For clients of Erick Conway, please see CLICK HERE to see important details related to the Strong Valley transition.
Call Our Office
(559) 384-2900 | Fresno
(619) 480-1413 | San Diego
Your Money
Your Life
Your Way
Article

Getting the Most from Outside Consultants

Getting the Most from Outside Consultants

While your business may benefit from the expertise and insight that an outside consultant can provide, without a focused selection process and procedures in place, it can be a waste of time and money.  Here are a few tips for having reasonable and well-defined expectations at the outset.

May 7, 2024
Getting the Most from Outside Consultants
Important Disclosure: Content on our website and in our newsletters is for informational purposes only. The information provided may (or may not) directly apply to your situation. We recommend that readers work directly with a professional advisor when making decisions in the context of their specific situation.

At various points in its development, your business may benefit from the expertise and insight that only an external consultant can provide. But without the right selection process and procedures in place, bringing in an outside consultant can be a waste of time and money.

Here are some tips for selecting and effectively utilizing outside consultants:

Define exactly what you need.

When your company needs help with a specific project, identifying the reasons why a consultant’s services are required is not difficult. But what if the needs of your organization are less obvious? Bringing in a consultant to “improve efficiency” is far too broad an objective. Before seeking a consultant, identify the specific areas in your organization that need to be addressed and the precise goals you wish to achieve.

Ask around.

If you are unsure of how to find a consultant who will meet your needs, contact professional associations or other businesses for their recommendations. Take advantage of opportunities to speak with others about their experiences with consultants or consulting firms. Such individuals may also offer advice on negotiating consulting fees. Avoid selecting a consultant simply because he or she is a friend or family member of an employee or manager.

Prepare an RFP and collect proposals and bids.

Once you have determined the goals you hope to accomplish by hiring a consultant, include this information in a “request for proposal” (RFP) to be distributed to candidates. Ask each candidate to submit a proposal that includes information on fees and reimbursable expenses. Examine each proposal carefully, asking questions or interviewing candidates where appropriate. Eliminate any proposals that are not professionally presented or that fail to include the requested information.

Draw up a contract.

After a candidate has been chosen, prepare a legal agreement that outlines the services that the consultant is expected to deliver, dates for completion, and a schedule of payment. Have the consultant sign the contract before beginning the work.

Collaborate with the consultant.

Keep in mind that even the most qualified consultant cannot be of assistance without input and cooperation from your company. Before the consultant arrives, make sure that the appropriate managers and employees have made time in their schedules to meet with the consultant and provide him or her with the necessary information. Also, prepare any background information on your business that the consultant might find useful prior to his or her arrival.

Remember that consultants are not responsible for doing the work of management or regular employees. Instead, consultants are a source of expert advice on how staff can perform their duties more effectively, even after the consultant’s work is finished.

Put the consultant’s proposals into practice.

After spending considerable amounts of money to have a consultant address an issue or solve a problem, many businesses fail to take the consultant’s advice or to translate his or her recommendations into action. Carefully consider each of the consultant’s recommendations and decide how the business will put them into practice.

Evaluate performance.

After the consultant’s ideas have been implemented and enough time has passed for the results to become apparent, analyze the impact of the actions taken and ask employees to assess the usefulness of the consultant’s contribution. This can help you determine whether your original goals in hiring the consultant were met and provide insight into how your business can make effective use of consultant services in the future. 

Outside consultants can provide valuable insight and advice for your business. To get the most from this experience, be sure you have reasonable and well-defined expectations at the outset, that you communicate these expectations clearly to the consultant, and implement his or her suggestions thereafter.

Other content you may like

  • Impossible to Predict a Market Bottom

    Impossible to Predict a Market Bottom

    November 18, 2022
    Recapping Mid-August to Mid-November, our Strong Valley advisor team talks about how this has been a rough year for just about everyone, with a recap of worst starts for bonds and stocks, along with a review of what happened with home and used car prices. The team discusses inflation and the Federal Reserve Rate – where it’s been and indications of where it might go. The top 3 questions from clients are answered regarding FTX, a possible 2023 Recession, and ideas on timing to buy when you have cash on hand. We wrap up with predictions on inflation and the rate hike in the coming year.
    Read this Article
  • Saving for Retirement Through 403(b) Plans

    Saving for Retirement through 403(b) Plans

    November 15, 2022
    One of the simplest options for nonprofits wishing to provide employees with access to a tax-advantaged retirement plan is the 403(b) arrangement, which can be attractive due to tax laws. Over the years, the tax laws have been amended to bring 403(b) plan features more into line with those of 401(k) plans, but this article discusses important differences that remain.
    Read this Article
  • A Powerful Tool to Save for College

    A Powerful Tool to Save for College

    March 28, 2024
    A 529 plan gives you the opportunity to take advantage of tax benefits, flexible contribution options, and potential investment growth as you save to ensure your child has access to quality education without burdening them with excessive student loans or compromising your own financial stability.
    Read this Article
  • Important Tips for Taking an Early Retirement

    Important Tips for Taking an Early Retirement

    June 7, 2022
    In times of market volatility, careful consideration for early retirement still holds true. Early retirement may be a long-held dream and a financial possibility but an assessment of your unique financial situation is important for making a smart long-term decision. Here are 8 Tips for early retirement to consider and discuss with your financial advisor.
    Read this Article
  • The link you have selected is located on another server. The linked site contains information that has been created, published, maintained, or otherwise posted by institutions or organizations independent of this organization. We do not endorse, approve, certify, or control any linked websites, their sponsors, or any of their policies, activities, products, or services. We do not assume responsibility for the accuracy, completeness, or timeliness of the information contained therein. Visitors to any linked websites should not use or rely on the information contained therein until they have consulted with an independent financial professional. Please click “Continue to Link” to leave this website and proceed to the selected site.
    phone-handset