According to Forbes, about 90% of all startup businesses ultimately fail, and they do so for a variety of reasons, from ineffective leadership to lack of cash flow. So, what can your business startup do to become one of the winners?
What Is a Management Consultant?
Just as there are many reasons many new businesses barely make it out of the design phase, there are many ways in which experienced business management consultants can help. But, what exactly is a management consultant? A competent management consultant can help solve intractable business problems that hamstring productivity and profitability.
Is a Business Consultant the Same as an Incubator or Accelerator?
Consultants, "incubators," and "accelerators" are similar in that each helps businesses grow and achieve their primary goals. Whereas incubators generally help businesses get started and accelerators provide advice and guidance once a business is off the ground, management consultants can help at every stage of a company's life.
Think of your business as a child — an incubator helps him take his first few steps, while an accelerator takes him through the often chaotic phase of adolescence. A business management consultant, on the other hand, will provide guidance from infancy to adulthood.
What Are the Principal Benefits of Hiring a Competent Management Consultant?
Every business is different, with unique products and services, customers, and goals. That said, most new businesses face similar problems which an experienced management consultant can help solve. Here are 5 ways the right management consultant can help your business make it to the next level:
They provide specific expertise: One of the reasons new businesses fail is because entrepreneurs often try to "do it all." Unfortunately, many don't understand all the nuances of finance, marketing, IT, and human resources. A good management consultant can give sound advice on a wide range of issues and identify potential pitfalls to avoid.
They lower costs: If your marketing campaigns have failed to deliver results or you're experiencing cash flow problems, you may hire several full-time employees as a solution. However, that can be expensive. On the other hand, a management consultant can help you identify digital and enterprise-wide solutions to drive innovation and greater brand resilience.
They bring fresh eyes and objectivity to business challenges: New businesses — even innovative ones — are sometimes resistant to change. Often, the resistance to change can originate from long-term employees with entrenched perspectives. An experienced consultant, because he doesn't have "a dog in the hunt," is more likely to get buy-in from key stakeholders with objective solutions and innovative approaches.
They can teach employees valuable skills: The adage, "give a man a fish and you feed him for a day; teach him to fish and you feed him for a lifetime," is nowhere more applicable than in the field of management consulting. The best consultants are also experienced teachers and trainers, imparting valuable lessons to your employees to help them become more productive and effective in their roles.
They can make the tough decisions: It can be a challenge to identify areas of needed retrenchment, be it in the area of operating costs or staffing capacity. Your consultant can do "the dirty work" for you, freeing you up to focus on processes more critical to your long-term success.
Consult a Professional to Help Identify Technical Challenges and Recommend the Right Technologies to Support Business Processes
It's true that many new businesses fail — but many also succeed. Those that come out on top take the time to create smart business plans, set realistic and measurable goals, understand their target audience — and get advice from the right sources.
If you're a startup business, consider hiring an experienced and competent business management consultant who can give you the tools and knowledge you need to increase your probability of long-term success.