When To Start Working With A Business Advisor (And How To Choose The Right One For You)

When’s the Best Time To Start Working With A Business Advisor? Today.

As an entrepreneur who started out knowing hardly anything about business, I now recognize how much I could have benefited from working with an advisor right from the start. Back at the beginning of my journey, I was trying to piece things together quickly, but that only led to a rushed and somewhat haphazard approach.

From where I’m standing today, I believe that the best way to launch a business is to have a well-thought-out business plan in place, complete with a clear scope of the work that’s ahead of you. For those who find this process challenging, seeking guidance from an advisor is invaluable.

Remember: your business plan is essentially your roadmap. Much like how we follow the Bible to guide our faith, your business plan functions as a Bible for the way you want to form your marketing strategy, determine your business’s core identity, predict how customers will relate to it, and plot out the financial aspects of your offerings, including their profitability.

All of these elements need to be carefully crafted right from the outset – and if you’re uncertain about how to do that, seeking advice and guidance is an excellent step in the right direction. In the simplest terms: By working with an advisor from the beginning, you’re setting yourself up for success down the line.

Can Well-Established Businesses Benefit From Working With A Consultant?

As businesses mature and revenue streams become consistent, working with an advisor is crucial. One reason for this is so that you can make sure you’re asking all the right questions…

• Are you tracking and analyzing key sales metrics?
• Are you performing the daily closeouts?
• Do you know how your monthly P&Ls size up against the previous month?
• Are you projecting your performance to see whether you’re on track to meet your annual goals?

Equally important to asking these questions is learning how to proactively monitor and act upon the answers. A good business consultant should be focused on more than just providing you with information on any given day, they should teach you how to manage these metrics in the long term. As the old saying goes, “Give a man a fish, and you feed him for a day; teach a man to fish, and you feed him for a lifetime.”

By guiding business owners through a strategy and equipping them to handle these tasks themselves, we empower them to become self-sufficient and make informed decisions as their business grows. At Big Catch, our goal is to help you systematically work towards your objectives and build the capacity to reach even higher levels in the future. We’re not interested in simply addressing roadblocks as they arise, we’re here to help you gather valuable knowledge and create a solid framework to reach your ultimate goals.

The truth is, most business owners get caught up in the daily grind, leaving little time for crucial administrative tasks and strategic thinking. This can leave you feeling like you’re stuck, not making any progress – and that’s exactly where an advisor comes in – encouraging you to make time for strategic discussions, assess your performance, and use your business plan as a guide to achieve a steady pattern of sustainable growth.

What Should You Look For In The Right Business Consultant?

Every business is different, so no two entrepreneurs are looking for the exact same thing. Still, there are some key considerations to keep in mind when you’re looking to partner with a business consultant:

• Relevant Experience: Look for a consultant who has a proven track record in the specific industry you need assistance with. Experience matters, so make sure you are working with someone who has successfully navigated a landscape similar to yours.
• Adaptability: Keep in mind that there are no one-size-fits-all solutions for a business, but there are solutions for people who are willing to put in the work. Make sure the advisor you partner with has a multifaceted approach that they can tailor to your goals and concerns.
• Analytical Proficiency: A good consultant should be well-versed in financial analysis so that they can pinpoint your operational trouble areas, helping you to pivot towards improved profitability.
• Clear Communication: Communication is the bedrock of a successful partnership. Your consultant should be able to easily break down complex operational structures, explain what isn’t working, and provide step-by-step solutions.
• Proven Results: If your business is facing a roadblock, you need to be able to rely on your advisor to help you craft a strategy that will get you back on track. If you want to reach your next business goal, your advisor should be able to explain what should come next at every juncture along the way. The only real consultants are those with a proven history of crafting strategies that work.

I’m proud to say that our company truly embodies these qualities. The reality is, the world of business is complex, ever-changing and full of challenges. That’s why embracing these challenges and tackling them head-on forms the bedrock of our approach – because we firmly believe that there’s always a solution to every problem.

This philosophy highlights one of our core beliefs: that entrepreneurs are people who refuse to give up. If you’re committed to going the extra mile for your business, you deserve to collaborate with someone who is equally willing to do the same for you, and that’s who we are. That’s Big Catch Consulting.

How Can We Help Improve Your Operational Efficiency? And Why Is That Important?

Taking steps to improve your operational efficiency is critical because so many businesses leave money on the table while scrambling to manage their day-to-day. A telling example of this is when you examine a company’s Profit and Loss (P&L) report only to discover that they’re spending 40-50% of their budget on labor. This is an immediate red flag, indicating a major operational deficiency.

When this happens, it’s crucial to dive into the details and understand how the staff on payroll spend their time. Let’s take the example of a restaurant group I’ve worked with – their labor cost clocked in at an astounding 45%. After we performed an investigation, we discovered that nearly 30% of their labor force consisted of managers who were idly sitting in an office during non-operational hours. This highlighted a massive operational problem.

We jumped right in and addressed how inefficient it was to have these managers conduct their office hours while the restaurant was closed. We encouraged our client to consider alternative uses of this labor cost, such as introducing daytime or brunch services, having part-time employees perform prep work, scheduling cleaning crews, or undertaking remodeling projects to justify the expenditure.

The key principle here? Make sure that every dollar spent yields a return on investment. Without a return to justify the cost, you’re just blowing money out the door.

It’s devastating to see how many businesses leave potential revenue on the table simply because they aren’t using their resources efficiently. Of course, this applies to various kinds of businesses, including those who fail to properly cost out the manufacturing of their products or the pricing of their menu items – especially in this economic climate.

For example, in the restaurant industry, the cost of ingredients has notably increased, with food distribution companies like Sysco, US Foods, and United Natural marking up prices by 12 to 25% in just a few short months. Clearly, making sure that your menu prices reflect these cost fluctuations is essential.

Similarly, retail establishments can also benefit from this perspective. Although entrepreneurs in this sector may not have to worry about spoilage like those in the food industry, it’s just as important to adjust retail pricing strategies to remain competitive and retain profitability in ever-changing market conditions.

Manufacturers, in particular, should be keenly aware of both their production costs and the distribution fees associated with getting the product to retail partners. If you have to pay upwards of 25% to distribute a product, it’s crucial to bake that cost into your manufacturing figure so that you can protect your flexibility. This way, you retain your ability to absorb additional expenses down the road, such as providing vendor credits due to issues like breakage, loss, or product returns, without suffering a loss.

Obviously, factors like recessions and inflation are beyond your control. However, by crunching the numbers and finding innovative ways to reduce your expenses, you can create a buffer that helps you maintain healthier profit margins – even in a volatile market. In essence, improving your operational efficiency is all about safeguarding your profitability by controlling your own costs. 

For more information on The Right Time To Hire A Business Consultant, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (424) 287-4779 today.