business planning consultant definition

Business Insights

What is business consulting how do business consultants help.

If you’re the owner or executive of an SMB (or even enterprise), you’ve already faced the challenges of management.

Here’s the great thing though: a lot of other leaders have already struggled too. That’s why business consultants and business consulting as a practice exist. You don’t have to reinvent the wheel.

The almost overwhelming amount of tasks and duties is just one side of the coin. On the flipside, you have to weave all of that knowledge and information into an actionable strategy. All of that can quickly become hard to balance.

What’s more, you need a comprehensive outlook on things. HR, accounting, IT infrastructure and the current workforce’s potential have to be considered at every step.

That’s the only way to grow & scale in time. 

If you’re looking for professional consulting services built around ROI and actually important KPIs, let us know. We’ve helped dozens of businesses in the past, and we’re eager to work with you too.

Key takeaways:

• Business consultants are industry experts. They’ve seen problems like yours before; they know how to solve them.
• Not all business consultants can help you. You need someone accustomed to your niche’s specifics. If they understand the technicalities, they can help you overcome anything else.
• Business consultants might recommend a lot of changes, including the company culture (or parts of). It’s important you at least listen to the reasons.
• Some business consultants charge by the hour. Others have a monthly, weekly or daily fee. 
• Business consultants aren’t wizards. Some suggestions can yield immediate results, but not all of them will. It highly depends on what you need.

Table of Contents

• Business Consulting Definition

11 Business Consultant Responsibilities

Why work with a business consultant.

• Getting Accustomed
• Identifying Problems
• Improving Communication
• Restructuring Processes

The Advantages of Business Consulting

Who should work with a business consultant.

• CRM Software
• Time-Tracking Software
• Project Management Software

Operations Consultants

Strategy & planning consultants, hr consultants, financial consultants, marketing consultants, 7 benefits of business consulting firms.

• Explore Your Options
• Do a Background Check
• Make Your Choice
• Let’s Work Together

What is Business Consulting?

Eventually, you’ll reach a simple conclusion: you can’t do it alone. Even if you have a board of directors already, you’ll hit a wall every now and then. And that’s where business consultants step in.

Business consultants are experts in their field of choice. They’ve seen it before, and they’ve done it before; successfully. A true business consultant can give you pro pieces of advice, ideas, and even help you plan actions that’ll propel your strategies forward. 

We’ll go over all the details in this blog post. However, if you want just the gist of it, here’s the core idea: as an organization, you take advantage of external business consulting. 

You bring in professionals that have a fresh set of eyes on your situation. 

It’s actually best if you refrain from sharing information that could create a bias in them. Because that can happen even subconsciously. 

For example, you might know that your financial problems stem from business teams not hitting their deadlines. As projects get delayed, payments are coming in slower too. Of course, some clients decide to end their contract. 

However, let the business consultant(s) reach conclusions on their own. 

If you “sow” a bias in them from the start, they might miss something equally important. After all, their job is analyzing all sides of a situation. 

When you come in as their client and say “this one thing is 100% the problem”, you’re cutting a tree branch that you’re currently standing on. After all, if you already know the problem, what’s the point of hiring a consultant?

Consulting works best when you let the experts come to their own conclusions.

After that, if you still find the conclusion inadequate (as an insider), come in with the additional info. This is the business consulting definition. 

What Is a Business Consultant?

Business consultants are outsiders. They’re external professionals that collaborate with business owners, directors and managers; either short-term or long-term.

Business consultants can offer their input on a variety of topics. Usually though, consultancy is requested for improving SOPs, solving issues, and growing the organization. 

Common problems that business consultants often approach are miscommunication and lack of goal alignment. Sounds trivial, right? But, it’s the truth. We’re willing to bet that your own company’s troubles come at least in part from subpar communication. 

Goal alignment is just as tricky to solve though. 

Many teams, the departmentalization of teams will cause fractured objectives. Overall, your business strategy is aimed at getting more revenue; increasing profit. 

However, that doesn’t always translate well to team-specific goals.

Even in cases where the team leader is highly focused on the bigger picture, the other employees might not be. Business consultants also help bridge this gap between team and company objectives through various tactics. 

Then, there’s the issue of cooperation; both within teams, and between teams. Cross-team collaboration is probably harder to achieve. 

Still, it’s no small feat to get even people with similar specializations to work together well. Business consultants teach you what tools to use to simplify workflows. 

And perhaps even more importantly, how to change mindsets for the better. 

Basically, business consultants look at what’s dysfunctional, and turn it functional. Some specialize in a specific industry, while others prefer being generalists. Who you want to look for first and foremost is an experienced business consultant.

Consultants who’ve already created solutions before are likely to help you effectively too. 

Hire a business consultant today, and let them be the catalyst that sparks your company’s improvement in processes and procedures. 

• Identify growth and progress blockers. Devise actionable solutions.
• Come up with custom suggestions that apply to a client’s specific situation.
• Suggest changes and help implement them.
• Offer training, onboarding, resources and ongoing support to staff & leadership. 
• Come up with innovative solutions. Be the unbiased pair of fresh eyes.
• Structure plans around new ideas (ideally previously tested ideas). 
• Help leadership & HR with hiring new talent and potentially firing current personnel.
• Analyze how the budget is used. Propose better alternatives and highlight inefficiencies.
• Hold team buildings, open communication sessions or other similar programs.
• Identify new market opportunities and potential partners for their clients.
• Conduct market analysis and figure out how to best integrate their client’s business.

The simple truth is that any company has a lot to gain from collaborating with a business consultant.

However many years of experience you have as a leader, an outside perspective helps.

When you spend a lot of time in the same organization, the same “system”, there’s a downside. Inevitably, you’re going to silo yourself in an internal bubble of information. 

If innovation, learning, and evolution aren’t present in your business, you’ll fall into a routine. This routine will quickly become a standard operating procedure. So, in other words, you’ll begin thinking in a very templated fashion. 

When issues and problems arise, you’ll be tempted to always solve them the same way. The usual way.

This can easily be a mistake. New challenges need new  perspectives & solutions.

And that’s where a business consultant comes in. The biggest benefit they bring is their experience. They’ve seen your problems before, but in different contexts.

They have multiple ways of solving these problems. You surely hadn’t even considered some of those methods. For example, business consultants will:

• Provide you their extensive experience and expertise in your field as a specialist.
• Teach you tricks of the business management trade as a generalist.
• Move your company away from a damaging “one size fits all” mentality.
• Identify communication, collaboration and goal alignment problems.
• Be the catalyst that initiates positive change, improvement, and growth.
• Fill in the gaps left by inefficient admin staff.
• Bring an objective & facts-driven outlook on issues.
• Teach your employees how to overcome their efficiency challenges.
• Analyze which employees should be let go.
• Teach you how to create better, achievable plans.
• Assist with the planning process and with achieving the desired goals.
• Provide insights and research findings for new initiatives, campaigns and projects.
• Assist with creating & implementing long-term strategies.

What Does a Business Consultant Do?

Business consultants are there to help you streamline standard operating procedures and improve communication. It might sound surprising, but that’s the core of it.

It takes many little things working unison to create a bigger and more complex thing.

In other words, everyday interactions between colleagues will ultimately determine a company’s fate. Whether you’re successful or go bankrupt depends on workflow efficiency. 

How information is spread and used. How teams come together to collaborate. The willingness of each staff member to be held accountable for their delays and mistakes. Don’t misunderstand though; everyone makes mistakes. But, we have to learn from them.

If mistakes and process inefficiencies are left unaddressed, they spiral out of control. 

And, that’s the moment you call in a business consultant, isn’t it? They’re the experts of getting you back on track, and even improving how you manage your company. 

1. Getting Accustomed

No matter the experience of a business consultant, they’re not spellweavers. You can’t just wave a magic wand and make everything better. A discovery phase is required.

Business consulting is basically a partnership. You want to save your company from your problems in order to be profitable and to stay in business.

Your consultant also wants you to succeed. First of all, because that’s how they get paid. Second, because it always helps to have a CV filled with great case studies. 

However, there’s a third reason too. A lot of business consultants are people who truly appreciate collaboration. Creating a cooperative environment where employees work together easily and appreciate each other is a common personal goal. 

You have to remember that business consultants usually have a calling. Essentially, they’re teaching you leadership skills. And great leaders want to see their people triumph.

That’s why when you work with a business consultant , you already have common ground. There’s shared knowledge between you, and mutual desire to grow the organization.

The only way for a business consultant to help you do that though is by learning more.

About you, about the organization, your struggles and your successes. We know you probably have confidential information you’re afraid of sharing.

Remember that the business consultant signed a contract with you. 

They would be subject to legal actions from your part should they disclose secrets. And, you’d easily win too. So, don’t actively make their job harder. Answer their questions.

For example:

• Introduce them to managers and executives. 
• Give them access to financial and HR information.
• Show them your workflows and daily operation procedures.
• Walk them through an onboarding process.
• Describe a typical sales funnel.
• Detail your current long-term strategy.
• Tour the premises.
• Showcase a typical board of directors meeting.
• Relay common employee grievances.

2. Identifying Problems

We’ve mentioned this before, but you can’t “guide” business consulting. Or in other words, let the business consultant find the issues themselves. 

You need to have the real problems fixed, not what you think are the real problems.

Since you’ve decided to hire a consultant, trust in their expertise. Once they have a better understanding of how you operate, they’ll start seeing the downsides without delay. 

One thing to remember about business consulting though is that it’s not cherry picking. A consultant does not seek to prove an initial hypothesis. Instead, they look at the whole picture. Your company’s weaknesses first, sure, but also its strengths. 

Only after they have this bird’s eye view do they begin evaluating the situation.

Whatever change the business consultant suggests is based on facts. Reality can be difficult to accept sometimes though, so try to keep an open mind. 

• Looking at old problems – business consultants bring an objective outside view. So, they should examine even the issues that the company’s leadership already knows about.
• Finding new problems – it might be daunting to think about, but you probably don’t know all the problems you actually have. Let business consultants advise you in this regard.
• Coming up with solutions – focusing on problems is useless in business. Consultants also specialize in devising solutions that let you move forward with haste.

Identifying all issues and forming an action plan are the first steps. This is how you’ll find the appropriate opportunities to solve them and become profitable (again).

Each case is unique. That’s why business consultants look at the whole picture: sales, marketing, design, development, ITSM, business administration, teamwork, and whatever else.

You have to fully understand what you’re trying to solve before even trying to solve it.

3. Improving Communication

Most company problems start from a lack of quality communication. One of the main goals of business consulting is improving how information and feedback “moves” in the company.

The most important thing for you as a consulting client is maintaining great communication from the start. As soon as the business consultant steps into the organization, provide them all details.

Without open communication, you’re making the process needlessly difficult. 

At the same time, business consultants will also focus on company-wide communication. This means how information is passed between management and staff, but also between staff members on the same or similar hierarchical level. 

Fact of the matter is, a business only works as long as its people work together.

Feedback is the second crucial aspect in this process. A surprising amount of companies face one-way communication chains. Information gets delivered, and then that’s it.

What’s worse, those information delivery methods might not be efficient to begin with. Add in a lack of feedback, and you’re in for a bad time.

Feedback is so crucial because it confirms that the transmitted knowledge was understood. In business, we often face delays because of misinformation, information silos, or information just not reaching who it was supposed to. Those are clear indications of problematic SOPs. 

If you’re stuck in an inefficient communication pattern long enough, you’ll lack the perspective of understanding it’s ineffective. All the more reason to trust the insights of your consultant.

Business consultants will probably have some things to say that you won’t want to hear. And, that’s normal. No one wants to feel criticized. And yet, it’s very important that you are.

Otherwise, there’s no way to improve.

The business consultant’s objectivity will allow you to exchange opinions productively, leading to positive change and growth.

4. Restructuring Processes

Business consulting is a partnership. Whilst business consultants are going to come up with a plan to improve your company, you have to pitch in. 

At the end of the day, you’re the one who’ll be left with the company long after the business consultant leaves. So, the change that you bring about together has to be beneficial.

Once planning and strategizing are finalized, it’s time to put everything in motion. Implementation of new processes, workflows and information chains can be tricky though. The industry you’re in is also going to be a defining factor. 

Sometimes, improvements are fast. Other times, it can take a while.

The willingness of managers and employees to follow the new changes plays an important role too. Generally, people are hesitant to change. They avoid the unknown.

That’s just how we function as humans; inside and outside of our jobs. We prefer familiarity. 

With that in mind, business consultants are going to allot special time towards change management. The methods will different from consultant to consultant though.

Some business consultants choose to hold team buildings. To create stronger bonds between professionals so they can work together regardless of company policies.

Others will prioritize training sessions about new technologies and ways of working. Lastly, don’t forget that you need to grow as well. As a business owner, or an executive, or a manager, or a member of the board of directors.

Whether you’re doing top-down management or have a decentralized business, adjustments will have to be made. And they have to start from how leadership is handled. 

The sooner you agree to change too, the sooner everything can progress.

There are a lot of benefits to getting a business consultant on board. The first among them is objectivity. You can only look at your company with an insider’s view.

It’s easy to become blindsided by issues because after a while, you start ignoring them. 

That outside insight that a business consultant brings is crucial to making important changes fast. Otherwise, you risk losing key employees, clients, customers, or even the whole organization. 

Of course, you’ll want to pick a business consultant that’s familiar with your industry. While a generalist can still teach you tips & tricks from their own experience, they won’t be bespoke to your niche. 

When you work with a consultant that’s already had success in your market before, your odds of getting a better business skyrocket. 

Here at Wesrom, our experienced & skilled consultants have helped dozens upon dozens of professionals. We’re pros at analyzing problem situations and turning them around.

Business Consultants Also:

• Take a look at the big picture you’re in. It’s hard to see the forest from the trees sometimes, and that’s when you should ask for a business consultant’s help. They can take a step back and notice the details you’re missing.
• Revamping your business’s trajectory and long-term plans is a challenge. However, consultants do this daily; they’ll expedite the process.
• Business consultants usually have a big network of other professionals. They can recommend the other experts that you need too.
• Experienced business consultants have a large portfolio of clients. They’ve seen numerous companies before, and a lot of owners, managers, executives, etc. This expertise helps them offer you the best advice.
• Ultimately, business consulting leads to more sales.
• Consultants are experts at SWOT analysis.
• Having troubles managing your budget? Regularly overspending? Hire a consultant!

Everyone can benefit from business consulting. The most obvious scenario is when your organization is already struggling. Thing is, why even let it reach that point?

By reaching out to a business consultant in time, you’ll avoid having problems to begin with.

Regardless what type of business you’re into, a few elements are always the same. For example: people are the key to success, communication is a must, and goals have to be aligned.

If you’re not respecting at least those 3 things, your chances of success are already slim.

In almost any scenario you might think of, a business consultant can lend their valuable expertise and insights to maximize efficiency. 

From optimizing budget use, to improving how teams collaborate with each other, to…whatever else, really. As long as you’re willing to improve, there are always ways to do so.

• Established local businesses can always learn something new. Only by gaining new information, learning new methods and listening to other perspectives can you create meaningful change.
• Want to create more teams? There’s no applicable template between departments. A business consultant can teach you the ropes of helping new professionals succeed.
• Starting a new initiative? A business consultant can guide you through the process and double-check your decisions. They’ve likely seen similar campaigns in the past already.
• Looking to expand into other cities, regions, etc? You’ll need some serious top-level strategizing; another focus point of great consultants.
• If you’re steadily losing money, you need a business consultant. Ignore the problem long enough, and you’ll soon have no idea why you’re in a budget deficit, and where things started to go wrong.
• Startups gain a lot of “real life” knowledge from a business consultant. When you’ve just begun your business, any mistake can be the last. You should listen to the pros.

3 Tools Used by Business Consultants

Business consultants are a lot like project managers in some ways. Both of these professionals are basically trying to ensure that things run smoothly. 

Difference is, business consulting has a wider scope than project management. Project managers must oversee more specific goals, deliverables, and adherence to a project schedule.

On the other hand, consultants have to make sure that the whole company works, as a whole. That the practices, processes and procedures are built to advance the company in every way.

