Some companies steer clear of hiring business advisors for at least two reasons. First, they are not sure if they need the service of such a professional. Second, they do not know how to measure the ROI of hiring such a person. Despite this fact, the consulting industry is still growing year after year.
According to consultancy.org, the global consulting market amounts to $250 billion. Meanwhile, zippia.com estimated that the number of business advisors in the United States is around 18,796. These figures show increasing demand for business advisors around the world.
Whether you are putting up or expanding a business, seeking expert advice is crucial to your success. A business advisor can bring this specialized knowledge to your company if you so choose. Therefore, hiring such professionals might be a cost-effective option. The next challenge is how to go about hiring the right person.
You will learn how to select a business advisor, how to get the most value of this talent, and how to measure the ROI. Before continuing, let us review what a business advisor is and what should trigger you to hire one.
Who is a business advisor?
This person is an external party you can contract with or hire to help the company develop, manage marketing, finances, and plan. Such an advisor might not focus on one field but is an expert in multiple areas. Think of this individual as a partner who can shed light on the company’s issues and challenges and pinpoint areas for improvement.
For instance, you are looking to launch a new product. You understand the importance of the product release to your company, and you want to make it a success. The challenge is that you are preoccupied with management responsibilities. Hiring a business advisor to get the job done might be the best thing to do. This way, you can dedicate your precious time to business matters that need your attention.
Why should you hire a business advisor?
If you want the business to stay alive in the face of stiff competition that may come your way, you must develop a strategy to be on top of the game. You need to be creative, innovative, and adaptable all the time, and for this matter, a business advisor might give you the required inputs.
Another reason you might want to hire a business advisor is to solve problems. If your business runs out of funds and encounters cash flow difficulties, figuring out the cause might not be easy. The good thing is that a business advisor can look into the issue, understand the root cause, and suggest solutions to address the problem.
Here are other reasons to consider hiring a business advisor:
- You plan to expand the business into new territory, and you need expert guidance.
- You need to provide training, but no one inside can provide expert inputs.
- Your business is stagnant, and you want to invigorate the whole staff.
- You need short-term assistance, such as setting a management system for certification.
- Your company is undergoing a transition.
How to hire a business advisor?
From the above discussions, it is clear that business advisors can be a helpful addition to business organizations. The next question is how you are going to hire such a professional. It would help if you considered a few things before finding this talent. Below are three tips that might be of help.
Tip 1. Find someone with credentials
A business advisor does not need a degree, license, or credentials to advise how your business operations should work. However, having an educational background supported by documents is not bad. It only shows you are working with a professional. Because it is straightforward to promote oneself as somebody, find a certified consultant or someone with a degree in business.
Tip 2. Find someone with experience
Getting an education is one thing, and having related experience is another. When you hire a business advisor, this person should understand the language of the business you are speaking. As much as possible, bring someone with experience and address the business challenge you are facing.
Tip 3. Choose someone with relevant specialization
Pick an advisor whose field of expertise is the specific industry you belong to. In this manner, no time is wasted explaining the nature of the business and the business concerns you need solutions for. The image below shows some of what a business advisor can do for your business.
How to get the most of a business advisor?
Hiring an advisor can be costly to the business. To get the most value from your investment, you must help this talent succeed. To do that, you need to provide critical input and needed support. To have a fruitful business relationship, here are some tips you can use.
Explain the business before hiring
Discuss the nature of the business in detail before you decide to hire a candidate for the position. Make sure the person has a good understanding of the business and its industry. Good advisors can provide instruction based on their current experience.
Set the scope of work
Set correct expectations from the get-go. The advisor should be aware of the limits of their involvement in the operations. Do you like the advisor to get involved with financial planning? The scope of the work must be clarified from day one.
Involve them in the business planning
Allowing the advisor to look into your business plan and provide inputs is not bad. Since you have often seen the business plan, you might overlook something that the advisor can see. An advisor can provide a new perspective and see the merit of your plan and the drawbacks.
A business advisor is a helpful resource for expanding your business or troubleshooting a nagging issue. As a business owner, you would save a lot of time if you let someone handle issues beyond your expertise. As you find value in this talent, consider keeping it in your ranks rather than bringing in someone only when you need it.