Small businesses often contract with consultants who can offer advice on various business decisions. As a small business consultant, you can use your expertise in a specific area, such as marketing, sales or project management, to help businesses achieve their goals. Knowing about the different types of small business consultants and the paths to becoming one can help you decide if you want to pursue this career.
In this article, we discuss eight different types of small business consultants and the steps you can take to enter this career.
What is a small business consultant?
A small business consultant is someone who advises businesses in their area of expertise, such as marketing, information technology (IT) or strategic planning. Most small business consultants have years of experience in their fields. This experience allows them to provide insights and advice to help their clients achieve key business goals. Typically, these consultants have contracts with small businesses for their services. They may have multiple clients at one time, or they may work with one business for a specified amount of time, such as three months.
What does a small business consultant do?
While their duties can vary based on their expertise and area of consulting, a small business consultant may have the following tasks:
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Meet with clients to understand and assess their business goals
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Evaluate current operations to identify areas for improvement
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Analyze data and metrics to gain a comprehensive understanding of a small business
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Provide advice and recommendations to small businesses to modify or improve operations
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Prepare reports and give presentations to business leaders with recommendations
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Monitor the effects of their recommendations and make adjustments as needed
8 types of small business consultants
Here are some different types of consultants and the services they may offer to small businesses:
1. Strategy consultant
This type of consultant works with small businesses on strategic planning, or the process of developing plans to achieve business goals. A strategy consultant may advise small businesses on various aspects of strategic planning, such as forecasting, product launches or brand messaging. Their goal is to help small businesses develop and grow to meet specific targets. Often, strategy consultants work closely with business owners or leaders to provide input on business decisions and initiatives.
2. Marketing Consultant
A marketing consultant advises small businesses on how to use marketing campaigns to connect with potential consumers. They may perform market research to identify consumer behaviors and assist with creating strategies to target consumers on various channels, such as social media. Their goal is to help small businesses develop marketing content to reach targeted demographics and generate revenue. A marketing consultant may specialize in various areas of the industry, such as:
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Email marketing
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Search engine optimization (SEO) marketing
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Content marketing
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Digital Marketing
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Social media marketing
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Influencer marketing
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Print marketing
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Event marketing
3. Financial consultant
Financial consultants help small businesses with accounting, budgeting, investments or other financial matters. Some financial consultants may have long-term contracts with small businesses to handle payroll and bookkeeping. Others may work with a small business for a limited time to develop a budget, make financial projections or identify areas to reduce expenses. A financial consultant may also work with a small business to prepare taxes and ensure regulatory compliance. Other areas where a financial consultant may offer input to small businesses include:
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Investment portfolio management
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Financial planning
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Revenue generation
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Fundraising
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Risk management
4. Legal consultant
Rather than having an internal lawyer, small businesses often hire legal consultants to advise them on issues related to laws and regulations. A legal consultant provides information and makes recommendations to small businesses to ensure they conduct business legally. Legal consultants may advise businesses on contracts, lawsuits or conflicts. Usually, a legal consultant has a broad knowledge of the laws in a particular region, such as a city or state, so they can help businesses remain compliant with local regulations. Their duties may include:
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Reviewing company policies and offering recommendations
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Preparing or reviewing business contracts
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Researching complaints or disputes to help businesses respond legally
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Offering legal input on business transactions, such as mergers or acquisitions
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Counseling small businesses on internal conflicts to ensure optimal solutions
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Performing legal research and analysis to help small businesses stay up-to-date on regulations
5. Project management consultant
A project management consultant oversees projects for small businesses. Typically, a small business hires a project management consultant for a specific project, such as the development of a new product. Some small businesses may also hire these consultants to review project management operations and recommend areas for improvement. These specialists may consult with businesses on some or all phases of project management, including:
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Project initiation, strategy and planning
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Scheduling, budgeting and resource allocation
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Risk management
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Project execution and testing
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Monitoring deliverables and project outcomes
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Post-project review
6. IT consultant
IT consultants contract with small businesses to develop or improve technology systems. They may help new small businesses set up computer systems, including hardware and software. Some IT consultants review existing systems to make repairs or recommend upgrades. They may also help small businesses increase their cybersecurity efforts to prevent security breaches and protect sensitive data and information. A small business IT consultant may provide broad support or specialize in a specific area of technology, such as:
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Data Analytics
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Information systems management
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Network Administration
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Software development or engineering
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Cybersecurity or information security
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Hardware systems
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Database Administration
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Web design
7. Human resources consultant
Many small businesses hire human resources (HR) consultants to assist with recruitment, staffing, training, employee engagement and other HR functions. An HR consultant may help a small business find quality candidates for open positions and manage the onboarding process for new hires. They may also oversee or consult with businesses on compensation, benefits administration and employee policies. Some HR consultants serve as generalists to provide input on various areas, while others in this field specialize in an area of human resources, such as recruitment, compliance or payroll.
8. Sales Consultant
A small business sales consultant works with businesses to help them improve their sales and generate additional revenue. They may assist with creating sales processes, establishing prices or developing sales incentives. A sales consultant may also offer training to sales teams to help them improve their negotiation skills and sales tactics. Their duties can vary but may include:
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Meeting with small businesses to understand their products, services and sales goals
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Hiring or training sales representatives
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Working with sales managers or business leaders on pricing, promotions or discounts
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Observing sales pitches or presentations and making recommendations
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Identifying sales leads and building relationships with business clients
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Assisting with sales strategies or processes to improve conversions
How to become a small business consultant
Here are the steps you can take to become a small business consultant:
1. Gain experience in your field
Most consultants gain at least five years of experience in their field before becoming a consultant. Choose the area in which you want to specialize, such as human resources or law, and become an expert in this field. For example, if you want to become a small business IT consultant, you may work as an IT technician or specialist for several years to learn about developing, implementing and monitoring computer systems.
2. Become certified
Once you’ve gained sufficient experience in your field, become certified to show your expertise in this area. Some states may also require consultants in certain fields to earn licenses. Research your industry and specialization to learn about certifications you can earn. Some certification programs may also help you learn more about small business consulting so you can prepare effectively.
3. Consider an advanced degree
While optional, a master’s degree can help you gain advanced knowledge of your field, allowing you to share this expertise with small businesses. For example, you may earn a Master of Business Administration (MBA) degree to become proficient in business management and leadership. You may also earn a degree relevant to your specialization, such as a master’s degree in human resource management. Some small business consulting positions, such as legal consultants, may even require you to have an advanced degree.
4. Build a network
Small business consultants often use their professional connections to get jobs. Begin to build your network by developing and maintaining professional relationships with small business owners, industry experts and other consultants. You can attend small business events in your area or join local business associations to network with business owners in your area.
5. Transition to a consulting role
You can choose to become a small business consultant with a consulting firm or work independently. Consider your career goals to help you decide which path to pursue. If you choose to work at a consulting firm, apply for open positions and emphasize your skills and expertise in your field. Becoming an independent small business consultant may involve creating a business plan, developing a marketing strategy and finding clients through your network or advertising efforts.
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