That’s why consultants work hand in hand with business owners, execs, or managers.

Since that’s a pretty tall order though, most consultants use helpful software. These tools help them sort ideas, schedule plans, track progress, etc. Again, similar in practice to project management.

1. CRM Software

One of the key points analyzed in business consulting is how a company interacts with its customers. 

Sometimes, the issues don’t lie in internal management and process inefficiencies. Instead, it might just be bad analytics. 

If tracking and analysis of customer and client information isn’t accurate, then your offers won’t be attractive either. With CRM software, business consultants verify audience targeting accuracy.

Similarly, consultants will look at how the CRM software is used by your staff (and if it can become better).

2. Time-Tracking Software 

Time tracking is used two ways in business consulting. 

First, your consultant might recommend implementing such a solution to better understand where time’s being wasted. 

From an efficiency standpoint, it’s important that your staff get their tasks done, not that they work 8 hours/day. 

Or alternatively, that value is actually being produced in those 8 hours a day.

Time tracking, when used well, can eliminate busy work, delays, work inefficiencies, or outright slacking. It works by simply logging time for projects, meetings, tasks or other activities.

In let’s say 1 months time, the business consultant can look at how time is being used. Then, optimization and suggestions can be brought forward. For example, if a task that should take 30 minutes ended up being logged for 3 hours, the natural question is “ok, why?”.

Through this approach, business consulting moves organizations from stagnation to innovation.

Second, time tracking will likely be used for your collaboration. A lot of consultants charge by the hour.

3. Project Management Software

Business consultants need to look at workflows, processes, how teams collaborate and talk with each other. Similarly, they need insights into your budget, timelines, if you’re hitting deadlines or not.

Are deliverables done on time and to specification? Or, are you lagging behind and still delivering suboptimal results? 

Business consultants will also check reports as well. They do this in order to see if they match up with reality and the data is actually useful and true. 

Another aspect of analysis is client communication. Is it standardized? Tracked? Are the key points carefully noted down and accessible to all stakeholders? 

The same question is then asked for internal communication. After an employee is tagged by a colleague, how long does it take them to offer an answer? Do tasks tend to face blockers? Is everyone actually cooperating?

You must grant consultants access to such tools you’re using so that they can do their job right. 

5 Types of Business Consultants

Business consulting isn’t exactly a homogenous practice throughout its subdivisions. The principles stay the same, but it varies on the type of consultancy being offered.

For example, a financial consultant won’t have the same priorities as a marketing consultant.

That’s why choosing a consulting professional is up to you. Do you want a jack of all trades, master of none, or multiple specialists in multiple stages? It depends on how you prefer to operate.

Business ops will make or break your organization. Even in a decentralized company, high level decisions and management must still come from the top. 

Furthermore, business ops dictate your SOPs and processes; the company policies and its culture.

Operations consultants specialize in making day-to-day processes simpler. They teach you streamlining methods that help you reach your objectives more simply. 

In many ways, this business consulting is about taking a look at what you’re doing right now with your resources. Then, the business consultant will propose better ways to use them. 

Essentially, business ops aims to answer these questions: “How do we gain more outputs from the same inputs? If we can’t min-max, what else do we need? How do we fit that in the budget?”.

Then, the business consultant steps in to optimize your productivity.

Once your “house” is in order, you can start strategizing growth and expansion. This means capitalizing on opportunities, acquiring assets, driving revenue, closing deals, adopting new technologies, etc.

Strategic consultants are long-term thinkers. You should really call them in only when you’ve got the basics covered. Otherwise, you won’t be able to actually achieve your plans.

When you work with strategy business consultants, you can expect to:

• Extend your services/sell your products to new markets. 
• Gain better shares of your current markets. 
• Expand your company’s potential. More clients, more people, better & faster results.
• Cut down costs as you’re developing a better and better actionable business model.
• Invest in profitable ventures that provide sizable gains.
• Partner up with other businesses, merge with them, or acquire them outright.
• Take on a “big picture” role fully, while the business consultant helps with daily operations.

You don’t have to do HR in-house. A lot of companies nowadays choose to outsource the practice almost completely. Keeping only a handful of in-house employees is viable.

When you work with a human resources business consultant, you let them handle core aspects of your company. They’ll handle recruiting, hiring, onboarding, as well as other HR functions.

Employee retention is also taken over, as are monthly payrolls, admin tasks and performance reviews.

Going this route is a great option whether you’re already in a sizable organization, or an SMB. Thing is, HR is very “process-heavy”. Since it deals with legalities, you can’t just wing it.

Recruiting itself can be more dynamic, sure. You can create great candidate experiences.

Eventually though, it’ll all boil down to background checks, psych evals and signing papers. And that’s where the trusty help of a business consultant can really come in handy. 

These types of business consultants go hand-in-hand with your ops and strategy ones. At the end of the day, money will make or break your organization. 

That’s the one resource without which you can’t do anything. 

Yes, you need great staff. But you have to pay them. Yes, you need assets. But you have to buy them with something. You draw the line, you get to finances. It’s how it is.

So, all the more reason why you should make sure that your books are in order at all times. Financial consultants will give you advice about:

• How to handle your business assets.
• When’s the best time to take a loan, or how to get out of debt.
• Managing the overall financial health of your business.
• Areas where you should be cutting costs.
• Areas where you should be putting more money into.

Financial consultants can also delve deep into your expenses. With a comprehensive financial plan, you’ll have transparency about how money is being used. 

It’s not enough to just do the traditional “expenses minus income” formula and call it a day. Sure, that’s your profit, but what were those exact expenses?

How much was tax? What’s your overhead cost? How much of the budget was spent on daily expenses? How about salaries, retirement plans, etc?

Moreover, if you continue spending money on assets (including personnel) that don’t

You need to fully understand how you operate in order to improve.

Don’t leave marketing as an afterthought. If you do, you’ll be left without a business to worry about. Fact of the matter is, your services or products must actually be sold.

It doesn’t matter how good they are, if no one’s actually purchasing. Marketing, PR and branding is how you’ll solve that. However, you can’t just go at it blindly. 

Just like other fields, marketing has its own tricks and best practices. You have to know how to identify your company’s strengths. How to get them in front of leads and convert them into customers or clients.

From brand awareness, to building lead funnels, to performing SEO and CRO optimization, it can be quite a lot to manage. So, why not not just hire a consultant instead? 

The business consultant will be the expert driving your audience targeting, brand awareness campaigns and marketing funnels.

Working with an independent business consultant isn’t your only option. There are a lot of firms out there (like ours!) that offer bespoke consulting packages.

It’s actually a better option than looking for your own consultant. Firms have a portfolio of past consulting services, and their business consultants are generally experienced. 

A consulting firm can also create a custom package for you at an affordable price. 

So, whether you’re in a smaller business or a larger corporation, there’s a solution that can fit your needs. Whenever you’re making a list of possible consulting providers though, make sure to check their reviews and past projects. Those are the 2 direct indicators of quality.

Even if you’d rather work with an individual business consultant, consider this: you’re still going to! Going to a consulting firm just means you get an extra layer of professionalism. 

They’re going to handpick a consultant for you. But, you’ll still work 1-on-1 with that consultant.

There are additional benefits to working with a business consulting firm too. For example:

• A larger network of professionals.
• A wide range of resources which can be used to your advantage.
• More experience to draw from. The consultant will have an entire organization behind them.
• Higher probability of finding a consultant experienced in your niche.
• Custom packages at different price levels.
• The same level of flexibility and adaptability as independent business consultants.
• Access to other consulting experts if you need them down the line.

How to Choose a Business Consultant

There are a few things to keep in mind when choosing the consultant. They can make or break the collaboration you’ll have throughout the process.

These next pieces of advice apply regardless of the type of professional you’re looking for. The ideas are the same whether you want a PPC consultant, or an HR consultant (and so on).

1. Explore Your Options

A consultant is a person who you’ll rely on. You need to be able to trust their judgment implicitly. When they give you a suggestion, you should be comfortable with applying it. 

In other words, you need someone reliable.

Your business consulting partner should be genuinely passionate about their work. Instead of seeing you as just a client, they should be able to invest themselves in your success.

It’s also crucial the consultant is skilled at organizing, management, and has an eye for detail. After all, they’ll be in charge of improving how you run your business.

• Look for recommendations – Ask your own network if they know someone trustworthy. Similarly, look for reviews, accolades, or business consultant profiles with high ratings. LinkedIn is a great place to find business consulting firms or independent consultants.
• Examine freelancers – There are so many freelance websites today. They empower a ton of true professionals to put themselves out there and find contracts. You’d probably have a good chance of finding your next business consultant. Each website also has some form of a review system.
• Work with us – Among other services, we also offer business consulting. Let’s connect and discuss your business needs.

2. Do a Background Check

• Verify the information – Reach out to the people who reviewed the business consultant. Ask how the experience was, and what kind of process was followed. Inquire into the experience itself; what’s the consultant’s personality like, what did they focus on, etc.
• Examine the qualifications – Look into the consultant’s CV. What’s their education? What type of companies have they worked for before? How long have they been a consultant? A great performance indicator is if the consultant was ever a business owner themselves.
• Be weary of experience – To really be a business consultant, you need experience. That’s the truth of it. Coming straight out of college or having just 2 years in the industry is not enough to consider yourself a pro at it. It’s likely you probably know as much as them.
• Look for relevancy – If you’re looking for a marketing consultant, you should search for niche-centric ones. For example, if someone’s run a very successful Google Ads account for a shoe-making company, that’s great. But, less so if you’re selling office supplies.
• Explore their website – Both independent consultants and consultancy firms should have a professionally built website. Is the UX streamlined? Is the design impressive? Does the website itself inspire results, expertise and trust?
• Verify success – Experience is one thing. You can keep doing the same thing for years and years, but it doesn’t mean that you’re actually good at it. Ask for proof that genuine progress was achieved. Make sure the consultant has solved challenges similar to yours.

3. Make Your Choice

After you make your shortlist, you should schedule a call with each consultant/firm. When you meet with them, you’ll get a better idea if they’re the right one for the job. 

Go into details during these conversations, to make sure that your pain points would be addressed correctly. 

Similarly, check if the style and work ethics of those business consultant professionals match up with your own.

Let’s Work Together

At Wesrom, we handled everything from executive coaching, to team training, digital transformation and any other requirements you might have.

Get in touch at your earliest convenience, and we’ll help you overcome your business challenges. 

We’ve helped over 300 organizations; tackling action plans, long-term strategies, roadblocks and SOP revamps. We’ll get you back on track too in no time.

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What Is a Business Consultant?

Table of Contents

A business consultant is a professional with a wide array of skills who assists business owners with their endeavors. Consultants are knowledgeable because of their education and previous experience. Additionally, business consultants provide management consulting to help organizations improve their performance and efficiency. These professionals analyze businesses and create solutions while helping companies meet their goals. 

To learn more about business consultants and how one might be able to help your business, read on.

Why hire a business consultant?

Running a small or midsize business is challenging because of the sheer number of tasks it takes to succeed. From accounting to human resources to technical support, it’s almost impossible for business owners to do it all themselves. But, thanks to the ease of hiring consultants, they don’t have to figure out everything on their own. We’ll explore what a business consultant does and how one can help your business thrive. 

Business owners should consider hiring business consultants when they need help or perspective on their chosen path, or a catalyst for change in their companies.

There are several reasons business owners should consider hiring consultants. Consultants offer a wide range of services, including the following:

• Providing expertise in a specific market
• Identifying problems
• Supplementing existing staff
• Initiating change
• Providing objectivity
• Teaching and training employees
• Doing the “dirty work,” such as laying off staff
• Reviving an organization
• Creating a new business
• Influencing other people, such as lobbyists

What does a business consultant do?

Generally, there are three stages of a business consultant’s process: discovery, evaluation and implementation. 

1. Discovery 

The first step for any business consultant is the discovery phase, where the goal is to learn about your business. A good business consultant takes the time to learn as much as possible about a business from the owner and employees. The consultant will do the following things:

• Tour your facilities.
• Meet with the board of directors and employees.
• Analyze your company’s finances.
• Read all company materials. 

During the discovery phase, the business consultant will uncover the details of your company mission and current operations.

2. Evaluation 

Once the business consultant has developed an in-depth understanding of your company, they enter the evaluation phase, with the goal to identify where change is needed. This phase includes identifying your company’s strengths and weaknesses as well as current and foreseeable problems.

• Examining established problems and identifying new problems: The consultant should study problems that owners and management have already identified. Because of their objectivity, consultants can also pinpoint new or unforeseen issues.
• Finding solutions: A business consultant should strategize solutions to the problems they identify and outline ways to capitalize on opportunities to grow the business, increase profits, and boost efficiency. For example, say your company has a particularly strong sales department but a weak marketing department. This is an opportunity to increase your marketing resources and capitalize on your sales staff.

There are two crucial elements to focus on during this process: communication and feedback.

• Communication: During the evaluation phase, your entire team must maintain clear, open communication with the consultant. 
• Feedback: You and your team members should take the business consultant’s advice as constructive criticism. The consultant’s feedback isn’t meant to be personal. While you and your employees are personally close to the business, this lack of wider perspective can hinder positive change and growth; the consultant brings objectivity and a fresh viewpoint. Of course, you should offer your own feedback and opinions to the business consultant, but keep your mind open to new ideas.

3. Implementation

Once your company and the consultant agree on a plan, the consultant should enter the third phase: the restructuring stage, or implementation of the plan. In this phase, the consultant builds on your assets and eliminates liabilities. They also monitor the plan’s progress and adjust it as needed.

Types of business consultants

There are various types of business consultants specializing in different business aspects.

Strategy and management consultants

Strategy and management business consultants can bring industry expertise to your business to help you scale, acquire new opportunities, and drive revenue. 

Consultants with a focus on strategy and management can help your business do the following:

• Expand into new markets or increase awareness in your current market.
• Reorganize your business model to create a cost-effective strategy.
• Increase your business’s capabilities.
• Acquire a new business venture.
• Merge with another business or change your business’s structure.
• Stand in as middle management during a transition period.

Operations consultants

Business consultants who specialize in operations can help you improve day-to-day processes. These business consultants take inventory of your current business model and figure out the best way to produce the same high-quality results at a fraction of the cost and time. These consultants also help through quality control and understanding how to tweak and optimize your production for better results.

Financial consultants 

A financial consultant can show you the broader scope of the your business’s financial health . They mainly assist in investment decisions and help you find the best way to handle your business’s assets and debts. Financial consultants may have even further specializations, including financial planning and advising your business on taxes, daily expenses, and the best retirement plans . 

Human resources consultants

The best HR outsourcing companies and independent HR contractors can assist you with your HR functions. These consultants can take over your day-to-day HR tasks, such as recruiting and retaining employees, processing payroll , performing administrative tasks, and managing employees’ performance. 

Marketing consultants

Marketing consultants help businesses identify their strengths as a brand and expand upon them to create brand awareness and exposure. Whether your business needs a new logo or a social media strategy , a marketing consultant can be an asset in expanding your business’s reach.

What about consultant firms?

While you can hire an independent professional, you can also engage the services of a specialized firm for your consulting needs. Big firms like McKinsey & Co. and BCG wouldn’t necessarily fit a small business’s needs and budget, but a local firm might work well.

To start, run a Google search on your pain point and location – such as “Seattle brand strategy firm” – and examine your results. The search will likely bring up firms you’ve never heard of before, but a closer look at their projects and client reviews can help determine if they’d be a good match. Additionally, hiring a local firm means you have a better chance of finding someone you know or previously crossed paths with on their client list. 

These are some pros of a consulting firm: 

• Extensive resources 
• Multiple professionals’ expertise
• An established brand with hundreds of references 

These are some pros of individual consultants: 

• Affordability
• Flexibility in scheduling and location
• Ability to dedicate their full attention to your case

Whether you should select a consulting firm or individual depends on your business needs and preferred work style. 

How to choose a business consultant

Choosing a business consultant who fits your business needs can be a daunting experience. Whether you’re looking for someone to help with your high-level strategy needs or a niche, solution-oriented specialist to improve your SEO or product-sourcing processes, it’s essential to know where to begin and take it one step at a time. 

