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Consultants…it seems that in the modern business world, it’s hard to avoid this term, and the reactions to those faced with hiring those billing themselves as “consultants” range the gamut from irrational exuberance and enthusiasm to cynicism, skepticism, and distrust. When evaluating the potential hire of a consultant, a business owner or executive should bear a few things in mind before making a decision.

What is a Consultant?

First and foremost, it is my belief that the term “consultant” has been abused and co-opted for years by a wide variety of people, some well-intentioned and even quite capable, others little more than hustlers, charlatans and the unemployed (it has been standard practice, sadly enough, for many resume experts to tell people to label themselves as “consultants” when in between full-time work, even if they have never successfully sold their services to a paying client). At the end of the day, virtually anyone can hang a shingle and brand themselves as a “consultant,” tossing out amorphous industry jargon and buzzwords and charging clients for billable time or ill-defined deliverables.

Black Rock Consulting

In the interest of full disclosure, I currently earn my living rendering a variety of professional services to entrepreneurs and businesses of various sizes, and only reluctantly use the shorthand of “consultant” when convenient or as polite cocktail conversation. In my own case, my offerings are based on my abilities as a writer, project manager and strategist, which are all certainly open to evaluation by a prospective client. Unlike many consultants, I advocate a “full life cycle” approach and rather than simply dispense generic advice or recommendations that I ultimately cannot be held accountable for, whenever possible I seek to implement the solutions that I propose. As with most things in life, having a good idea or solution to a problem is only part of the battle – execution is where the rubber meets the road.  Fundamentally, a good consultant or consultancy of any stripe will help your business identify and solve a defined problem or problems, and will do so with your best interests in mind. This requires ethics and honesty, as well as the ability to recognize when additional expertise may be required, which is something that not all consultants or consultancies seem to grasp.

When to Hire a Consultant

So at what point in a venture’s life cycle is a consultant actually useful? That can depend on a number of factors. There is certainly a case to be made that the right consultant with the right skills brought in at the conceptual stage of a venture can deliver very tangible value, and potentially prevent costly expenditures in the future. For example, many people are intimidated by the process of developing and writing a business plan and seek to outsource this process. Consequently, there is a teeming multitude of individuals and firms with varying degrees of competence and price points all over the map offering to develop plans. Now some successful business people believe it’s a mistake to outsource such a fundamental task, because if a venture’s management team or the entrepreneur launching the business doesn’t understand what goes into the business plan, they have virtually no chance of actually executing against it. My own perhaps biased observation is that while there is certainly value in having the business founder or senior management team perform research and take a stab at drafting a plan (after all, there is software to guide you through the process and any Web search will reveal plenty of free resources and sample table of contents), ultimately having an outsider with the experience and writing skills to help polish the plan is invaluable. This is especially true if the business plan will be utilized to raise capital from outside sources. Not only can this bring a fresh perspective and “reality check” to the process, but it can help vet ideas and assumptions that otherwise might go unchallenged.

Short-Term Projects Requiring Highly Specialized Expertise

More mature businesses can find value in consultants when they find themselves facing unforeseen or challenging market conditions, or are considering the introduction of a new product or service and need to validate a market need for such an offering. A consultant can also deliver tangible value if a business is in need of particular subject matter expertise that is simply unavailable internally. Other consultants with financial industry backgrounds can help business owners to acquire competitors or to sell their own business for the best possible return.

In any case, a qualified and honest consultant will always be willing to put in writing the service or services which are being offered, and will take the time to explain and clearly define the nature of any physical deliverables associated with this work.

Consultants can be Effective Change Agents

In closing, note well that hiring a consultant is not a panacea.  You should never hire a consultant to simply validate your own suppositions or biases or to “rubber stamp” decisions as a fait accompli. If you do not empower the consultant or those within the company to effect change once solutions are identified, it’s a waste of time and resources.

While “consulting” may get a bad rap in some quarters, and sometimes deservedly so based on sketchy providers with no track records to speak of, there are valid reasons to recognize when you may be out of your depth and require the services of a trusted adviser that will help you realize your goals, both in the short and long term.