Using Consultants and Advisors

My good friends over at the Ephor Group in Houston - Garry Meier and Charles Bedard – recently sent out a newsletter with a great perspective on ”Using Consultants and Advisors“.  They point out that Private Equity groups often use this “operating partner” model to help their portfolio companies - but their points are just as relevant to small to midsized companies. 

In my last blog post, I talked about how the improvement in the economy will present a challenge to companies that have spent the last 12 months rationalizing their headcount in response to declining sales.  As the business comes back, these lean organizations will need to add resources incrementally, or risk eating up all the profits from this new business, at the time they can least afford to.  This is a perfect opportunity for the judicious use of consultants until the business can support full-time employees again.

More important, however, is the need to continue to address issues that plagued many companies before the recession – and still need attention today.  As the Ephor guys point out:

“While not the first thought, especially when a business is cash constrained, outside advice and counsel is often required to combat root-cause issues that are multi-pronged across an organization”.

Most businesses spent the last 12 months in survival mode, but many know that there are still some fundamental issues to address regarding their revenue models, compensations schemes, marketing strategies…. the list goes on.  

Fall is the traditional time of year when companies plan for the next year often through budgeting and strategic planning efforts.  If you are a small to mid-sized business owner, now is the time to spend some time considering how to use proven, experienced, and unbiased assistance through the use of consultants and trusted advisors as the economy – and your business – picks up again.