1. Find the right business consultant.

Finding the right business consultant may be the most challenging part for the owner or management. The consultant should have a passion for their work, a drive for excellence, and an eye for organization and detail. It’s essential to find a consultant who has expertise in your industry or experience with the kinds of problems your business faces. 

• Leverage your existing network. Start your search for a business consultant by leveraging your existing network. A recommendation from a colleague, partner or other business owner who was in a similar position is often more reliable than generic reviews or accolades. Ask your contacts if they know of any experts in the field who can assist with your specific problem.  
• Explore dedicated marketplaces. Explore dedicated marketplaces that can help you find consultants by topic, budget and location. Popular sites include Catalant, Graphite and Business Talent Group. Don’t hesitate to utilize social platforms like LinkedIn as well. Numerous recommendations are usually a good indicator of a potential consultant’s expertise. Search for keywords relevant to your issue, and take a close look at the top results. [Learn more about using LinkedIn for your business .]
• Visit freelance sites. If you’re looking for a niche specialist, consider exploring popular freelance sites like Upwork, Dribble, Fiverr and Freelancer. Note potential consultants’ popularity, engagement levels and reviews from previous clients. 

2. Vet your potential business consultant.

• Ask questions. If you rely on a personal recommendation, ask detailed questions about your colleague’s experience, the consultant’s process and, most important, the results of their consulting work. Your colleagues can give you a unique insight into the long-term impact of following the consultant’s recommendations rather than just their short-term gains. 
• Learn about the consultant’s background and qualifications. Look at the consultant’s resume, educational background and certifications relevant to your industry. It’s a good sign if they seem willing to explore new learning opportunities and keep their skills updated. 
• Ask the consultant about their hands-on experience. Hands-on experience is significant in the business world. If someone came directly out of college labeling themselves as a consultant, do they know anything more than you? Consider looking for consultants who have successfully owned or run small businesses, enterprise organizations or specific departments.
• Ensure their experience applies to your business. A former bank CEO may seem impressive, but do they have the knowledge and experience to turn your cupcakery into a profitable small business? They might, but if you’re also considering a former restaurant owner who now makes a living successfully helping small eateries grow, this consultant may be a better match for your business. Look for consultants who have worked in your industry and with businesses that match yours in style, size, needs and goals.
• Check out their website. You should also vet the consultant through their website and materials. Look for professional images and well-documented information about their services, and thoroughly review contracts and consultancy fees.
• Examine their consulting track record. You don’t just want a consultant with the right experience; you want a consultant who has demonstrated success with companies like yours. Ask for a portfolio or list of brands the consultant has worked for, and request references. Look for a consultant who has helped businesses overcome the types of challenges you’re facing or who has grown businesses very similar to yours, and reach out to those companies to find out if they were satisfied with the services.

3. Decide if they’re the right consultant for the job. 

If your potential consultant’s references are excellent and they’ve proven to be reputable and effective, meet with them to ensure they’re the right person for the job. Clearly outline your pain points and expectations, and see if you’re comfortable with their style and personality. If the consultant checks all your boxes, it may be time to move forward.

Designing a business consultant agreement or contract

Once you’ve found an excellent consultant, done your due diligence and vetting, received satisfying and verifiable references, clearly outlined your pain points and expectations, and made sure you are comfortable with their style and personality, it’s time to confirm the arrangement.

Consultant agreements or contracts are typically drawn for three to six months with the option to renew. Agreements usually include details like the names of the responsible parties, consulting parameters, fee structures, payment schedules, outlined deliverables and established deadlines. 

A defined and confirmed deadline ensures that your consultant has sufficient time to deliver the promised results while prompting timely progress. 

How do you measure a business consultant’s success?

Unlike an employee performance review , there’s no widely accepted, objective methodology for measuring consulting performance, but it is reasonable to set goals and measure deliverables. This process is similar to Peter Drucker’s management by objectives and SMART principles for managing employees. 

• Set clear, measurable objectives. At the beginning of your work, ensure that you and your consultant establish clear objectives that are as specific, measurable, achievable, relevant and time-oriented (SMART) as possible.
• Establish the tangible results you want. Establish your desired financial and other measurable outcomes, such as increased revenue, annual savings, or reduced employee turnover .
• Determine the intangible results you want. Ensure your consultant knows the intangible results you want to see, including improved morale, strong implementation of business values and increased customer satisfaction.
• Measure progress at each phase. Measure your objectives’ progress at every phase of your collaboration.
• Evaluate KPIs. Evaluate the set key performance indicators (KPIs) at the end of your consultant’s work.
• Use a consultant questionnaire. A consultant can provide a comprehensive questionnaire that covers the entire business ecosystem and desired areas for improvement at the onset of the project, and then they can offer the same set of questions at the end. This way, you’ll be able to easily compare the results, especially when it comes to intangibles. 

To evaluate the consultant’s performance, it can be helpful to answer the following questions: 

• Were the KPIs met and delivered on time?
• Was the collaboration process smooth, and was the consultant responsive and helpful throughout?
• Did they provide you with the necessary skills and resources to improve your business?
• What are the short-term, midterm and long-term impacts of their work? 
• What was your ROI on the consulting services?

Business consultant FAQS

How much do business consultants charge.

According to the Bureau of Labor Statistics , the median annual pay for a management consultant was $87,660, or $42.14 per hour, in 2020. But consulting charges are typically higher to cover business expenses. 

Consultants don’t always charge by the hour. According to a consultant fee study by Consulting Success, these are some popular fee arrangements and the percentages of consultants who favor them:

• Per project – 31%
• Hourly – 24%
• Monthly retainer – 15%
• Daily rate – 13%
• Value- and ROI-based – 17%

According to the study, 40.5% of consultants earn up to $5,000 per project, though some make more than $100,000 per project. The project’s size, scope and length will determine the cost.

Business consultants are a considerable expense, but their feedback and planning can help you increase business and boost profits while eliminating problems and identifying opportunities to ensure future success.

How do you measure the ROI of a business consultant?

You measure ROI by examining specific key metrics to determine the consultant’s work. Most companies look at their net profits in the quarter before hiring the business consultant and then evaluate their net profits in the next quarter or two after implementing the consultant’s recommendations. You should deduct the cost of the consultancy before calculating the ROI.

Considering ROI is a crucial part of hiring a business consultant. If you’re paying a business consultant more than $5,000, you want to see an established ROI after the project. Established business consultants should be able to show their former ROI data to prospective clients. 

According to The Predictive Index, 27% of surveyed businesses chose not to hire a consultant because the consultant could not demonstrate ROI. This is the most frequent reason for companies not using consultancy services, and it falls on the consultant to use big data to demonstrate past ROI. [Learn more about big data solutions for small businesses .]

How do you determine a budget for a business consultant?

Hiring a consultant can be a significant expense. Considering that fees vary, it’s essential to establish a realistic and reasonable budget. Consider setting the consultant’s cost as a fixed percentage of your total sales. For example, if your monthly sales are $10,000, paying a monthly consultant fee of $5,000, which amounts to 50% of your earnings, might not be advisable. A 5% fee on $100,000 of revenue seems more reasonable. 

If you establish clear phases for your consulting project, you can reduce costs and risks by assessing the progress at each stage. For example, if you employ the consultant’s marketing expertise to bring a range of products to market, evaluate their efforts after the first launch and potentially apply the same strategy to the rest of your product line without needing continued services.

Many consultants will be able to assist you with determining your project’s scope and budget as part of a free consultation. This interaction can also help you test the waters and determine whether the consultant is a good match for your business needs. 

Should you employ a virtual consultant? 

When defining your consulting project needs and KPIs, determine whether the work must be done on-site or it can be carried out remotely. Opting for a virtual consultant can broaden the potential talent pool, as you wouldn’t be tied to your local market. Additionally, it can reduce the consultant’s cost and ensure flexibility. 

When it comes to niche specialists, especially in the digital space, remote arrangements, if clearly defined, can be mutually beneficial. At the same time, some consultancy work involves working hands-on with your team and is better suited for in-person collaboration.

What are the common mistakes to avoid when working with a business consultant?

Several common mistakes can prevent you from achieving success in your work with a business consultant.

• Automatically hiring the most established or accoladed consultant: While a proven track record, glowing reviews, and certifications are all essential when choosing a consultant, it’s even more crucial to ensure their experience is relevant to your industry and business case. Ensure your selected consultant is familiar with – or, better yet, ahead of – relevant trends, technology and methods.  
• Hiring a jack-of-all-trades: A consultant or consultant firm that claims to “know it all” may lack niche experience or skills that you require. Find a consultant with focused expertise who has vast experience and can assist you with your specific needs. 
• Treating a consultant as an employee: It’s essential to treat your consultants as equals, respecting their working style, existing workload and schedule. They might not be available on short notice or jump on a task outside the defined scope. They won’t know everything about your company’s operations, and they may not choose to put in overtime. They’re there to advise you and improve your business operations, not become another team member. In fact, their external perspective is what makes consultants so valuable.
• Ignoring the outlined action plan: It’s the consultant’s job to draft a map and set you up for success, but you and your team are responsible for creating change and implementing the recommendations. If you’re unwilling to “walk the walk” once the consulting project is over, you won’t see the value of engaging a business consultant.
• Treating the consultant’s suggestions as absolute truth: While you’re paying for and relying on your consultant’s expertise, it’s essential to reflect on your own experience, apply common sense and treat their recommendations as helpful directions rather than a hard set of rules. Don’t be afraid to question their suggestions. You know the ins and outs of your business best and will be the one dealing with the long-term implications of the consultant’s recommendations.   

How do you know when to hire a business consultant?

Hiring a business consultant isn’t a one-size-fits-all solution. You’ll need to evaluate your company in these key areas:

• Human resources
• Business strategy
• Compliance and regulations
• Financial planning

If your business is struggling in any of these areas, it’s a good idea to seek out a business consultant who’s a verified expert. If you note any declines in profits that you can’t explain, this could be another sign that it’s time to hire a business consultant who can pinpoint potential reasons for the decrease and suggest ways to remedy them.

Sean Peek contributed to the writing and research in this article.

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What is business consulting, and how does it accelerate business growth?

Most executives and business professionals have encountered business consultants at one time or another. But to many, consulting services and the value they provide can remain mysterious. CGI is among the firms that offer business consulting services that are an integral part of its portfolio of services. Understanding how consulting works across different disciplines and industries is vital for those seeking to effectively engage business consulting professionals who can drive their missions forward.

What is business consulting?

Business consulting is the practice of providing independent and expert advice and support to organizations and decision-makers to improve their performance and efficiency. Business consulting aims to develop, refine, and coordinate strategy, transformation, and tactics to support a client's business direction, positively affect business performance, and improve an operating result.

A business consultant – or team of consultants – engages organizations to identify areas where improvements can be made and to develop strategies for implementation. They work closely with company executives and decision-makers to analyze business processes, identify problems, and develop solutions.

Are there different types of business consulting?

Business consultants typically have expertise in one or more areas, such as strategy, operations, finance, Human Resources (HR), or Information Technology (IT). Each consulting category has its own approaches, processes, and goals.

4 types of business consulting

• Business strategy
• Organization and change management
• Information Technology (IT)  

Business strategy consulting

This type of business consulting focuses on helping organizations define a direction and delivering advice on aligning with a chosen strategy. The strategy may include developing a growth plan, restructuring, buying and/or selling of assets, or revitalizing leadership.

Business strategy consultants help organizations with the definition of their vision, mission, and strategy and support them with major corporate initiatives. They also help executives set goals and address the alignment of resources to achieve specific organizational results. Business strategy consulting includes:

• Corporate strategy
• Corporate finance
• Equity operations (investment, divestitures, mergers, and acquisitions)
• Business model transformation  

What is operations consulting?

Operations consulting focuses on helping organizations improve their operations and processes to increase efficiency, reduce costs, and improve customer satisfaction. Operations business consultants analyze an organization's current processes, identify areas for improvement, and develop strategies for implementing changes. This may involve redesigning workflows, implementing new technologies, improving supply chain management, or optimizing production processes.

The goal of operations consulting is to improve the efficiency of the value chain and processes. These services include activating growth strategies, developing and implementing target operating service delivery models, executing cost reduction programs, and optimizing business processes. Operations consultants help clients:

Understand market trends and customer behaviors, design a compelling product and services portfolio at the right price, enhance client engagement and loyalty, and ultimately deliver the business promise operationally. Optimize demand, supply chain, production planning, and execution, from purchasing intrants and services to delivering the final product and services, from managing key assets to maintaining production capacities. Improve and secure budgeting, accounting, costing, controlling, and optimizing financial transactions, investments, real estate, and treasury management. Assess risks (of any kind), design mitigation and recovery plans, and ensure compliance with regulations and corporate policies.

Organization and change management consulting

This type of business consulting focuses on translating business strategy into an optimal organization, consistently aligning corporate purpose, strategic goals, organizational structures, leadership and cultural behaviors, and workforce and talent management. Creating a high-performance organization requires optimizing an organization's structure and roles and changing its ways of working and its approach to building and aligning capabilities in leadership and culture. Organization and change management consultants help clients:

• Design optimal organization, governance, and operating models to support strategic objectives.
• Plan and facilitate all initiatives to ensure a smooth, effective, and sustained transformation of culture, behaviors, leadership, and processes.
• Define and implement an HR strategy to support strategic objectives, reinvent the managerial model, activate employee engagement, anticipate, recruit, compensate, align, and build competencies.  

What is the purpose of Information Technology (IT) business consulting?

This type is the practice of providing expert advice and guidance to organizations on optimizing their use of technology to create a competitive advantage and achieve their business goals. IT consultants work with organizations to assess their current IT systems and infrastructure, identify areas for improvement, and develop strategies for implementing new technologies and processes. This includes everything from selecting and implementing new software systems to improving network security and developing new IT strategies to support business growth.

IT business consulting aims to help organizations use technology to improve their efficiency, reduce costs, and achieve their strategic objectives. IT consultants help clients:

• Align their technology strategies with their business strategy.
• Leverage the potential of new technologies to create new products and services, and optimize their business processes and costs, by identifying relevant business use cases and defining implementation strategies.
• Design enterprise architecture and identify and introduce relevant technology innovations while planning and orchestrating IT modernization.
• Improve their CIO organization and IT supply chain and processes, optimize cost and operations, and manage innovation, key assets, talents, and third parties.
• Anticipate and assess IT and cyber risks, design mitigation and protection strategies, help comply with regulations, plan relevant crisis management processes, and conceive recovery plans.  

Are all business consulting services the same?

Individuals or firms can provide business consulting services, and they may specialize in any of these various areas. But regardless of their field of expertise, they should have some common qualities to be effective for the organizations that engage them. Any entity looking to hire a business consultant should look for specific attributes that align with your goals and objectives.

Benefits of hiring a business consulting service:

• Objectivity
• Flexibility  

Bring in the business experts

Business consultants should bring a wealth of knowledge and experience to the table. They have a deep understanding of business practices and trends and can provide valuable insights and advice based on their expertise.

Business consultants remain objective

Consultants should provide an objective perspective that can be difficult to achieve from within the organization. They can help identify problems and opportunities that may not be apparent to those immersed in the business's day-to-day operations.

Improve efficiency with business consultants

Business consultants should be able to help streamline processes and procedures, which can lead to greater efficiency and cost savings. They can also help businesses adopt new technologies and best practices to improve performance and productivity.

Business consultants are flexible to meet your company's needs

Business consulting services can be tailored to the specific needs and goals of the organization. Consultants should be able to work on a project-by-project basis or provide ongoing support and guidance as needed.

Will my industry benefit from business consulting?

