8 Facts to Remember When Choosing a Market Consultant

Starting a new business, comes with various challenges including finding the right Market Consultants, especially is you are a young entrepreneur, venturing into this field for the first time.

Too many small-business people aren’t willing to ask for help when they need it. Entrepreneurs by nature tend to be independent risk-takers. They started the company and it is their baby. Obviously, they should know how to raise it.

However, none of us knows everything about growing and managing a business. Sometimes it makes sense to seek the counsel of others, but who is right for you and your business? When selecting a consultant, follow these five simple, but important, guidelines:

1. Creative Problem-Solving Skills

You will want the consultant you engage to be an outstanding problem solver. After all, you are hiring a consultant to help you solve problems (or take advantage of opportunities).

Marvin Bower, the patriarch of McKinsey & Company, essentially founded management consulting and in the process grew the firm from a fledgling enterprise to a global operation. He outlined his criteria for an outstanding consultant.

“Mental equipment -- the successful consultant has outstanding analytical skill and the ability to synthesize his thoughts readily in reaching conclusions," Bower wrote. "He is a quick and effective learner -- imaginative and creative.”

When choosing a consultant, make sure to hire superior problem solvers.

2. Unimpeached Character

First and foremost, an effective consultant must be a person of the highest character. He or she must be the consummate professional. The consultant must be willing to put the best interest of the client ahead of their own.

For example, the consultant must be willing to tell clients things that they need to hear, but may not want to -- even if doing so means that the consultant loses business. The consultant must care deeply about her or his clients.

3. Outstanding Communication Skills

A good consultant should be articulate. He or she should possess unusually strong communication skills, both orally and in writing. Of course, communication is a two-way street. Perhaps more important than her or his ability to speak articulately and write eloquently is the ability to listen.

No matter how smart a consultant is, she or he won’t be able to help you improve your business until they fully understand the challenges you face. This will never happen until the consultant listens to you.

4. Excellent Interpersonal Skills

Simply put, for any consultant to be successful in helping your company, a trust-based relationship is going to have to develop. You will need to be comfortable revealing the intimate details of your business. The relationship between consultant and client is not unlike the relationship between a doctor and patient.

Without complete candor, the consultant will be hindered in his or her effort to help your business. Chose a consultant with whom you can develop this kind of professional relationship.

The right consultant can create tremendous value. The wrong consultant can destroy value. Following these five guidelines will help ensure that you engage the right firm or individual.

5. Solid Experience

A good consultant should have experience with the challenges or opportunities you and your company are facing. She or he may not know your specific company or industry, but you and your people know your company and your industry quite well, don’t you? What the consultant brings to the table is experience in addressing the types of issues you face.

6. The Consultant's References

• Current clients

• Associations

• Your peers

• Consultant's peers

• Past clients

  
  

Sure, it is likely that a current client will give a good reference. However, check that you are comparing "apples to apples." If you have a defined need, such as starting an IV Therapy company, verify that the reference supplied to you has completed a similar assignment. With larger firms, make sure that you check the reference as it relates to the person who will be handling your assignment. Additionally, check other references, as much as possible, to evaluate the consultant's reputation.

7. The Organization's Structure

• Firm size

• Web site

• Mission Statement

• Code of ethics

• Availability

• Location

• Personality

  
  

If you consider hiring a firm with many employees, evaluate the individual (or individuals) who will ultimately perform the assignment. Additionally, you will need to evaluate the organization. Do they have a mission statement and a code of ethics? Is the consultant's location of any importance to you? The consultant's timely availability is important to most assignments. The consultant's Web site can tell you about the firm's employees and their background. It can also tell you if their expertise includes the services that you are interested in obtaining.

Personality is the # 1 factor for most people in their current hiring practices. While important, I recommend that you place personality within the context of the consultant's assignment. If you are installing a new accounting system, for example, the consultant's interaction with you as the Chief Executive Officer (CEO) may be less important than his or her interaction with your Chief Financial Officer (CFO) and the accounting staff.

8. The Firm's Priorities

• Importance

• Weighting

• Matrix

Once you evaluate the factors above, determine their relative importance to your decision determination. You may find the use of a priority matrix helpful. Keep in mind that if more than one person conducts interviews or takes part in the selection process at your organization, you will need to use a common matrix for all members of the organization.