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Consulting Produces a Good Return on Investment

Every business and professional office must make hard decisions about which investments will produce the most sustainable and significant returns. Owners and partners are rarely in a financial position to simply try all available opportunities, and that strategy would carry substantial productivity/personnel/financial risks of its own. So, should you hire a consultant?

Small business owners and professionals are in an ideal position to get distracted by day-to-day events and develop a narrowing of their critical vision. A consultant’s role is to encourage a broadening of that viewpoint and to support a reinvestment in the larger goals that the owner had when they started operations.
 
I once worked with a boat builder who was so busy he was headed for an emotional break-up and was desperate because he didn’t have the money to afford a vacation, let alone treatment. He loved boat carpentry, but had decided that his only recourse was to close the business. He had no idea how to pay off his debt to the IRS so, looking for a savior, he called me in, but he couldn’t afford to pay me either.
 
I took him out for coffee and pointed out a few basic things he had lost sight of: He had customers so he had the capacity to make money; he was skiing 5 days a week so clearly his time management needed tweaking; he was working alone so his hiring/delegation skills needed developing; he spent his work time doing all the things he was bad at and hated (administering), and none of his time doing what he was good at, loved and made him money (boat carpentry). With very little pain we figured out a plan and within three weeks he was paying on his bills, paying off the IRS and still skiing every afternoon. And yes, I got paid too.
 
Investing in a good consultant is like taking on a good temporary partner who doesn’t want an equity position. You should feel some relief at sharing the concerns and see bottom-line results in the short and long-term picture. The key is to hire someone who keeps an eye on the bottom-line and builds on your strengths and successes.
 
You’re not likely to see a good return on an investment in someone who advises you to go off in directions that stretch you too much. Pick a consultant who sees who you are and understands how you do things at your best. That usually requires lots of initial questions and ideas presented as suggestions for you to consider.
 
And don't forget to keep track of the results.