Companies can free up internal resources by hiring a business consulting service to focus on their core competencies and strategic objectives. This can help the business achieve its goals more quickly and effectively. Overall, hiring a business consulting service can be a wise investment for companies looking to improve their performance, solve problems, and achieve their goals. Business consulting services can benefit a wide range of industries, including:

• Healthcare: Consulting services can help healthcare organizations improve their operations, manage costs, and comply with complex regulations.
• Financial Services: Consultants can provide financial analysis, risk management, and strategic planning to financial institutions such as banks, investment firms, and insurance companies.
• Manufacturing: Consultants can help manufacturers improve their processes, reduce costs, and increase productivity through lean manufacturing and other best practices.
• Retail: Retail businesses can benefit from business consulting services that help them improve customer experience, optimize supply chain management, and develop effective marketing strategies.
• Technology: Consultants can help technology companies develop and implement new products and services, manage their supply chains, and improve their operations.
• Energy: Consulting services can help energy companies navigate complex regulatory environments, manage risk, and identify new growth opportunities.
• Non-profit: Non-profit organizations can benefit from consulting services that help them develop fundraising strategies, manage their finances, and improve their operational efficiency.  

What types of services are provided by business consultants?

Business consultants provide a range of services that can help organizations achieve their strategic goals and improve their performance. They bring deep expertise in various areas, such as IT, operations, finance, and strategy, and can provide valuable insights and advice based on their experience working with a diverse range of clients.

CGI business consultants have experience working with clients in various industries, such as healthcare, financial services, manufacturing, and government. This industry-specific knowledge can help organizations navigate complex regulatory environments and develop tailored solutions to their unique challenges.

5 examples of CGI's business consulting services:

• Digital transformation
• IT modernization
• Change management
• Data management  

CGI can help you start your journey to digital transformation

CGI Digital Transformation services help organizations leverage technology to transform their business processes, improve efficiency, and deliver better customer experiences. These services include digital strategy development, technology consulting, and implementation of digital solutions.

CGI's Digital Transformation experts work closely with clients to understand their unique needs and goals and then develop and implement tailored solutions that drive business results. These business consultants can help organizations leverage emerging technologies such as cloud computing, artificial intelligence (AI), and the Internet of Things (IoT) to streamline operations, improve customer engagement, and create new revenue streams. Overall, CGI Digital Transformation services enable organizations to embrace digital technologies and innovate for the future, positioning them for long-term success in a rapidly evolving business landscape.

IT Modernization Consulting Services with CGI

CGI IT modernization services help organizations transform their IT systems to meet the demands of the digital age. These services include assessing the current state of IT systems, identifying areas for improvement, and developing a comprehensive strategy for modernizing IT infrastructure, applications, and processes. CGI IT modernization services can help organizations leverage emerging technologies such as cloud computing , big data analytics, artificial intelligence, and blockchain to improve efficiency, reduce costs, and deliver better customer experiences.

CGI consultants have deep expertise in various IT modernization areas, including legacy system modernization, application modernization, data center consolidation, cloud migration, and cybersecurity. With these services, CGI helps organizations drive innovation and stay ahead of the curve in an ever-changing digital landscape.

Tackling business strategy with CGI business consultants

CGI business strategy services are designed to help organizations develop and implement effective strategies that align with their overall goals and objectives. These services include strategic planning, market analysis, competitive intelligence, and business process improvement. CGI business consultants work with clients to understand their unique challenges and opportunities and then develop tailored strategies that address those needs. They provide expertise in areas such as market research, trend analysis, and risk assessment, as well as a deep understanding of industry-specific factors that can impact strategy.

CGI business strategy services can help organizations identify new growth opportunities, optimize operations, and position themselves for long-term success in a rapidly evolving business environment. The ultimate goal is to help clients achieve sustainable competitive advantage by developing and executing effective strategies that drive business results.

CGI's change management business consulting services

CGI Change Management services are designed to help organizations manage and navigate change effectively. These services include a range of strategies and tools to help organizations prepare for change, communicate change effectively, and manage resistance to change. CGI Change Management consultants work with organizations to develop customized change management plans tailored to their specific needs and goals.

Some critical components of CGI change management services may include stakeholder analysis, communication planning, training and development, change readiness assessments, and change impact assessments. The goal of CGI Change Management services is to help organizations successfully navigate change and achieve their desired outcomes while minimizing disruption and resistance.

Data management services with CGI

CGI's data management services are designed to help organizations manage and leverage their data effectively to drive business value. CGI provides a range of data management services, including data governance, data quality, data integration, data warehousing, and master data management. These services are designed to help organizations improve the accuracy, completeness, and consistency of their data and enable them to integrate data from multiple sources and store it in a centralized data warehouse.

CGI's data management services can also help organizations create a single view of their master data, such as customer or product data, and use it to make informed business decisions. Overall, CGI's data management services can help organizations unlock the full potential of their data to improve decision-making, drive innovation, and gain a competitive edge.

The value CGI business consultants provide

Over more than four decades, CGI has grown into one of the world's largest providers of high-end IT and business consulting services. In rapidly changing times, we help our clients boldly set their ambitions and clearly drive their course to the future with confidence. We bring insights you can act on based on facts, creating a path for future growth and sustainable value.

For both IT and non-IT challenges, we help organizations choose the best path for transformation and work collaboratively every step of the way. The digital expectations of customers and citizens are profoundly transforming how business is done. That's why CGI supports clients in developing digital strategies by applying a unifying framework and industry-tailored approach that recognizes transformation is about people, not technology.

Ultimately, this means focusing not just on technology but also on modernizing delivery, change, culture, and development of a sustainable culture that embraces innovation. This is where a holistic business consulting team can create real value.

Partner with CGI for your business consulting needs and watch as we quickly help you straighten out the kinks in your operations and pave a path towards success. From digital transformations to change management services and more, we'll make your next transition as smooth as possible, so all you have to worry about is watching your business grow.

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By Vanessa Leikvoll Leaders Staff

Vanessa Leikvoll

Culture and Personal Success Writer

Vanessa Leikvoll is a culture and personal success writer for Leaders Media. Vanessa is a certified Workplace Wellness Specialist and...

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Jul 12, 2023

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Hannah L. Miller

Senior Editor

Hannah L. Miller, MA, is the senior editor for Leaders Media. Since graduating with her Master of Arts in 2015,...

What Is Consulting? Facts and Misconceptions About the Industry That’s Grown by 8%

What is consulting, the different types of consulting, what do consultants do, common misconceptions of consulting, top consulting firms, how do individual consultants make money, how to hire the right consultant or consulting firm, how to become a consultant, there are no cookie-cutter approaches in consulting.

When we hear the term “consultant,” we may think of George Clooney’s character in Up in the Air —a man who travels 322 days a year to companies in different cities as a business consultant. During his travels, he racks up air miles, stays in luxurious hotels, and wears a nice suit. His role also possesses an air of sophistication that would make consulting an attractive path to nearly any career-seeker. 

In general, consultants are usually known for rescuing struggling clients from financial ruin or for helping a company optimize its processes. For example, a technology startup trying to create new revenue streams may hire a marketing consultant to help them engage new customers. Or, a small business owner in retail might hire a consultant to help ensure that their inventory appeals to their target consumer. 

However, consulting isn’t always like how it’s depicted in the movies, and not all business consultants or firms are created equally. There are many different types of consultants, and depending on the kind you work with (or become), the career could look very different. 

Therefore, whether you’re considering hiring a consultant from one of the 901,751 U.S. consulting firms or becoming a consultant yourself, it’s important to first understand what consulting is (and what it isn’t). 

Strengthen your knowledge of consulting by learning what consultants do, the different types of consultants, and how to hire or become one.  

Key Takeaways

• Management consulting, specifically, has grown by 2%.
• The U.S. consulting industry is up 7.7% and is now worth $55 billion. 
• Consultants may either work on their own or as part of a larger consulting firm.
• Companies should be sure to watch out for certain “damaging behaviors.”
• Specialized consultants have greater success and impact than general consultants.

Consulting is the practice of providing expert advice and solutions to organizations or individuals facing specific challenges. Consulting entails specialized knowledge, skills, and experience in specific industries or domains that serve to help businesses solve specific problems.

The purpose of consulting is to offer objective insights, strategic recommendations, and practical assistance to help clients overcome obstacles, capitalize on opportunities, and enhance their overall performance. Consultants bring a fresh perspective and often employ a systematic and analytical approach to assess the client’s situation, identify areas for improvement, and develop tailored strategies and action plans.

Consulting services generally include:

• Marketing and sales
• Financial advisory services
• IT and technology consulting
• Business strategy and management
• Operations and supply chain management

Management consulting specifically has increased by 2%, with the greatest number of consultants in California, Florida, and Texas, according to Ibis World .

The term “consultant” can sound wide-reaching, but the services provided by a consultant are generally specific to their area of expertise. If you’re a company looking to grow revenue, for example, you would want to work with a financial consultant . If you were an entrepreneur looking to drive more social media presence, you would seek a social media consultant.

Here are the most common types of consulting:

• Marketing consulting: This form of consulting provides expertise to businesses in developing and implementing effective marketing strategies. This may include market research, brand development, advertising campaigns, digital marketing, social media strategies, content creation, and customer engagement. 
• Operations consulting: An operations consultant specializes in improving the efficiency, productivity, and effectiveness of an organization’s operational processes. They work with businesses to assess their operations, identify areas for improvement, and develop strategies to optimize performance. 
• Financial consulting: A financial consultant, also known as a financial advisor or financial planner, is a professional who offers expert guidance and advice on various financial matters. They help clients make informed decisions regarding their financial goals, investments, budgeting, and overall financial well-being. 
• Strategy consulting: A strategy consultant specializes in providing guidance and expertise to businesses in developing and implementing effective strategies to achieve their goals and maintain a competitive advantage. They work closely with clients to understand their industry, market dynamics, and business objectives. They conduct in-depth analysis, research, and market assessments to identify opportunities, challenges, and potential areas for growth. 
• IT and technology consulting: IT consultants possess a deep understanding of various technology domains and stay updated on emerging trends and advancements. They use their expertise to provide advice to businesses in leveraging technology to achieve their objectives and optimize their IT infrastructure.
• Compliance consulting: A compliance consultant specializes in ensuring adherence to applicable laws, regulations, and industry standards. They provide expert guidance and support to help organizations establish and maintain effective compliance programs.
• Social media consulting: This type of consulting specializes in providing guidance and expertise in leveraging social media platforms to help businesses achieve social media marketing goals. Social media consultants stay updated on the latest trends, best practices, and algorithms of various social media platforms. 
• Legal consulting: A legal consultant is a professional who provides expert advice and guidance on legal matters. Legal consultants have in-depth knowledge of laws, regulations, and legal procedures in specific jurisdictions or practice areas. 
• Growth consulting: Growth consultants work closely with clients to identify growth opportunities, develop strategies, and implement initiatives that drive business expansion. They analyze market trends, customer behavior, and competitive landscapes to identify areas for growth and develop tailored strategies.
• Career consulting: Career consultants specialize in providing guidance, support, and advice to individuals seeking career guidance. Career consultants help individuals assess their skills, interests, values, and goals to identify suitable career paths . 
• PR consulting: Public relations (PR) consultants help businesses manage and enhance their public image and reputation. They do this by developing strategic communication plans to promote positive relationships between their clients and the public, media outlets, stakeholders, and other relevant parties. 
• Fitness and wellness consulting: This consultant specializes in the areas of fitness, nutrition, and overall well-being. They work closely with clients to assess their current fitness levels and develop customized plans to meet specific health goals.

“Only three things happen naturally in organizations: friction, confusion, and underperformance. Everything else requires leadership.” Peter Drucker

The role of a consultant can be complex and varied depending on their area of expertise. However, in general, they work closely with company stakeholders, conduct research and analysis, provide recommendations, and assist with the implementation of solutions. They do this by bringing an external perspective, industry knowledge, and best practices to help organizations achieve their goals and improve overall performance.

The key responsibilities of a consultant typically include:

• Analysis and assessment: Consultants thoroughly analyze the client’s business operations, processes, strategies, and challenges. They gather data, conduct research, and perform diagnostic assessments to gain a deep understanding of the client’s current situation.
• Problem-solving and strategy development: Based on their analysis, consultants identify problems, bottlenecks, and areas for improvement within the client’s organization.
• Process improvement and optimization: Consultants work with the client’s team to optimize business processes, streamline operations, and enhance efficiency. 
• Change management: Consultants help clients navigate transitions, restructures, mergers, or acquisitions. They do this by providing guidance on communication, stakeholder engagement, and managing resistance to change.
• Organizational design and restructuring: Consultants assist in designing or restructuring organizational structures, roles, and responsibilities. They evaluate the client’s current organizational design, propose changes, and provide guidance on implementing new structures.
• Strategic planning and execution: Consultants help define strategic priorities, identify growth opportunities, and conduct market analysis. They also create implementation roadmaps to ensure successful execution.
• Financial analysis and planning: Consultants assess the client’s financial health and identify areas of improvement. Then, they provide recommendations for maximizing profitability and managing financial risks.
• Training and skill development: Consultants may deliver training programs in areas such as leadership development, project management, sales, or process improvement.
• Performance measurement and evaluation: Consultants establish performance metrics and evaluate outcomes and identify any gaps. They also provide feedback to help the client continuously improve and achieve sustainable results.
• Knowledge transfer and client empowerment: A fundamental responsibility of consultants is to share expertise, best practices, and insights gained. This is so the client can sustain improvements independently and build internal capabilities.

“Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall.” Stephen Covey

Consulting covers a wide array of actual and potential services that can help an individual or company thrive. However, misconceptions about what consultants can and can’t do often deter clients from seeking them out. 

When hiring or becoming a business consultant, it’s important to be aware of certain misconceptions that can influence expectations. 

Common misconceptions to keep in mind:

• Consultants have all the answers: Contrary to popular belief, consultants are not expected to have all the answers to a client’s problems. Their role is to provide expertise, insights, and recommendations based on their knowledge and experience. 
• Consultants are only needed for big companies: While large corporations may frequently engage consultants, small and medium-sized businesses can also benefit from consulting services. Consultants can assist with strategic planning, process improvements, marketing strategies, organizational development, and other areas that impact performance, regardless of the company’s size.
• Consultants are expensive and only for high-budget projects: While some consulting services can be costly, it’s not always the case. The cost of consulting services varies depending on the scope, duration, and expertise required. Many consultants offer flexible options tailored to different budgets, including short-term engagements or specific project-based assistance.
• Consultants provide a one-size-fits-all solution: Effective consultants understand that each client is unique and requires tailored solutions. They work closely with clients to understand their specific challenges, goals, and organizational culture. Consultants then develop customized approaches that address the client’s specific needs rather than applying a generic solution.
• Becoming a consultant guarantees success and high income: Transitioning into a consulting career does not guarantee instant success or a high income. Building a consulting practice takes time, effort, and a solid reputation. Success often depends on expertise, business development skills, networking, marketing, and providing valuable services that meet client needs.
• Consultants primarily focus on giving advice: While advice and recommendations are part of a consultant’s role, they also engage in various other activities. These can include data analysis, conducting research, facilitating workshops, implementing strategies, training staff, and providing ongoing support to ensure successful outcomes.
• Consultants are detached from the organization: Effective consultants work closely with their clients as partners rather than remaining detached observers. They aim to understand the client’s internal dynamics, collaborate with stakeholders, and build relationships with key individuals.
• Consultants create problems to prolong engagements: This myth suggests that consultants intentionally create or prolong problems to extend their contracts. In reality, reputable consultants prioritize their client’s best interests. They aim to solve problems efficiently and effectively, building trust and long-term relationships based on successful outcomes.

For companies looking to hire a consulting firm with global impact, prestige, and undeniable track records for success, there are a few companies leading the charge. The top consulting firms generate billions in yearly revenue, employ thousands of people worldwide, and offer unrivaled expertise in various areas of business.

The top consulting firms, according to Management Consulted :

• Boston Consulting Group (BCG)
• Bain & Co.
• McKinsey & Company
• EY-Parthenon

“The undisputed tier one is called MBB, which stands for McKinsey, Boston Consulting Group, and Bain, and these companies are the holy grail in consulting,” shares Ben Chon of rareliquidcareers , a former Deloitte consultant. 

According to NMS Consulting , global management consulting is currently estimated to be worth about $330 billion. By 2025, this figure is expected to reach $343.5 billion. In the U.S., this industry has grown 7.7%, reaching $55 billion.  

