CBFA Corporation

5830 E 2nd St, Ste. 7000 915
Casper, Wyoming 82609

1-855-802-2223

1-855-802-2CBFA

info@cbfadvisors.com

support@cbfaadvisors.com

CBFA Conversations

Please feel free to leave us a note.

Consultants that Over Charge and Under Deliver

Are Your Consultants Overcharging and Under Delivering?

Starting a new business is an exciting and challenging time. But, what happens when you start to grow and expand and feel lost? Hiring an expert consultant can provide you with great ideas and insight.

But at what cost? Hiring a consultant for advice and direction can help your company grow, but it can also be a massive expense and inconvenience. It’s important to understand how consultants charge and what they offer for those costs.

Growing Your Business

You started your business to make money. So, regardless of what side you are on, providing a service, a product or helping those who do, the bottom line for everyone is income. What happens when you need help getting to the next level? 

Whether you need a consultant to help navigate a difficult time, advance the company or take it in a new direction, you depend on them for expert advice. Even if you have a large budget for this type of service, you want to get your money’s worth and not be taken advantage of.

Too Many Cooks

If you were hiring someone to paint your kitchen, you wouldn’t expect them to show up with an entire team. One person to pick the color, one to open the can, one to stir the paint. All of a sudden, it becomes apparent they are not interested in your outcome, but only theirs.

Hiring a large team of consultants might sound like a great idea, in that you are receiving more advice for the price. But if they take over your office and start stepping on the toes of you and your employees, it can become a difficult situation.

If your team are becoming upset and even insulted, then work will not get done. People end up feeling under-appreciated and the work and the company suffers. Then, the entire process turns into a waste of time and money.

Get What You Pay For

It’s important to ask about fees your potential consultant will charge. There may be an hourly fee, a retainer fee, perhaps they charge for time and materials, a flat rate or even a fee based on the final outcome. 

Keep in mind, there may also be other costs and it’s important to ask about these, as well. Travel, breaks, food, years of experience and so on. These people became consultants because they learned their skills in the same type of business.

A larger firm is going to require more money because they have more people to pay. But are you actually getting better service? Not likely. The more hands in the pot the more confusing things become. 

Expensive Isn’t Always Best

When you are looking for a consultant, you don’t always need to hire the most expensive. There is only so much knowledge available and all consultants will have access to it. Perhaps it would be worth your while to hire someone who is also starting out. 

They have the skills and their fees will be lower as they are trying to build up their clientele and reputation. It’s a win for both of you, you get expert advice at an affordable fee and they get a client to help.

This can be a great beginning to a long-term business relationship. For a smaller fee, you still receive expert advice and not be overcharged. You won’t be paying for someone to kill time just to rank up their fees.

Those Who Consult

It’s understandable why there are so many consultants hitting the workforce. Getting away from the old 9-5 and the ability to charge what they want. If you are a large firm, then you may benefit more from a larger consulting firm. 

If you are a smaller company or a startup, stick with the same. A newly minted consultant will be more eager to do a good job, won’t charge you an exorbitant feel and they won’t charge you more for something you are not going to get. 

The Bottom Line

If you or your company are going to hire a technical consultant, especially if it is a large complex project be sure you have someone on your team you can trust to vet and manage your consultants. There is too much overcharging and underdelivering going on out there. If you feel you are in that situation you need someone that has enough technical expertise to be able to call BS when consultants are involved. This can work the other way as well, sometimes internal technical teams can drag out simple projects or make simple projects more difficult. If that is the case, you may need to turn to a trusted consultant to call BS on your own people. Remember “If it don’t make money, it don’t make sense”

Mr. Click

CBF Advisor

Leave a Reply

WordPress Appliance - Powered by TurnKey Linux