Second Opinion Can a consultant boost your business? Yes, if you follow these tips.

Need an expert's advice to identify your target market? Trimyour operating budget? Or figure out how your small business stacksup against the competition?

Hire a consultant. The right outside specialist can give you anunbiased view of your business, identify problem areas andrecommend strategies to keep your business on track. You can hire aconsultant for almost any business need, from accounting,management and marketing to better business writing and even phoneetiquette.

Consultants can be cost-effective. You call a consultantonly when you need one and get expert advice without adding to yourpayroll. Here's a seven-point strategy to ensure you get themost from a consultant.

1. Understand a consultant's role. Aconsultant is an advisor, not a miracle worker. If your marketingcampaign hasn't increased sales for the past six months,don't expect a consultant to turn business around overnight. Ifsomeone promises to do so, be skeptical. You want a consultant whois knowledgeable in your industry or field and can offer a workablesolution, not a quick fix.

"Look for someone who's been making a living as afull-time consultant for at least five years," suggests KentBurnes, a business consultant and owner of Burnes Consulting inGrass Valley, California. "The only thing a consultant cansell is knowledge. If he or she is working full time and has keptup on changes and new information in the field or industry, he orshe will be of value to you."

2. Identify your needs. Determine what youwant to accomplish, quantify it and write it down. The morespecific you are, the better. You could simply tell your consultantyou're not pleased with the results of your marketing campaign.But asking how you can increase sales by 10 percent or more thisyear will give a clearer picture of what you want toaccomplish.

3. Know what you'll commit. Be preparedto tell a consultant what resources you can provide to help him orher do the job. Consider background materials on your business,plus any office equipment, space, supplies or employees you canmake available.

You'll save your consultant time--and yourself money--if youdo some research first. "If someone wants information on[their] firm's customer base," says Burnes, "it helpsif [they] come to me with customer surveys, demographic studies orother data. With the right information, I can analyze the situationquickly. It's likely I could make a recommendation in ahalf-day rather than a week. This, of course, is more economicalfor the client."

4. Establish fees upfront. Some consultantscharge flat rates or bill by the hour, the day or the project.Others charge a contingency fee, in which the amount paid is basedon the results. For instance, if a consultant reduces youroperating expenses by $10,000, he might receive 10 percent of thesavings as his total fee or as a bonus in addition to his flatrate.

The average full-time consultant, says Burnes, charges $95 to$150 per hour. Some charge much less. "You get what you payfor," he says.

5. Develop a list of questions. Interview aprospective consultant before you hire him or her. Questions to askinclude: "What is your experience in my industry or field? Canyou describe problems similar to mine that you've handled? Canyou offer me full confidentiality and represent me without conflictof interest with your other clients?"

Find out how often the consultant will communicate with you andif you'll receive periodic progress reports. Ask for a writtenproposal spelling out how he or she plans to approach your problem,the time needed and the fee you'll be charged.

As you evaluate a consultant's experience and skills,consider your working relationship. Do you like and trust theperson? Do you have a good rapport with him or her?

6. Check references. Ask a prospectiveconsultant for three recent references--and call them. You want toknow if the consultant accomplished what was promised, if he or shecommunicated regularly and if the company would hire the consultantagain. "Don't rely on letters of recommendation. Theydon't tell the whole story," says Burnes. "Ask forthe names of past clients who run businesses similar toyours."

7. Put it in writing. Prepare a writtenagreement that clearly spells out the terms of your arrangement.Define the services to be performed, the starting and ending dates,the fee and how it will be paid, expenses you agree to pay, andservices you will provide. Have your attorney review and approvethe agreement.

Carla Goodman is a freelance writer in Sacramento,California.

Resources

For more information on hiring a consultant, check out theseresources:

• The Institute of Management Consultants maintains a freereferral service for certified management consultants who'vecompleted the Institute's professional accreditation program,completed an ethics exam, signed a code-of-ethics agreement andundergone a screening process. Contact the Institute at 521 FifthAve., New York, NY 10175, (212) 697-8262 or http://www.imcusa.org

• The Association of Management Consulting Firms provides a freereferral service, categorized by industry and specialty, to helpbusinesses of all sizes select consulting firms. Call(212) 455-8231 or visit http://www.amcf.org

• You can also find consultants through trade associations in aparticular industry. The American Society of Association Executives(ASAE) can refer you to these trade groups. Write to the ASAE at15175 I St. N.W., Washington, DC 20005 or call(202) 626-2793.

• Another great resource is the Service Corps of RetiredExecutives (SCORE). This organization of some 12,400 retiredbusiness owners and executives provides free consulting for smallbusinesses. Call (800) 634-0245 or visit http://www.score.org

Can You Manage?

Sooner or later, you're going to need help running yourbusiness. Good news: You can find that help without going to theexpense of hiring permanent, full-time workers.

For starters, consider hiring an intern--a high school orcollege student who will work for little or no pay in exchange forvaluable work experience. You'll need to identify specificprojects for the intern and guarantee you can spend the timenecessary to train the individual and evaluate his or her work,because most students take internships for school credit.

After you draw up a detailed description of your internship,promote it at the career placement center at your local high schoolor college. The National Society for Experiential Education inRaleigh, North Carolina, provides information on startinginternship programs; call (919) 787-3263, ext. 21.

Local high schools and community colleges are also good sourcesof inexpensive part-time workers, but you'll need toaccommodate students' class schedules and be willing to spendtime on training. That includes tasks as seemingly simple asanswering the phone and taking messages.

Senior citizens can bring a wealth of experience to the job andoften prefer to work part time. Check with senior centers in yourcommunity and your local branch of the federal Office for the Aging(listed in the government pages of your phone book).

If you need individuals with special skills--but you don'tneed full-time help--independent contractors might be just thesolution you're looking for. A one-person advertising agency,for example, might not need a full-time graphic artist orphotographer. Instead, the agency owner could use independentcontractors for photography, design and artwork needs.

If your business relies on skilled work, consider starting yourown work apprentice program. It will mix practical classroominstruction with a year or more of on-the-job training. You'llbe working with entry-level talent you can train and eventuallyhire full time as your business grows. Jobs for the Future can helpset up and evaluate your apprenticeship program; call(617) 742-5995.

Contact Source

Burnes Consulting, (530) 346-8188, ktalk95@aol.com