Consultants that work on their own make money by charging a set rate for their services. Mario Peshev, a global business advisor, reports that 31.37% of consultants charge on a per-project basis, 23.38% charge hourly, and 15.4% institute a monthly retainer fee (a set fee paid upfront to “reserve” a consultant’s services). Consulting Success developed a Consulting Fees Calculator to help consultants determine the fees for their services. 

According to Glassdoor , the total pay for a business consultant employed with a firm in 2023 was $107,870, and the average salary was around $77,327, with about $30,555 in additional pay.

Choosing the wrong consultant or making a decision too quickly can invite undesirable outcomes and even a net loss. For this reason, it’s important to consider a consultant carefully, know what to watch out for, and take ample time to ensure that a consultant fits your company’s specific needs.

Here are some steps to help you in the selection process:

• Define your company’s needs and objectives.
• Conduct thorough research on the industry.
• Assess consultant expertise and experience.
• Evaluate their reputation and credibility.
• Assess their fit and cultural alignment.
• Request proposals or pitches.
• Conduct interviews.
• Consider consultant fees and value.
• Finalize the selection.

As Michael Schein of Inc.com explains , there are also five common damaging behaviors a company should be sure to watch for if you’re working with a consultant or thinking of hiring one.

A company should run far away from consultants who:

• Package their solutions in overly complicated ways.
• Provide impressive-sounding solutions that lack actionable steps to implement.
• Push solutions that promote their own brand or product to impress investors.
• Present old, recycled solutions as fresh, innovative ideas.
• Claim wide expertise but don’t have experience with your specific pain points.

“As consultants, we need to be ruthless in discerning what is important and what is just noise.” Luk Smeyers

Becoming a consultant involves a combination of education, professional experience, and developing specific skills. The most successful consultants also specialize in a specific area of business or have a unique strength that helps distinguish their services from others. 

Steps to consider for becoming a consultant:

• Gain relevant education and knowledge: Obtain a bachelor’s degree in a relevant field such as business, management, finance, or a specialized area related to the industry you wish to consult in. 
• Build industry expertise: Develop expertise in a specific industry or functional area to become a subject matter expert. This can be achieved through additional education, certifications, or working in roles that provide deep industry knowledge.
• Gain professional experience: Obtain practical experience in the business world to develop a solid foundation of skills and knowledge. Work in different roles or organizations that expose you to various aspects of business operations, such as marketing, finance, operations, or human resources. 
• Develop consulting skills: Cultivate skills that are essential for a consultant, such as critical thinking, problem-solving, communication, project management, and client relationship management. 
• Network and build relationships: Engage in professional networking to expand your connections within the business community. Attend industry conferences, seminars, and events to meet professionals and potential clients. 
• Consider advanced education or certifications: Consider pursuing advanced degrees, such as a Master’s in Business Administration (MBA) or certifications specific to consulting, such as Certified Management Consultant (CMC). 
• Start with small consulting projects: Gain practical consulting experience by offering your services to small businesses or startups. This allows you to apply your knowledge, test your consulting skills, and build a portfolio of successful projects. 
• Market yourself and establish a professional brand: Develop a strong online presence through a professional website, blog, or social media platform to showcase your expertise and thought leadership. 
• Establish your consulting business or join a consulting firm: Decide whether you want to start your own consulting business or join an established consulting firm. Starting your own business gives you independence and control over your work. However, joining a firm provides an existing client base and resources.
• Continuous learning and professional development: Stay updated on industry trends, emerging technologies, and best practices through ongoing learning and professional development.

“In order to be irreplaceable, one must always be different.” Coco Chanel

Regardless of the type of consultant a person hires or becomes, one thing remains true: successful consulting is all about customizing. Consulting encompasses good customer service and a superior ability to tailor one’s approach and solutions to meet clients’ specific needs and challenges. Consultants who use cookie-cutter approaches to deliver stale ideas will quickly fail.

Resources for additional learning and next steps:  

• Read The Consulting Bible by Alan Weiss.
• Read Consulting Success: The Proven Guide to Start, Run, and Grow a Successful Consulting Business by Michael Zipursky.
• Visit websites like UpWork to search for freelance business consultants.
• Visit Bark.com to find a business consultant in your area.

Learn how to optimize your business further by reading Make Better Business Decisions: Understanding Elastic Demand Maximized Profit Margins next.

Leaders Media has established sourcing guidelines and relies on relevant, and credible sources for the data, facts, and expert insights and analysis we reference. You can learn more about our mission, ethics, and how we cite sources in our editorial policy .

• “IBISWorld – Industry Market Research, Reports, and Statistics.” Show_chart – Number of Businesses , https://www.ibisworld.com/default.aspx.
• Joshuacogar1. “Top Consulting Firms of 2023.” Management Consulted , 3 June 2019, https://managementconsulted.com/top-consulting-firms/ .
• “The Ultimate Beginner’s Guide to Consulting! (Hours, Lifestyle, Compensation, Pros & Cons).” YouTube , 26 Feb. 2022, https://www.youtube.com/watch?v=uhR9Lq3fWM8 .
• Mansourian, Arthur. “Management Consulting Industry Trends in 2023 | NMS.” NMS Consulting , 13 Feb. 2023, https://nmsconsulting.com/4281/the-biggest-management-consulting-trends-in-2023/ .
• Peshev, Mario. How Much Does a Business Consultant Cost: Consulting Fees and Pricing Structure . 16 May 2023, https://mariopeshev.com/business-consultant-fees-pricing/#:~:text=Across%20my%20network%2C%20the%20average,or%20a%20monthly%20consulting%20retainer .
• “Consulting Fees Calculator.” Consulting Success , 23 June 2023, https://www.consultingsuccess.com/consulting-fees-calculator .
• How Much Does a Business Consultant Make? Glassdoor, 15 Sept. 2022, https://www.glassdoor.com/Salaries/business-consultant-salary-SRCH_KO0,19.htm .
• Schein, Michael. 5 Ways Consultants Can Kill Your Business . 16 Jan. 2014, https://www.inc.com/michael-schein/how-consultants-kill-business.html.

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What is a Business Consultant?

Understanding the Numbers When reviewing job growth and salary information, it’s important to remember that actual numbers can vary due to many different factors — like years of experience in the role, industry of employment, geographic location, worker skill and economic conditions. Cited projections do not guarantee actual salary or job growth.

In today’s globally interconnected economy, organizations across the spectrum of business and industry are constantly looking for ways to become more efficient and more profitable.

One common practice toward achieving this goal is the utilization of business consultants. Consultants are experienced business professionals with the knowledge and expertise necessary to create strategies designed to help organizations succeed.

Business consultants are relied upon by companies and corporations of all shapes and sizes, from organizations that have been around for decades to startups just getting ready to launch .

Nair, who has 25 years of corporate experience in management, leadership and business strategy, said it’s common for consultants to specialize in specific areas of business and apply that depth of expertise to company-specific challenges.

“(These include) areas such as finance, marketing, human resources, operations, information technology, customer-engagement, sales and distribution,” he said. “And since they know that all businesses are unique and different, they deploy a customized or personalized approach to engaging their clients.”

What Does a Business Consultant Do Day-to-Day?

The work of business consultants can be broad in nature, like finding ways to improve a company’s cash flow, or more focused, such as finding solutions for an organization-specific challenge with onboarding new employees.

As such, the day-to-day work of business consultants can vary greatly. Some of these tasks typically include:

• Conducting research, analyzing data  and preparing forecasts
• Designing new products or services and creating budgets
• Developing strategies and recommendations for improvement
• Facilitating meetings and workshops
• Managing projects, rolling out change initiatives and monitoring implementation

It’s important for consultants to take the time to fully understand each of their business client’s specific challenges while keeping abreast of broader industry trends and conditions, as a way to empower them with strategic solutions over short-, medium- and long-term horizons.

“If their client is experiencing major pivot strategy such as entering new markets or changing to meet customer requirements, business consultants offer invaluable and impartial source of advice and counsel to take that client’s business dealings to higher levels of performance,” Nair said.

“At the beginning of the project, many days will be spent with meetings where you are establishing goals and outcomes to determine the organization’s needs,” Egrie said. “If the firm already knows what they need and you have a clear scope of the project, you’ll spend time researching and creating potential solutions.”

Egrie, who has extensive experience consulting businesses in fields ranging from health care, insurance and banking to marketing, hospitality, transportation and human resources, said it’s important to understand that every client, project and goal is unique.

Some of her day-to-day tasks typically include:

• Creating restructuring plans, identifying areas for cost reduction and process improvement
• Helping clients better understand their competitive landscape, target audience and market trends
• Developing feasibility studies and market entry strategies for smaller businesses and startups

What are the Most In-Demand Skills for Successful Business Consultants?

Succeeding as a business consultant takes a diverse set of skills, both in business-specific disciplines and areas not limited to business, but just as essential.

According to Egrie and Nair, successful business consultants bring a wide array of skills and leadership competencies  and provide strategic advice and guidance on things like:

• Enhancing internal efficiencies
• Implementing organizational change
• Improving employee performance
• Increasing revenue
• Solving company-specific problems

Clearly, Nair said, a strong understanding of business principles and industry knowledge is required since consultants serve as trusted business advisors to their clients. Additionally, he said having proven abilities in the following areas is also important:

• Adaptability and creative thinking
• Analytics, critical thinking and problem-solving
• Presenting and public speaking
• Research, organization and time management
• Writing and interpersonal communication

For anyone considering a career as a business consultant, Nair said, it’s also critical to bring a high level of confidence and self-awareness, as consultants are looked upon by their clients as key subject matter experts worthy of their organization’s investment.

“Finally, an important competency that all good consultants have is the ability to be active listeners,” Nair said. “Listening to what the client is stating (regarding) their needs and problems, pinpointing their pain points and being fully present to know the client well are key characteristics.”

What Qualifications Do I Need to Be a Business Consultant?

Since business consultants can be brought in to advise and guide business owners in such a broad range of areas related to their overall operation, there’s not a single degree program specifically designed for consulting.

A good first step, Nair said, is a bachelor’s degree in business, business administration or management as a way to develop the necessary foundation in business principles and concepts. From there, a graduate degree can help expand professional opportunities in consulting.

“A master’s degree in business administration  (MBA), management, finance or a related field can be beneficial,” Nair said. “These programs provide a solid foundation in business principles and concepts that can be applied in consulting roles.”

In addition to a bachelor’s degree in business and even an MBA, Egrie said there are a variety of other educational paths that business professionals can take to specialize their areas of knowledge and expand professional opportunities in consulting. These include:

• Master's in accounting and finance
• Master's in cybersecurity
• Master's in data analytics
• Master's in economics
• Master's in industrial-organizational psychology

Degrees alone, however, are typically only part of the equation when it comes to preparing for a career as a business consultant.

“Expertise and experience in an industry or field is needed,” Egrie said. “Possessing expertise in a particular field enables the consultant to grasp industry standards, regulations and the common vernacular.”

Relevant work experience, industry certifications and accreditations and staying current with industry best practices are also important qualifications for succeeding in the field.

Find Your Program

Where do business consultants work.

The field of business consulting offers a lot of flexibility to those who are considering entering the field. You can work on a full-time basis independently, or as an employee at a business consulting firm.

Another option is working as a freelance business consultant on more of a part-time basis, coupling that work with other professional roles, such as college-level teaching. For example, in addition to her role as team lead and SNHU adjunct instructor, Egrie is currently working with two clients as a business consultant — one on a business expansion plan and the other on a startup.

Regardless of which type of setting works best for you, there’s no shortage of demand for consultants. Egrie said virtually every industry relies on business consultants, including:

• Education and health care
• Supply chain and logistics
• Manufacturing and transportation
• Government and nonprofit agencies
• Hospitality and startups

According to the U.S. Bureau of Labor Statistics (BLS), the need for management consultants, sometimes called management analysts, is expected to grow by 10% between 2022 and 2032, a rate much faster than the average for all other occupations.* And the 2022 median pay for management analysts was $95,290 per year, BLS reported.*

To make the most of what the field has to offer and expand your professional opportunities, you should start early when it comes to networking and building industry connections , Nair said. And gaining the Project Management Professional (PMP) certification, offered by the Project Management Institute, can also demonstrate an elevated level of understanding and experience.

“The designation validates one’s understanding of the technical aspects of managing a project, the soft skills  required to influence a project team and the relationship between organizational strategy and a project,” Nair said.

Discover more about SNHU’s online bachelor’s in business administration : Find out what courses you'll take, skills you'll learn and how to request information about the program.

*Cited job growth projections may not reflect local and/or short-term economic or job conditions and do not guarantee actual job growth. Actual salaries and/or earning potential may be the result of a combination of factors including, but not limited to: years of experience, industry of employment, geographic location, and worker skill.

Cary Jordan is an Iowa-based writer with more than 20 years of writing and editing experience on a wide range of issues related to higher education. Jordan has held administrative and cabinet-level positions at multiple colleges and universities, and his writing has spanned topics related to undergraduate education as well as graduate education in the areas of business, law, medicine and engineering, among others.

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Understanding the Role and Value of Consultants in Business

Have you been thinking about hiring a business consultant ? There are seemingly a lot of nuances in seeking a consultant — will they give good advice? How do you know they will steer you in the right direction? Can they really help you reach your career goals? The good news is that finding a business consultant is not as overwhelming as it may seem.

Businesses hire consultants who can provide expert advice and insight in areas such as management consulting, finance, marketing, or information technology. Hiring a consultant gives your business access to specialized knowledge and experience as well as the ability to improve business performance and reach goals and benchmarks. 

Consultants also have a key advantage that you don’t — objectivity. Since they are not in the middle of the everyday operations of your business, they have the ability to come in with a bird’s-eye view and pinpoint where your business needs guidance. They have external knowledge and experience that helps them ask the right questions and create tailored solutions to help you save time and money while also increasing efficiency and performance. Consultants show up with the skills and tools needed to overcome challenges and increase both the visibility and revenue in your business. 

Consultants can play an essential role in the growth and success of a business. Read on to decide if a business consultant is what you need to reach the next level of success. 

Different Types of Consulting Services

Businesses can get a wide variety of types of consulting services, each with its own focus and area of expertise. This means that you can find consultants who will narrow down on a specific area you need guidance in or a consulting firm that offers professional services in more than one area.

So, what exactly does a business consultant do? That mostly depends on which area of expertise you are hiring them for. Their expertise falls within either project-specific activities or internal operations, which can easily be handled by internal consultants.. 

Management Consulting – Management consulting firms help businesses develop and implement operational and management methods. The overall goal of management consultants is to help businesses by maximizing business performance and making all operations more efficient. Management consultants utilize research and data to implement operational best practices and analyze what is currently in place. They may help with tasks such as project management, analyzing the business model, management methods, and progress monitoring.

Strategy Consulting – Strategy consultants generally consult with the heads of companies or organizations to coordinate specific strategic business strategies and repair existing ones. Strategy consultants provide advisory services by helping with budgets, progress monitoring, improving operations, analyzing business performance, generating solutions for existing strategies or challenges, or pinpointing areas of strategic improvement.

Financial Consulting – Financial consultants advise businesses on how to best use their financial resources. They provide insight into setting financial goals and assess company budgets in order to help grow revenue. Financial consultants may provide risk management services, development for savings plans and financial goals, or organize finances.  

Information Technology Consulting – IT consulting firms will help you identify which systems and technologies are in need of upgrades or switches. They are able to target and implement systems that will help your business operate more efficiently, attract leads, and grow your revenue. IT consultants will typically consider your budget when implementing new systems or overhauling existing ones. They provide services such as data analytics, systems testing, and installing software. 

Human Resources Consulting – Human resources consulting firms step in when a company is too small to have an internal human resources department. In this case, human resources consulting services are usually contracted services. They may facilitate job interviews, develop human resources policies, or advise on employee relationships and conflicts.

The Role of Consultants in Business Strategy and Planning

Consultants can help you with business strategy and business planning. They use experience throughout their consulting career, industry research and data, and their objectivity on your business to provide the best possible solutions to your business problems. They are objective in problem-solving strategies and can help you set goals to achieve the next benchmark in growth and outline long-term success. Consultants may also advise you on mergers, define what is profitable within your business, or help attract new customers.

