WHY DOES ANYONE NEED A CONSULTANT ANYWAY?
You may ask yourself why it is that a large company, a government agency or an aspiring inventor would hire a consultant, at sometimes very high compensation, when various big companies especially, already have staffs of experts who, one would think, who should be even more qualified than the consultant. After all, if a government agencies employees themselves are qualified, why the need to hire a consultant? And why pay them more than the employees themselves are being paid?
Actually, there are very good reasons why both the government agencies, business organizations and individual idea makers and inventors use product development consultants or other general consultants. In fact, many times, not only are they hired, they are hired again and again and held in considerable esteem. Because it is good business to find a need and then fill it, it is very important for you to understand exactly what those reasons are. Lets look at each of them in turn.
1. The need for personnel. Sometimes even the largest companies and government agencies lack personnel at specific periods of time or for specific tasks. They may need assistance during a temporary work overload, or they may require unique expertise that is not needed on an ongoing basis every day of the year. Temporary assistance might be needed, for example, when a company bids for a government contract. During this period, it is required to put out a great amount of work over a short period of time. The staff personnel may not be available to do this without stopping other important projects, so consultants are hired. Or a company may need unique expertise on a short-term, project basis. Take direct marketing, an area of that gets consulted with a lot: Many businesses use direct marketing only occasionally, so it does not make sense to hire a full-time expert whose salary could easily exceed $50K per year. Therefore, a company is perfectly happy to hire a consultant to accomplish a specific task. The need for personnel also provides the motivation for the search consultant who is paid by client companies for finding specific executives or professionals. The solving of company problems with sound solutions and strategies by many of these consultants and are an indication of the demand for their services.
2. The need for fresh ideas and perspectives. Not infrequently a company has a problem, and management feels the employees are too close to it to understand all the ramifications. It makes sense then to bring in someone from the outside - someone with competent problem-solving and strategy driven skills, but not necessarily knowledge of the business. In fact, sometimes the individuals very ignorance (assuming, of course, a talent for problem solving) helps to provide the answer. Specific consultants have a tremendous ability to penetrate through a confusion of factors and recognize the main issue, and thus to recommend ways to solve the issue.
3. Company Politics. At times the solution to a problem may actually be known, but for various political reasons it cannot be presented by those who understand the problem. For example, a division of a major company once proposed that the company enter a new market with one of its products, which would have required an investment of millions of dollars. The potential in this new market was highly controversial within the company. Because the new product would come from the division that suggested it, the divisions recommendations would be considered prejudiced. However, by hiring an outside consultant to study the same issues, the division succeeded in accomplishing the same thing. The consultant was assumed to be more impartial and less likely to be influenced by company politics.
4. The need for improved sales. No company can exist without sales. This is true no matter how knowledgeable is president or senior staff, how skilled it financial people and accountants, or how innovative its engineers in developing or manufacturing new products. A company that needs to increase sales in a short period of time frame will sometimes look outside its own marketing staff for help. Our specialists use their own knowledge database and network for solutions and strategies to achieve sales driven success.
5. The need for capital. Every company needs money. The need for capital is extremely common in start-ups. But it is also very common in successful companies. In fact, the more successful a company, the more capital it needs. The need for capital is a continuing problem with many companies. A consultant is an expert who has expertise in finding sources of capital will be in continual demand.