The power of specialised guidance: Who should you hire to unlock your business's potential?

Today's rapidly evolving business environment frequently calls for entrepreneurs and leaders to turn to external expertise for problem-solving, growth, and innovation. When they decide to seek outside help, it's usually because they need a greater breadth of insight, or a specialist skill set not available in-house. And, because we often do our best work with a fresh pair of eyes and an outsider's perspective, I think engaging external experts can be a smart move for any business when the situation calls for it.

The positions of executive consultant, business consultant, business strategist, and business coach have much in common. They are all about giving advice, directing a course of action, and providing know-how to businesses. They also all serve at the pleasure of the business they are serving; the business owner or executive engages them to serve a particular need. Journeying with 6 start-up companies, I have sought and valued the guidance of each since the mid-90s. Yet I've also become familiar with their distinct purposes—a key to knowing whom to call on when, and for what.

Let's look closely at the fundamental differences, the degree to which each role aligns or diverges in relation to the other, and which specialist you need to hire to unleash your business's potential.

1. Business Consultant: Operational Problem Solver for New and Established Companies

What they are:

A business consultant is someone who helps specific parts of a company's operations do what they're supposed to do and do it more efficiently and effectively. Business consultants typically have specialised know-how that they apply to pinpoint problems and, mostly, to come up with and propose solutions. Sometimes, business consultants will help put those solutions into action.

Who stands to gain the most:

?·????? Start-ups in their scaling phase: When a young startup begins to scale, it faces basic business problems: operations, sales, and, above all, management. Expert consultation can help a new business streamline its operations and solve the basic problems that all businesses confront when they don't grow at a manageable rate.

?·????? Established businesses needing process optimisation: A business in Year 5 or Year 10 might be a good candidate for consulting services if it appears to be slowed down by outdated processes or inertia. A consultant can help such a business cut costs, add efficiency, and similarly solve the basic problems that confront all businesses when they reach a certain stage.

?·????? Companies facing specific challenges: If a company is experiencing a decline in performance or having trouble with certain key functions—like marketing or logistics—that are essential to its business, it can enlist the services of a consultant who specialises in fixing the kinds of problems that the company has encountered.

Example scenario: A fast-growing tech startup that needed help optimising its supply chain to keep pace with soaring demand would be likely to hire a business consultant who specialises in logistics and operations.

Overlap Potential: While business consultants can touch on strategy during operational reviews, their work is more tactical than that of a business strategist. They do not address leadership development in the way that executive consultants or business coaches might.?

2. Executive Consultant: Leadership and Strategic Guidance for Established Companies and Senior Executives

Who they are:

Executive consultants work directly with the senior leadership of companies and organisations to tackle top-level, high-stakes problems. These consultants are often called upon to lend their considerable expertise in the areas of leadership development, executive decision-making, and corporate governance. They can also help steer companies through turbulent times or major, often unpleasant changes, such as when a company is merging with another entity, when it's led by a new chief executive officer, or a major corporate restructuring.

Who would gain the most:

·????? Long-standing corporations in transition: Big, well-established companies undergoing a major change—like a restructuring, merger, or shift in culture—are prime candidates for the kind of high-level consultants who help figure out how to run the company when it’s not business as usual. They give top management the kind of tough love that ensures the company comes out the other side intact.

·????? C-suite executives needing a sounding board: Senior leaders, especially in complex organisations, can make good use of executive consultants when they need advice on making strategic moves or figuring out the next phase in their leadership development.

Consider this scenario: A long-established industrial manufacturer undergoing a leadership change might engage an executive consulting firm. That would ensure the new CEO gets the support needed to lead effectively and aligns with the company's strategic goals.

Overlap Potential:

Executive consultants can offer some strategic guidance, especially regarding governance and leadership alignment, but their focus remains on executive leadership and culture.

