The field of business consulting occupies a central place in the modern business world, especially for small and medium-sized businesses looking for ways to develop and become more efficient. Despite its importance, as of 2018 the field in Israel is not regulated by law, but is in the stages of legislation aimed at defining the profession of business consulting and ensuring professional standards.
Business consultants specialize in a variety of fields such as marketing, financing, logistics and innovation, and provide personal support to businesses at various stages – from establishment to recovery and development. Through professional mapping and tailoring unique solutions, the consulting helps businesses face challenges and achieve goals in an optimal way.
What is business consulting and who is it for?
What is business consulting?
Business consulting is a service designed to assist business owners and managers in making decisions and improving business results. The service focuses on two main methods:
- Long-term strategic support : the consultant regularly accompanies the CEO of the business, while performing comprehensive analyzes of all the company’s departments and emphasizing ongoing strategic aspects.
- Focus on solving specific problems : a goal-oriented and short service, aimed at a one-point solution such as project planning or formulating a unique plan.
Who is business consulting suitable for?
Business consulting is intended for business owners and managers at different stages of the business life cycle:
- Those who are ready for change : suitable for managers who wish to make adjustments and reduce operational burdens.
- Open to new knowledge : It is important for the success of the process that the business owner is open to learning and continuous improvement in order to upgrade the business’ achievements.
- At all stages of the organization’s activity : relevant to businesses starting in the stages of establishment, growth, or in times of crisis and additional development.
Business consulting works in a practical way, and is aimed not only at identifying difficulties and opportunities, but also at developing applicable strategies and action plans with economic and structural value over time.
The benefits of business consulting
Business consulting provides businesses with professional tools that can lead to continuous improvement and long-term growth through identifying problems, taking advantage of opportunities and developing effective action plans.
Improving financial conduct
Business consulting contributes to a deeper understanding of the financial structure of the business. Using analytical tools, the consultants perform an analysis of financial processes and cash flow. They locate gaps in financial management and provide tailored solutions. Businesses that work with consultants expect a 30% increase in realizing long-term growth opportunities. For example, you can identify potential financial dangers such as bad debts and prepare a coping plan.
Development of marketing strategies
Building a targeted marketing strategy is one of the prominent advantages of business consulting. The consultants determine a clear marketing vision based on market and competitor analysis. They help the business adopt a customer-oriented approach that emphasizes unique values that differentiate it from the competition. An example is establishing a digital marketing plan that sets measurable goals and using a variety of social media tools.
Proper management of human resources
Business consulting focuses on improving the management of the existing personnel in the business. It is possible to improve the communication mechanisms between the business owners and their employees and adapt the goal systems to the compensation structure in an effective way. Current models help identify ways to motivate employees and reduce burnout. For example, businesses that use these mechanisms report an increase in employee satisfaction and a direct contribution to improving work productivity.
Types of business consulting
Business consulting provides tools to identify problems and opportunities and to implement strategies adapted to the needs of the business. It includes diverse areas that are focused on improving performance and increasing profitability for businesses of all sizes.
Financial advice
Financial consulting focuses on smart and accurate financial management of the business:
- Budget management : creating a budget that allows controlling expenses and planning future profits.
- Cash flow : prevention of liquidity through monitoring and monthly planning of cash flow.
- Capital raising : assistance in financing the business through funds, loans or private investments.
Marketing consulting
Marketing consulting focuses on the development of strategic marketing plans that are adapted to the goals of the business:
- Sales strategies : improving sales processes to increase revenue and competitiveness.
- Market analysis : Examining trends and adapting products or services to customer needs.
- Improving customer relations : strengthening customer loyalty and improving the service experience through digital and personal tools.
Legal advice
Legal advice ensures correct management and compliance with standards of the legal aspects of the business:
- Contracts and agreements : drafting and professional review to prevent legal risks.
- Compliance : Verification of compliance with the laws and regulations required in the operating market.
- Detailed action plans : integration of adapted solutions for long-term growth.
- Integrative solutions : connecting different management areas such as finance, marketing and operations.
- Measurement results : creation of clear stages that allow for tracking improvement and structural change over time.
How to choose a suitable business consultant?
Choosing the right business consultant is a key step for business success. A professional consultant provides not only an analysis of problems and opportunities, but also creates tailored strategies and established action plans.
selection criteria
- Professional experience : A consultant with significant practical experience in business is able to handle diverse challenges and outline precise routes to a solution.
- Specific specialization : in cases such as marketing consulting, it is better to choose a consultant who specializes in this field to provide accurate and efficient results.
- Market awareness : The consultant’s duty is to follow the changes in the market, identify faults in the sales and management method and adapt the strategies to the current reality of the business.
- Team involvement : A successful consultant encourages collaboration with the staff, in order to implement work processes effectively and strengthen progress.
The importance of experience and specialization
Businesses should rely on consultants with extensive experience and relevant financial education. Over 90% of the problems in business are related to financial and managerial aspects, therefore a recommended consultant is one who has specialized in financial consulting or marketing consulting, depending on the nature of the need.
A financial consultant with experience working with hundreds of businesses uses precise methods such as analyzing cash flow data and improving budget management. Marketing consultants with specialization enable deciphering target markets, improving marketing plans and building relationships with customers. Choosing a consultant who combines a dual specialization, economic and marketing, improves the ability to realize the potential of the business.
Business consulting costs
Costs of business consulting vary according to the type of consulting and the consultant’s expertise. Experts with a lot of experience tend to charge higher prices. The type of pricing and scope of work also affect costs.
Common pricing models
Pricing models in the field of business consulting include diverse approaches.
- Hours or work calendar : Many business consultants charge by the hour or day. The rate may range from hundreds to thousands of shekels per hour, depending on expertise and demand.
- Pricing by project : when the work is focused on a defined project, the payment is adjusted to the scope and complexity.
- Fixed subscription contracts : many companies offer periodic subscription contracts (two weeks, two months or two years) in exchange for a predetermined amount, which provides flexibility in cash management.
- Commercial models : models such as “razor handle” are characterized by a low initial fee and profit through ancillary services, while the “up-sell” or “cross-sell” model focuses on selling additional products or services to existing customers.
Economic considerations in choosing a consultant
Important economic considerations include assessing benefit versus cost.
- Level of expertise : the consultant’s experience in the field and his expertise in dealing with similar challenges.
- Adapting the consultation to the needs : choosing a consultant who understands the field of activity of the business and is able to provide customized solutions.
- Long-term economic impact : Priority is given to services that provide added value such as optimizing cash flows and supporting sustainable business development.
