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Salt Lake City Bookkeeping Blog

Seeking Success? Start with Small Business Consulting Services

Posted by Leanne Armstrong on Mar 8, 2017 9:00:00 AM

Seeking Success? Start with Small Business Consulting Services The average entrepreneur has a justifiable belief in their ability to do whatever it takes to run a successful company. After all, they come up with terrific ideas, and launch them as bona fide businesses. But it’s at this point that many business owners become so involved in the day-to-day running of their enterprise, that big picture concerns like financial awareness and long-term planning fall by the wayside.

Did you know that less than 25% of small business owners have a formal plan for transferring company ownership when retirement looms? The fact is that if you want to improve your sales performance, understand where your business is headed, and effectively scale your organization on the way to getting there, you should consider seeking success with the help of an outside expert.

Small business consulting services are particularly helpful in driving business and revenue growth through activities like:

  • financial forecasting and strategic planning,
  • risk and opportunity assessment, and
  • the management of new acquisitions and investments

Researching your options and hiring the right business consultant can be a cost-effective way to access specialized knowledge. In fact, one of the biggest benefits of employing consulting services is the opportunity it provides to leverage the broad range of best practices these seasoned professionals gain from working with multiple companies.

Objectivity is Key

While you’ve undoubtedly done a great job of getting your organization this far, it’s not unusual for the small business to come up short on the necessary skills and knowledge to move it forward in a consistent and sustainable manner.

This common predicament often results from the lack of objectivity we tend to develop where our business approach is concerned. A compelling psychological phenomenon known as the familiarity principle, or the mere exposure effect, explains how the more familiar we become with something over time, the more it appeals to us – for better or for worse. It’s not surprising therefore, that many business owners and managers find it difficult to step back and clearly discern what’s best for their organization.

And that’s where small business consulting services represent an exceptionally worthwhile investment. Professional accounting, marketing, IT, management, and financial advisors have both the experience and the impartiality needed to examine your company processes, plans, and procedures, and:

  • uncover potential problems,
  • create effective solutions, and
  • optimize productivity

Whether it’s a cash flow problem, hiring concerns, or an inability to set and meet relevant business objectives, a qualified consultant does more than advise – they work in partnership with your company to design and implement a winning business strategy.

Business Consulting Benefits

Rather than springing for the high-level salary of a permanent CFO to organize and track your financial performance, consider taking advantage of the small business and financial consulting services that can benefit your company in a multitude of ways. A professional financial advisor can help you to:

  1. Gain a thorough understanding of your company’s fiscal position,
  2. Modify your business practices to improve revenues, and
  3. Give you the framework of knowledge necessary to make better short-term and long-term decisions, while avoiding costly mistakes

Let’s take a look at these benefits in more detail.

1. Financial Understanding

Income statements, balance sheets, cash flow statements – without an accounting background, the financial documents that support your business can read like a foreign language. A financial consultant not only has the capacity to make sense of these numbers for you, they can lend a professional hand in controlling the costs that will keep your business competitive.

Having a thorough understanding of your company’s financial position at any given time will make it easier to optimize operations across the board, including:

  • customer service,
  • human resources,
  • supplier contracts and pricing,
  • shipping and manufacturing, and
  • quality control

2. Increased Revenues

While the need to increase profitability is one of an entrepreneur’s biggest challenges, helping your business to get ahead in today’s economic climate is what a financial advisor does best. One of the finest examples of this is their ability to recognize the significance of the relationship between income, inventory management, and labor expenses. Financial consultants are well-versed in the various types of cost adjustments that can help guide your business along a more profitable route.

3. Better Decision-Making

Even though 75% of business owners say they’re confident in their own companies, the fact remains that it’s the first few years that are the hardest to navigate. It’s not uncommon for the inexperienced entrepreneur to make business decisions based on gut instinct, rather than on facts and figures.

Effective decision-making requires a solid financial foundation, and a qualified financial expert can help you to:

  • Set and achieve regular sales goals
  • Find and implement the most efficient technologies for your business
  • Better position your company to qualify for loans and other funding
  • Establish the cash flow necessary to expand to new premises, launch a successful marketing campaign, or acquire crucial assets

Regardless of the developmental stage your company is at, a business consultant can pave the way to better financial reporting and sales forecasting, while they help your company become investor-friendly and ultimately retirement-ready. In the end, the best reason to take advantage of small business consulting services is the fact that they help you to work smarter, not harder.

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Topics: Small Business Consulting, CFO Consulting, Growth Coach