3. Business Coach: Development for Entrepreneurs and Leaders in Their Personal and Professional Lives

Who they are:

A business coach is focused on the development and growth of the persona being coached. The coach helps the individual at the core of the business—be it an entrepreneur, a manager, or a senior leader—in enhancing their command of the situation, overcoming the roadblocks they encounter, and achieving their business goals. A consultant typically would give a solution; a business coach doesn’t do that.?

Most likely to gain:

·????? Founders of start-ups and young entrepreneurs: These are first-time business owners who have a lot on their plates and who can greatly benefit from the personalised help that a coach gives. On top of everything else, they have to be good leaders, good deciders, and good managers of their time. A coach can really help them with the mindset and the skill set that lead to long-term success in these areas.

·????? Leaders looking to improve their performance: Mid-level managers or executives who want to work on specific personal challenges benefit from the individualised focus a coach provides. They usually know what they need to improve, but a coach helps them get very clear on what's next and keeps them honest and accountable to their goals.

·????? Small business owns in need of direction: Owners of small or burgeoning businesses often feel at an impasse, unsure of which path to take. These individuals regularly turn to business coaches for assistance.

For example: An earnest young entrepreneur, who is attempting to breathe life into a new venture, turns to a business coach to help with time management, goal setting, and leadership development—vital personal development areas that affect the entrepreneur's ability to run the business successfully.

Overlap potential:

While coaches and consultants may sometimes work with the same types of clients, they do so in different ways and with different end goals in mind. Consultants deal with the what and how; coaching is all about the who and why.

4. Business Strategist: Visionary Planners for Start-ups and Emerging Companies

Who they are:

A business strategist helps businesses determine and enact their long-term goals. They concentrate on the plan’s essential contents: the business model, competitive strategy, and growth path that promise the start-up or company expanded and sustainable success. Strategists usually keep a close eye on market trends, check out the competition, and create an actionable roadmap that aligns the business with a clear mission and credible vision.

?Who benefits the most:

·????? Companies just starting out and looking to grow: For nascent businesses that have gained some momentum but are seeking to branch out, a clear growth strategy is indispensable. It’s here that a business strategist can be most useful, helping to plot a course through the murky waters of market expansion, new product development, or the optimisation of business models.

·????? Companies that are in the process of ‘growing pains’: A strategist can help diagnose the competitive landscape, identify not inconsiderable opportunities for expansion, and develop an antidote for the very real danger of a slowdown in the growth pace.

Example: A tech start-up that has achieved initial success in a niche market may decide to hire a business strategist to help it expand into wider markets while still maintaining its competitive edge.

Overlap Potential:

Business strategists often collaborate with executive consultants since both deal with high-level strategy, but strategists are more focused on market research and competition, whereas executive consultants focus on leadership dynamics and alignment.

Can one replace or perform the role of the other?

While these roles are distinct, there is some overlap in the services they offer. Depending on the needs of the business, one professional may be able to partially fulfill another’s function, especially in smaller companies with limited resources. However, in larger or more complex organisations, the roles are often complementary rather than interchangeable.?

When to use multiple experts:

?·????? Start-up Founders: May engage a business coach for personal development and a business strategist to create a roadmap for growth.

·????? Growing Companies: Could benefit from both a business consultant for operational improvements and a business strategist for long-term planning.

·????? Established Organisations in Transition: Often engage executive consultants and business strategists to ensure leadership and strategy are aligned.

Conclusion

Each role provides unique value, tailored to specific challenges or goals. While some overlap exists, none of these roles are fully interchangeable. The right expert depends on your business’s stage, challenges, and objectives:?

·????? Need personal leadership development? Hire a business coach.

·????? Facing leadership transitions or cultural change? Choose an executive consultant.

·????? Improving operations? Engage a business consultant.?

·????? Planning long-term growth? Work with a business strategist.?

By clearly understanding these roles, you can ensure you bring in the right expertise at the right time, helping your business achieve or even surpass its goals.