As time passes, every business owner must face the harsh reality where their practice could become obsolete extremely fast. For instance, someone who operated a DVD-rental store a decade ago is probably now out of business. Why? Because of the rise of companies like Netflix, Hulu, HBO, and so on. In other words, their business model became futile in a market that was overrun by corporate innovation.
So, after one falls victim to the aforementioned scenario, what is it that they can do to not lose their livelihood? Or even better, is there a way that business owners can prepare for the inevitable disruptions within their markets and maintain a profitable venture?
The answer is yes. In order to achieve something like this, however, they will often need a third-party business consultant who can help them revamp the organization. Meaning, they may have to rely on business advisors who have the necessary knowledge to deal with these situations. Thus, how exactly does one know if they should hire a business advisor?
You Have Not Innovated in a While
A lack of innovation is one of the most dangerous scenarios that any company may face. According to Randall Goldman, a business consultant and Owner of Bal-Core Business Advisors, constant improvements are the easiest way to avoid becoming obsolete. This means coming up with new ways to conduct one’s operations. Consider, for instance, how Amazon revamped the entire model of product-delivery with many of their inventions.
Doing so allowed them to maintain an important competitive advantage over all of their opponents while forcing those businesses to also innovate or fall behind. A great way to utilize a knowledgeable business advisor would then be to have them help you create a new strategy of operations. This can include everything from changing a few things to completely altering the way that the company works.
You Are Struggling to Operate Efficiently
Having a lot of sales is going to be useless if one’s costs are cutting too deeply into their margins. Meaning, receiving millions of dollars in revenue is neglectable when the organization has a lot of underlying debt and low margins. As Randall Goldman notices, however, business consultants are often specialized in the area of profit maximization. This means that they have the ability to diagnose and pinpoint the exact areas of cost reduction in order to save companies money.
Your Sales Recently Started Declining
Arguably, the most obvious sign of struggle is seeing one’s revenues decline. Often times, however, it can be difficult to determine why. After all, everything from competitors’ behavior to one’s own lack of price adjustments could reduce sales. Think about the time when Amazon introduced its Prime membership program. For companies like eBay, per se, this caused a huge drop in interest even though they did nothing different themselves. Hence why an unbiased perspective can be extremely beneficial and help overcome these struggles.
You Need a Subject-Area Expert
The most obvious time to hire a business consultant is when you need a subject-area expert. For instance, adding a brand-new software across all of the company’s devices will be something that must be integrated by individuals with extensive training.
For instance, imagine trying to switch from a Windows-operated interface to a Mac platform. Or having to do things like file for legal status or taxes. Odds are, the business owner will need a lawyer or an accountant to avoid making minor mistakes that can be expensive. Fortunately, business consultants come from practically all industry fields and one will never have an issue finding the right person for their company.
Your Business Lacks Excitement and Employees’ Morale Is Suffering
Ultimately, discovering ways to incentivize employees can be very difficult for people who are their superiors. This is why many business owners tend to let their human resource departments plan parties and events that boost employee morale. Of course, those that may have smaller organizations that lack specific departments like this can rely on a business consultant. Why would anyone want to go this far? Well, improving the atmosphere within the company is the easiest way to facilitate more efficiency. After all, happy workers are always going to put more effort into their performance than individuals who may dislike their jobs.