Sometimes doing it yourself is not the most cost efficient means to conduct business. First, when undertaking corporate change one must ask if they are the expert and or trained in the specific area being reorganized (accounting, finance, strategic marketing/management); and second, question whether or not the business owner (or CEO) is being proactive to a problem or simply applying a bandage to a hemorrhaging predicament (reactive).
There is a common saying, “the only way to stop making a hole deeper, is to stop digging;” however, many consultants observe business owners applying their lack of expertise and inexperience to the back-office crisis. Several times this is due to ones’ ego because one may be an expert in air conditioning, construction or even an attorney does not necessarily translate into one’s ability to know the business of running a business.
According to, Dun & Bradstreet:
"Businesses with fewer than 20 employees have only a 37% chance of surviving four years (of business) and only a 9% chance of surviving 10 years." Restaurants only have a 20% chance of surviving 2 years. Of these failed businesses, only 10% of them close involuntarily due to bankruptcy and the remaining 90% close because the business was not successful, did not provide the level of income desired or was too much work for their efforts. The old adage, "People don't plan to fail, they fail to plan" certainly holds true when it comes to small business success. The failure rate for new businesses seems to be around 70% to 80% in the first year and only about half of those who survive the first year will remain in business the next five years.”
Well, there is assistance out there to positively hedge these statistics. Consulting companies have specialists in many components that the business needs in order to succeed: such as marketing, finance, cost controls and many other fields. Why do not business owners consider outsourced help? As stated previously, it could be the business owner’s ego, the cost, fear of change, and reputation of the consulting company.
Consulting firms no matter how large or small have been victimized to negative publicity. In many situations, it is due to the firm’s sales approach, clients’ unwillingness to change, the cost of consulting and many other accusations (or really excuses) that can be internalized by the client. Business owners are always looking for a scapegoat; maybe change does not happen fast enough? Is this going on in current events, is not the public impatient toward the current US president’s promise of a fast recovery? Is it not the same thing?
Nevertheless, according to hoovers the consulting industry generated over $150 billion and fragmented by the following: strategic management consulting (about 35 percent of revenue), business strategy and planning consulting (25 percent), and marketing management consulting (15 percent). Hoovers, continues by suggesting that consulting firms follow their own advice and are constantly reinventing themselves. This being said, consulting is a BIG business. Why would any business not take the opportunity and invite an unbiased opinion to reinvent their company to maximize their profits.
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