Monday, May 25, 2009

Who Hires Consultants?

By Robert Holifield

Before answering the all important question "who uses independent consultants?", it is worth establishing the definition of a consultant. It is widely agreed that a consultant is a person who gives expert advice in a professional capacity.

In business-survival language, a person determined to become an independent consultant has to approach his search for clients with some kind of presumption that he will be able to establish good business relationships with enough people (especially business decision-makers) who will be prepared to consider hiring him (or her) for the expert advice he will be able to offer them and the style and manner with which he will offer it.

Two other important questions to be considered are: who hires the experienced independent consultants that have grown strong reputations over the years and who already have a large network of regular clients? And who is it that will likely hire the aspiring independent consultant who is just starting out?

Accepting that the established consultants will have been newcomers to their marketplace at some time in the past, the now-settled reality will be that they will have built up a reputation and will have proved themselves to be invaluable to the clients they have accumulated since they set-up business They will be hired because of these attributes: the services they offer will have become sound and well-suited to the individual clients. They will have developed an understanding of the businesses and have a serviceable relationship with the personalities they have to interface with; and they will be reliable.

The consultant will provide them with on-call access to his expertise, but only when they need it. They do not need to employ an expert member of staff (with all the attendant liabilities) and find other work for the staff-member to do to fill-up time. Nor will the client need to pay for holiday time or time-off-sick. All these savings are likely to matter particularly to smaller businesses interested in economies wherever they can be found.

An independent consultant will want to be well respected in their niche. They should be known to reinforce their existing expertise by buying relevant trade publications and keeping up their memberships of the professional bodies that will help keep them up to date on professional matters, and even to spend money on important training courses. This also spares clients the need to include any of these in their own budgets for employees.

But perhaps the most fundamental reason why an established consultant will be consistently hired is that most old-fashioned ingredient: reliability. He will be going out of his way to make sure that his clients can feel confident he will always be there for them, ready to help them sort out their problems. Quite often they can't be confident their own staff would be that diligent.

It has to be said that a newcomer looking to establish himself in any type of consultancy will have a tougher job these days than ever before. At the same time as there is more awareness among business managers of the valuable role of consulting support, more and more employees are being exposed to the work that the consultants are doing for their bosses and think to themselves, "I could do that."

If these employees decide to leave the safety of their employers to become independent consultants, some might survive for a time on work passed to them by former managers who they shared a mutual respect with when they worked together. But nowadays it takes a determined person with an entrepreneurial spirit to find and set themselves up as an independent consultant where they will survive and prosper without any corporate cotton wool to protect them.

Market research is an essential part of the aspiring independent's business planning. This period also provides an excellent opportunity to ask for meetings with business managers who do not yet use consultancy services - planting a seed that can be nurtured in the months ahead, so that a portfolio of prospects can be developed.

Who will actually hire him? In largest part it will depend on how good a salesman he is and what expertise he has to offer. "Mr CEO, we have met before and you have explained why your company doesn't employ consultants. I have been thinking about our discussion and it occurred to me ...

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