There are countless reasons to launch a new business. Maybe you’re passionate about a particular product, service, or industry. Maybe you simply want the flexibility or autonomy that comes from working for yourself. Or maybe you feel like you have a one-in-a-million idea that can bring you long-term success.
Whatever your personal motivations for starting a new business, it’s important to seek objective, outside expertise to ensure you’re starting off on the right foot. That’s where business consultants come into play. Consider some of the top reasons to hire a business consulting service for your new venture.
What are the Benefits to Hiring a Business Consultant?
1) Make sound decisions about the structure of your company.
Before you ever open your doors to customers and clients, you’ll need to make some foundational decisions about the type of business you want to run. In particular, you’ll need to determine what legal structure to choose. You can always run your company as a Sole Proprietorship or a Partnership, though nine times out of 10, choosing the LLC model works best.
A business consultant can provide helpful perspective, addressing determinative questions like:
- Is the LLC right for my business?
- Should I be my own registered agent for an LLC, or hire someone external?
- How should I structure my Articles or Organization?
- In which state should I establish my LLC?
Getting sound answers to these questions can ensure the highest levels of legal liability protection and tax flexibility for your new company.
2) Determine the feasibility of your business plan.
It’s great to be excited about a potential business venture, yet it’s also important to temper your enthusiasm with a healthy dose of realism. After all, simply having a great product or service idea isn’t the same thing as having a viable business model, or a concrete plan to achieve sustainable growth.
A business consultant will be able to evaluate your business model, poke holes in it, identify vulnerabilities, and point out things you’ve overlooked… all with the ultimate intention of verifying that your idea has legs, and ensuring you have a plan in place for plausible profitability.
3) Identify opportunities to save money.
It’s easy to assume that hiring a business consultant is going to erode your profit margins. Obviously you have to pay your consultant’s fees, but good consultants pay for themselves by identifying areas where you could be cutting costs and reducing expenses.
From inefficient use of your facilities to a bloated workforce, there are countless ways in which business startups overspend. Again, what you need most is an objective, outside expert who can help you pinpoint areas for savings.
4) Zero in on your target market.
A common issue with new business startups is that they have a decent product to sell, but don’t know who to sell it to. Who are the consumers most likely to benefit from your value proposition? Who will be willing to pay for the service you’re providing? What are some untapped markets where you should be investing your sales and marketing dollars?
A business consultant can help you get a clear sense of your target audience, even providing buyer personas that can guide further marketing and branding efforts.
5) Analyze the marketplace.
The success of your business depends very much on the quality of your product and the efficiency of your team. It can also be affected by external factors: Consumer preferences, competitors, and broader economic conditions.
Analyzing these external factors is critical for positioning your company for long-term success. A business consultant can help you determine not just how to position your company for viability, but how to distinguish it from similar companies in your marketplace.
6) Focus on core competencies.
When you launch a new company, the last thing you want is to have all your time bogged down with financial and legal decisions. On the contrary, most new business owners want to devote as much of their bandwidth as possible to interacting with customers, fine-tuning their product, and developing their team.
One of the main reasons to work with a business consultant is to free up more time for core competencies. Let your consultant sweat the tedious stuff while you maximize your time spent on energizing and value-adding activities.
7) Minimizing your exposure to risk.
Any time you launch a business, you’re opening yourself up to some level of legal and financial risk. While risk cannot be totally avoided, it can be mitigated. A business consultant can help you identify the areas where you are most exposed, providing you with practical safeguards that you can put into place.
Some examples might include:
- Choosing the most moderate investment opportunities for surplus funds.
- Ensuring the right kinds of small business insurance protections.
- Opting for a limited liability structure for your team (usually, an LLC).
A business consultant cannot and should not guarantee that your business will remain legally and financially unscathed, but they should at least provide peace of mind that all the best precautions are in place.
Choose a Business Consultant to Successfully Launch Your LLC
When you start a new company, there are a million different factors to consider… and frankly, there’s no way you can think of them all. That’s what makes it so vital to get a second set of eyes on everything you do, ensuring you’re venturing forward with the best possible strategy for lasting success.
Amanda E. Clark is a contributing writer to LLC University. She is a graduate of Eastern Michigan University and holds degrees in Journalism, Political Science, and English. She became a professional writer in 2008 and has led marketing and advertising initiatives for several Fortune 500 companies. She has appeared as a subject matter expert on panels about content and social media marketing. She regularly leads seminars and training sessions on trends and tactics in professional writing.