When Does Hiring a Small Business Consultant Make Sense?

When Does Hiring An Interim CEO Make Sense?

Management challenges are a common occurrence in many startups and small businesses.  Sometimes a skilled and knowledgeable caretaker is needed while a search is ongoing for a permanent executive. Other times, an issue could pop up and would require the specific expertise of someone you don’t necessarily need to have on your business full-time.

Here are four examples of times when hiring an small business adviser makes sense for your business:

During the first months/year of a startup:

Founding entrepreneurs are overflowing with passion, motivation and vision, but most of the time they might lack the experience of someone who has already handled a successful startup. This is when hiring an small business consultant during the beginning phase of a small business makes sense. A company’s success is much higher when they have someone who has gone through it all before at the helm.

Counseling a founding CEO:

Aside from growing pains, a startup could require expert help down the line as well. A founding CEO might be struggling with a certain aspect of the business and be in need of assistance. Instead of replacing the founder, a more practical solution would be to hire an interim COO to help the founder and take on the daily duties for a few months. As soon as the company improves and grows, the founder is then in the right position to gain complete control again.

Managing further rounds of investment:

Founding investors might be asked to invest more in a business that hasn’t reached its initial goals. For several reasons, investors would request to have an executive of their choosing manage the company while the next rounds of investment are ongoing.

Getting the company on track to target industry-specific executives:

When a business needs to employ a CEO that’s industry-specific in order to fully make the most of its potential, the recruiting process can be tricky. Most executive recruiting firms will advise you to have things “tidied up” so the best candidates from a specialized industry will consider your offer. Many small business consultants are very adept at cleaning up a business for permanent executives.

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