So, what is consulting in this case, and what can consultants do to help you strategize and plan within your business? Consultants in business strategy and planning provide expertise, objective analysis, and fresh perspectives. They start by analyzing existing plans and strategies, targeting what needs improvement, and creating a plan to set those improvements in motion. They use their fresh perspective to create an actionable plan that will help your business increase in revenue, attract new leads, analyze and implement business plans, provide long-term project management and analysis, and elevate overall efficiency. 

Hiring a consultant for business strategy and planning can help improve performance, increase competitiveness, and reach business goals. They have a knack for understanding exactly what your customer base needs and what problems the market wants to be solved. Their expert understanding of the market is essential to increasing customers and revenue in a way that sets you apart from the competition. Consultants in business strategy and planning provide you with a well-rounded view of your entire business and all its moving parts. They will target opportunities for growth and develop a strategic, streamlined plan that will sustainably move the business forward.

The Importance of Communication in Consulting Engagements

Effective communication is of utmost importance in the consulting industry. Business owners hire management consulting firms because they do not have the same area of expertise as those in consulting roles. Therefore, they look to the consultant to provide answers, solutions, and advice. 

Positive communication in consulting engagements is crucial in establishing trust, setting clear expectations, and achieving mutual understanding. Communication is the foundation for a positive experience with consultants. Since consultants are experts in a specific area, they need to be able to break down terms and explanations in a way business owners can understand. Clear and open communication establishes trust between the business and consulting firm, and it also helps prevent confusion surrounding business goals and decisions. This allows all parties to establish a mutual understanding of the best plan of action.

Effective communication in consulting engagements increases efficiency. Anyone with a consulting job must have high-quality written and oral communication skills because that is what business owners expect of them. When consultants communicate in a way that keeps the leadership team on the same page, the leadership team is able to keep everyone else within their role for moving the company toward its next objective. Clear communication and expectations can also improve team and employee performance, leading to better outcomes and progress.

Effective communication may sometimes be out of the control of either the consultant or the business. Common communication challenges may include language barriers, cultural differences, and conflicting expectations. If there is a language barrier, consider hiring a translator for in-person communication and translating all printed or downloadable documents. If you know you will be working in another country or with multiple people who speak that language, language education courses are a viable way to improve communication. Be open to discussing cultural differences. Some situations or communications may not come off as intended, so it is always best to address them and keep communication avenues open to maintain a quality working relationship.

If conflicting expectations arise, it is best to address them early on. Addressing conflicts as soon as possible will ensure that the team creates and implements a plan or strategy that has the best interest of the business in mind. This opens avenues of communication for each member to share their perspective and collaborate on creating a compromise or generating a new solution. This could also be an opportunity to identify missing links and rework the plan as necessary. If it seems that conflicting expectations cannot be resolved, higher management, if applicable, may need to mediate.

How to Choose the Right Consulting Firm

Whether you are searching for a full-time consulting firm or just someone who manages certain aspects of the day-to-day, it is important that you find the right fit for what your business needs. You will need a consultant who understands business, has relevant expertise, and is a cultural fit. It is crucial to your business’s success to research different firms and consider expertise and experience.

Choosing the best-fit consulting firm can help your business improve performance, increase efficiency, and better your outcomes. Whether it is information technology consulting, management, human resources, or another type of consulting, knowing that you selected an expert who synergizes with you and openly communicates what is best for your business is invaluable.

Focusing solely on the cost of the consulting firm and basing your decision on that does not mean that you selected the right choice for your business. Hiring a consultant is one of the most important investments you can make, so this is not the time to be frugal. Not doing enough research on who to hire can also be detrimental to your business. Before making this big of an investment, you want to choose a consulting firm that you know will provide your business with top-notch advisory services. It is your responsibility to do the necessary research and due diligence in order to make an informed decision — the future of your business depends on it.

To ensure that you are choosing the best consulting firm for you, start by identifying your business needs and researching consulting firms within that expertise. Consider the cost and the way they operate to see if they would be a good fit for you. Pay close attention to how they communicate — are they taking time to listen to your values, mission, and goals? Then, evaluate their credentials and experience. It is acceptable to ask for references, case studies, and perhaps a client success story or two from firms you are considering. After careful research and consideration, choose your consulting firm!

The Benefits of Using a Business Consultant

Hiring a business consultant gives you access to specialized knowledge and experience, objective analysis, and fresh perspectives. You cannot be the expert in every aspect of business, and outsourcing those areas to an expert can accelerate your business performance — saving you long hours and headaches. Business consultants are able to objectively see opportunities that will increase efficiency in your business as a whole. They make data-based decisions from market research to increase your competitiveness, and they execute plans and implement strategies to help reach business goals within a desired time frame.

Again, the type of consulting firm you decide to hire is dependent on what kind of guidance you need from them. Whether you need assistance with corporate strategy or management, knowing your specific needs will help you find exactly what you’re looking for. When you hire them for specific purposes, they can tailor their services accordingly. Evaluate different types of consultants and find the best fit for your business needs.

Final Thoughts

You have gone through all the work and overcome numerous obstacles to get your business off the ground. However, you cannot do all of it alone. To take your business to the next level, you will need an expert to guide you there. You need someone who can get a bird’s-eye view of your business, identify opportunities for improvement, and craft an actionable plan and strategies that will help you accomplish your business goals. Hiring a business consultant provides access to specialized knowledge and experience, and you’ll have the ability to improve business performance.

You can take the risk out of achieving your business goals by handing them to someone you can trust to take you to the next level of success. Find which consulting firm is right for you, and get ready to level up! If all this consultant talk has you thinking you want to do it yourself, becoming a business consultant may be a valuable business addition as well. Discover if learning how to become a business consultant and embarking down this rewarding career path is right for you!

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Strategic Planning

The best strategic planning processes focus on insight, preparedness, and agility—not bureaucracy. BCG helps companies adopt this approach to create lasting value across the entire organization.

Most organizations see their strategic planning approaches as too rigid and reactive; many believe in the common misconception that the purpose of strategic planning is creating annual budgets and five-year plans. Such approaches can work in stable and relatively predictable industries, but stability is less and less the norm.

We help clients not only develop winning corporate and business strategies, but also design, build, and operate world-class strategic planning processes that yield sharp insights and drive results.

Our Approach to Strategic Planning

The most effective approaches emulate four strategic planning best practices and deliver strategies with four essential characteristics.

• Explore strategy at multiple time horizons. The long, medium, and short term need to be addressed individually. Each demands different goals, stakeholders, and rhythms—and none should be ignored.
• Reinvent and stimulate and strategic dialogue regularly. It’s easy for a strategic planning process to fall prey to the law of diminishing returns. With too much repetition, the exercise can become stale. Leading practitioners inject inspiration and drive results by focusing on a changing set of strategic questions—and by redesigning processes that no longer fit the pace of the strategic environment.
• Engage the broad organization and beyond. Going outside the central strategy team to business leads, board members, agile teams, customers, and even suppliers can help avoid groupthink, boost preparedness and responsiveness, and lead to better strategy execution.
• Invest in execution and monitoring. Clear communication is essential, but so is an action-oriented mindset supported by the right capital allocation, organization, and metrics. Priority strategic initiatives need to be protected from the day-to-day and tracked on a shared performance dashboard.

Strategic Planning in an Agile Environment

Organizations are embracing agile ways of working, which accelerate results by giving teams significant autonomy. But autonomy without alignment can lead to chaos. If strategy alignment is hard in traditional settings, rapid strategic planning and continuous strategy re-alignment in fast-changing markets is even harder. BCG’s Scan, Orient, Decide, Act approach can help ensure teams are rowing in the same direction and provide critical feedback on weak signals that may suggest the strategy needs to be rethought.

Systematically scan the environment for opportunities and risks. Explore key trends and their impact on the rest of the business: customers, competitors, technologies, regulators, and investors.

Develop a strategic perspective to orient management in the shifting landscape of competitive advantage. Distill key issues, uncertainties, and future scenarios into a shared perspective on current and future sources of competitiveness.

Decide on a strategy. Align on and communicate the plan for how to win.

Translate the strategy into priority actions and explain the strategic intent and assumptions. Launch the key initiatives required to realize the strategic objectives. Communicate the key assumptions underlying the strategy to enable a feedback loop.

BCG’s Client Work in Strategic Planning

A major Asian financial institution rethought its strategy development approach in the context of the organization’s broader agile transformation. The new, always-on, agile planning process not only drove strategy capabilities and alignment deeper into the organization, but also significantly enhanced transparency and senior management and board alignment with the target strategy. At the same time, it enabled more rapid review of new strategic initiatives, leading to superior value growth.

A major global brewer , frustrated with its existing planning process, shifted from a financial budgeting focus to a more strategic approach. Together, we developed a new, more flexible approach that fostered real strategic dialogue among center, regions, and business units—and was more tightly linked to execution. In a postimplementation survey of important stakeholders, nearly 90% said they were highly satisfied with the new approach.

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Strategy Consulting: What It Is & How to Succeed in It

Published: August 03, 2021

Imagine you’re an executive for a popular magazine in the middle of a dilemma. You’re noticing that your website is gaining traction while your physical copy sales are declining. You don’t have a great grasp on how web publications work, so this shift is putting you in a bind. You need to figure out a course of action quickly, but aren’t sure where to start.

What is Strategy Consulting?

Strategy consulting is when businesspeople — generally executives, boards, or management — bring in a third party to offer an outside, expert perspective on their business challenges. Strategy consultants usually have considerable industry knowledge and are expected to assess high-level business issues objectively. They take a holistic look at specific problems companies are dealing with and give advice on how they should approach them.

Generally, strategy consultants support their clients for a fixed timeframe. Within that window, they are expected to dedicate all of their time, effort, and attention to a specific problem.

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What does a strategy consultant do?

When a strategy consultant takes on a new project, they typically start by doing an in-depth analysis of their client’s business goals and objectives. The goal of this analysis is to understand if their current practices are in alignment with what they want to achieve. Based on their analysis, they will provide strategic recommendations the company can implement to drive better results.

In addition to their business analysis, strategy consultants can provide expertise on market research and the competitive landscape so the client can make well-informed decisions that are in the best interest of the health of their company.

When working with a strategy consultant, a company can receive guidance on the following:

• Budgeting advice — Input on best practices to cut costs and drive revenue.
• Production strategies — Recommendations to increase efficiency creating their product.
• Opportunity management — Highlighting new opportunities for revenue or product offerings.

After providing sound recommendations to their clients, consultants may have the opportunity to support the implementation process.

Strategy Consulting Example

In the example above, a strategy consultant with expertise in digital transformation could help the publication decide how to proceed.

Once the consultant was on board, they would begin by learning the ins and outs of the magazine’s operation, analyze their current web traffic and sources, review physical magazine sale data to find trends, and conduct in-depth competitive analysis on the print and web editions of the company’s main competitors.

They’d address issues like whether the website’s ad revenue would offset losses from reduced subscriptions. They could gather information on the company’s IT infrastructure to see if it could handle more web traffic. And they could make an educated projection as to whether people will still be interested in the company’s printed magazines a few years down the line.

With this information in hand, the consultant recommends a two-prong approach to capitalizing on the magazine’s web traffic, and to accommodate reader behavior. First, the company should implement a redesign to improve the reader experience and boost their SEO. Once the web content has been optimized, they can implement the second phase – a gated content system allowing devoted readers to access more content by paying a small monthly fee. 

The consultant makes this recommendation to the executives at the publishing company, along with forecasted data to show the revenue they could capture, and how this strategy supports the company’s growth. Once the executive team has bought off on the strategy, the consultant can work with management on the implementation plan.

Why strategy consulting?

The concept of strategy consulting may raise some questions.

Why do companies need external industry experts? Shouldn’t executives at companies be experts themselves? Can they not pull other employees from within the company to help address these kinds of issues in-house?

The answer to all of those questions is mostly a matter of focus and impartiality.

In the example above, a strategy consultant would be focused solely on the issue of the publication’s transition from print to digital and the implications of that shift. The executives at the company wouldn’t be able to do that. They’d have an entire company to run. They wouldn’t have time to get fixated on individual topics.

Strategy consultants also offer level-headedness that can’t always be expected from people within the company. Boards, executives, and other managers have personal stakes in their businesses. Those stakes often come with biases and preconceptions that can cloud their judgment on specific issues.

A strategy consultant brings an outside perspective. They’re not bound by personal investment in the company. Their judgment is supposed to be clear and impartial. This way, executives can get an opinion from a source that’s free of emotion and personal sensitivity.

How to Get Into Strategy Consulting

Get the right degree(s).

It may go without saying, but you’ll need at least a bachelor’s degree to get into strategy consulting — most likely in business administration or a similar field. But a bachelor’s degree is the bare minimum when it comes to landing a strategy consulting gig. There’s no guarantee that it’ll get you there.

Though there’s no definitive education standard across the board for all consulting firms, they often prefer graduates with MBAs. Consulting firms are looking for mature candidates with a solid concept of business management, analytical skills, and a demonstrated knack for problem-solving.

You should also pursue internships — ideally with a consulting firm or within an in-demand industry — throughout your time in school. This will give you a jump on gaining the experience you need to land a strategy consulting job down the line.

Get a Lot of Experience Under Your Belt

Being a strategy consultant takes considerable business and consulting acumen, and there’s a lot that goes into that.

You have to know how to conduct yourself in a boardroom. You’re going to be working closely with executives, so you need to know how to communicate with them professionally and effectively.

Strategy consultants also have to make difficult decisions on a consistent basis. That’s what they’re paid to do. If you’re interested in the field, you’re going to need the confidence and judgment to make sure your advice is sensible and actionable. You’ll also need to be prepared to clearly explain the rationale behind it at any time.

Most people aren’t born with all of these skills. They come with experience. You’ll most likely need at least a few years working in business and consulting before you develop them. You should also remember that strategy consultants are often experts in specific fields and business subjects.

Executives need to trust the decisions you make. If you want to make pivotal decisions for a healthcare company without having spent any time in that industry, they probably won’t take you seriously. The same would go for a strategy consultant with no experience in technology implementation trying to work with a company looking for advice on that subject.

Know the Landscape

Before entering the field, it’s important to know where consulting has been and where it’s going. From 2008 to 2019, the consulting field experienced unprecedented growth and was valued at $160 billion globally .

The COVID-19 pandemic put a dent in the growth of the field, with a reduction of about 19% globally. However, with many companies and industries shifting how they approach work for the long-term, there may be more opportunities for consultants to help companies innovate and create a new vision for the future of work.

Despite the initial hit to the field at the start of the pandemic, the 2021 rate of job growth for consultants is 14% .

Familiarize Yourself with the Industry

There are two buckets that strategy consulting firms fall into. Either a firm offers strategy consulting exclusively — known as a pure-play firm — or it offers strategy consulting as one option among other services.

The three foremost pure-play firms are McKinsey & Company , Boston Consulting Group , and Bain & Company . Other firms with either well-established or quickly growing strategy consulting practices include Ernst & Young , Deloitte , Accenture , Oliver Wyman , and CapGemini .

If you’re looking to get into strategy consulting, it’s worth knowing those names. They could be good starting points for a networking effort that might just get your foot in the door.

How to Succeed in Consulting

Now you may be wondering, once I get into the consulting field , how do I stand out? 

The first step to succeeding in the consulting field is choosing a niche. What area of business are you most knowledgeable about? Are there certain problems you’re great at solving? The best consultants are able to leverage their expertise to drive results for their clients. When entering the field, think long and hard about the value you bring.

Also, adding value isn’t enough if you want to keep clients coming through the door. You must be able to demonstrate the value you bring to continue winning new clients. Whether that is sharing valuable thought leadership content, case studies, or having a roster of testimonials from previous clients and projects, successful consultants must be able to show what value they bring and demonstrate why they are the best candidate to support potential clients. 

Additionally, to succeed in consulting it’s critical to keep your skills sharp. In 2020, 43.5% of consulting firms indicated the need for new skills as the top challenge. Continue looking for ways to improve your analytical and problem-solving skills to stay ahead of the curve.

Strategy consulting is an exciting field that serves an important purpose. It’s a way to offer businesses some clarity and help them stay on track. A job within the field isn’t the easiest to land, but you can set yourself up for success with the proper education, relevant experience, solid problem-solving skills, and flat-out hard work.

