Every entrepreneur has issues running a business, but not all issues are problems. Some issues arise due to growth. The winter of 2009-2010 was prime example for those snow contractors working in the mid-Atlantic states. That type of forced growth brought about its own set of issues – cash flow management, equipment procurement, scheduling, human resources and the headaches that come with working day and night keeping customers happy.
The winter of 2011-2012 provided another type of challenge – survival due to very low snowfall totals.
Many times, contractors are faced with emotional issues that come with running a small business – how to keep from stepping on landmines that are often hidden in the business landscape in some form or another. When is it time to bring in a consultant?
When hiring a consultant look for someone with experience in the industry you are working in. Question whether this person is someone who ran a company for only a few years, grew it to a size that is half the size of your current operation and then proceeds to tell you what you are doing wrong in your operation is someone who has not experienced your problems or concerns.
The same goes for the person who has a canned pitch about how they can get you to the next level if you just follow their pre-planned, proven or patented program and has had as many as five whole years sales experience for some other company in the same industry as yours. You need to filter through who has really been through the heat of battle and who has watched the battle from the sidelines.
I’ve stepped on all the landmines in my day – and my job as consultant is to help companies and company owners avoid those landmines. A good consultant gets to see what others are doing and can suggest things to companies as alternatives to the standard trial and error method of managing a business. The consultant may function for a time as “sales manager” overseeing the sales teams approach. Some will have a knowledgeable consultant function as “operations manager.” Still others just need an outside consultant to function as sounding board to bounce thoughts and ideas off of. Sometimes, it becomes necessary to help the owner step back and not try to “do it all.”
I tell my customers that my job is to work myself out of a job. A good consultant proposes several difference scenarios for involvement along with timelines and projected costs, as well as goals for the consultant and his involvement. Then, you decide how best to proceed and how all this might fit into any budget parameters you have. A good outside advisor/consultant should also work to establish good business practices regarding budgets, accounting and working by the numbers.
Remember, a good consultant doesn’t just come in, review what’s happening, leave a binder behind and say “follow this.” That’s not consulting – that’s just generating money for the consultant. There needs to be a return on your investment in this individual/team/advisor and their time, and that needs to be measured in some fashion.
Explore the May 2012 Issue
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