Business Consulting Defined

I am sure most of you have heard the phrase, or term, business consulting. And I am sure some of you wonder what this business consulting is all about.


How does it make money?


How does one become a business consultant?


Perhaps you even see some of these business consultants in your office and secretly ask what these people are doing in your boss office or over the phone so often.


And when someone tells you that they are there to advise your boss, you ask yourself why does your boss need advising? Isn't he supposed to know what he should be doing?


After all, hes the boss and he is paid very high to do his job. So to stop you from guessing and demystify the business of consulting, here is business consulting-defined.

Business consulting is the practice of advising the executives of an organisation on how to improve the officers, as well as the business, performance in certain fields or areas.

Business consultants are hired temporarily to analyse the problems and dilemmas of the business and then develop a management plan to solve the problems, or improve the weak areas of the organisation.


They can guide the organisations improvement and progress through a step by step process, guiding them all the way. However, the extent of their involvement still depends on the client organisations decision on how deep they want the business consulting firm to get involved in their management.


Now, why does an organisation need outside consultancy?


Are the top executives not capable enough to solve the problem?


Organisations avail the services of these so-called business consulting firms for different reasons and depending on the need of the company.


Some hire external consultants to have a fresh mind from the outside, giving more objective analysis of the problem. It might be that the company's executives have already been too involved in the problem that they might already be taking it personally.


Hence, their judgement is already clouded with personal feelings. Others hire them for their specialise expertise on a particular new area, with which the company is not yet familiar.

Most common service that business consulting firm are hire for is the business development service, which is usually on a per project basis, where hiring a permanent employee for the task would be unnecessary and expensive.


In this case, business consultants are hired for a particular period of time depending on the length and depth of the project. Sometimes, they are retained during the first few months of the project until such a time the officers can manage on their own. Or sometimes, they are retained for the whole duration of the project, up until its completion.


Another common service business consulting is known for is management coaching for the organisations executives, wherein consultants conduct a one on one training to a particular officer and guide him to the successful management of business. The consultant here is usually duty on-call for whatever advising need that may rise anytime.



Consultants may also provide assistance in the area of change management for the organisations employees, who are about to go through major changes and development within their work place. Today, business consulting has become one big industry, as it becomes popular with more and more organisations recognising the importance of an objective analysis and focused expertise from outside the company.

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