Is A Consultant Right For You?
Consultant jokes are almost as prevalent as jokes about lawyers. My favorites are: What do you call someone who has been out of a job for at least six months? Answer: A consultant! And this one: Do you know what the definition of an expert is? Answer: Someone who is at least 300 miles away from home. Hilarious I know!
Humor aside a generally accepted description found on the internet of a business consultant is a professional who advises provides information insight and recommendations to help clients reach their goals and solve problems.
Full disclosure: I have been a business consultant for over forty years. I draw from my experiences as a former department store merchandise manager and the ongoing knowledge gained by speaking with retailers of all kinds daily.
Consultants can be found for just about every aspect of your business but the questions that need to be answered are “Is a consultant right for my business?” and “What qualities should I look for in a consultant?”
Qualities to Look For
President Theodore Roosevelt summed up the consultant/client relationship perfectly when he said “No one cares how much you know until they know how much you care.”
- Consultants teach mentor and train.
- A good consultant brings expertise and experience to the organization.
- He or she should be able to quickly identify the problem be a good listener be caring and empathetic.
- Be able to outline potential solutions provide a structure to implement said solutions and establish a framework for accountability.
- He or she should always be prepared and be willing to challenge the status quo and not enable behavior patterns that are not in the client’s best interest.
Although personal friendships sometimes naturally evolve from long-term relationships the goal of the consultant is not to become your best friend.
Consultants should be viewed as outside independent objective counselors willing to check their egos at the door while providing unbiased and impartial opinions.
My business is unique
I have heard this from would-be clients hundreds of times during my career. How unique is your business really? Regardless of the products you are selling at some point you must decide:
- How much to spend on inventory
- Where and when to buy it
- When to have it delivered
- How to market it
- Hire and train employees to sell it
- When to mark it down
- Control your operating expenses
And hopefully still come out with a profit. In very basic terms you bring goods in the back door mark them up and sell them through the front door. If done correctly you have a profit; if not you don’t. That is not unique. That is the very crux of the retail business.
I am reminded of a story
A colleague was asked to analyze a set of merchandising data from a large well-respected merchant. The store executives were gathered along with my colleague. The owner opened the meeting with one statement that would determine the potential future relationship. That statement was “Tell me something about my business that I don’t know.”
My colleague was prepared and proceeded to use the opportunity to show this merchant exactly how much business was being missed by having inventory in the wrong stores and classifications how much margin was being lost through the store’s inadequate archaic planning process and how the cash flow could be substantially improved by improving the timing of deliveries. He demonstrated how by using a time-tested process the company could increase sales and decrease inventory at the same time. He left with a signed agreement to begin working together at once.
On a number of occasions I have approached prospects that I knew had solvable issues only to have my offer to help rejected.
Many times these retailers ended up going out of business. When that happened I would often ask myself if I had done everything to the best of my ability to help them find alternative approaches to their business issues. I wanted to understand why any retailer would reject outside input that could quantifiably provide tangible and affordable solutions. Given the many analytical tools expertise and benchmarking comparisons available today reluctance to even consider alternative viewpoints while allowing a business to atrophy is irresponsible at best and reprehensible and arrogant at worst.
A consultant might be right for you if…
- You are doing things as you always have and not maximizing your operation’s true upside potential.
- Constantly being challenged by family and employees on current business practices.
- Find yourself saying…we have always done it this way yet positive results are not forthcoming.
- Find yourself saying…we tried that years ago and it didn’t work.
- Want to learn and grow the business.
- Transitioning ownership to someone that may not have the same background or experience that you have.
- Are open and willing to trying new ideas.
- Are stymied by the current retail environment to the point where you are having difficulty making good business decisions.
- If you are open to seeking independent counsel from outside your organization that may see things differently from the existing management structure.
- If you are surrounded by “yes people” and crave unvarnished input.
- You are repeating behavior that is detrimental to the business.
- You wish to supplement your internal staff without incurring the costs (payroll and benefits) of another full-time executive.
I’m not suggesting that a consultant is the right choice for every situation.
What I am saying is that in the current retail environment you owe it to your company to at least consider the option of using outside expertise if there is the possibility of a better outcome.
Ritchie Sayner
Summary
The article discusses the role and benefits of hiring business consultants emphasizing their ability to provide expertise objective insights and solutions to improve business operations. It highlights qualities to look for in a consultant such as expertise empathy and the ability to challenge the status quo while noting that consultants should be viewed as independent advisors rather than friends. The author argues that businesses should consider consultants when facing challenges or seeking growth as they can offer valuable external perspectives.
“No one cares how much you know until they know how much you care.” — Theodore Roosevelt
Real-World Examples of Consulting
Here are some real-world instances where businesses have effectively utilized consultants to address challenges and enhance their operations.
- A mid-sized retail company was struggling with inventory management leading to overstock in some locations and stockouts in others. By hiring a supply chain consultant they were able to implement a new inventory system that optimized stock levels across all stores resulting in increased sales and reduced holding costs.
- A tech startup was facing difficulties in scaling its operations due to a lack of structured processes. They engaged a business process consultant who helped them streamline their workflows implement automation tools and establish a clear framework for accountability significantly improving their efficiency and employee satisfaction.
- A family-owned restaurant chain was experiencing declining sales and outdated marketing strategies. A marketing consultant was brought in to revamp their brand … develop a social media presence and introduce targeted promotions which revitalized the business and attracted a younger clientele.
