How to Select A Business Consultant -

When your business is struggling with problems you are not able to fix, it might be time to hire a consultant. For many business owners, however, choosing the right consultant is almost like shooting in the dark. According to a recent study, only 7% of businesses feel they know all the questions to ask when hiring a consultant.  This article lays out the selection process for choosing the best consultant for your business.

The process of choosing a consultant is not any different from purchasing other business services. First, you must identify a list of potential service providers and send out requests for quotation (also know as RFQ’s) ... and then possibly requests for additional information, known as requests for information (or RFI’s.) Next, with the consultant, you need to: (i) target desired outcomes, (ii) define a scope of work and (iii) agree on a project budget. Before negotiating a final agreement, remaining concerns on both sides should be discussed and then references checked before selecting a consultant or consulting firm. 

Because so much of the success of a consulting engagement depends on the “human element,” there are a handful of specific questions you should be asking the consultant during the selection process.

Consider the following questions, which are broken down into six-(6) categories, as a checklist you can use to make sure you have been thorough in your due diligence. Evaluate the candidates on each of the following questions using a scale of one-(1) to ten-(10) and total your score to quantify the consultant's fit for your business.

1.      Knowledge Competence: What is the consultant’s educational background and experience ? How well does the consultant -- or consulting firm -- know your industry and the specific problems you are trying to solve ? and how well do they know your marketplace – which should include a good understanding of the political, legal, economic, tax environment, competitive forces that impact your business. To learn more about the consultant’s education and experience, you should review the consultant's LinkedIn page, get a copy of their resume and/or the firm’s statement of qualifications, and ask for relevant case studies. 

2.      Technical Expertise: Some consultants are "generalists," others are "specialists," and the most experienced consultants may claim both general and specific knowledge. After identifying the consultant's technical expertise, you should ask whether the consultant(s) possess any relevant certifications ?  “Certified Management Consultants,” for example, have been vetted for their understanding of consulting and their track record of success; moreover, there are ethical standards to which they must adhere, as well as continuing education requirements they must fulfill.   

3.      Process Compatibility: Questions to ask here include: What models and methodologies does the consultant or consultants use to implement change ? Does their process fit with your business ? And how intrusive will the process be on your business ?

4.      Methods of Knowledge Transfer: Methods of knowledge transfer refer not only to the human element (i.e., the consultant’s communication skills and how they interact with managers and employees,) but also how practical and “hands on” the consultant will be to ensure project alignment and attainment ? Key questions to ask here include: what is the demeanor of the consultant and how is his or her chemistry with your management team and key employees ? 

5.      Performance Assurance: To ensure that you get a substantial project ROI ask: Does the consultant have any kind of performance guarantee ? How do they follow up after the project ?  And do they have a track record of success in similar situations ? 

6.      Character & Ethics: Last, what do their past clients (references) have to say about them ? What are their values ? Do they have past legal issues, BBB complaints or negative Internet reviews ? 

Hiring the right consultant offers many benefits including the ability to: (a) solve difficult business problems that are holding back the business, (b) introduce new ideas and industry best practices, (c) be a catalyst for change -- by being able to work above the organization's dysfunctions, (d) improve employee morale, and (e) get you where you want to be more quickly with respect to the objectives for the project, which could include improved sales, cash flow, profits, quality, customer service, productivity, employee safety, more free time and better overall competitiveness in the marketplace. 

If you are looking for a top-notch small to midsized business consultant, feel free to reach out to the author, James J Talerico, Jr., at 1-800-828-7585, or review the Institute of Management Consultants USA web site for more choices. 

Jim earned his Certified Management Consultant (CMC) designation in June of 2019. Less than 1% of all management consultants worldwide are certified.

About the Author

A nationally recognized small to mid-sized business (SMB) expert, Jim Talerico has consistently ranked among the "top small business consultants followed on Twitter.”

With more than thirty - (30) years of diversified business experience, Jim has a solid track record helping thousands of business owners across the US and in Canada tackle tough business problems and improve their organizational performance.

Has been a regular guest on the Price of Business on Bloomberg Talk Radio, and Jim’s client success stories have been highlighted in the Wall St Journal, Dallas Business Journal, Chicago Daily Herald, and on MSNBC’s Your Business. He is regularly quoted in publications like the New York Times, Dallas Morning News, Philadelphia Inquirer, and INC Magazine, in addition to numerous, other industry publications, radio broadcasts, business books, and Internet media.