How Business Consultation Can Help in Growth of SMEs?

Understanding The need of a business consultant

Should we presume that small firms in developing nations lack business skills and that providing guidance and training will help them improve? According to economic theory, businesses should do whatever they can to increase profits, including paying for management consulting. Interventions ranging from brief lessons at microcredit meetings to long engagements with foreign consulting companies are all aimed at improving management practices in developing countries. Still, there are numerous business houses out there that haven’t done MSME registration and they even lack knowledge about the benefits of MSME registration and fail to claim the advantages laid out by the respective government.

Small business owners are used to making all of the company’s decisions and controlling all elements of its development and day-to-day operations. They may, however, miss the situation and difficulties that only outsiders can objectively view and comprehend.

One option is to hire a firm or an individual consultant to provide small business consulting services. A consultant may assist a small firm focus more on growth by cleaning out those difficulties.

MSME Story brings you a graph that highlights the major components of MSMEs operating in India

Major Components of MSME

Source: Ministry of Micro Small and Medium Enterprises

What are the most frequent ways that consultants assist small businesses?

Ways That Consultants Assist Small Businesses?

MSMEs have challenges when it comes to spending money on consultants. They do not believe it will benefit them, they are unsure who and how to approach, they have more important concerns, they lack confidence in external specialists’ ability to bring value to family business matters, and, lastly, they just do not have the funds and moreover, they haven’t even applied for SME registration. Here are a few examples of areas where consulting services may be quite beneficial:

Planning and Business Development:

Whether you’ve just started a company or have been in business for years, the road to the next level of success may not be obvious. A small company owner can obtain advice choosing the appropriate business model for certain products or services by working with qualified small business advisors. Qualified consultants may also aid with the development of a business plan, which can help with funding and the launch and growth of a company.

Business Strategy:

A brand strategist may also be a small company consultant. One of the most difficult elements of running your own company is figuring out how to help it grow, develop, and nurture. A consulting firm or an individual consultant may propose particular methods to attain the objectives like expanding the business domestically or going beyond the line to set up business in another country, adding more lines of merchandise, or franchising with other firms in addition to helping you map out your small business growth path.

Marketing & Sales:

A professional consultant who deals in small company’s marketing and sales can guide you through the process of developing a marketing strategy, including how to handle social media, influencer marketing, SEO techniques, sales methods, and content marketing.

It’s beneficial if the consulting firm is familiar with your sector or specialty and knows which tools, platforms, and techniques are effective for your target audience. They should also have a proven track record of creating and managing campaigns.

Human Resource, Recruiting & Staffing:

Human resources, recruiting, and staffing have grown increasingly complicated and are crucial to a company’s success. Because the candidate pool isn’t always as large as you’d like, working with a business consultant who has contacts and talent referrals can help you fill in the loopholes in your organization’s abilities and expertise.

HR departments now have to deal with a slew of other complicated concerns, such as how to properly manage inclusion, diversity, sexual harassment, and new forms of benefits, as well as new workplace regulations concerning remote work, telecommuting, and freelance labour. Because this role of a small business has gotten increasingly difficult, a consultant who is knowledgeable about the challenges and possible solutions may help your company run more efficiently.

Crisis Management & Problem Solving:

Even the most seasoned small company entrepreneurs weren’t prepared for all of the unforeseen (and even predicted) events and issues that emerged over time. The pandemic is a dramatic illustration of the kind of crises that can arise out of nowhere, leaving you unsure of how to handle the crisis and keep your firm afloat. Other scenarios may include a data breach, a natural disaster, an industrial accident, consumer injuries or illnesses caused by your product, and so on.

A business consultant may also assist you in developing a business continuity strategy, identifying your weaknesses, and recommending solutions before tragedy strikes.

Cash Flow & Finance:

Firm finance may be a complicated issue, ranging from small business accounting operations to high-level financial and cash flow analysis. When it comes to this aspect of their firm, most small business owners blow it.

Certification establishes the required legitimacy for the business owner to trust a consultant with the financial information. They may point out areas where it might need to cut back on spending, as well as providing advice on setting up an emergency fund, retirement accounts, and better tax planning.

IT & Security:

Information technology and security management are two additional crucial aspects of your company. It’s more vital than ever to be mindful of your IT systems, thanks to its because of expanding online presence and the necessity to perform remote work, as well as an increase in data breaches.

A business consultant who specializes in IT and security might help you fill in the voids and abilities in this area, as well as secure your own and your customers’ data. You can protect your hard-earned money by avoiding fines, penalties, and litigation as a result of security breaches.

How and where can SMEs find a professional business/growth consultant?

Business Consultation

It is critical for SMEs to explore outside their immediate network for the proper sort of mentorship and to be clear about the assistance they require:

  1. Identify the problem that needs to be solved by a consultant/mentor.
  2. Work with the consultant to determine the intended goal.
  3. Create a mentor profile that includes experience, knowledge, exposure, and education.
  4. Make a list of possible business consultant/coach and professional platform sources, such as online communities, trade organizations, accelerated groups, alumni groups, incubators, and so on.
  5. Become a member of these organizations, look for suitable business advisors, and contact them with a particular request.
  6. Discuss if the intended collaboration is a suitable fit for the firm with the possible business advisor/consultant, as well as the time commitment he/she is prepared to make.

Indian SMEs that can access a business advisor’s or consultant’s knowledge network can boost their growth dramatically. With all eyes on this area and its significance to India’s economic health and job creation, now is the ideal moment to locate your advisor and coach and lean on their knowledge to help you succeed in business.

In India, SME mentoring and consulting are still in their infancy. People like Varun Surana who specializes in business and growth consulting and coaching for SMEs to solve their problems by helping them take the next step in their business. Are you an SME entrepreneur looking for consultation and advice that will help you expand your company exponentially? Click HERE to know more about the business & growth consultant Mr. Varun Surana.

Also Read: AN IMPORTANCE OF BUSINESS CONSULTANT

Comments (1)

Very helpful and used for all SME business….

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