consulting business

10 Common mistakes to avoid when hiring a consultant

By Lisa Washington 26 July, 2023 3 mins read

As a manager or business owner, you may find yourself in a situation when hiring a professional consultant is the best way to tackle a specific problem. Although consultants can provide expertise and new perspectives, a few common mistakes can derail your project and prevent you from achieving success. You can save time, money and frustration by avoiding these pitfalls. This listicle will discuss the 10 mistakes you should avoid before hiring a consultant.

Focusing too much attention on the consultant’s work

Don't forget the results that you are trying to achieve. Ensure the consultant focuses on delivering outcomes, not just following a process.

Lack of resources

Assure that the consultant is able to access the resources he or she needs to be successful. Data, technology, and people are all important.

Lack of cultural fit

Ascertain that the consultant will fit well with your company's culture. This includes the values, workstyle, and communication method.

Realistic expectations are not realistic

Do not expect miracles or overnight success. Expect nothing less than overnight success. Rome wasn't constructed in a day. Neither is a successful consultancy project.

Problems with clarity

Before engaging a consultant, it's essential to have a clear understanding of the problem or opportunity you want them to address. Don't be vague about your goal. Be specific.

Business strategy is not aligned with the business plan

Ensure that the consultant's work aligns with your overall business strategy. It will ensure that the consultant's work will have a lasting effect on your business.

Work scope unclear

Make sure you have a detailed scope of work that outlines the consultant's responsibilities and deliverables. This will prevent misunderstandings and ensure that everyone is on the same page.

Lack of flexibility

Be open to new thoughts and approaches. Avoid being rigid in your thinking and resisting change. A good consultant will challenge your assumptions and provide new perspectives.

The lack of clear metrics for success

Define success metrics upfront and assess your progress regularly towards these goals. You can then be sure that your project will deliver the results you desire.

Failure to exercise due diligence

Research potential consultants in depth. Look at their qualifications, experience, and track record. Do not rely on referrals or recommendations alone.

Conclusion: Hiring a business consultant can be a fantastic way to overcome challenges in the workplace and get results. Avoiding these common errors is key to a successful outcome. By defining your problem clearly, communicating effectively, defining roles and responsibilities and including key stakeholders, your consultant can be set up for success. Remember to stay flexible, provide feedback, and set realistic expectations. These tips will help you to have a successful engagement.

FAQs

How much should I expect to pay for a consultant?

The cost of consulting varies depending on experience, expertise and scope of project. When selecting a professional consultant, you should also consider other factors.

How do I find a consultant who is right for my company?

Look for consultants who have experience with your industry, as well as similar challenges.

How long is a typical consulting engagement?

The length of a consulting engagement can vary depending on the scope of the project. Some projects will last a week, while other may last several weeks or even years.

How involved should I get in the consultative process?

You should be involved in the consultation process to make sure the project remains on track. It is also important that your business goals are met. However, it's also important to trust the consultant and not micromanage their work.

How do I ensure that a consulting project delivers lasting results?

Define success metrics upfront and assess them regularly. Also, ensure that the consultant’s work is aligned with your overall business strategies.

FAQ

How much do consultants make?

Some consultants make over $100k per year. However, most consultants only make $25-$50k. A consultant's average salary is $39,000 This applies to both hourly and salaried consultants.

Salary depends on experience, location, industry, type of contract (contractor vs. employee), and whether the consultant has his/her own office or works remotely.

What can I expect from my consultant?

When you choose your consultant, they should respond within a few working days. They will usually ask for information about your company, including its mission, goals, products, services, budget, etc. After receiving this information, they will prepare a proposal outlining their scope of work, estimated timeline, fees, deliverables and milestones.

If everything goes as planned, then both parties will agree to a written contractual agreement. The type relationship between the two sides (e.g. employee-employer or independent contractor-employer) will dictate the terms of the contract.

If all goes well, the consultant will start working immediately. The consultant will have full access to your files and resources. You'll also have access to their skills and knowledge.

But don't assume that anyone who is a consultant has all the answers. It takes time and practice to become an expert on any subject you consult. So, don't expect your consultant to know everything about your business.

What are the benefits to being a consultant?

As a consultant, you can usually choose when you work and what you work on.

This allows you to work wherever and whenever you want.

You can also easily change your mind, without worrying about losing any money.

Finally, you are able to manage your income and make your own schedule.

How did modern consultancy become possible?

The first consultants were accountants that helped companies manage finances. Because they were skilled in managing financial information, they became "accounting consulting". But, their role soon expanded to other areas such as human resource management.

The term "consultant" came from the French word for "to advise." It was used by businessmen to describe someone who could offer advice on how to run an organization. Today, business owners still use the term consultant to refer to any type of professional advisor.

Do I really need legal advice?

Yes! Yes. Many consultants sign contracts without seeking legal advice. This can create problems down the line. For example, what happens if the client terminates the agreement before the consultant's completion date? What happens if your consultant doesn't follow the contract deadlines?

Avoid potential legal problems by consulting a lawyer.

How do I choose a good consultant?

There are three major factors you should consider:

Experience - How many years of experience is this consultant? Are you a beginner or an expert? Does her resume reflect the knowledge and skills she has?
Education - What did this person learn during school? Did he/she go on to further education after graduation? Were there any evidences of this learning in his/her writing?
Personality - How do we feel about this person? Would we prefer him/her working for us?
These questions help to decide if the consultant suits our needs. If there are no clear answers, then it might be worth an initial interview to learn more about the candidate.

Statistics

My 10 years of experience and 6-step program have helped over 20 clients boost their sales by an average of 33% in 6 months. (consultingsuccess.com)
So, if you help your clients increase their sales by 33%, then use a word like “revolution” instead of “increase.” (consultingsuccess.com)
According to IBISWorld, revenues in the consulting industry will exceed $261 billion in 2020. (nerdwallet.com)
On average, your program increases the sales team's performance by 33%. (consultingsuccess.com)
Over 62% of consultants were dissatisfied with their former jobs before starting their consulting business. (consultingsuccess.com)