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Business Plan Consultant Job Description Template

A business plan consultant provides a financial, marketing, and operational roadmap to align stakeholders and help your business achieve its goals.

Trusted by leading brands and startups

Watch the case study

Business plans are the North Star for early-stage businesses, used as a reference point when making major business decisions, collateral when securing a new fundraising round, and as an introduction to the business and its goals when recruiting new key hires.

While business plan templates can be found online, these ready-made guides can drive entrepreneurs and their businesses away from what they actually need to achieve. A top business plan consultant will construct a custom plan that takes into account the specifics of your business, or review and pressure-test an existing plan while taking into account the latest industry trends.

Business Plan Consultant - Job Description and Ad Template

Copy this template, and modify it as your own:

Company Introduction

{{Write a short and catchy paragraph about your company. Provide information about the company’s culture, perks, and benefits. Mention office hours, remote working possibilities, and anything else that makes your company interesting.}}

Job Description

A business plan consultant provides strategic direction by {{creating or methodically pressure-testing and refining}} a company’s business plan, using an understanding of the company’s core operations, competitive advantages, and goals to provide direction on how to structure, run, and grow the business.

The ideal candidate will have some experience in running or advising early stage businesses, combining the analytical abilities of a CFA charterholder with the broad vision of a CEO to provide a roadmap to growth.

Responsibilities

• Develop an understanding of the existing business (including products/services, customers, competitors, the overall market and trends) through careful research and analysis
• Understand how major stakeholders are thinking about near-term growth, generally and in reference to specific growth initiatives, through interviews with these stakeholders
• Build a detailed financial analysis showing all of the assumptions, drivers, and financial statements for the next 3 - 5 years, accounting for a conservative, base, and aggressive case
• Conduct a total addressable market analysis for the business’ core market, assess major industry trends affecting the business, and describe what impact these trends may have on the business
• Review research reports and conduct primary research to hone in on ideal buyer type and assess customer demand for the company’s existing products and services
• Map out direct and indirect competitors, including potential future competitors, for existing and potential revenue channels
• Define a go-to-market strategy, including testing out potential marketing channels (if applicable)
• Review compensation plans and organizational structure to align incentives and ensure the health of the organization in the long-run

Skills and Qualifications

• Bachelor’s degree in finance, operations, research, statistics, math, economics, or related analytical discipline preferred
• Financial management experience with planning, forecasting, and business analysis; prior experience as an advisor to or executive at an early-stage company a plus
• Advanced Excel proficiency. 3+ years of practical experience of using Excel for building and maintaining financial models
• Proficiency with analytical and presentation tools {{(Excel pivot tables, SQL queries, graphing, PowerPoint)}}
• Experience within {{preferred industry}}
• A natural curiosity and a “big picture” mentality
• Experience conducting market research, including analyzing and synthesizing research reports and conducting primary research
• An understanding of marketing channels and go-to-market strategies
• Excellent spoken and written communication; comfort reaching out to and interviewing the company’s management, employees, and customer base

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Business Plan Consultants: Who They Are and How They Create Value

How to hire business plan consultants.

Business plan consultants have the industry knowledge and expertise to develop a business plan that maximizes your company’s potential and attracts investors. This guide to hiring business plan experts offers insight into best practices, skill requirements, job description tips, and interview questions and answers to help you identify the best candidate for your needs.

Hire a Top Business Plan Consultant Now

Toptal is a marketplace for top business plan consultants and experts. Top companies and startups hire freelance business plan consultants from Toptal for their mission critical projects.

Aleksey N. Krylov, CFA

Aleksey served in CFO roles of public and VC-backed private companies. As an investor, he contributed to 25+ private equity deals that have deployed $500 million. He has advised 50+ clients on raising $1.6 billion in equity in the healthcare, consumer, media, software, energy, and industrial sectors. Aleksey enjoys working with officers of early-stage and mature small-cap firms, and he freelances because it exposes him to a wide range of companies.

Josh Chapman

Josh is an investment banker turned VC who lives in Denver, CO. At Morgan Stanley, he covered the world's top hedge funds and sold over $5 billion in IPOs for companies like Alibaba, LendingClub, GrubHub, and more. He also has experience in M&A, startup fundraising, and as a founder. Currently, Josh is one of the managing partners of Konvoy Ventures, a VC firm focused on esports and video gaming.

Gary Calnan

Gary is a serial entrepreneur with CEO and CFO experience. Before co-founding an aerospace startup in 2017, Gary was the director of finance at a $120 million revenue SaaS company, where he was responsible for the financial management of multiple departments and supported three mergers. Gary leverages his unique blend of finance and entrepreneurial experience across early and growth-stage businesses to add value to Toptal clients.

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Business Planning

Written by True Tamplin, BSc, CEPF®

Reviewed by subject matter experts.

Updated on June 08, 2023

Get Any Financial Question Answered

Table of contents, what is business planning.

Business planning is a crucial process that involves creating a roadmap for an organization to achieve its long-term objectives. It is the foundation of every successful business and provides a framework for decision-making, resource allocation, and measuring progress towards goals.

Business planning involves identifying the current state of the organization, determining where it wants to go, and developing a strategy to get there.

It includes analyzing the market, identifying target customers, determining a competitive advantage, setting financial goals, and establishing operational plans.

The business plan serves as a reference point for all stakeholders , including investors, employees, and partners, and helps to ensure that everyone is aligned and working towards the same objectives.

Importance of Business Planning

Business planning plays a critical role in the success of any organization, as it helps to establish a clear direction and purpose for the business. It allows the organization to identify its goals and objectives, develop strategies and tactics to achieve them, and establish a framework of necessary resources and operational procedures to ensure success.

Additionally, a well-crafted business plan can serve as a reference point for decision-making, ensuring that all actions taken by the organization are aligned with its long-term objectives.

It can also facilitate communication and collaboration among team members, ensuring that everyone is working towards a common goal.

Furthermore, a business plan is often required when seeking funding or investment from external sources, as it demonstrates the organization's potential for growth and profitability. Overall, business planning is essential for any organization looking to succeed and thrive in a competitive market.

Business Planning Process

Step 1: defining your business purpose and goals.

Begin by clarifying your business's purpose, mission, and long-term goals. These elements should align with the organization's core values and guide every aspect of the planning process.

Step 2: Conducting Market Research and Analysis

Thorough market research and analysis are crucial to understanding the industry landscape, identifying target customers, and gauging the competition. This information will inform your business strategy and help you find your niche in the market.

Step 3: Creating a Business Model and Strategy

Based on the insights from your market research, develop a business model that outlines how your organization will create, deliver, and capture value. This will inform the overall business strategy, including identifying target markets, value propositions, and competitive advantages.

Step 4: Developing a Marketing Plan

A marketing plan details how your organization will promote its products or services to target customers. This includes defining marketing objectives, tactics, channels, budgets, and performance metrics to measure success.

Step 5: Establishing Operational and Financial Plans

The operational plan outlines the day-to-day activities, resources, and processes required to run your business. The financial plan projects revenue, expenses, and cash flow, providing a basis for assessing the organization's financial health and long-term viability.

Step 6: Reviewing and Revising the Business Plan

Regularly review and update your business plan to ensure it remains relevant and reflects the organization's current situation and goals. This iterative process enables proactive adjustments to strategies and tactics in response to changing market conditions and business realities.

Components of a Business Plan

Executive summary.

The executive summary provides a high-level overview of your business plan, touching on the company's mission, objectives, strategies, and key financial projections.

It is critical to make this section concise and engaging, as it is often the first section that potential investors or partners will read.

Company Description

The company description offers a detailed overview of your organization, including its history, mission, values, and legal structure. It also outlines the company's goals and objectives and explains how the business addresses a market need or problem.

Products or Services

Describe the products or services your company offers, emphasizing their unique features, benefits, and competitive advantages. Detail the development process, lifecycle, and intellectual property rights, if applicable.

Market Analysis

The market analysis section delves into the industry, target market, and competition. It should demonstrate a thorough understanding of market trends, growth potential, customer demographics, and competitive landscape.

Marketing and Sales Strategy

Outline your organization's approach to promoting and selling its products or services. This includes marketing channels, sales tactics, pricing strategies, and customer relationship management .

Management and Organization

This section provides an overview of your company's management team, including their backgrounds, roles, and responsibilities. It also outlines the organizational structure and any advisory or support services employed by the company.

Operational Plan

The operational plan describes the day-to-day operations of your business, including facilities, equipment, technology, and personnel requirements. It also covers supply chain management, production processes, and quality control measures.

Financial Plan

The financial plan is a crucial component of your business plan, providing a comprehensive view of your organization's financial health and projections.

This section should include income statements , balance sheets , cash flow statements , and break-even analysis for at least three to five years. Be sure to provide clear assumptions and justifications for your projections.

Appendices and Supporting Documents

The appendices and supporting documents section contains any additional materials that support or complement the information provided in the main body of the business plan. This may include resumes of key team members, patents , licenses, contracts, or market research data.

Benefits of Business Planning

Helps secure funding and investment.

A well-crafted business plan demonstrates to potential investors and lenders that your organization is well-organized, has a clear vision, and is financially viable. It increases your chances of securing the funding needed for growth and expansion.

Provides a Roadmap for Growth and Success

A business plan serves as a roadmap that guides your organization's growth and development. It helps you set realistic goals, identify opportunities, and anticipate challenges, enabling you to make informed decisions and allocate resources effectively.

Enables Effective Decision-Making

Having a comprehensive business plan enables you and your management team to make well-informed decisions, based on a clear understanding of the organization's goals, strategies, and financial situation.

Facilitates Communication and Collaboration

A business plan serves as a communication tool that fosters collaboration and alignment among team members, ensuring that everyone is working towards the same objectives and understands the organization's strategic direction.

Business planning should not be a one-time activity; instead, it should be an ongoing process that is continually reviewed and updated to reflect changing market conditions, business realities, and organizational goals.

This dynamic approach to planning ensures that your organization remains agile, responsive, and primed for success.

As the business landscape continues to evolve, organizations must embrace new technologies, methodologies, and tools to stay competitive.

The future of business planning will involve leveraging data-driven insights, artificial intelligence, and predictive analytics to create more accurate and adaptive plans that can quickly respond to a rapidly changing environment.

By staying ahead of the curve, businesses can not only survive but thrive in the coming years.

Business Planning FAQs

What is business planning, and why is it important.

Business planning is the process of setting goals, outlining strategies, and creating a roadmap for your company's future. It's important because it helps you identify opportunities and risks, allocate resources effectively, and stay on track to achieve your goals.

What are the key components of a business plan?

A business plan typically includes an executive summary, company description, market analysis, organization and management structure, product or service line, marketing and sales strategies, and financial projections.

How often should I update my business plan?

It is a good idea to review and update your business plan annually, or whenever there's a significant change in your industry or market conditions.

What are the benefits of business planning?

Effective business planning can help you anticipate challenges, identify opportunities for growth, improve decision-making, secure financing, and stay ahead of competitors.

Do I need a business plan if I am not seeking funding?

Yes, even if you're not seeking funding, a business plan can be a valuable tool for setting goals, developing strategies, and keeping your team aligned and focused on achieving your objectives.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide , a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University , where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon , Nasdaq and Forbes .

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Types of Business Consultants: What They Do and Why You Might Need One

Business consultants almost never use the word "problem"; instead, they talk about opportunities to enhance value. Ask any consultant what they do, and they'll likely say "I'm in the solutions business." Despite criticism that's sometimes leveled at business consultants, they truly can add value to your middle market company, but you need to know when and why to use them. There is a huge range of business issues that consultants can provide solutions for, and different types of consultants bring different ideas to the table.

Consultants come in many forms. Most businesses are familiar with the "big four" audit firms: PricewaterhouseCoopers , Deloitte , Ernst & Young , and KPMG . These big-name firms are most likely out of a midmarket business's price range, which will lead midsized companies to work with smaller boutique firms and even individual experts for hire.

Types of Consultants

Business consultants can generally add value in five major areas of your middle market business:

• Management and strategy. Qualified consultants should have a deep understanding of your particular market and bring the best practices from your industry (or even other industries) to your company. If you're looking to expand your markets geographically, extend your product portfolio, reorganize your middle market company to promote efficiency and cost-effectiveness, buy out a smaller competitor, or increase your overall capabilities, then hiring an experienced management/strategy consultant can make perfect sense. Firms such as McKinsey & Company are famous for helping clients develop and execute better strategies.
• Operations. Want to improve the quality and efficiency of your production processes? An operations consultant such as Accenture can help you create and implement a new way of doing just that. Some consultants specialize in business process re-engineering, meaning that they come in and map out your existing processes, analyze opportunities for reducing the number of steps in that process while maintaining quality, and re-engineer your processes in a way that reduces steps and costs. Other consultants are experts in quality control systems and can help you make changes that will reduce defects.
• IT. This is a fast-growing area for consulting, as the demands of new technology are impacting middle market companies every day. Whether you need to develop a new system or integrate your old systems so that they work together, an IT consultant can help. IT consultants such as IBM will enhance your capabilities and also make your IT more flexible in meeting the dynamic needs of internal and external customers.
• HR. Need to improve the overall satisfaction of your employees, recruit top talent, and retain your top performers? HR consultants such as Hay Group specialize in developing compensation strategies that align with your overall business goals, training, and developing your people in areas such as business communication and leadership. They can help you improve performance-related feedback and evaluation to your team, making your employees work smarter.
• Marketing. Whether you need a new logo for your company, a new market position for one of your brands, or a new social media strategy to interact with your customers, marketing consultants can help. Consultants such as The Boston Consulting Group can offer you a creative spark when your own people have run out of ideas, letting you see what other companies have done to attract more customers.

Reason s for Hiring a Consultant

Now that you know the major types of consultants, why would you need to hire one? Here are five common reasons:

• Rent a brain. You don't have the human resources you need because some internal person has quit or your head count has been slashed, so hiring a consultant for a project or on a temporary basis can fill the gap until a full-time internal person is found. You won't have to make a consultant a full-time employee, so breaking off the relationship is relatively easy and cost-effective.
• Manage change (and take the heat). Consultants are experts at fostering change in organizations, so if your midsized company is rife with internal squabbling concerning imminent changes, bringing in a consultant can break the logjam. Consultants know that they're often brought in for political cover and will shoulder blame for unpopular changes such as reducing head count and other cost-cutting measures.
• Teach and implement best practices. Consultants are often the leading experts in the fields they work in. They not only have academic and theoretical expertise, but they've also worked directly with leading companies to implement change. If you want best practices in areas such as IT and management, then consultants are the best source available. Why try to invent a best practice when consultants have already implemented some with multiple clients?
• Infuse creativity. Consultants have a fresh perspective on your business, so having an outsider come in and offer ideas can be tremendously helpful. Sometimes your in-house people are too close to your company and don't have the perspective to examine the bigger picture within your market, but consultants can share valuable insights that boost your internal creative thinking.
• Deliver training. You can hire a consultant to share knowledge about almost anything. Consultants are born trainers, so they're a natural choice to do a training course or day-long presentation for your company in almost any area. A good consultant blends theory and practice, and this can deliver high value to your midmarket company.

Consultants can obviously be expensive, and you need to carefully weigh the costs and benefits. Only you know the particular needs of your midsized firm, but chances are that a consultant can help turn those needs into highly beneficial solutions.

Where are some of the best places to search for and choose between similarly qualified consultants? Let us know what you think by commenting below.

Boston-based Chuck Leddy is an NCMM contributor and a freelance reporter who contributes regularly to The Boston Globe and Harvard Gazette. He also trains Fortune 500 executives in business-communication skills as an instructor for EF Education.

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What Is Business Planning?

Why Business Planning Isn't Just for Startups

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Morsa Images / Getty Images

Business planning takes place when the key stakeholders in a business sit down and flesh out all the goals , strategies, and actions that they envision taking to ensure the business’s survival, prosperity, and growth.

Here are some strategies for business planning and the ways it can benefit your business.

