved in hiring a consultant.

 

In Case You Missed It:

How to Hire an Effective Business Consultant

Be the Next Successful Startup Business in 2022

Established in 2006, we have successfully written hundreds of bankable and world-class Business Plans for clients across 25 countries. As South Africa’s Leading Business Plan Company, we are confident that we would be able to assist you too. Kindly note that we also offer “Investor Pitch Decks”, “Excel-based Financial Models”, and “Proposal/Tender Writing Services” in addition to our Custom Business Plan Writing Service. Please visit our Services page for more information.

We look forward to being of service to you. Please feel free to contact our Founder, Dr Thommie Burger, on +27 79 300 8984 should you have any questions. He is also available via email and LinkedIn.

JTB – Your Business Planning Partner.

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Dr Thommie Burger is the Founder of JTB Consulting

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