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What is a startup consultant?

A startup consultant is an outside professional with the right industry expertise, experience, and knowledge. Their job is to provide coaching and mentoring to startup companies, especially if they're at the beginning of their business journey.

Startup business consultants are typically freelance contractors. This means that you don't hire them permanently. Instead, they stay with you as long as needed and move on to another project afterward.

A startup business consultant helps you save time, frustration, and money. They do this by offering key advice and training, helping you with your business plan, and helping you set the right goals with the right path to reaching them.

Startup business consultants play a key role in separating successful startups from the ones that go under. The fact that only 25% of new businesses survive for 15 or more years shows the importance of hiring a highly experienced freelance consultant.

What does a startup consultant do?

A startup business consultant helps you with all the steps needed to establish a successful startup. Let's look more closely into what they do.

Market research

Market research is the foundational step of starting and operating a business. It is even more important for startup founders because it helps them carve out a piece of the market for themselves.

If you're just starting out with your business, it's a great idea to hire a professional to help you with market research. A startup consultant can help you with the following aspects of market research:

  • Analyzing and researching industry trends
  • Analyzing your market segment
  • Analyzing your competitors' strengths and weaknesses
  • Researching your target audience's expectations
  • Formulating strategies with your marketing and sales teams

Hiring a competent consultant takes a huge load off your back and helps you ensure that everything's done right. This will help you stand out from competitors and establish your brand as unique.

Roadmap development

No business can thrive without a clearly defined strategy. That's why it's crucial for every business, and especially a startup, to have a well-defined roadmap.

An experienced startup business consultant is the right person for this task. They can take a look at your plans and objectives (if you have any) and give recommendations and advice based on that. If you have no clearly-defined plans, they can provide suggestions and help you define your goals.

For example, if your immediate goal is to spread the word about your business, your consultant may suggest you post more Instagram ads at a specific time of day. This means that they've identified when your target audience is online and most likely to see the ads, and they're optimizing your marketing strategy to meet your goals.

Financial modeling

82% of startups that fail do so as a result of financial problems. Avoiding financial problems is just as important as formulating the right strategy and having clear-cut plans. That's why investing in a skilled consultant can save you money down the line.

A consultant can take a close look at your financial plan and available resources. This allows them to see how and when you can invest the money, as well as see if you're spending money unnecessarily.

Having somebody go through your financial plans ensures that your resources are going where needed and that your costs remain manageable. This increases your chances of avoiding financial crises and failing because of them.

Process and project management

As a new business owner, you probably lack practical experience in management and streamlining processes. That's where a consultant comes in handy.

Startup business consultants typically have lots of experience running a company, so they can give you advice and guidelines on what you need to do to manage your company successfully. While you probably want to be as independent as possible, it's always a good idea to have an experienced advisor to guide you through the world of management while you're still learning your chops.

Process and project management are of utmost importance for your business venture. Running a tight ship ensures that everything goes according to plan and that the utilization of your resources is optimized, so there's no wasting.

Even if you have a top-notch plan, it's not worth much if the day-to-day running of your company isn't managed properly. That's why hiring an experienced consultant is a must if you're uncertain about your management skills.

Coaching and mentoring

Your consultant always acts like your startup mentor, especially if this is your first time running a business. They won't simply tell you what to do if you want to succeed. Everything they do at your startup will be a learning opportunity for you, so they'll have the role of coach and mentor by default.

However, a consultant can also be a great boost for your and your employees' morale. They can share stories of business success from their previous experience, which helps to motivate everyone on your team, including yourself.

A good consultant is someone you can always look to when times are tough. They shouldn't focus exclusively on running the business. They should also provide support and show a genuine interest in your business and your projects.

Why hire a consultant for your startup?

Being a small business owner is a very stressful job, especially if you've just started your business. A startup owner must typically handle many different roles that usually require a team of people to handle. It's also not very likely that you have a lot of experience if you're starting out, which can add to the stress of running a business.

All this means that hiring a consultant might be a necessary step. Let's examine the top reasons for hiring one.

An unbiased outside perspective

After investing so much effort, time, and money, it can be difficult to distance yourself and have an objective perspective on your business. That's where an outsider's perspective becomes really important.

A consultant doesn't have the same kind of emotional investment as you. Moving from project to project allows them to have an unbiased perspective when working with a client. Such a perspective allows them to have a clearer insight into what's happening at your company and figure out what steps you need to take.

If your startup is family-run, a third-party perspective might be even more important. It can get quite emotional in such an operation, and this may cloud everyone's perspective. A consultant's objective eye can be even more critical in this case.

In some cases, it might be difficult to accept your consultant's advice if you're very emotionally invested in your business. It's important not to let your emotions get the better of you and make you refuse the consultant's tips and insight.

Cost reduction and time-saving

While hiring an expert consultant isn't cheap, it saves you money in the long run. A consultant can identify where you're wasting resources and where you can allocate them to get a better ROI. They can also tell you when to save money for later and help you create a realistic budget for your projects.

Working with an expert contractor is also cheaper than hiring a full-time employee. With a contractor, you can simply ask for help when needed and pay them per project, which is usually cheaper than paying somebody a monthly salary.

A consultant can also help you save time. They can quickly and easily identify your weak points and what you need to do to address them and speed up your processes. Having somebody experienced who can give you solutions to your problems means you don't have to spend your time thinking of solutions. You can instead focus on other aspects of running a business, more in line with your expertise.

Customized business plan for your startup

While in the development phase, your business is vulnerable and needs expert guidance. Strategy development is one of the crucial tasks for success and utilizing a cookie-cutter strategy can't get you far. That's why you need an expert who can quickly learn about your business, analyze your goals, and formulate an effective business strategy based on that.

