In the last tax year, entrepreneurs founded more than 672,000 startups in the UK. That works out to over 1,800 new startups each day!
Have you recently launched your own startup? Are you wondering whether or not you should hire startup consultants to help you grow your company?
If you’ve been on the fence about working with a consultancy for startups, keep reading. Explained below are some of the pros and cons of working with business consultants for startups to help you make the right decision.
Before we dive into the pros and cons of investing in startup consulting or hiring a startup consulting firm, let’s review what business startup consultants do.
When you work with an individual consultant or a startup consulting firm, someone will partner with your company for a short period of time. Their goal is to help you improve a certain aspect related to starting your company.
For example, let’s say you have a great idea and prototype but are having trouble finding investors to help you grow your startup. A consultant can assess your approach to pitching your business and work with you to fine-tune it. They can also use their professional network and resources to put you in touch with people who are likely to have an interest in your company.
Consultants are not a permanent part of your team. They’re someone who has industry-specific experience and can provide objective guidance on what it takes to get your company off the ground.
For those who are thinking about working with a startup consulting business, there’s a lot of good that can come from it. Here are some of the most noteworthy benefits you can experience:
When you hire a consultant for startup companies, you get to work with someone who has lots of knowledge about how to help businesses succeed.
If you’re new to the business world or are creating a startup in a field that you’re unfamiliar with, someone who offers consulting to startups can be an invaluable resource. They’ll help you get to know the terrain better and feel more confident in launching your company.
Bringing someone who’s experienced in consulting startup companies onto your team will help to eliminate much of the guesswork associated with running a new business. You don’t have to just throw things at the wall and wait to see what sticks. Business startup consultants can help you learn where to invest your time and money to greater returns sooner.
We’ve all fallen into the trap of focusing on the little details and failing to see the big picture. Maybe you’re spending too much time on product development and not enough time on actually promoting your products, for example, or worrying too much about your social media presence and not enough on your overall brand development.
A business startup consultant is far enough removed from the situation that they can see the forest from the trees. They know how to help you make smart decisions, the kind that can sometimes be hard to make when you’re invested a lot of time, energy, and money into your company.
When hiring an expert who specializes in consulting startup companies like yours, they often provide clear pricing for their services. Most startup consulting services let you know upfront how much you’ll pay and what you’ll get in exchange for that price.
This is often less expensive than hiring a full-time employee. Think about all the expenses that come with that: salary, benefits, increased office costs, etc. Hiring a consultant can also make budgeting much easier, which is something that just about every startup founder can appreciate, right?
There are lots of reasons to pay for someone who provides consulting to startups. However, there are some potential cons associated with hiring a startup consulting business, too, including the following:
Because startup consultancy firms generally are upfront about their prices, it’s easy to budget for their services. At the same time, though, it’s important to note that these prices generally aren’t low.
Consultants are highly specialized. As a result, they often charge quite a bit for their services. Depending on your budget, it might not be easy for you to find a startup consultant who has skills, experience, and an affordable price tag.
A business startup consultant isn’t something you want to skimp on, either. This isn’t like a subscription to a streaming platform — the free version definitely won’t cut it. You get what you pay for, after all, and a cheap consultancy startup professional often won’t be able to provide the kind of guidance you need to really help your company thrive.
When you hire a consultant for startup companies, you get to enjoy a certain level of objectivity. On the flip side, you should remember that consultants don’t have a personal investment in your business.
Because they don’t have much skin in the game, they may not be as committed as you need them to be. You’re invested in them, but they might see you as just another client. This can lead to less-than-stellar results and can hinder the success of your startup.
No matter how great someone seems on paper, at the end of the day, there are no guarantees that they’ll be a good fit for your company. There’s always a risk when you bring on a startup consultant. That’s why it’s important to weigh the costs and benefits for your business, specifically, before taking the plunge.
At the end of the day, it’s up to you to decide which direction you should take with your company. If you’re unsure of whether or not to invest in the services offered by a startup consultancy, here are some additional questions you can ask yourself:
- Do I need an expert’s advice?
- Could my startup benefit from an outsider’s perspective?
- Do I have the resources to spend on a consultant?
- Am I willing to take a risk in investing in consulting for a startup if it can yield a high ROI?
If the answer to any or all of these questions is “yes”, chances are you can benefit from hiring business consultants for startups.
Keep the pros and cons of consultancy for startups in mind as you move forward with launching and growing your business. They’ll help you choose what’s right for you, your team, and the company’s future.
Do you want to learn more about finding quality consulting for a startup or running a successful small business? If so, check out some of the other resources on our site today for additional advice.
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