Is Business Consulting More Profitable Than a Bank Loan?

Maria Contreras-Sweet, former head of the U.S. Small Business Administration, once said that “the counseling is almost more important than the lending” when it comes to small business lending and the SBA’s role in aiding small businesses. Many small business owners believe that lending is the fix-all to their business problems. However, hiring a business consultant might be better. In fact, business consulting can be more valuable than a bank loan.

How can business consulting be more valuable than a bank loan?

It is targeted help. When a small business owner asks for more money, they usually don’t even know what they need it for. If they can figure out what the problem is – something a business consultant can usually do – they can fix the problem and stop the financial leakage.

A business consultant is a fresh pair of eyes who has the skill and know-how to help your small business grow without putting too much strain on your purse strings. In fact, they can find ways to streamline processes and save you money. A bank loan is just another expense because you have to pay it back.

What if you could fix your problem in-house without needing extra money?

A business consulting firm can help you determine if it’s sales you need, if you have too much overhead, or if you’re wasting money on supplies or personnel. You may not want to make the changes a business consulting firm suggests, but you’ll be better off in the long run. By talking with a business owner and figuring out the roots of the problem, business consultants can save money and possibly the business.

Use your business consulting Austin as a partner consultant.

The proper way to use a business consulting firm is as a partner consultant. What does this mean? Well, it refers to the fact that the business consulting firm has talents and experience that your organization can use for a little while so it can get back on its feet. You must hold the firm accountable for their actions and work with them. You can’t just let them take over. There must be ample communication between client and business consultant just as in any partnership for it to work properly. You must tell your business consulting firm what you need, when you need it, and be ready to tell them to leave when you are ready to fly on your own. Your business’ results will be the true measure of success.

If you use a business consulting firm in the right way, they can make a measurable difference in your business. They won’t leave you with an extra expense for a long period of time, like a bank loan. It’s an investment in the health of your business and one that is worth the effort as long as you can work with the business consultant to ameliorate your situation and learn from them.

Idea labs Consulting is an Austin-based team of coaches and consultants helping small businesses solve a wide range of business problems since 2011. Our team is composed of experienced entrepreneurs and technical experts.

We offer three distinct ways to work with you based on your current needs.

  1. Unlimited business coaching and consulting for a full year [$100 per month or less]
  2. Access to our resource platform of our products and services [pay for what you need]
  3. Business products and tools we recommend [free]

While there are plenty of sources for start-ups and small businesses to receive help, funding, and mentorship, Idea Labs operates like a marketplace by meeting the needs of your business’ ecosystem. As opposed to the common consulting and business coaching trope of increasing billable hours or project scope in order to maximize revenue, we prefer to be a place you can depend on during crucial stages of your business journey. We can help connect where you are now and where you want to be.

Idea Labs Consulting
www.idealabsconsulting.com
(512) 348-6344