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What Makes a Good Business Consultant?

December 10, 2010 by Frank Goley, Business Consultant

I have been a Business Consultant for a while now, and I have had some successes and failures, some challenges and obstacles to overcome, along the way. But in the end, the measuring stick of my success as a consultant is completely about whether I am helping my customers to succeed. Contrary to all that is said about what a Business Consultant does, the measure to gauge whether the consultant is any good, is the direct success a company has experienced as a result of the consultant’s advice. I am writing this blog because business consultants are a dime a dozen in the marketplace, and it is dubious whether a majority of them are actually getting companies real results. There are some great business consultants out there, and I am privileged to work with some of them. Unfortunately all the unaccountable, inexperienced consultants contribute to giving the industry somewhat of a mixed report card. Here is some wisdom on what makes an effective business consultant, providing a measuring stick to determine if your business consultant is up to snuff.

Number One Determinant – Is the Business Consultant Highly Experienced in Business?

Business Success can’t be learned in school. It comes from years of business learning experiences and from mentoring with more experienced business people. Same for the business consulting profession- really more so. A Business Consultant is only as good as the accumulated experience the consultant possesses. It takes a minimum of 20 years business experience to make a consultant really effective. If your business consultant does not have a business track record, then I suggest one of two things: 1) Run away, quickly or 2) If you see potential and worth, put in place a consulting contract that is based on results and has major accountability built in (from both sides).

Number Two Determinant – Does the Business Consultant Listen?

Does your business consultant listen intently to what you as the business owner and business as a whole has to say? Does the business consultant have a tried, tested and proven Business Consulting process to effectively engage company principals and personnel in order to obtain the needed information to make assessments, analysis and recommendations? A business consultant is only as good as how well the consultant listens and communicates. Without these two key skills, the effectiveness of the consultant’s work will be highly minimized.

Third Determinant – Is the Business Consultant Accountable to Results?

I see so many Business Consultants that do nebulous work, have no structure to gauge results of the advice and recommendations, and are completely unaccountable to their work. A good business consultant works in the reverse. A good business consulting contract is results and goal based, with milestones established to gauge the effectiveness of the recommended and agreed upon strategies. Such a structure is helpful for both the business owner and the consultant. At the end of the day, I want to see the results of my advice and if things are going as anticipated. Therefore, I have a system in place to identify any issues that arise so I can go to work on making adjustments and changes in strategy to obtain the desired outcome. Transparency and accountability are huge factors in a successful and trusted relationship between consultant and business owner.

Lastly, I know that I know not…

I am open to learning from others (whether from a business owner, another consultant, a business mentor or the like) on a daily basis so that I can be an even better business consultant for my customers tomorrow.

Posted in Business Consultants. Comment

Should You Hire a Business Plan Writer or Business Plan Consultant?

September 15, 2010 by Frank Goley, Business Consultant

Should you hire someone to write your business plan? 

The answer is Yes and No.  You do not want a Business Plan Writer or technical writer to build the business plan.  You can use these writers after the business plan is built to make it more professional (i.e. adapted for a Funding Business Plan).  However, hiring an experienced  Business Plan Consultant can be quite advantageous when building a business plan.

A Good Business Plan Consultant Understands Your Business

A good Business Consultant will take the time to get to know you and your business. The business plan consultant will issue you important business plan questions and requirements for you to answer, which when analyzed by the consultant, will build an effective Business Plan.  Nobody can solely write a business plan for you.  The business owner and management team must be integrally involved in the business planning process as you know your business better than anyone else.  A good Business Plan Consultant harnesses the necessary information by asking the right questions in order to build a solid Business Plan, while applying and providing valuable expertise and experience during the planning process.

Benefit from the Experience of a Business Consultant

A  Business Consultant can also offer years of experience in working with many different types businesses, business stages, and business sectors, utilizing that know-how and experience in building your Business Plan.  If you hire a Business Consultant early on in the business development stage, the consultant will not just help to build an effective Business Plan, but also be available for advice as you implement your Business Plan and grow your company.  A Business Consultant can show you effective ways to maximize profits and margins, while minimizing expenses.  Moreover, a Business Consultant can introduce you to important business networks and connections to bolster your company operations.

ABC Business Consulting offers the best of both worlds:  Business Plan Writing and Consulting Services for companies in any stage and industry, for most purposes, including Business Success Plans, Start Up Business Plans, Growth Business Plans, Acquisition Business Plans, Joint Venture Business Plans, Project Business Plans, Marketing Business Plans, Strategic Business Plans, Funding Business Plans, Venture Capital Business Plans, Investor Business Plans, SBA Business Plans, Bank Business Plans, Lender Business Plans and more.

