Consultants
Whether you have your own business or work for someone else, you will
probably work with at least one consultant.
There are many good consultants if you use them correctly. However, there are
also many consultants who are primarily self promoters and sales people who may
take advantage of your vulnerabilities.
Most successful businesses are grown by people who have high standards and
never think they are good enough. They also are typically people who are good at
something and as a result, find themselves with a growing business that exceeds
their skill set. The combination of self-doubt and the constant changes that go
along with growth creates the market for consultants.
Ideally, a consultant should be someone who understands how to manage change,
where you are at and where you want to go. But the good consultants will also
understand what you can do and what will be too much for you given the various
aspects of who you are and what you are personally capable of doing.
The danger is that many consultants are primarily sales people who have had
some success working for other people and they are better at selling themselves
than they are at doing what they say they can do. The following items may help
you to avoid this.
- Remember that no one knows your business better than you. Don't let
anyone tell you that you don't know what you are doing. Don't let them play
on your insecurities or self doubt. There is a reason you have gotten as far
as you have. Don't ever forget that and don't ever give up control.
- Listen to your gut. Consultants are often very talented at gaining your
trust, finding out what you dream is and then selling you on how they are
going to help you realize your dream. The problem is, there is a difference
between saying you can do this and actually making it happen. Make sure they
can make it happen.
- Set short term goals and benchmarks (weeks, not months) and then stick
to them. If they are not met or exceeded, there is a reason. Don't ignore
the results. If they can't deliver, pull the plug or renegotiate a more
appropriate contract.
- Never set up an open ended or long term contract. Consultants should
never be allowed to run your business. They should only be contracted to
come in, do a specific job for a specific result, and then they should
leave. Many consultants will get the short term result and use that to try
and turn it into a long term contract. The reason is simple; It's easier to
stay with one business rather than having to constantly generate new
business.
- Never trust the stories or references the consultant gives you. Ask for
the reference of at least one company that had a bad outcome. If they don't
have one, they are probably lying. That should be all you need to know. You
can also ask them about a time that did not work out and find out why they
think it didn't work out. Do they take responsibility or do they blame the
client?
- Never give up control or give them access to financial decision making.
They will spend your money like water. This is because they are probably
more familiar with working in a bigger company that had more resources. It
is seldom that they have had a business where they have had their personal
resources at risk. No one knows the value of a dollar as much as you. Don't
let them call the financial shots. It's your money. Never forget that.
- Get a copy of their Errors and Omissions Insurance binder to make sure
that they are legitimate. If they don't have this, then there is a good
chance they are not a professional consultant.
- Document everything. Make sure that you keep all contracts, that they
are fully reviewed by your attorneys and that they are fully executed. Make
sure they have specifics about the job that is going to be done, how it will
be accomplished, the budget and the benchmarks for performance throughout
the project. Make sure it has language for terminating the contract for low
performance that is suitable to you. If everything goes well you won't need
it. If there are problems you will be glad you have it.
That is basically it. I hope you have the perfect business for you.