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March

Does Your Startup Need a Business Consultant?

We hate spending money on things we think we can do ourselves. Maybe you feel the same way about seeking advisory services for your business too. Why should you pay a business consultant when you could manage your finance yourself?

Starting a new business is always exciting. The economy is growing at a steady rate, which means your startup is enjoying more businesses and getting bigger day by day. At some point, however, you will need to start thinking about your startup’s finances and whether you need a expert to manage your finances.

Given the quantum of challenges that a start-up has to tackle, hiring a large scale consultancy business at an exorbitant cost is an unnecessary expense that only a few startups can afford. Now that brings us back to the pertinent question, whether a business consultant is required to be hired? The answer is a big YES. There are many business consultants who offer affordable services for smaller companies so that cost does not become an hindrance for your growth any more.

We are going to take a look at how an experienced business consultant can help your startup grow at a healthy rate and reach new heights:

  1. Setting a Target: Growth is always not guaranteed, especially with startups. Just because you’re growing on the back of new customers and business today, doesn’t mean they will continue to flow tomorrow. Instead of relying completely on new client winnings to push your business forward, you can actually use good financial management techniques to help maintain a steady rate of growth. An experienced business consultant can help you set up your budgets and track them through the year by providing you accurate forecasts. So that you don’t have to face any surprise when the books are closed in March.
  2. Develop a Strategy: Where do you see your business in five years’ time? Do you have the right entity structure to optimize tax? Where to set up your new branch to avail the tax exemptions? Is my business model scalable? This can also be business decisions like whether to hire more employees now? How to structure your employee benefits in order to attract & retain the best talents? Are you burning your cash at the right places to grow? You can avoid a lot of startup mistakes and ensure a steady rate of growth if you engage the right business consultants at an early stage.
  3. Manage Business Risks: Risk management is both easy and difficult. It is easy to identify the risks once you are facing them. On the other hand, foreseeing the risk and mitigating it can be rather complicated. Risk management is an important part of any business as the regulatory and dynamic business environments creates a lot of opportunity for the business to go wrong. Working with business consultants will help you to evaluate your risks and have better control over them.

Some of these questions posed above are often too difficult to answer by yourself. To have a sound strategy and financial plan for growing your business, talking to a business consultant is the way to go.