Myths About Consulting Firms
According to data from the INEGI Mexico Economic Census, small and medium-sized enterprises (SMEs) generate 72 percent of employment in the country and 52 percent of Gross Domestic Product (GDP). Despite its importance for the Mexican economy, many fail shortly after launching into the market and the main responsibility is a poor operation of the business plan. Although the most viable way to eliminate uncertainty is to seek help, less than 12 percent of companies seek expert advice or seek the services of consulting firms. The mistake of many entrepreneurs is not seeing the potential that consultancies have to improve their processes and thus their profitability, rather than an expense, it is an investment.
According to Jorge González Gasque, CEO of G2 Consultores:
"There are companies that initially do well but when they start to grow it is when they get stuck because they do not have the skills for this new stage of business. Entrepreneurs are not ashamed to say that they need investment but they do need help".
Here are four myths and realities about business consultancies.
1. Consulting is very expensive
Global management consulting firms have made the field of business consulting seem expensive, for example, some American consulting firms have a price range of $ 150,000 or more. The reality is that there are much cheaper options and, depending on the type of service, prices can vary radically. It is important to keep in mind that there are specialized consultancies in different lines and types of business, so you should identify who can best support the business according to your particular needs.
2. What will a stranger know about my business?
Directors feel that they are the only person who can truly understand their company, especially if they are also the owner or founder of the company. Although they know their product and market in depth, running a business successfully requires knowledge of strategic planning, market strategies, financing, among many other areas. A consultant is an expert at examining business from a new perspective and quickly focusing on issues that may have been overlooked.
3. It will take too long
The last thing an entrepreneur or executive can afford is to waste time on the logistics of an unexpectedly complex consulting process. The reality is that a professional consultant provides a defined process and approach, designed to minimize time commitments by senior managers. It will certainly take some time, but in most cases what is most essential is access to allow the consultant to gather information, collect data, review documents and interview people. In short, the consultant will spend a little time with more people, rather than spending a lot of time with one or a few.
4. Not for companies like mine
In most cases, the director of the company is a man of the orchestra and considers that there is no one to teach them something new, so he does not consider that a management expert can help him to increase his usefulness. The task of the consultant is, after diagnosing, the transmission of previous experience regarding managerial decisions, the resolution of problems or the carrying out of projects to optimize the processes of the company. The great value of the consultant is his experience, knowledge of technologies, his ability to identify situations and realize the possibilities that exist for a business. Well-defined and properly implemented consulting is the best investment any company of any size can make. Decreasing the expense of resources, increasing response times and generating greater value in product delivery always generate a positive impact on profit.