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Why do organizations hire Business Consultants


A business consultant helps set the perspective in place and acts as a catalyst for change by improving the efficiency and performance of an organization.

Let us deep dive into the critical reasons why does a business need a consultant:

1)High Expertise on a temporary basis

A business has various requirements during the span of its life cycle. At times, there are issues that require expertise that neither the business owner or the existing team members possess. The consultant is an expert in his field with not only years of experience but also exposure to several problems. He has ready made solutions to several problems by virtue of handling such issues in the past. He is also exposed to all the stages of the business life cycle and can anticipate the future issues. He can thus equip the organization in advance to make them ready to face the same.

Moreover, he is a temporary resource who can be hired for a predefined period of time. Once the pressing problems are solved and systems are set in place by the consultant, the existing team can take over.

2)Diversity of ideas with an objective outlook

A consultant has the advantage of working on several projects simultaneously. His exposure to the market is very high as a result of working with several teams spread over geographically varied markets and channels.

It so happens that when we are inside the problem, we cannot figure out the solution. We need to move away to look at the dots from a distance to be able to connect them. A consultant infuses fresh ideas with his/her out of box thinking when all the existing team mates are stuck in the rut. The consultant can advise without the fear of negative reaction from anyone in the organization.

3)Usually a higher level professional than what a company can afford to hire full time

Companies which are smaller in size often find themselves without the skill sets required for strategizing growth. Hiring expensive professionals and then orienting them from the company’s perspective might not get a consent due to budgetary limitations. In such cases a consultant provides a solution for a specific problem for a limited timeframe at a variable expense to the company.

4)Unpleasant tasks can be easily delegated to a consultant

Sometimes organizations have clarity that they need to take stern actions but they may not be able to confront stubborn senior managers. A consultant has no emotional connect with anyone in the organization. Neither is he apprehensive of the wrath of a senior member.

For example,if a company has decided to lay off several employees and finds it difficult to convey the unpleasant decision, it uses a consultant to break the grim news.

5)Change agents

Business process reengineering is a specialised subject. Current employees might not have the inclination for change; and even if they do, they may use a much longer learning curve squandering the company’s resources. The consultant has a tailor-made approach to the problem- both for strategy as well we execution.

6)Setting up new businesses

A completely new business requires due diligence in terms of preparing a feasibility report, several rounds of deliberation and then drafting a business plan before getting into the implementation stage. Being an expert, a consultant is well equipped to handle the nuances of the start-up journey.

7)Networking

A business requires good professionals, vendors, distributors, dealers, expert guidance on legal, accounting, HR practices. A consultant has a large network and can leverage these contacts for the benefit of both the parties involved.

8)Simpler HR compliances

Hiring a consultant involves much simpler HR compliances as compared to on boarding an employee.


In lieu of all the above, the role of a consultant is critical. Hiring a consultant is well worth the return on the investment whether it is during growth phase or consolidation phase of the organization, provided the orgnization finds a right fit.

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