Should You Hire a Consultant?

There are many reasons why you should consider contracting with a consultant, with the most obvious being cost savings.

I’ve often made the argument that a consultant can save a company on their bottom line, which is a combination of both direct and indirect costs. A company’s Direct Cost include wages, retirement/pension, medical/dental insurance, payroll tax, vacation accrual, sick time usage, liability insurance for vehicles, etc. Indirect costs include software licensing, office space, office supplies, computer and IT equipment, telephone, training, meeting expenses, and so forth.  So, if you consider the full or “real” cost of hiring a full-time employee versus a consultant, you will pay upwards of 65% more for the employee.  That is 65% more you could be reinvesting right back into your company. 

Contracts are scalable and flexible.  If you only need a consultant for a few months or a year, then the contract can be scaled to meet your company’s needs.

A consultant may have the expertise that you don’t know that you need. For example, I met with a potential client that told me that they provide a service that cities need, and their selling point is that they employee veterans.  The simple truth is, there are strict procurement laws in place that try to level the playing field. Just because you provide a needed service and employee veterans, doesn’t mean that you’re a shoe-in. If you don’t understand procurement and the associated laws, then you may want to hire a consultant with the expertise to keep you out of trouble.

Along with the expertise, there is the network that a consultant should bring to the table as well.  Let’s face it, in the world of procurement, all things being equal, contracts will be awarded to those companies that have built a relationship and established a level of trust with the procurer.  A consultant can help get you in front of the right people to establish your brand identity and build trust.

A consultant may be hired to influence legislation or policy. Many businesses are seeing value in contracting out their government relations.  There was an article written by Tommy Goodwin and Craig Fleisher for Lobbying Institute where they wrote “The potential business impact from government and regulatory intervention is significant. Depending on the industry, it can account for between 30-50 percent of a company’s EBITDA (earnings before interest, tax, depreciation, and amortization).”  So, if you are concerned about how legislation could impact your business, it would be worthwhile to speak with someone like Broadmore.

 So, should you hire a consultant?  Only you can decide that.  But if you choose to hire a consultant to help expand your footprint in Arizona, or represent you in the Government Relations arena, Broadmore Consulting is ready to help.