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The field of business consulting in Israel has been gaining momentum in recent years, but as of 2018 it is still not regulated by law and is in the legislative stages. Business consulting is designed to provide tools and professional support to entrepreneurs and small and medium-sized businesses, with the aim of improving their operations and leading to economic growth.
Business consultants bring with them extensive knowledge in areas such as marketing, finance, logistics and strategy, and provide personalized support for each business. Consulting services include, among other things, assistance in establishing new businesses, developing markets, implementing innovation and recovery processes. In an era where competitiveness and innovation are key to success, business consulting is a key tool for leading businesses towards a promising future.
The business consulting process
The business consulting process helps organizations improve their performance and achieve clear business goals. It is suitable for small, medium, and large businesses in situations of growth, change, or challenge.
Business diagnosis and strategic plan development
Business Assessment :
A business assessment maps and documents the current state of a business. This process includes examining areas such as strategy, pricing, operations, marketing, and financial management. For example, a company looking to improve its profitability examines its cost structure and product pricing.
Building a strategic plan :
After the diagnosis, the business consultant builds a customized action plan. This process includes setting short- and long-term goals, prioritizing steps, and tracking results. For example, consulting for large businesses may include planning for entering a new market or increasing production capabilities.
Ongoing support and supervision of implementation
Regular meetings :
The consultant holds regular meetings with the business management to review the implementation of the recommendations. During this process, progress data is reviewed and obstacles that are discovered along the way are addressed.
Project Supervision :
A business consultant also oversees key business projects, such as developing new products or improving work processes. For example, if a small business is failing to close sales, the consultant helps improve sales scripts and analyze customer objections.
Consulting adjustments :
In the event of new challenges, the consultant adjusts the recommendations according to market data, while maintaining the original business goals.
Choosing a suitable business consultant
Choosing the right business consultant can have a significant impact on the success of your business. To ensure an effective consulting process, you should put some thought and research into choosing the right consultant.
Criteria for choosing a professional advisor
- Experience in the field : A business consultant with extensive experience provides a built-in advantage to a business. Make sure the consultant has relevant experience in the business’s industry, for example, manufacturing, marketing, or logistics.
- Recommendations and credibility : It is worth reviewing recommendations from businesses that have used his services and checking his level of credibility. A combination of academic knowledge and practical experience increases his professional value.
- Industry expertise : It is important for a business consultant to be familiar with the dynamics of the industry your business operates in. This familiarity allows for tailored solutions to specific challenges, for example in the communications, retail, or technology sectors.
- Listening and critical thinking : A quality business consultant knows how to listen to the needs of the business and also offer constructive criticism for implementing changes and improvements.
- Marketing and Business Development : Marketing consulting is suitable for businesses looking to expand into new markets or increase exposure to their customer base. Examples include targeted campaigns and strategic planning.
- Financial and economic : Financial consulting provides businesses with solutions for managing cash flows, tax planning, and reducing expenses.
- Innovation and operational efficiency : Medium and large businesses that need to improve their performance can benefit from innovation-focused consultants who integrate advanced technologies to streamline business systems.
- Implementing regulation and complying with standards : Assisting businesses in developing and implementing regulatory processes, for example in industry or import.
Understanding the consultant’s areas of expertise will make it easier to find a business consultant that suits your business needs, whether it’s consulting for large or small businesses.
Models and prices in business consulting
Business consulting is carried out in a variety of models that differ from each other in pricing structure and tailoring the service to the client base. These services are intended for small, medium and large businesses, while adapting to the various needs in the business development processes.
Initial consultation meeting
An initial consultation meeting allows business owners to get to know the business consultant and explore the nature of the service. In many cases, the meeting is offered without cost or obligation, and is used to basic mapping of the business situation, including identifying opportunities for improvement. For small and micro businesses, this is a critical meeting designed to provide an initial snapshot.
Hour bank vs. retainer
The billing model ranges from an hourly bank to a monthly retainer, with the choice depending on the needs of the business.
- Hour bank : Hourly billing usually ranges from 300 to 800 NIS, depending on the consultant’s expertise and the level of service. This model is suitable for businesses looking for focused solutions within a specified time.
- Monthly retainer : Businesses that prefer regular support pay a monthly amount, which varies according to the size of the business. Small businesses, for example, pay between 1,000 and 2,500 NIS, while large businesses may pay up to 8,500 NIS per month.
Benefits of business consulting
Business consulting provides clear benefits to managers of businesses, from small to large. The focus is on improving performance, financial management, and developing effective branding and marketing.
Improving business performance
Improving business performance is possible through accurate and clear analysis of business processes. Identifying areas that require improvement, such as team management or task optimization, is done using customized tools and detailed surveys.
Building a detailed work plan provides a framework for measuring and improving performance. The plan includes defined goals and tools for measuring progress. During the implementation phase, continuous monitoring is carried out to ensure that the goals are achieved and that they are adapted to the needs of the organization.
Efficient financial management
Business consulting helps a business run efficiently financially, through budget and cash flow analysis. This process includes identifying financial redundancies and finding ways to maximize profits.
In addition, the business consultant supports the determination of budget strategies such as resource allocation, product or service pricing, and the implementation of advanced cost management mechanisms.
Proper branding and marketing
Proper branding and marketing improve a business’s competitiveness. Business consulting helps develop targeted and effective marketing strategies tailored to relevant market segments.
This process includes building marketing strategies, making the most of social media, and using clear metrics to measure advertising success. This focus improves brand awareness and reduces unnecessary marketing costs.
Who is business consulting suitable for?
- Declining Profitability:
A business is experiencing a persistent decline in profits, despite efforts to improve performance. A business consultant can identify the causes and advise on methods to improve profitability. - Inefficient financial management
When cash flow is not managed in an orderly manner, or difficulties arise in meeting payments, it is appropriate to consider business consulting to assist in budget management and proper control. - Operational inefficiencies
Business owners who identify problems in internal processes, such as supply chain delays or duplication of work, can improve the situation with a clear roadmap from a business consultant. - Difficulty in market competition
When a business has difficulty standing out from competitors, a business consultant can develop customized marketing strategies aimed at increasing market share and improving the business’s branding. - Lack of strategic planning
If the business operates without clear goals or an organized plan of action, business consulting can lead the process of building a strategy that will include defined priorities and goals. - Introducing new products or services
When a business wants to expand operations or introduce new products and services, a business consultant will provide marketing and operational insights to help ensure the success of the launch.
