The need for a Small Business Consultancy happens when it feels the need for change, and every change causes some resistance. The one who receives the consulting application needs a dose of total commitment from the consultant. The consultant’s responsibility is to offer reliability, quality, and integrity advice, as he is the professional responsible for diagnosing problems and pointing out solutions.
The consulting process will always present essential elements that, when investigated, should make it possible to identify the causes for the presentation of corrective actions. Other elements in the consultancy work involve changes such as mistrust, resistance, and cooperation, thus being essential for the project’s success. Consulting does not perform miracles or provide perfect solutions as many entrepreneurs imagine. The consultancy analyzes data; therefore, these data must be reliable; in this way, an efficient solution will be presented to the client.
The consultant must be impartial, which is one of the defining characteristics of his profile, and consulting is an independent job. But independence is, at the same time, a complex relationship between consultant, client, and collaborators. Consultants are not hired to direct or make decisions in the company but guide and advise its executives to make these decisions. The consulting professional must be qualified, with relevant knowledge and skills.
It is often common to see the application of standardized methodologies by consultants in large companies also being applied in Small Companies. It is important to note that this practice does not take into account the structural differences between these companies, which may result in services with excessive costs. Therefore, when providing a business consulting service, it is necessary to consider each company’s limitations, objectives, and different needs.
Clearly, the consultancy service such as Financial Advising for Small Businesses must be provided differently for small and large organizations. Looking at the structure, small companies have a simpler structure than large ones. Business consulting can be an essential transformation tool when applied to small businesses. The main contribution to Managerial Skill is to help the entrepreneur reason logically to solve problems. Entrepreneurial Capacity is a characteristic of the entrepreneur and cannot be trained but reinforced through management techniques.
The consultancy by Cultivate Advisors for instance will play a fundamental role in defining and creating the processes, as the people involved do not have a culture of well-defined processes due to years of working in the same way and trying to survive the difficult mission of having a small company in Brazil. Another mission is to establish trust with business people, as companies are unfamiliar with how services are carried out. Consultants should avoid citing past experiences with other clients, as owners fear becoming subjects for examples given to future clients.
It is common in Consulting services to find, in family-structured companies, the priorities of your family members being confused with those of your company. This type of work in helping the entrepreneur to develop his entrepreneurial Capacity is essential. New techniques must be created and developed to improve the quality and efficiency of the consulting service in small companies, as they are less formal and more flexible, thus adding value to the whole.