Business planning can play out in many different ways. Anytime upper management comes together to plan for the success of a business, it is a form of business planning. Business planning commonly involves collecting ideas in a formal business plan that outlines a summary of the business's current state, as well as the state of the broader market, along with detailed steps the business will take to improve performance in the coming period.

Business plans aren't just about money. The business plan outlines the general planning needed to start and run a successful business, and that includes profits, but it also goes beyond that. A plan should account for everything from scoping out the competition and figuring out how your new business will fit into the industry to assessing employee morale and planning for how to retain talent.

How Does Business Planning Work?

Every new business needs a business plan —a blueprint of how you will develop your new business, backed by research, that demonstrates how the business idea is viable. If your new business idea requires investment capital, you will have a better chance of obtaining debt or equity financing from financial institutions, angel investors , or venture capitalists if you have a solid business plan to back up your ideas.

Businesses should prepare a business plan, even if they don't need to attract investors or secure loans.

Post-Startup Business Planning

The business plan isn’t a set-it-and-forget-it planning exercise. It should be a living document that is updated throughout the life cycle of your business.

Once the business has officially started, business planning will shift to setting and meeting goals and targets. Business planning is most effective when it’s done on a consistent schedule that revisits existing goals and projects throughout the year, perhaps even monthly. In addition to reviewing short-term goals throughout the year, it's also important to establish a clear vision and lay the path for your long-term success.

Daily business planning is an incredibly effective way for individuals to focus on achieving both their own goals and the goals of the organization.

Sales Forecasting

The sales forecast is a key section of the business plan that needs to be constantly tracked and updated. The sales forecast is an estimate of the sales of goods and services your business is likely to achieve over the forecasted period, along with the estimated profit from those sales. The forecast should take into account trends in your industry, the general economy, and the projected needs of your primary customers.

Cash Flow Analysis

Another crucial component of business planning is cash flow analysis. Avoiding extended cash flow shortages is vital for businesses, and many business failures can be blamed on cash flow problems.

Your business may have a large, lucrative order on the books, but if it can't be invoiced until the job is completed, then you may run into cash flow problems. That scenario can get even worse if you have to hire staff, purchase inventory, and make other expenditures in the meantime to complete the project.

Performing regular cash flow projections is an important part of business planning. If managed properly, cash flow shortages can be covered by additional financing or equity investment.

Business Contingency Planning

In addition to business planning for profit and growth, your business should have a contingency plan. Contingency business planning (also known as business continuity planning or disaster planning) is the type of business planning that deals with crises and worst-case scenarios. A business contingency plan helps businesses deal with sudden emergencies, unexpected events, and new information that could disrupt your business.

The goals of a contingency plan are to:

• Provide for the safety and security of yourself, your employees, and your customers in the event of a fire, flood, robbery, data breach, illness, or some other disaster
• Ensure that your business can resume operations after an emergency as quickly as possible

Business Succession Planning

If your business is a family enterprise or you have specific plans for who you want to take over in the event of your retirement or illness, then you should have a plan in place to hand over control of the business . The issues of management, ownership, and taxes can cause a great deal of discord within families unless a succession plan is in place that clearly outlines the process.

Key Takeaways

• Business planning is when key stakeholders review the state of their business and plan for how they will improve the business in the future.
• Business planning isn't a one-off event—it should be an ongoing practice of self-assessment and planning.
• Business planning isn't just about improving sales; it can also address safety during natural disasters or the transfer of power after an owner retires.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, how often should a business plan be updated, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

A business plan is a document that details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

• A business plan is a document describing a company's business activities and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside investors.
• For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

• Executive summary: This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
• Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
• Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
• Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
• Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

A business plan is not a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections to begin with. Markets and the overall economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All of this calls for building some flexibility into your plan, so you can pivot to a new course if needed.

How frequently a business plan needs to be revised will depend on the nature of the business. A well-established business might want to review its plan once a year and make changes if necessary. A new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

U.S. Small Business Administration. " Write Your Business Plan ."

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What is a Business Strategy Consultant? Do I Need One?

By Anthony Taylor - March 10, 2023

Are you uncertain about the potential benefits of hiring a business strategy consultant for your business? While they are sometimes confused with strategic planning facilitators, there are key differences between these roles and other consulting positions. In this blog post, we will delve into the role of a business strategy consultant, the benefits of partnering with one, and how they differ from other consulting roles and strategic planning services . If you want to align your team, gain clarity on your mission and vision, and make informed decisions for your company, this post will assist you in determining whether hiring a business strategy consultant is the right decision for you.

If you've been scrolling through social media recently, you've probably stumbled upon some hilarious videos mocking the vague job descriptions of business consultants. It's time to shed some light on this topic. At SME Strategy, we've been offering strategic planning services for over 13 years, and we'd love to share some insights into the world of business strategy consultants.

          View this post on Instagram                       A post shared by Morning Brew (@morningbrew)

• What exactly does a business strategy consultant do?

What Makes a Business Strategy Consultant Different from Other Consulting Roles?

Exploring Alternatives: When a Business Strategy Consultant Isn't the Right Fit

So, what does a business strategy consultant actually do?

In simple terms, a business strategy consultant is a professional who assists business owners and organizational leaders in making well-informed decisions and developing effective business strategies. They specialize in the field of strategy, particularly in areas such as strategic planning, analysis, and decision-making.

When you engage a business strategy consultant, they become part of your organization and collaborate closely with you. Their main objective is to determine which specific strategic initiatives align with your desired outcomes and current capabilities. They work alongside you and your team, utilizing tools like market research, competitive analysis, scenario planning, and change management to identify the most suitable options and guide you in making strategic decisions.

The primary difference between a business strategy consultant and other roles involved in strategic planning lies in their level of influence. The role of a business strategy consultant often allows them to have a say in your organization's decisions and provide guidance on what actions to take. When you hire a consultant, they bring specific expertise and often offer recommendations on what strategic goals and actions your team and organization need to prioritize. However, this influence can be manifested in different ways.

One approach is the "expert model of consultation" , this is where you seek a consultant with specialized knowledge in a particular area. They conduct industry surveys and provide recommendations without conducting a comprehensive diagnosis or audit of your organization. This research-based and external perspective is often focused on data gathering, analysis and action recommendations. Examples of organizations operating in this manner include Gartner and McKinsey Solutions , who provide specific consulting solutions and research reports. They typically operate on a transactional basis, allowing clients to obtain tailored information or services without engaging in long-term consulting relationships.

On the other hand, there are consultants who build long-term relationships and provide strategic advisory services across various industries. Companies like Bain & Company and Boston Consulting Group offer comprehensive management consulting services that cover different aspects of a business. These consultants collaborate closely with organizations, conducting audits and offering recommendations to optimize operations and strategy . They bring valuable industry experience and expertise to help uncover inefficiencies and explore new strategic opportunities. However, since they are external to the company and not bound by its culture, their focus is primarily on improving success in the specific initiative or project they are assigned. This can sometimes introduce conflicts or disruptions to your current state of affairs , as they have limited knowledge of your organization and may propose significant changes that impact it.

In Summary, one approach focuses on a shorter-term relationship with an emphasis on specific information and expertise, while the other involves a longer-term relationship where consultants are given the license to conduct diagnoses and provide feedback on the next steps to take.

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If none of the options mentioned above resonate with you, there is another alternative to consider: strategic planning facilitation . This approach is centered entirely around your needs and preferences.

A strategic planning facilitator is a professional who specializes in assisting organizations with their strategic planning process. Their main role is to guide and facilitate this process, ensuring that it is productive, inclusive, and outcome-driven. They help organizations conduct strategic assessments, define goals, create action plans, and foster alignment among its stakeholders.

A facilitator's role is to assist and support your leadership team in identifying the right actions and goals. They bring a proven process and use a behavioral approach to help your team find its own solutions.  Facilitators emphasize aligning your leadership team with the company's mission and vision and cascading that alignment throughout the rest of the organization. They prioritize the process rather than imposing directives. By addressing behavioral and psychological barriers, they help break through misalignment and avoid the multiple destination trap . This allows your team to tap into the expertise and knowledge within the organization, promoting effective leadership and performance.

Business strategy consultants and strategic planning facilitators both play important roles in strategic thinking and planning. However, they differ in their focus and approach. A strategic planning facilitator primarily focuses on guiding the strategic planning process itself, often through an offsite facilitation . They emphasize effective collaboration and alignment among stakeholders, helping your team work together to solve problems without imposing their own suggestions. On the other hand, a business strategy consultant offers strategic recommendations, guidance, and expertise across different areas. They assist organizations in developing and implementing comprehensive business strategies, which may sometimes challenge your preferred actions.

Understanding the Differences: Facilitators, Coaches, Consultants, and Advisors in Business Strategy Consulting As you delve into the world of business strategy, you'll come across various professionals offering their expertise. It can be challenging to figure out which role is the right fit for your needs. In this breakdown, we'll explore the differences between strategic planning facilitators, coaches, business strategy consultants, and advisors.

Related Content:

• Strategic Planning Process (What is it )
• Strategic Problems and how to address them
• How To Use Strategic Planning to Build High Performing Teams a Case Study (Video)

When engaging in strategic planning, it's important to consider the various roles discussed earlier and evaluate your specific needs, organization size, and budget. Keep in mind that strategic planning is an ongoing process, and successful organizations regularly review their strategies. Collaborating with external consultants offers additional advantages, such as:

Getting your team onboard and aligned on your strategy - this is key for later strategy implementation. 

Setting strategic priorities and measurable goals so you know what success looks like for your organization and your team. 

Finding opportunities to differentiate you from your competitors to create a more valuable value proposition.

Looking at your systems and processes to find improvements that will support future growth.

• Doing a cost/benefit analysis to determine the best opportunities for growth.
• Creating strategies to gain new market share or protect existing market share.
• Help you figure out what to do next with organizational change and development.

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• What is a financial consultant? 

What does a financial consultant do?

• Financial consultant vs. financial advisor

How to find a financial consultant

• The bottom line

What is a financial consultant, and what do they do?

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• Financial consultants provide expert advice on a wide range of topics, like estate planning and wealth management. 
• Financial consultants and advisors offer similar financial services, but they have different credentials. 
• Before hiring a potential financial consultant, make sure to research their credentials.

When searching for professional money and investment advice, you may have come across titles like "financial consultant" or " financial advisor ." Although these titles sound similar, financial consultants and advisors aren't the same thing. 

If you're looking for an expert to help you create a personalized financial plan based on your current situation, you're probably looking for a financial consultant.

What is a financial consultant? 

Financial consultants create personalized financial plans based on a client's whole financial picture, including factors like debt, assets, living expenses, and investment goals. Although financial consultants typically offer similar guidance and advice as financial advisors, the two jobs require different credentials.

Financial consultants typically have a degree in finance or a related field and can be designated as chartered financial consultants (ChFCs), which is a certification currently only offered through the American College of Financial Services . Financial consultants must also have at least three years of financial planning experience to earn the ChFC designation.

Keep in mind that there are financial consultants who do not have the ChFC certification.

"As long as they have passed the appropriate state and federal licensing requirements, they can use any name they want — advisor, consultant, planner, wealth manager — provide any range of services, and charge in different ways," says Brent Weiss, CFP and head of financial wellness at Facet . 

While these non-certified financial consultants and advisors may still offer useful advice, you won't get the same level of guaranteed expertise that you would with a certified consultant. You also won't get the same degree of trustworthiness as you would with a CFP or fiduciary.

People seeking professional financial advice should do their best to identify and recognize the different financial licenses and certifications, explains Weiss. 

"These credentials not only represent a profound understanding of financial principles, but also a commitment to ongoing education and ethical standards," states Weiss.

A financial consultant's main job is to create a customized financial plan to help you reach your goals. If you need help coming up with goals, a financial consultant can help with that, too. And depending on their specialties and experience, a financial consultant may offer a variety of services, including: 

• Retirement planning
• Risk management 
• Estate planning
• Tax strategies
• Business and financial strategies
• Gifts and inheritances
• Insurance advice

"In general, financial consultants offer a range of services tailored to individual client needs," says Weiss. "They may look at one aspect of your finances, offer a one-time consult, or review your entire financial picture and develop an ongoing plan. You need to know the right questions to ask to determine the services they will provide."

Ensure that the financial consultant you're meeting with specializes in the topics you need guidance on. For example, if you need help with estate planning, make sure you are meeting with a financial consultant who specializes in estate planning strategies. Someone who specializes in tax strategies won't be as useful for your situation.

What is a financial consultant vs. financial advisor?

While "financial consultant" and "financial advisor" are often used interchangeably, they don't mean the same thing. Financial consultants are a type of financial advisor. All financial advisors are financial consultants, but not all financial consultants are advisors. The best financial advisors are either fiduciaries or CFP-certified.

It's not uncommon for financial experts seeking further education to be certified as both a ChFC and a CFP (or other financial certification like a CFA). 

Certified financial advisors earn their titles from The Certified Financial Planner Board of Standards, Inc. ( CFP Board ) after years of education in over 70 financial specialties. To be a certified financial planner (CFP), financial advisors and planners must have extensive practical advisor experience and follow high ethical standards.

"While a ChFC has more education and experience than many others in the field, it's really more like a CFP-light," Weiss says. "The CFP Professional designation remains the gold standard."

Most CFPs adhere to fiduciary duty regulations. This is a legal and ethical duty that requires financial advisors to put the best interest of the client first. ChFCs can earn fiduciary status, but they are not required to. So if you came down to picking between an advisor with ChFC credentials versus a certified CFP, the CFP is typically the better option. 

However, financial consultants and ChFCs can still provide knowledgeable financial advice on a range of topics. If you or someone you know,has had a good experience with a financial consultant, there's no reason to switch to someone else. Strong customer reviews, recommendations, and years of experience can speak to the quality of a financial consult almost just as much as certification can. 

What fees do financial consultants charge?

How a financial consultant charges you can vary. Some financial consultants may charge a flat rate, hourly rate, project fee, or a percentage of your assets under management (AUM). When considering a potential financial consultant, one of the first questions you should ask is how they charge. 

"Try to avoid fee models that create conflicts of interest, like commissions and paying a percentage of how much you invest. You want your advisor to offer unbiased advice and sit on the same side of the table as you," says Weiss.

The easiest way to find a financial consultant is through referrals from friends, family, or colleagues. However, you can also find consultants online through organizations such as:

• SEC's advisor search tool
• FINRA's Broker Check tool
• Zoe Financial
• CFP Board website

On these websites, you can access a wide range of advisors, planners, and consultants with varying certifications and credentials on different financial and investment topics. Make sure to thoroughly look through your options to find the one that best fits your needs.

"When meeting a potential financial consultant, ask about their qualifications, experience, areas of expertise, and fee structure. It's also important to understand their approach to financial planning, how they tailor their services to individual client needs, and the types of clients they work with," says Weiss.

Financial consultant — Frequently asked questions (FAQs)

Yes. Financial consultants make money by charging clients a flat rate, hourly rate, AUM fee, or project fee. Some financial consultants may also earn commissions, which means they make a profit when they recommend and sell certain financial products to clients. However, financial consultants who are certified as CFPs or fiduciaries can't earn commissions.

Financial consultants are worth it if you're seeking professional financial advice and guidance on topics like retirement, tax planning, estate planning, insurance products, and inheritance. Financial consultants assist clients in implementing custom financial plans to help them reach their goals. 

You can become a financial consultant after several years of experience in finance or a related field. As long as you meet state and federal licensing requirements, you can refer to yourself as a financial consultant. However, to become a chartered financial consultant you must earn your certification through the American College of Financial Services. 

Should you hire a financial consultant?

Financial consultants are finance and investment experts who provide a wide range of services to clients like estate planning, wealth management, retirement planning, insurance strategies, and general financial planning. Anyone with a bank account and financial goals can benefit from meeting with a financial consultant. 

However, "financial consultant" is a general term that doesn't guarantee a level of trustworthiness or expertise. Technically, anyone meeting state and federal licensing standards can call themselves a financial consultant or financial planner. For that reason, make sure to do your research on all potential financial consultants and advisors. 

While non-certified consultants can still offer beneficial advice, certified ChFCs have the reputation, experience, and training necessary to get you where you need to go. 

Watch: The most important question you should ask before hiring a financial adviser

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