As a business owner it is often difficult to understand where to go for assistance with specific areas of expertise that are not resident in the business. Often Business owners do not pursue 3rd party support due to the cost and the business is unable to absorb the cost impact even if the overall benefit to the business would improve Net Income and Cash Flow in the long run. As the pandemic continues the number of Small Businesses that are distressed continues to increase and the options for support are not apparent if they exist at all. As a result, Small Business owners continue to run the business in the manner as in the past knowing that a change is necessary if they are to be relevant and profitable tomorrow. It is not like to you can Google “Low, No Cost Consultant” to assist with Strategic Planning, Business Planning, Succession Planning, Scaling the business to address the increasing demand, Resource Planning…well you get the picture. The low cost, no cost approach is not sustainable for the Consultants that are at the top of your Google List. Both parties are in business to generate a positive return on the business assets and increase EBITDA to increase the value of the business.
What would be the value to a Small Business if a 3rd Party Consulting group were open to a Gain Sharing Model vs the typical hourly rate model. What if, the consulting group was interested in partnering (not a literal partnership) with the small business to create a plan to improve the Cash Flow and EBITDA of the business and share the gain. No hourly rates but a partner with “skin in the game” to work to move the business to a different place. Works with the team to determine methods and tools to assist in creating sustainable gains that the business will see year after year. What if the partner provided the training to help the team to understand the need to change and then be the Change Agent to facilitate change? If the engagement does not improve Net Income, then the consultant does not get paid! Does the Small Business owner need something different in today’s business environment from 3rd Party Consultants?