A detailed analysis of your plans and goals allows your consultant to create a customized business plan. No strategy is one-size-fits-all and a good consultant must understand that and strive to create a unique plan for each client.

Valuable resources and connections

The most important resource that a consultant brings to your company is their knowledge and experience. They also have valuable connections with figures in different fields, which is always important in business.

Your consultant might help you find potential business partners and establish good relationships with others in your field. They can also connect you to people in other fields, which might be of help in your future projects.

Things you should be looking for when hiring a startup consultant

Hiring a consultant is an important task, and it can get quite difficult because of that. If you're wandering out in that territory for the first time, it can get quite confusing and you might not make the right decision. So, let's examine the most important traits you should look for when searching for a consultant.

Industry-specific experience

While it's essential to have an experienced third-party advisor, it's even more important that they have experience in the right field. If you get a consultant with lots of general experience, but minimal experience in your industry, they might not be of much help to you.

Every industry has its quirks and intricacies, so it's important to look for a consultant with experience in your niche. Such a consultant is much more likely to give you valuable advice, identify growth opportunities, and formulate an action plan that works.

They will also be much better acquainted with the potential problems you may come across. This allows them to quickly think of a range of solutions to prevent damage and ensure your processes are not interrupted.

Proven track record

A proven track record showcases your potential consultant's previous successes and strong points. It also allows you to see if they have the right experience and are a good match for you and your business idea.

When interviewing a potential consultant, always ask for details on successful companies they've worked with and ask for references. Learning what their previous clients have had to say about their work tells you a lot about who they are and whether or not they're suitable and reliable.

Personalized solutions

In business, there are no one-size-fits-all solutions. Every situation is unique in some way, and applying the same solutions repeatedly doesn't get you far.

Therefore, a good consultant analyzes each problem and each situation in great detail and provides unique solutions. While they must draw on their experience and knowledge, they should never be a one-trick pony and rehash the same idea.

Your consultant must do a deep dive into your initial idea for a business and develop a personalized strategy. If the consultant you're interviewing or working with doesn't think of original ideas, you might want to opt for somebody else.

Strong communication skills

A good consultant must also be a good communicator. They constantly need to keep in touch with you and share their ideas in a straightforward way.

Good communication skills are particularly important when you consider their coaching and mentoring role. A good coach and mentor must share their advice and lessons in a clear and understandable way you can easily memorize and use in the future.

Your consultant may also provide you with useful business connections, so good communication is key to establishing and maintaining them.

How much does a startup consultant cost?

On average, small business consultants charge $75 an hour. The lowest rates are around $45 an hour, while the higher rates are typically around $150. However, the rates can vary depending on how experienced, renowned, and successful a consultant is, so you might pay much more than $150 an hour if you're hiring a premium consultant.

How to hire the perfect consultant for your startup

There are a few things to keep in mind if you want to find the right consultant for your startup. Let's take a look at what you need to pay attention to when looking for a consultant.

1. Decide on your goals

You need to define your goals as clearly as possible and decide what you want to achieve. Sometimes, it can be difficult to have a crystal-clear picture of your goals, but having at least a general idea makes it much easier to find a consultant. Not to mention that this makes it much easier for them to do their job.

2. Create a job description

When writing a job description, you must define your project scope, talent needs, and budget. Potential applicants must know what you're looking for so they can judge if your offer matches their skill set. A convoluted description with a lack of vital information can't get you far.

You must also describe what exactly you need help with. Different clients have different needs and expectations, and knowing what you need helps consultants decide if they can and want to work with you.

It is also important to mention preferred qualifications and education. You should also mention your work environment and conditions.

3. Hire with Mayple

If you want to avoid the hassle and difficulties of browsing job boards and freelance platforms, you should try working with Mayple. Mayple can connect you to lots of startup consultants specialized in various lines of business and help you find the perfect one for your niche and needs. With Mayple, you can sit back and let us do all the heavy lifting for you.

Sign up now and find a consultant who can help you build your business from scratch.

 

FAQs

What does a consultant do in a startup?

What does a consultant do in a startup?

A consultant provides a wide range of services to a startup. They provide crucial tips on running a business, help with optimizing company procedures, formulate business plans and strategies, and help with cash-flow management and marketing efforts. With their help, you can overcome the initial obstacles of running a business much easier.

Do startups hire consulting firms?

Do startups hire consulting firms?

Startup firms often hire consulting firms. Having a reliable consultant is particularly important for startups because new businesses face many obstacles and often fail quickly. Hiring a consulting firm is often a good way to find a reliable consultant.

What are the main responsibilities of a consultant?

What are the main responsibilities of a consultant?

The main responsibilities of a consultant are providing guidance and counseling to their clients. They also help with business strategy, finances, and marketing.

What is the biggest benefit of hiring a consultant?

What is the biggest benefit of hiring a consultant?

The biggest benefit of hiring a consultant is getting help and mentoring from somebody who is experienced and skilled. Running a startup firm can be challenging at first, and hiring someone who is experienced in building businesses from scratch can help you avoid mistakes and keep your business running.

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We're Here to Help Your Business Grow

Easy process to hire the best social media experts for the job. VIP support from hiring to management and strategy.

1

Tell us about your business

Let us know exactly what you need in our easy-to-fill brief and then hand over the hard work to us.

2

Get matched

Our AI will tap into our 600+ global network of exhaustively vetted experts to identify the perfect match to seamlessly integrate with your business needs.

3

Manage your experts

Keep your finger on the pulse through easy to navigate and comprehensive dashboards embedded into the Mayple platform

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