ABC also offers Free Business Plan Reviews.

Posted in Business Consultants, Business Planning. Comment

Get Business Mentors and Advisors to Help You Start and Grow a Successful Company

July 22, 2010 by Frank Goley, Business Consultant

Starting and growing a successful company is hard. Business knowledge and experience significantly reduce the learning curve and help put a company on a path toward success. There are many organizations out there that can help you, such as SCORE, SBA, SBDC and so forth. But dedicated volunteer advisors and mentors can be a real plus for a company needing expert help and direction.

So the where can you find these people to volunteer their time to help you succeed?

There are often local entrepreneurial and venture groups who have experienced advisors and mentors ready and willing to help you. Or you can do your own research for the right candidates and approach them.

Better yet, there is a new organization called the Founder Space that links company founders with different types of mentors and advisors for close personal help and assistance. The website also provides answers to any questions business founders may have. Furthermore, it links angel investors with founder members. All of this for free. Can’t beat that!

As a Business Consultant, I always encourage companies to have mentors and advisors who can provide non-paid, experienced and objective advice as a company forms and implements its Business Plan. Find yours today!

Video Resource: How to Find a Good Business Mentor

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A Business Consultant’s Process to Help a Business Succeed

May 17, 2010 by Frank Goley, Business Consultant

As a business consultant and planner with many years experience helping companies to succeed, I have refined my business consulting process for best business results. This article will go into detail what a good business consulting process entails, and what a business owner can expect when working with an experienced business consultant.

Steps Taken in a good Business Consulting Process

– Learning about the Business

§  Tour the Company’s facilities

§  Read all the company materials

§  Meet with the Board of Directors, all executive heads, founders and owners, Department Heads and Key Employees.

§  Understand the product or service

§  History of the business

§  Business track record

§  How the business is run

§  How decisions are made

§  How problems and opportunities are handled

§  Company process, trade marks

§  Company’s competitive advantages

§  Financial track record

§  Banking and finance connections

§  How the company is organized quality control

§  Employee incentives, benefits, and wages

§  Meeting the company’s advisors and consultants

– Identifying Problems

§  Problems seen by ownership and management

§  Problems/ issues identified by the business consultant

§  Business consultant given unrestricted access to the company so that problems can be identified

§  Identify revenue points and expense ratios for all products and services

§  Understand tax implications

§  Key: open, clear communications between the consultant and the company’s people.  Trust is vital.

– Identifying Opportunities

§  For every problem/issue, there is a hidden opportunity

§  Opportunities seen by ownership, management, and key employees

§  Opportunities discovered through the business consultant’s process

§  Understanding margins, sales history, and sales growth

§  Understanding and identifying new products and services

– Analysis

§  Business consultant analyzes the identified problems and opportunities while keeping in mind, a clear understanding of the business

§ Business consultant decides which problems and opportunities are important and which are not

§  Identify potential future problems

§  Identify symptoms of problems provide certain conclusions and facts based on the analysis

§  Provide certain conclusions and facts based on the analysis

– Solutions

§  Business consultant provides a plan which provides solutions and identifies opportunities

§  Business consultant illustrates how certain expenses can be reduced and how certain profit areas can be maximized

– Feedback / Adjust Plan

§  Business Consultant receives feedback from the business and its advisers on the proposed Business Plan

§  Business Consultant oversees implementation of the business plan

§  Business Consultant tracks progress of the plan

§  Plan is readjusted as necessary moving forward

§  Business Consultant ensures plan is integral to the Company and intertwined into the fabric of the company.

When an Entrepreneur is thinking about starting up a new business, A Business Consultant can apply a given Business Start-Up Process Analysis to determine if it is a feasible opportunity:

Ø  Analyze and Evaluate the Opportunity

ü  Opportunity timing window

ü  Profit potential for an adequate return?

ü  Can the opportunity be expanded?  Diversification options?

