Why and When to Hire a Consultant

You're having lunch with a friend. You arethe company. A consultant may help you to solve
discussing the current state of your business andan issue faster and be less costly. Remember
he suggests that you consider hiring a consultant.that technology and techniques have changed a
You have always run you business by yourself.great deal over the last year, if not the last five
Why get help? Are you getting old and feeble? Noor ten years. Just think about what your mobile
one knows more about your business than youtelephone now does. Albert Einstein said the first
do! What can one of these consultants do forsign of insanity is doing the same thing over and
you? Consultants aren't cheap. You haven'tover and expecting different results. Even he had
needed one before, why now?a problem calculating change at a Berlin restaurant.
I have heard this many times. The best answer isOver the last ten years, we have watched
you hire a consultant or anyone for that matter,companies take ideas from other companies and
when you need something done you can not oreven from different industries and have seen
do not know how to do. Think about your hiringthese companies grow and increase profits with
an attorney or an accountant and why you hiretheir new ways to do things. Southwest Airlines
them. Why did you hire that person? Youmay be the best example of using techniques
probably hired an accountant to do your taxes,from another industry, race car driving. They
for example. The internal revenue gives ushave used these ideas to turn around an airplane
instructions on how to prepare returns, so whyand get into the air faster than any other airline.
did you hire someone to do it and not do itSouthwest decided not to do things they way
yourself? The reasons are probably because theythey were always done or how everyone else did
can do it in less time than it would take you andit. They let others make mistakes. While you may
you might miss or misinterpret a legitimate waythink you know your business better than anyone
to save money. Accountants know things thatelse, someone outside your industry should
could save you money. While the accountant isquestion you on why you do something a
doing the tax return you could be doing somethingparticular way and may suggest a better way to
that will help improve your business. Doing yourdo that task. A new approach may save money,
returns, will take valuable time away from yourfree you up to do other tasks, and may
business. The amount you pay the account isultimately give you a competitive advantage over
worth the time you save. If you don't think so,your competition.
put an hourly rate on the value of your time. TheMany consultants are hired to be a sounding board
amount of money the accountant saves youfor the owner. The consultant acts like the
may be greater than what you pay theowner's partner. You pay them; their loyalty is to
accountant. The elimination of aggravation in doingyou. But be careful, they will probably tell you the
the returns makes paying someone else to do ittruth! A consultant helps broaden the owner's
well worth the expense.perspective. Being the owner can be lonely. The
There are all kinds of consultants. They doemployees may only say what the owner wants
marketing, sales, profit improvement, humanto hear. The owner is not questioned about a
resources, establish incentives for your employeesdecision or a strategy. A good consultant can ask
and many, many more things that could possiblythe hard questions and make sure an idea is
be of value to your company. The first reason tothought through thoroughly. This process
hire a consultant or anyone is that this person orimproves the probability of success in
organization can do something you or anyone inimplementing a strategy. It improves the odds
your organization can't do. The second reason isthat a new strategy is put in place that works as
similar to hiring someone to do your taxes. Thisthe market changes and a business grows.
expert can do it in less time and is more costHiring a consultant is not any different than hiring
effective than you doing it. The third and probablyan employee. Make sure you have an agreement
the most common reason is to have someoneup front on what is going to be done and
who understands you and your organization andaccomplished. Professional consultants want you
can help in making those difficult decisions.involved as they work for you. You may want to
A good consultant will look at the company's issueput a time frame and ultimately a cost budget on
and give a fresh and new view of the problemthe task.
and potential solutions. There is a lot to be saidA good consulting engagement can solve many
for working with someone who has done thisissues. The consultant resolves the issue and
task many times before. A consultant can addsometimes uncovers the real problem and not
objectivity when they look at aspects of yourjust a symptom. They don't forget the basics.
business. Yes, you have run this business forIssues will usually be resolved sooner and be less
many years and feel you know more thancostly by a consultant. The best ones add
anyone else about it, but at the same time it maysomething you didn't have before and are worth
be beneficial to have a fresh set of eyes look atthe investment.