Importance of Management Consulting for Small Businesses

Many new business owners hold a common assumption about management consultant services – namely that they’re only for huge, well-established organizations. In reality, business management consulting can improve performance at companies of all sizes. Consultants provide high-caliber advice and information on a variety of topics, empowering businesses to run more effectively.

To dive into more detail on the importance of small business management consulting, let’s consider the roles a management consultant often takes on. As we’ll see, several benefits arise from contracting for business management consulting.

Management Consultant Roles

Accounting and financial planning. It’s common for even smaller firms to hire an accountant for tax preparation. It’s also not unusual for business owners to turn to their accountants for financial advice. Consultants can troubleshoot weak profits or address any other financial hurdle. Effective consultants thrive in such problem-solving roles; they are action-oriented masters of change.

Marketing advice and materials. Small business management consulting agencies are happy to provide marketing guidance. Larger management consulting firms may retain a marketing specialist, while experts at smaller companies are often adept at providing advice across a wide range of business topics.

Solving pressing problems. Small business leaders often rely on consultants for troubleshooting. A consultant may be asked to figure out why certain employees are not meeting productivity demands, and to provide suggestions on how the situation could be turned around. Whatever major problem is looming over your company, a management consultant can help you solve it.

Checking a company’s overall health. Small business management consulting experts can also run a general diagnostic and offer recommendations on how to improve a company’s performance.

Benefits of Hiring a Management Consultant

Discretion. Discretion is consultants’ modus operandi. Indeed, consultants who can’t keep private company information to themselves soon find their client list dwindling. You can trust an established business management consulting firm to keep sensitive information private.

Real-world, hands-on solutions. Some problems just can’t be solved by reading a book. A management consultant looks at your business, your numbers and your challenges. Because they’re dealing directly with your situation, management consultants are highly effective and provide an excellent return on investment.

Expert management advice. Ultimately, the most important benefit of hiring a business consultant is that he or she will be able to provide trustworthy suggestions about the best ways to steer your company forward.

The entrepreneur is a person who is dedicated to an idea and who has the kind of drive required to make his or her dream a reality. However, entrepreneurship does not automatically endow a person with good management skills; these must be learned over decades. Small business management consulting firms can educate company leaders about the best way to manage all aspects of running a business, from human resources to tax audit preparation.

About the Author Barb Fisher

Barb is the CEO of Fisher Bookkeeping, an outsourced bookkeeping consultancy that provides small businesses with a full-service financial department. Her favorite aspect of work is to break down the accounting to meaningful bits, so entrepreneurs can make a powerful difference in their own business. She's also a power lifter (squat: 215, DL: 270).

Leave a Comment:

8 comments
Patricia Wilson says March 12, 2018

My favorite part of this article is when you mentioned that the ultimate purpose of getting engaging with a consultancy firm is to get sound professional advice on how to grow your business. I have to admit that there are still a lot of things for me to learn regardless of how determined and resourceful I am as a business owner. Starting up my own bakeshop has been one of my biggest dreams and I’d be sure to work with a consultancy when I get the chance to set it up. Thanks for this informative read!

Reply
Margaux Ford says March 7, 2018

Thanks for the tips on hiring a management consultant to improve the performance of a business because they provide trustworthy suggestions about the best ways to steer the company forward. My sister runs a small business, and I think that hiring management consultant would be helpful for her. thanks for adding that small business management consulting firms can educate company leaders about the best way to manage all aspects of running a business.

Reply
5 stages of small business growth – An entrepreneurial journey | The Word Garage says September 22, 2017

[…] importantly, now is the time to look for and hire experts who are more knowledgeable in these three significant focus areas. Consult widely with mentors and […]

Reply
bassantech says July 25, 2017

Great article

Reply
Denice Vanderploeg says March 31, 2017

Great website. If I wanted to learn more where could I look?

Reply
Deepak Panda says August 9, 2014

The lack of return of investment is what causes small businesses to fail. It is impossible to continue the business operation with no adequate supply of financing. The reason why there is a lack of return is because the operation does not seem to meet the requirement. It could be on manufacturing, sales, marketing or purchasing. These are the operation stages where small business should have a careful look. To respond to the need of looking into these areas further, a management consultant is needed.

Reply
Deepak Panda says July 18, 2014

Many start-up firms have a common assumption about consultant services, i.e. they are only for large and established companies. But in reality, business management consulting can improve the performance and efficiency of organisations of all sizes, be it a new player or a pro in the industry. The experts provide well-informed advice and high-quality information on a variety of topics concerning commerce, empowering firms to achieve their maximum potential.

Reply
Management Consultancy says January 6, 2012

It is really interesting to know more about Benefits of Hiring a Management Consultant looking more with expectations

Reply
Add Your Reply