3 Reasons why SME’s need Management Consultants
- November 8, 2016
- Posted by: Fractional Column
- Category: Business Management
SMEs are the fastest growing sector in India and the same can be said for management consulting as well; however, this growth comes with a lot of challenges. Most of the SMEs are able to solve these challenges on their own but many times the problematic situation that arises is beyond their capability to solve. A good consulting firm is one of the fastest and economical solutions for SMEs that aspire to scale new heights.
SMEs are mostly family run businesses; most of them are able to scale up while some of them are still at a nascent stage that badly needs a push in the right direction to grow. Many businesses are going through a phase in which one generation of owners is passing on the baton to the next generation, whose aspirations are high but market knowledge is low. To solve this problem and experienced hand is needed and this is exactly where Management Consultants come in who bring to the table enormous amount of expertise to bridge the market knowledge gap that would enable small businesses to thrive in a competitive environment.
A Management Consultant helps companies in the following spheres:
1) Growth Strategy
Most of the Organizations have an aggressive plan to grow. This growth can be achieved by organic routes like aggressive sales, creative marketing, adoption of state of the art technology and coming up with new innovations or inorganic routes like M&A (Merger and Acquisition), joint ventures and partnership. All these ideas cannot be implemented at once hence it is imperative that organization has a vision and mission which is broken down to short term and long term plans to guarantee success. A Management Consultant can play an important role in helping SMEs in strategic planning which can be used by the company as a guideline.
2) An Outsider View of the Business
Day to day operations makes it very difficult to diagnosis what is going wrong and there is a need for a fresh set of eyes. It’s just like you turning to your friends and family for their opinions. Companies often need this, too, especially while making tough decisions. Many times, clients have a perspective on how to solve the problem they are facing but want to make sure that what they’re thinking is correct. So, they turn to consultants to come in and provide their opinion. Consultants provide an unbiased eye and companies get consultants to do some of the dirty work for them.
3) Need of Specialized Skill-Sets
There is always a case when the SME’s are faced by a challenging problem but they do not have the necessary manpower to solve them. By engaging with a consulting firm, you get access to a group of professionals that hail from diverse backgrounds and possess skills ranging from Lean Six Sigma to Sales Organization Restructuring. In case they wish to hire this specialized manpower of their own, it would not only be expensive, but the company might not have enough work to keep their employees busy all year round. With Consultants, companies can bring in that necessary manpower only when they need it and by doing so, companies don’t have to pull their employees away from their actual jobs.
A word of caution:
There are many experienced professional floating in the industry disguised as Management Consultants but in reality they are nothing but commission agents. They might help your business in the short run but would be of no use in the longer scheme of things.
SMEs Owners need to be smart enough to segregate true Management Consultants from that of a commission agent. A true Management Consultant is one who takes a deep dive to diagnose the root cause of the problem, comes out with practical and workable solutions and builds a business that not only has a strong foundation but has the potential to scales new heights.