Why should startups hire consultants?
Top 6 reasons why startups should hire Startup Consultants.
“You can raise your potential, when you help someone to reach their potential.” — Amit Ray, Indian Author
Startups are inherently in peculiar situations when they launch because they need to prove themselves as a viable business, while still being able to churn a profit at the same time. Many startup founders and CEOs tend to think that they do not need to hire business consultants if their startup companies are already operational and reasonably successful.
If you are a founder of a startup or a startup CEO and you are reading this blog post, we want to ask you a second question.
Do you watch football?
If so, have you noticed that even the best football players in the world have coaches? That's because the coaches are simply the best at what they do.
Similarly startups with huge potential need consultants to grow into smoothly running organizations, reaching the epitome of success.
Highlighted below are the top 6 reasons why you should hire a Startup Consultant:-
1. Startup consultants provide affordable consulting
Consulting and consultants have predominantly been the luxury of the elite few — the business titans, whose ships need gigantic think tanks (a.k.a. consulting firms) for anchoring their strategy.
A 2018 case study reveals that around 57 percent of project-based consultants charge upwards of $5,000 per project on average, depending on the size of the project. Fees for the big players in consulting have been reported to start around $3,200 to over $6,600 per hour.
Such hefty fees cannot be afforded by startups in their growth phase. However, Startup Consultants charge way lesser and understand the budgetary restrictions of startups in their initial phase. Startups need to spend their funding wisely on delivering the product successfully in the market, before anything else!
2. You need to get things done quickly!
Building a startup, by its core definition is a race against time. You are better off outsourcing some jobs to the experts, who, in retrospect, you’ll find saved you countless invaluable hours which you can spend in scaling the company.
3. Know your target audience.
“Build something 100 people love, not something 1 million people kind of like.” — Brian Chesky, cofounder of Airbnb
Startup Consultants can help you understand a holistic and disparate view of the market. A complete understanding of the value chain or customer segmentation helps in market-sizing and targeting the right customers.
4. Enhancing and diversifying skill-sets of the company.
It’s generally a good idea to hire startup consultants that can help you with a specific aspect of your business.
Maybe you’re a marketer and your team is great on product design. but you need help with the design and coding side of things. Whatever your specific situation, consultants are great for short term, targeted work.
5. You get to gain access to the consultants’ network and experience.
Consultants have a ton of experience accumulated over the years and have the right set of connections to help you scale the company in a competitive market. They bring knowledge from multiple domains and this allows them to help entrepreneurs make the right decisions at the right time.
6. Project-based revenue model vs. hourly-rate.
A 2018 Case Study states that 72.5% of consultants based their fees on time. Agreements with Startup Consultants are based on projects-to-be-completed, rather than an hourly-rate which puts the focus on:
Quantifiable business outputs, not time spent.
For example, a marketing project would be about the number of leads generated, instead of just recommendations for improving the process. This allows startups to be in constant touch with Consultants, hence enabling startups to deliver results rather than recommendations.
Businesses, old and new alike, exist in an ever-changing landscape. What’s relevant, timely and appropriate one day can be tired, outdated and inefficient the next.
A good business consultant stays abreast of fluctuations, from market instability to technological improvements, to changes in standards or best practices, so entrepreneurs can stay focused on their primary goal: launching (and growing) successfully.