How can a virtual business consultant be effective? Can I trust an "expert" who doesn't know my business?

Most of the time we're confident enough in our goals, methods, and purpose to trust our gut and advance our business interests according to our plan. After all, we're the ones who took the risk, invested the capital, and set out to begin the journey of owning a business. So, if anyone has all the answers in your business, it's YOU, right? All too often, business owners learn quickly that there are aspects of their particular business, or industry in general, that they had not thought of, or may have been an unknown, until they had already dove in. At these moments, seeking out knowledgeable guidance is prudent.

Even in the smallest businesses, owners have what we'll call "trusted advisors". Their advisors generally consist of people in their inner circle, regardless of their experience in their industry. The logic goes; when something as critical as our business is at stake, we can only trust those who are close to us with sensitive information. The advisors end up being more of a sounding board than advisors. This gives the business owner a sense of validation of their current practices since these well meaning friends, most likely, are politely listening, perhaps giving a general opinion, and then telling their friend what they want to hear.

In larger business settings, there may be a select group of people within the business who the owner trusts, and therefore will turn to. Whether it's a couple of managers in a smaller business or a board of directors at a larger entity, let's look at the advantages and disadvantages of a group in the company who the owner will turn to for advice and/or suggestions.

Advantages: Employees or board members will have a direct and intimate understanding of the business. Employees or board members probably have a vested interest in the success or failure of the company whether due to continued employment, commissions, bonuses, or other reasons that directly affect their livelihoods. Employees or board members, likely, are sincere in their efforts to implement the owner's vision, if for no other reason than to gain favor and believe themselves to be indispensable.

Disadvantages: For all of the mentioned advantages, often having a detached advisor can provide insight and clarity free from bias. What does that mean? When managers and board members are the sole source of guidance and advice, their personal biases cloud the black and white associated with statistical analysis. For example, you own a restaurant. One of your managers recommends that you run an ad in the local paper, and a separate manager suggests creating coupons to be delivered in the mail. Both suggestions sound reasonable, right? What you don't know is behind the scenes, Manager 1 went to school with the sales rep at the local paper. No big deal, though. It was still a viable way to promote your restaurant, until both parties (your manager and his classmate at the paper) deliberately neglect to include a way for you to monitor the effectiveness of the ad. Something as simple as, "Tell Your Server Bill Sent You!", just so you can gauge how many, not only saw the ad, but responded and were willing to play along.

When it comes time to analyze the data, you've seen a modest boost in sales. When you do a deep dive, you can count the number of coupons redeemed from your mailer, but you have no idea if any of the increase can be attributed to the newspaper ad, or if it was an organic boost due to word of mouth or time of year. As you discuss it with your team, Manager 1 is adamant that the increase has to be due to that ad he suggested, and you're left with no way to refute the claim. Regardless of whether or not this is true, this scenario illustrates ways in which a business advisor who is too close to your business can let their agendas or biases overshadow what may be in your best interest. This example, also, assumes that you do not have a multi-million dollar advertising budget whereby exposure alone is just as valuable as return on that investment.

To be clear, this in no way is an indictment against giving others you know an opportunity to thrive in their business or profession. Give that friend the chance to earn the ad commission, since you already know him and want to see him succeed, too. However, make clear to anyone you are willing to help that there will be quantitative benchmarks you will use to determine whether or not their product or service furthers your business interests. After all, most small businesses depend on referrals, friends, and family to start out and grow. Being part of a community, and being willing to give the other businesses in your area a chance by using their products or services not only builds that strength in community but fosters goodwill for you, as well.

How would a professional consultant make a difference? First, and foremost, an independent consultant would provide an objective set of eyes on the trouble or event you're inquiring about. Another equally important advantage is that a qualified consultant will not bring an agenda to the table besides an earnest desire to help you solve your problem. After all, strictly from a growth standpoint, a business consultant who proves themself as a trusted advisor, builds a relationship with the owner and secures a long-term client. Finally, the best consultants will tell you what you need to hear, not what you want to hear. Admittedly, it's not fun to be told that something should change in what you're doing in YOUR business. However, even as owners, it's easy to be too close, and too invested, to see some details that could be hurting your bottom line. Someone who's concern is improving your business will worry less about hurt feelings and more about presenting an honest evaluation so you can be as efficient and profitable as possible.