ü  Obstacles

ü  Market needs

Ø  Develop a Business Strategy & Model

ü  Effective Barriers to Entry

ü  Identify and Define Customers

ü  Supplier Relationships and Buyer Conditions

Ø  Resource Audit

ü  Skills and Resources Existing

ü  Resource Gap Management Plan

ü  Internal Skills and Resources Needed

ü  Lacking Resources to be Out sourced

ü  Unique Aspects of Business Model

ü  Cost minimization Strategies for Resources

ü  Regulatory Compliance

ü  Critical Milestones which will minimize the Ventures overall Risk

ü  Contingency Resources

Ø  Acquiring & Leveraging Needed Resources

ü  Control Mechanisms

ü  Motivations of Resource Providers

·         Incentives

·         Will opportunity produce an adequate return?

Ø  Venture Deployment

ü  Management Systems

ü  Attracting and Retaining good Employees

ü  Role of Entrepreneur

·         Management Delegation

Ø  Getting and Distributing Value

ü  Harvesting Options: Be Acquired, Merger, IPO, Secondary Offerings, Sell Company, Liquidate &  Distribute

ü  After Tax Yield Considerations

ü  Factors triggering a Harvest

ü  Factors preventing Harvest

ü  Consideration of Company Participants:  Creditors, Investors, Partners, Owners, Founders, Key Management & Employees, The Entrepreneur

When considering purchasing an existing business, a Business Consultant can employ an effective Business Acquisition Analysis, such as:

v  Products & Services Analysis

v  Management Team Appraisal

v  Operational Analysis

v  Market Position

v  Competitive Factors

v  SWOT Analysis

v  Financials Analysis

v  Valuations

v  Risk Assessment

If the Business Consultant is worth his salt, then the fees paid for the consulting will more than pay for themselves in the extra generated business profits. Ask the consultant what his or her process is, it will tell a lot about their capabilities and experience. Hiring a business consultant is an investment in the future success of your business.

Posted in Business Consultants. Comment

How a Business Consultant can help your Company Succeed

February 16, 2010 by Frank Goley, Business Consultant

A business consultant has many roles and can help an old company re-new itself and find itself again; help founders start and develop a new venture or project; help to turn around a company fraught with problems; help a company identify new opportunities and markets; or help a company develop a business success plan.

A good business consultant has experience working in and with a broad range of businesses.  An experienced business consultant has broad and narrow stroke experience and typically, twenty years or more of accumulated business experience.  Having an MBA from a good business school isn’t enough.  The consultant must have solid real world experience with many types of companies to be an effective consultant.

So what does a business consultant do?  First and foremost, a consultant gets to know and understand your business.  As the business owner, you know more about your business than anyone else.  For this reason, a good business consultant will take the time to learn from you, your department heads and key employees the ins and outs of your business. 

The consultant then goes to work identifying problems and opportunities.  Those may be certain problems and opportunities you point out to the consultant, but also a good consultant will have a process to identify problems and opportunities which a business owner has not identified.  A consultant brings fresh eyes, fresh experience and an open mind to your business enterprise, providing a completely different perspective than that of someone who has been running the company for some time or someone looking to start a new venture.

A business consultant will then analyze this gathered information in order to provide solid solutions and plans for the future.  Often business ownership is so focused on working “in” the business that short term and long term outlooks and strategies are overlooked and neglected.  The consultant re-focuses a company’s strategies in order to solve immediate problems, while taking advantage of future opportunities. Steps taken in a good consulting process include: learn about the business; identify problems; identify future opportunities; perform analysis; provide solutions through a concrete plan; listen to feedback and adjust the plan; and implement and track the plan.

The consultant considers all company input to develop a business plan that will be effective.  The consultant listens to the opinions of the company’s advisors (accountants, lawyers, bankers and other advisers).  The consultant can use Delphi sessions and red teams which contain industry experts and competitive viewpoints.  The consultant also listens carefully to the view points of the company’s ownership, founders, board, top management and key employees.  A final business plan is agreed upon and signed off on by the company with the consultant helping to implement, track and re-work the plan as necessary over time.

When an entrepreneur is thinking about starting up a new business, a business consultant can apply a start-up analysis to determine if it is a feasible opportunity, which includes: analyze and evaluate the opportunity; develop a business strategy and model; resource audit; acquiring and leveraging needed resources; venture deployment; and getting and distributing value.

When considering an existing business acquisition, a business consultant can employ an business analysis, such as: products and services analysis; management team appraisal; operational analysis; market position; competitive factors; SWOT analysis; analyze financials; valuations; and risk assessment.

A business consultant’s derived value pays for itself.  What you pay in fees for a good consultant will pale in comparison to the profitability the consultant’s strategies will create.  A business consultant is an investment in the future success of your company. 

Posted in Business Consultants. Comment