What does a Business Consultant do? : Here is the answer. Before understanding the importance of a business consultant for business entities, let’s first understand what are the characteristics of a business and what all activities do business organizations perform in the economy. First and foremost, Business is an economic activity that involves sale and purchase of goods and services. Basic motive of businesses is to mint profit through satisfaction of human wants. However, this objective of businesses is fast changing today. They are required to fulfilling social objectives and operate in a manner that is socially desirable. Supplying quality goods and services, avoiding illegal and unfair trade practices, taking care of the welfare of employees etc. are a few social objectives of an organization. Economic objectives, on the other hand are concerned with profit earnings, survival and growth of the business concern.
Role of Business Consultant
A business may face various problems concerning fund management, effective allocation of resources, survival in the presence of stiff competition, earning goodwill and customer loyalty, uncertainty of future (since a business organization works in a dynamic environment that is constantly changing, various political, social and technological factors impact its smooth functioning), government regulations, risk management, finding the right staff and so on. This is where the professional services of a business consultant comes in handy. The word ‘Problem’ doesn’t exist in their dictionaries. They are solely concerned with finding the perfect solution.
Business Consultants study all the aspects of your business and then make suggestions for the successful operating of the enterprise accordingly. They aim at ensuring that the firm makes healthy profits. In order to become a business consultant, you need a bachelor’s degrees in business administration. However, if you possess a masters degree, you may attract a higher salary. While hiring, employers also look for past experience of work in this field. Business Consultants are required to be well versed with accounting practices and market conditions.
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Types of Business Consultants
Let us now learn about different types of Business Consultants:
1. Management & Strategy Consultant
If you are aiming at diversifying your product portfolio, expanding your markets geographically or increasing your overall capabilities, then hiring an experienced management/strategy consultant is the optimal solution. You can definitely go in for that!
2. Operations Consultant
If a business organization wants to make their production process more efficient, effective and improve its quality as well, then they must hire an Operations Consultant.
3. IT (Information Technology) Consultant
If you want to polish your capabilities and hence make your IT more pliant in meeting the ever changing needs of internal and external customers, then IT Consultants will surely come to your rescue.
4. HR (Human Resource) Consultant
Are you aiming at improving the satisfaction level of your employees, recruiting talented candidates and retaining your all rounders/best performers? Then, hiring HR Consultants will enable you accomplish this goal.
5. Marketing Consultant
Wanna win your customers with a catchy tagline and an attractive logo? Or Are your marketing techniques ineffective in withstanding the tough competition? Do not worry. Marketing Consultants will assist you in winning consumer confidence.
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What does a Business Consultant do?
Now, it’s time to move further and to understand the day-to-day responsibilities of a business consultant. Mentioned below are 7 crucial tasks performed by Business Consultants. So, to understand “What does a Business Consultant do?” read the below mentioned points:
1. To detect problems
One of the main aims of a business consultant is to enable the firm in assessing its weaknesses and strengths. They then work together with the employers in order to work out solutions to tackle the weaknesses of the business organization. Business Consultants help fix various issues like losses due to a decrease in sales, cash flow management, proper management of finance, lack of communication or other internal management problems. These consultants detect problems prevailing in the organization by conducting various tests and then carrying out a research.
2. Providing Remedies
Once the problems plaguing the entity have been detected, both the business consultant and the owner sit down to discuss how they will be going about the implementation of the solution. The employer then puts forward the action plan in front of his team so as to discuss the pros and cons. Finally, tasks and assignments are allotted to each team member according to their capabilities. Hence, initially hiring a consultant may seem to be a costly affair, however, the benefits this step will reap in the long run are beyond comparison.
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3. Promotes Efficient and Effective Utilization of Resources
Sometimes, a firm may not realize that the resources are not being utilized effectively and efficiently. Now remember: do not confuse ‘Effectiveness with ‘Efficiency’. You may be effective but not be efficient at the same time and vice versa. Effectiveness simply means doing the right task and achieving your goals. In other words, all that matters here is the end result. However, Efficiency involves achieving the goals and completing your tasks correctly at the minimum cost.
For example, suppose that the target production level of ABC Ltd. is 10,000 units. Their workers are successful in achieving the target production of 10,000 units. However, they had to operate on double shift due to power failure. In this case, ABC Ltd. is effective but not efficient. Thus, a business consultant can advice you on what is the best approach towards increasing productivity levels, thereby promoting growth of the organization.
4. Increasing Employee Motivation and Morale
Motivation is the process of providing incentives to employees in order to provoke them to act in a desired manner to achieve organizational goals. This boosts the morale of the subordinates and there is an increase in their productivity. Incentives can be both financial (such as pay hikes, bonuses, retirement benefits) as well as non financial (such as recognition, job security, employee empowerment).
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5. Training and Guiding Employees
Training and helping employees increase their productivity, listening to their grievances and communicating their needs to the employers are a few other responsibilities of the Business Consultant.
6. Perform Financial Analysis and Make Reports
Effective Financial Management is very crucial to the success of a Business Organization. Hence, business consultants offer valuable advice regarding investing funds in the most productive avenue.
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7. Evaluating future growth prospects of the Business Organization
Another very important task performed by a business consultant is to take initiatives and the necessary steps to ensure growth and development of the entity. They evaluate the business prospects and set goals to achieve the growth objectives of the organization.
CONCLUSION
For the various reasons discussed above, hiring a business consultant is a one time investment that may turn out to be rewarding for the future of a business organization. You just need to search for the right consultant who has experience in this field and is well informed about the accounting principles and techniques. If you take one right step then you will have no regrets! You never know what may be essential for the sound health of the enterprise. Hence, you must take all the necessary factors into consideration before making a decision regarding hiring a business consultant.
I hope you find this article useful. Thank you.
Author: Manasvi Nagpal