What should I look for in a consultant, and how can I trust someone I don't know, with the details of my business? There are scores of people who have run a business who then fancy themselves as an expert in all businesses. Building trust isn't something that happens overnight, nor is it something we should ever feel free to give away without it being earned. Let's break this into two parts:

1. Qualifications:

   1. Someone with an extraordinary ability to communicate, both speaking and writing, and who can describe to you how fundamental business elements are interconnected (Marketing, Sales, Advertising, Accounting, etc.)

   2. Someone with a well-rounded business background who can relate to the general elements of businesses across most industries, and who has successfully guided campaigns or contributed to growth.

   3. Someone who is not too proud to put in the time to educate themselves on the intricacies of your industry, if their personal experience in that industry prevents them from being able to communicate on your terms. Someone who is only comfortable speaking with you in generalities is not only lazy, but is not giving you, your business, or your industry the respect it deserves, yet is trying to convince you that they can offer you meaningful insight... "for the super low price of"...

   4. Finally, someone who you feel comfortable with. This may sound obvious, but many consultants exhibit a condescending attitude. Rule of Thumb: If the person you are consulting makes you feel like you're dumb, RUN don't walk away. Their feeling of self-importance would disgust you in a social setting, so why would you invite them into the business you've built from the ground up?

2. How can someone I don't know earn my trust with my business information?

   1. You're not looking to replace yourself, so having every shred of information, particularly unrelated data or conditions, isn't required to consult on a single issue. Only reveal what you feel comfortable with or what is necessary for a particular event. Granted, questions about profitability or lagging sales may require an insight into your most recent P & L or Balance Sheet, but so many other scenarios require that you provide that data, like a business loan, for example. Bottom line, as the relationship grows, and you utilize your consultant for a myriad of advice and projects, the trust will build naturally. If you go back for more insight, you've already shown that there has been value in the relationship.

   2. Don't feel bad testing your consultant. To start, give them a small task to figure out, with minimal exposure to your business. You want to know that no issue is too small for them to make themselves available to you when you need them. Further, a respectable consultant will not only expect to be involved in smaller issues in the beginning, but will question why you're an "open book" if you lay everything on the table from the start. Being eager to earn your trust is paramount to you being willing to extend it. Someone who is insulted by not being given the keys to the kingdom on day one, is not someone you should ever trust to confide in.

   3. Never use a consultant who balks at signing a non-disclosure agreement. In fact, it should be a matter of course that a consultant will expect to sign an NDA. You are protected and have recourse should a consultant violate the trust you give them.

   4. Finally, any consultant who doesn't respect you or your authority to have the final say-so isn't worth your time. Many consultants believe that you paying them for their insight translates into you deferring decision making to them. The only consultant you should consider is one who recognizes that you came to them for their expertise, but only as an objective voice so YOU are equipped to make a decision. This is your business and you are the one who, ultimately, realizes success or failure. You've put in the time, energy, and long hours to build something that is a reflection of all your hard work. No consultant should ever believe their input trumps the inherent experience you've accumulated. A consultant's job is to offer clarity and experience so, hopefully, they become an effective tool for you, so you can navigate situations, decisions, and analysis with confidence.

   
   

Remote Consulting?

It may seem impersonal or too detached to imagine using a consultant remotely. There are many industries that have evolved to provide online or remote services, which we would never have though possible a generation ago. Between email, cloud services, Zoom meetings, and a number of other means, utilizing a remote consultant has distinct advantages. Before the current age of technology, you'd have to schedule time out of your work day to plan a meeting, usually in a consultant's office where you would be required to bring any documentation, items, or media that you need to engage for that first introduction. Then, either at their office or your business, subsequent meetings would be necessary.

A remote consultant can schedule an initial Zoom meeting with you to meet and ascertain the nature of your initial inquiry. At that time you would be provided with a list of pertinent items you would email to them, which would be specific only to the task at hand. Perhaps there are follow-up phone calls, Zoom meetings, or emails required. The beauty of it all is that your schedule is key and you're not taken away from your business at potentially inopportune times. Couple that flexibility with a distinct line of separation and you have a virtual on-call consultant who never confuses who the boss is, while providing their experience for your benefit.

Discover if RDC Business Services can offer your business insight, analysis, or just a trusted confidante to help you see things objectively, with a common goal of growth and profit.

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Perhaps the days of gathering in the boardroom are behind us.