Small businesses have a high failure rate, so why don’t more business owners seek professional help in the form of a business growth consultant? The failure rate of small businesses in the UK varies depending on the source and the criteria used to define “failure.” However, around 60% of new businesses fail within the first three years.
20% of New Businesses Fail in the First Year
According to recent statistics, approximately 660,000 new businesses are registered annually, and around 20% of those will close within the first year. It’s worth noting that many factors, including the state of the economy, industry competition, lack of funding, or poor management, can influence the failure rate of small businesses. Also, the failure rate might be lower in some sectors than others. All of these factors can be considered in making plans for business success, so the buck always stops with the business owner. There are several reasons why small businesses may not invest in a business growth consultant, even though doing so could help them avoid failure.
Why the Reluctance to Hire a Consultant
Business owners may be unaware of the benefits of consulting services or know how to find and hire a reputable consultant. They may not realise that such a service is available to them. Additionally, small companies may hesitate to invest in consulting services because of the cost. Many small businesses have limited budgets and may not have the financial resources to invest in professional consulting services, even if they believe it could help their business. Another reason is that small businesses may be sceptical about the effectiveness of consulting services. They may not believe a consultant can provide them with the insights and solutions they need to achieve their business goals. Sometimes, small businesses may resist change and prefer to continue doing things they have always done rather than risk trying something new.
Too Busy for Advice
Small businesses may be too busy to invest in consulting services. Many small business owners wear multiple hats and may not have the time or resources to devote to seeking out and working with a consultant. While consulting services can benefit small businesses, there are various reasons why small businesses may not invest in them.
Why Small Businesses Avoid Investing in Business Growth Consultants
First and foremost, small businesses often have limited budgets. They may not have the financial resources to invest in professional consulting services. Additionally, small businesses may not see the immediate return on investment that they would like from consulting services and may feel that the cost is not justified. Some of the reluctance is due to a lack of understanding, so they could be hesitant to invest in consulting services because they are unfamiliar with the process and don’t know what to expect regarding results. In these cases, small businesses may prefer to invest their resources in other business areas, such as marketing or employee training. The business owner may be embarrassed about revealing mistakes or have concerns about being criticised. Often business owners are humble and don’t identify themselves as businessmen or women. The perception may be that a business consultant wears a pinstripe suit and talks in jargon.
Look for a Consultant who Understands Your Business
However, a good business consultant understands the entrepreneur’s feelings and looks to assist them on their journey by providing direction and advice. They are experienced professionals who understand the importance of maintaining trust with their clients, enabling them to provide honest feedback when needed. Business consultants work closely with small businesses to develop and implement solutions to their problems, identify new growth opportunities, and ensure that their clients stay on the right track.
Support and Services a Business Consultant can Offer a Small Business
Business consultants can provide a range of services to small businesses, from developing business plans and setting goals to helping with financial analysis, marketing strategy and operational efficiency. A business consultant can advise on specific industries and provide insights into potential risks and rewards associated with different business decisions. The right business consultant can help a small business to build an effective team, better manage their finances, create a marketing strategy that yields results and ensure the successful growth of their venture. Hiring a business consultant can be an excellent investment for small businesses, as it provides access to professional and specialised knowledge that may otherwise be hard to come by. With the right consultant, a small business can move forward with confidence and security in its future growth prospects. Ultimately, engaging a business consultant is cheaper than making costly mistakes and can help small businesses reach their goals faster and more predictably.
What is a Business Growth Consultant?
Business growth consultants are professionals who help companies increase their revenue, improve their profitability, and achieve their business goals. They work with businesses of all sizes, from small startups to large corporations, to identify areas for improvement and provide expert advice on achieving growth. There are many different areas in which business growth consultants can specialise, including marketing, sales, finance, and operations. Some consultants focus on specific industries, such as technology or healthcare. In contrast, others work with businesses in a variety of sectors.
Identify New Markets & Opportunities for Growth
Business growth consultants use various techniques to help companies achieve their goals. These may include market research, data analysis, financial modelling, and strategy development. They may also work with businesses to identify new markets and opportunities for growth and help them develop and implement marketing and sales plans to reach those markets. In addition to providing advice and guidance, business growth consultants may also be involved in implementing growth strategies. Those strategies may include working with businesses to develop new products or services or helping them to streamline their operations and increase efficiency. Many consultants also hold advanced degrees, such as an MBA. They may have specialised certifications or training in marketing or finance. In conclusion, business growth consultants help companies increase revenue and achieve their business goals. They work with businesses of all sizes and in various industries, using multiple techniques to identify areas for improvement and develop and implement growth strategies.
Business Growth Organisations in the UK
Several organisations in the UK provide free business consultation to small and medium-sized enterprises (SMEs). These organisations may be government-funded or operated by non-profit organisations. Their services may be available to businesses in specific regions or industries. Here are a few examples of organisations that offer free business consultation in the UK:
This organisation, funded by the Welsh government, provides free business support and advice to SMEs in Wales. They offer various services, including one-to-one consultations, workshops, and online resources. Contact Business Wales.
This organisation helps small businesses start, grow, and succeed through free and paid services, including one-to-one consultations, events, and online courses. Contact Enterprise Nation
Federation of Small Businesses (FSB)
This organisation represents the interests of small businesses in the UK and provides a range of services to its members, including free business consultation. Contact Federation of Small Businesses
Local Enterprise Partnerships (LEPs)
These partnerships are made up of local businesses, local authorities, and other organisations, and they work to support economic growth in specific regions of the UK. Many LEPs offer free business consultation and other support services to local SMEs. Contact Local Enterprise Partnerships
National Enterprise Network
This organisation provides free business support and advice to SMEs in England and Wales through a network of locally based enterprise agencies.
It’s worth noting that these are just a few examples of organisations that offer free business consultation in the UK, and there may be others available in your region or industry. It’s a good idea to research and reach out to local organisations to see what resources and support are available to your business. Contact National Enterprise Network
Want to know when we drop new ideas for growing your business?
Local Business Owners Club
Learn How to Grow Your Local Business with Digital Marketing Strategies that Drive Traffic to Your Website.