What is Business Consulting and What Advantages Does It Provide?

Posted on February 14, 2022.

A business consultant is a professional that works with clients on a variety of aspects intending to help to improve, grow, or maintain a company. Learn more about business consultants, what they can provide, and more in this guide.

What is a Business Consultant?

‌A business consultant is an individual who works closely with business owners and managers to improve operations and efficiency. Business consulting includes helping to identify, address, and overcome obstacles to meeting a company’s goals. 

What Does a Business Consultant Do?

‌Business consultants can assist in nearly any need your business might have. There are business consultants that specialize in specific industries, while others take a more general approach. While specific services vary, some of the most common ones are listed below. ‌

• Identify obstacles that are preventing growth or efficiency
• ‌Determine what changes need to be made and help implement changes
• Provide any necessary training and resources to staff and management
• Bring out-of-the-box ideas to refresh a business
• Assist in business planning and creating new businesses
• Assess, hire, and fire staff, if necessary
• Implement new programs
• Analyze a company’s budget, suggest adjustments, and help put those adjustments in place
• Locate providers and partners to help meet goals

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What Businesses Need a Consultant?

Nearly any business can benefit from a business consultant. Though some, like those below, might experience the most significant benefits.

• Startups can use consultants to complete planning and get a strong start.
• ‌Businesses that have been around for a while can benefit from a fresh perspective.
• ‌Companies starting new campaigns can benefit from a consultant’s research and expertise.
• ‌Businesses focused on growth can utilize a business consultant’s strategic skills.
• ‌Organizations that are not meeting their financial goals can hire a consultant to dig into their accounting.
• ‌Companies adding a new department can get help planning, setting up, and staffing that department.

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What are the Advantages of Business Consultants?

‌Hiring a business consultant can provide many benefits to a company. Some of the most important include taking advantage of an outside perspective, utilizing insight and expertise picked up from other clients and industries, receiving help creating plans as well as the resources to make them happen, and more. Below are some specific examples for a greater understanding.

• ‌Business consultants offer a “bird’s eye view” into a business. Many seasoned business managers and owners can struggle with seeing the complete picture as they are in the middle of it. A business consultant has a fresh mind and viewpoint, allowing them to see things that business owners might not.
• ‌Business consultants often work in multiple industries and with a variety of clients. This gives them invaluable insight and ideas from many different avenues. They can use the expertise they gain from other industries and adapt them to a new industry. 
• ‌Designing new campaigns and business plans can be challenging and take a great deal of time. Business consultants help to develop these plans more quickly and clearly and then help you put them to work.
• ‌Business consultants can pinpoint strengths and weaknesses in your company that you might have become blind to overtime.
• ‌Staying on budget is imperative to a company’s success. Business consultants can help find weak areas in your spending and provide creative solutions for those areas. 
• ‌Business consultants can help increase sales by researching your desired client and creating a targeted marketing plan to attract them. 
• ‌Consultants bring with them a network they have formed during different projects. Businesses can use this to gain knowledge and use external resources that a business may not even be aware of. 

Career outlook for Business Consultants in 2021

‌A business consultant’s earnings depend on several factors, including their location, the industries they serve, and the specific skills they provide. Despite the ongoing Covid-19 pandemic, there are sectors inside of management consulting that are experiencing growth. By Q4 2020, we’ve seen incredible demand inside of specific practice areas including healthcare consulting and bankruptcy & turnaround consulting. Generally speaking, a consultant in the US makes between $65,000 and $110,000 per year.

What Tools do Business Consultants Use?

‌Being a business consultant requires a lot of planning, researching, and organization. Using the right tools to support your business can provide many benefits. Some of the most important tools business consultants use are listed below. 

1. CRM Software

‌ CRM software is available to help improve your customer relationships. It allows you to keep track of client information and interactions, share files, and track progress. Different CRM software comes with various available features, so it’s crucial to determine what you need before choosing one. ‌

2. Proposal Software

‌As a consultant, you likely send several business proposals. Having business proposal software helps to keep a professional structure to your proposals. Additionally, many provide templates, which can save you hours. 

3. Project Management Tools

‌Most business consultants manage several different clients at a time. Additionally, many handle multiple projects for each client. Using project management tools will help track a project’s progress and keep projects organized. ‌

4. Time-Tracking Tool

‌A business consultant typically charges by the hour, so keeping up with billable hours is a foundational aspect of consulting. Having a time-tracking tool that not only keeps up with the amount of time you work but also lets you categorize this time for different projects is incredibly helpful. 

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