Consulting. The word conjures images of business suits, boardrooms and hefty reports. It’s notorious for being one of those jobs your friends don’t understand.
However, it’s a lucrative and dynamic field well worth investigating.
If you’ve ever been interested in consulting but too afraid to ask what it entails, we’ve got you. This guide will demystify the industry and give you the essential knowledge to embark on this promising career path or hire a business consultant.
Read on to learn about:
- The role of a business consultant
- A business consultant’s responsibilities
- What kinds of businesses benefit most from consulting services
- Outcomes one might achieve from hiring a business consultant
- Specialties in the consulting industry
- The state of the consulting job market
- How to start a consulting business
- Business tools consulting firms use
What Is Business Consulting?
Business consulting is the practice of providing expert advice to business owners and leaders aiming to improve performance. This service is essential for companies seeking growth, efficiency and solutions to various operational challenges.
What Does a Business Consultant Do?
A business consultant is a catalyst for change — an individual who works closely with business owners and managers who want to improve operations and efficiency, grow their businesses or maintain positive momentum.
Business consultants act as partners in problem-solving, identifying and overcoming the obstacles that arise along a company’s path to meet its goals.
There are consultants who specialize, while others take a more general approach. Specific services vary by consulting firm, but here are some of the most common responsibilities of a consultant:
- Identify obstacles preventing growth or efficiency
- Pinpoint opportunities for change and help implement changes
- Provide training and resources to staff and management
- Bring out-of-the-box ideas to refresh processes or establish workflows
- Assist in business planning and creating new businesses
- Assess, hire and fire staff as necessary
- Implement new programs
- Analyze a company’s budget, suggest adjustments and implement suggestions
- Locate vendors and partners
What Kinds of Businesses Need a Consultant?
Nearly any business, from small businesses to large organizations across various industries, can benefit from hiring a business consultant. Leaders would typically seek help from a consultant when navigating a period of change or looking to improve efficiency.
The following are a few scenarios in which a consultant might assist.
- A software startup team needs to complete the planning phase and get a strong initial boost using third-party data analysis.
- A growth-stage engineering business needs a fresh perspective as they enter a new market and try out different strategies.
- A mid-sized organization not meeting its financial goals digs deeply into their accounting history and practices.
- An established company is adding a new department and seeks support with setup and staffing.
What Are the Advantages of Hiring Business Consultants?
Having gathered insights and expertise from many clients and industries, consultants often have more and different resources than internal employees. Their “bird’s eye view” can complement the experience of seasoned business managers and owners. An outsider is often better at pinpointing strengths or weaknesses than someone entrenched in a business.
There are some cases in which consultants can also make processes much faster. Especially when a team is building a new campaign or business plan, a consultant can come in with clear steps and assignments right away. Many also have a strong network of service providers and external resources.
Whether the focus is a budget adjustment, a sales revamp or a marketing initiative, business consultants tend to generate a wealth of creative solutions.
Types of Consulting Services
Each type of consulting service addresses a specific aspect of a business’s operations or management. From shaping high-level business strategies to optimizing day-to-day practices, consultants bring a wide variety of impactful perspectives and solutions to entrepreneurs and their teams.
The following is just a sampling of the range of consulting work you may come across.
Strategy consulting
Strategic planning consultants specialize in helping organizations define their vision, mission and long-term goals. They often create comprehensive plans that outline the steps a team should take to achieve their objectives. In doing so, they assist with aligning resources, setting priorities and establishing measurable targets.
Operations consulting
Operations consultants are all about efficiency. They address things like business process management, cost reduction and service delivery. Their goal is to ensure their clients’ businesses operate at peak efficiency, even amid changing conditions.
Human resources consulting
A human resources (HR) consultant focuses on the management of a company’s workforce, one its most valuable assets. HR consulting might involve advising on talent acquisition, organizational restructuring, compensation, benefits, training and workforce development. This type of consulting is critical for companies looking to attract, develop and retain top talent in a competitive market.
Information technology consulting
Technology can set businesses up to gain a competitive advantage if it’s implemented the right way. Information technology (IT) consultants help to implement new systems, optimize existing infrastructure and manage IT-related projects. Their expertise is usually in areas like software development, data analytics, cybersecurity and cloud computing.
Financial consulting
Financial consultants provide expert advice on a range of financial matters, including budgeting, investing, risk management and planning for growth. They can play a pivotal role in helping companies manage their finances effectively to achieve profitability and plan for the future.