Why do business owners not use consultants?
I don't have all the answers, but I think these are some of the more common objections.
Limited budget:
Some business owners may be hesitant to work with independent third-party consultants due to concerns about cost. While outsourcing can be more cost-effective than hiring full-time employees or building an in-house team, it can still be expensive, particularly for small businesses with limited budgets.
With this in mind, I shy away from working with many small businesses.
It can be challenging.
For the business owner - a small budget may limit the scope of work that can be accomplished or the resources that can be invested in a particular project.
This can make it difficult for them to achieve their desired outcomes or fully leverage the consultant's expertise.
For the consultant - a small budget may not compensate for the time and expertise required to complete a project. This can make it difficult for the consultant to justify taking on the work or allocating the necessary resources to the project.
It’s important for business owners and consultants to have open and honest conversations about budgets and expectations at the outset. This helps ensure that both parties are aligned on the goals and limitations of the project and can work together effectively to achieve the best possible outcomes within the constraints of the budget.
2. Lack of knowledge:
You don’t know what you don’t know.
Some business owners may not know the benefits of working with independent third-party consultants or do not know how to find and hire the right consultants for their needs.
3. Control issues
Some business owners may hesitate to delegate tasks or relinquish control to outside parties or prefer to handle all aspects of their business in-house.
I typically find these organizations won’t and don’t grow because the owner has issues with delegation, which leads to them wearing every hat.
4. Past negative experiences
Some business owners may have had negative experiences with independent third-party consultants, making them hesitant to work with them again.
In "The 7 Habits of Highly Effective People" by Stephen Covey suggests focusing on the present and the future rather than dwelling on the past. He advises business owners to look for opportunities to learn from past experiences and to take proactive steps to address any lingering issues or concerns. Covey also recommends building trust and mutual respect with a consultant by clearly communicating expectations, being open to feedback and suggestions, and keeping commitments.
"The Lean Startup" by Eric Ries advises business owners to approach working with a consultant as a learning opportunity rather than simply relying on the consultant to provide all the answers. He recommends that business owners seek out consultants willing to collaborate and co-create solutions and are open to testing and iterating on ideas to find the best approach.
Overall, many factors can influence a business owner's decision. These were the ones that are top of mind and most common in my experience.
