Business Consulting Firms Explained

A business consulting firm is a team of industry experts who work to solve problems and identify opportunities within a company. Using problem solving skills, in-depth industry knowledge and hands-on experience, a consultant has the ability to transform a struggling business into a thriving enterprise.

The job of a consultant is to take a company from point A to point B — from the present state to the target state. Consultants vary in their approach; some travel to their client’s location while others operate entirely online. Some take on long-term projects while others provide quick solutions to specific problems. Based on their skill set, a business consulting firm may specialise in management, IT, finance, operations, or all of the above.

A business consulting firm will tailor their services depending on the size of your company, the problems you are facing, and the industry you are involved in. However, generally speaking, they will assist in the following ways:

● Providing strategic advice
This can span anything from considerations that need to be taken into account when conducting a merger to tips on expanding a small business
● Business reporting and working capital management
Preparing KPI reporting and cash flow forecasts to identify issues and converting growth to cash
● Implementing projects
A consultant has the ability to not only develop a strategic plan but also implement it.
● Training of employees
Having identified areas of weakness in a business, a consultant can be brought in to upskill employees.
● Coaching
Similar to training but on a more long-term basis, many consultants are brought on to provide high-level managers with the skills they need to lead their company towards success.

Objectives of a business consultant
Consulting is much more than simply giving advice. A good business consultant understands the unique challenges that their client is facing and offers tailored solutions based upon previous experience.

One of the biggest advantages to hiring a consultant is their ability to provide an objective viewpoint of your situation. Good decisions can only be made when you have all the facts and a consultant will only give opinions that are both informed and impartial.

With that in mind, the objectives of engaging a business consulting firm include:

● Diagnosing a client’s problems
● Making recommendations based upon their diagnosis
● Implementing solutions
● Teaching clients how to solve similar problems in the future.

Types of business consultants
Within the broad term ‘business consultant’ exists a wide variety of specialists, who can use their niche skills to improve operational and financial performance. These include:
● Strategic consultants: Work with upper management teams to draw up short and long term plans
● Operations consultants: Assist to improve the operational performance of internal teams, such as HR, finance, production or sales. Operational consultants can work in a hands-on capacity or simply offer advice.
● Financial consultants: A financial consultant will handle various issues relating to the financial performance and viability of the company. This includes mergers and acquisitions, taxes, investments, risk management, debt management and more
● HR consultants: A HR consultant can advise existing HR managers on how they might improve performance or can implement policies and procedures themselves.

Businesses today encounter challenges of all shapes and sizes — there’s no need to face these problems alone. A business consulting firm can provide expert knowledge, skills and assistance to take your company to the next level.