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Consultants and Small Businesses: Choosing a Consultant
By Evan Wise, Managing Director of Management One

The fear of making a mistake in choosing a consultant keeps many businesses from making the choice at all. That, in itself, is normally a big mistake. Just like a teenager doesn't quit dating because the first date was not a success, the search for the right consultant should not end with the wrong choice! There are some guidelines that you can use to choose the right person for you.

The first consideration is values. Your business values are the guidelines that you use to make decisions in business. If a consultant does not share your values you will probably end up not using his advice and guidance. To assess this, take the time to speak with and get to know the consultant. The topics may include family, friends, hobbies and especially work ethic. This is an important reason that Management One affiliates take the time to meet with each potential client. They understand that choosing a consultant is important to a business and the process works best when the consultant and the client can communicate and respect one another.

The next consideration is process. As a small business owner you have probably survived shooting from the hip on decisions long enough. The last thing you need is a sidekick that is shooting from the hip too. A good consultant has a process and methodology he has used successfully for many years. We use Ultimate Retail™, Winning@Retail™ or Winning@Business™ to bring success to businesses. These processes have been proven over the last 14 years. You don't want to be the test monkey for a consultant's new process.

When you hire a consultant you are hiring experience. Generally a good consultant has a network with which he communicates often. The larger and more available the network, the more varied and valuable the advice he will bring to the table. Management One® affiliates have a network of 40 professionals within the team to gather input, ideas and recommendations.

Set a timeframe for working with the consultant to give you a chance to evaluate the relationship. Generally a review at 4 and 8 months and an opportunity to end the relationship at 12 months is a prudent approach to providing a fair evaluation of a consulting relationship. Keep in mind that it will take 3 months for a consultant to get a good feel for your business. You don't want someone that feels they know all the answers and starts shooting out ideas on day one. That may be impressive however the solutions are generally based on a different business and not yours. Some patience is required for a positive experience. Once the consultant has a feel for you, your operation, your customers and your business, he can begin to lead you and your team toward solving problems and seizing opportunities. It will take 3 months or more to start seeing the effects of the changes. A year is probably the best timeframe to get a proper analysis.

The corrolary to setting the timeframe is to set goals for the consulting relationship. That requires a measurement process to benchmark progress against those goals. You should be able to point to the cost benefit analysis of the consulting arrangement at the end of the year. This process must be established and agreed upon BEFORE the engagement starts. There are no guarantees in business or in consulting however measurement of success is important.


Finally, find a mentor and a teacher. A consultant that comes in and tells you, "Do this, move that, publish this," may help business today, but he has merely become the boss and not a consultant. A good consultant will mentor you and teach your organization how to be more effective. After the first year the consultant's role may change. He should have taught you and your staff to operate more effectively. He now can begin challenging the thinking, actions and goals you are setting. Just as business changes constantly, the role of a consultant changes too.


 

Copyright Management One® 2004