BUSINESS AND MANAGEMENT SERVICES
Business consultant who fits your business needs can be a daunting experience. Whether you’re looking for someone to help with your high-level strategy needs or a niche, solution-oriented specialist to improve your business.
There are several reasons business owners should consider hiring consultants.
- Providing expertise in a specific market
- Identifying problems
- Supplementing existing staff
- Initiating change
- Providing objectivity
- Teaching and training employees
- Reviving an organization
- Creating a new business
How do you measure the ROI of a business consultant?
- You measure ROI by examining specific key metrics to determine the consultant’s work. Most companies look at their net profits in the quarter before hiring the business consultant and then evaluate their net profits in the next quarter or two after implementing the consultant’s recommendations. You should deduct the cost of the consultancy before calculating the ROI.
How do you determine a budget for a business consultant?
- Hiring a consultant can be a significant expense. Considering that fees vary, it’s essential to establish a realistic and reasonable budget. Consider setting the consultant’s cost as a fixed percentage of your total sales. For example, if your monthly sales are RM10,000, paying a monthly consultant fee of RM5,000, which amounts to 50% of your earnings, might not be advisable. A 5% fee on RM100,000 of revenue seems more reasonable.