14.02.2021

What is business consulting?

Key information:

  • Business consulting is a practice in which an outside professional consultant provides consulting services and expertise to help companies solve problems, achieve goals and improve performance.
  • Business consulting has many advantages, including: consultants' expertise, objectivity or access to the best techniques.
  • Business consulting is available to different types of organizations, regardless of their size, industry or stage of development.
  • Every company strives to keep internal costs lower than the value of sales generated. The limit of the company's development is the point at which internal cost equals external cost.
  • Business consultants can help companies improve management, identify permanently unprofitable branches, optimize costs and streamline business processes.
  • Management consulting is an outside perspective, helping to see the company as it is and identify areas for improvement.
  • The competencies of a good consulting firm include strategic consulting, financial, marketing, IT, tax and grant acquisition.
  • Choosing a good consulting firm requires responsibility, the ability to assess the situation and the flexibility to tailor the approach to individual needs and challenges.

Details below!

An essential competence of an entrepreneur and manager is the ability to draw correct conclusions from incomplete data and partial information. However, no one is the alpha and omega, there are areas that require professional support. A professional business consultant can help in such situations.

What does business consulting consist of?

Business consulting is a practice in which an outside professional, known as a business consultant, provides a consulting services and expertise to help companies solve problems, achieve goals and improve performance. Business consultants have extensive experience and expertise, which they use in analyzing situations, providing strategic advice, optimizing processes, managing projects, and training and developing personnel.

Advantages of business consulting

Business consulting is a field that is becoming increasingly important in the dynamic and competitive business world. In the face of changing trends, rising customer expectations and market complexity, companies must be able to adapt effectively and make strategic decisions to stay ahead. This is where business consultants come into play.

What are the advantages of business consulting? These are primarily:

  • Expertise and expertise of consultants - They have a high level of expertise in their areas of operation. They have the experience and skills needed to solve complex problems and provide innovative solutions.
  • objectivity and an outside perspective - Business consultants, being unaffiliated with the company, are able to look at the situation with an external, objective eye. Their independence enables them to identify problems that may be overlooked by internal staff.
  • concentrated and fast action - business consultants are able to focus their efforts on a specific project or task, allowing them to quickly accelerate the process of analyzing and implementing solutions. As a result, companies are able to achieve results faster than they could with in-house efforts.
  • access to best practices and innovations - Business consultants often have access to extensive knowledge of best practices and the latest trends in their fields. They can provide companies with the latest tools, techniques and strategies that can bring a competitive advantage.
  • cost reduction and efficiency optimization - Business consultants help companies identify areas where costs can be reduced, processes optimized and productivity increased. Their experience allows them to make changes that bring tangible financial benefits.

Business consulting is a field that is becoming increasingly important in the dynamic and competitive business world. In the face of changing trends, rising customer expectations and market complexity, companies must be able to adapt effectively and make strategic decisions to stay ahead. This is where business consultants come into play.

Who can benefit from business consulting?

Business consulting is available for different types of organizations, regardless of their size, industry or stage of development. Large corporations, small and medium-sized enterprises (SMEs), new start-ups, nonprofit organizations and the public sector can benefit from business consulting services. Business consultants can help with Business consulting adapts to individual customer needs, offering personalized solutions for specific challenges and goals.

Internal cost theory

Each enterprise is a structured set of processes whose total cost is less than the value of sales generated. We can divide the processes that constitute costs into external and internal. The former are the result of services or products purchased on the market, the latter category is the sum of team labor costs, fiscal mark-ups, workplace armament, administration and management costs.

The limit of the company's development is the point equalization of internal and external cost. If a service can be purchased on the open market at the same price or cheaper, it makes no sense to maintain internal staff.

In other words, a company uses the orderliness of its processes to generate products or services cheaper than their market price. The greater the orderliness, the lower the internal costs, and thus the possibility of collecting a higher margin on sales.

Improvement in company management

The fiscal principle states that an expense, in order to be taxable, must be related to sales. This logic is not limited to settlements with the tax authority. Every cost that a company incurs should be inextricably linked to the sales process being implemented.

Sometimes companies tolerate cost groups that have no direct justification. These can be decisions with different motivations. For a good consultant, a consultant, this is a "red flag," a signal to conduct a process analysis and demonstrate whether the cost items should be retained or removed. Permanently unprofitable branches of enterprises always contribute to a decline in their dynamics, deterioration of market position, and understated profits.

A company's administrative organization often has no self-motivation to fight costs. On the contrary, it multiplies FTEs and unnecessary tasks, and creates processes that serve themselves.

Business consulting

A successful business is characterized by dynamic sales, effective defense of margins and constant struggle against excessive costs. This is never easy, very often in our business practice it is possible to observe "attachment" to expenses that are not business justified. The result is always the same, falling profitability, increasing debt and the need to make difficult decisions.

Art business consulting, involves a proper analysis of the starting point, the current state, and assigning actual values to individual processes. A business consultant can analyze future and hypothetical activities, but so can prepare an efficiency audit aimed at optimizing costs.

Management consulting

"A visitor can see a mile away for a while," goes the simple old saying. The mirror of reality is most curved when we look at ourselves. A business advisor, an outsider, sees a company as it is, not as it appears to some. The lack of business dependence allows expression of thoughts, which in the case of a traditional decision-making hierarchy could not be externalized.

The development of a business strategy usually involves all aspects of the company's operation. Both its strengths and weaknesses, the actions of competitors and changing market factors. It includes both economic, operational, personnel and sales consulting. It aims to update business processes, streamline them, make them more economical and thus improve company management.

Terms of reference for business consulting

A good consulting company will prepare activities in the area:

  • business start-up advice
  • advice on running and company
  • support the development of the company
  • business management
  • strategic consulting
  • financial consulting
  • marketing and PR consulting
  • IT consulting
  • tax and financial consulting
  • acquisition of subsidies

The breadth of competence of a good consulting agency comes from the experience of its staff and completed projects, practice in research and analytical processes. No good consulting company in Poland is a one-man agency. On the contrary, a broad business profile and specialization requires many professional managers.

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    How to choose a good consulting company?

    Consulting is primarily responsibility. The ability to assess the situation, make a diagnosis and indicate the direction of change in the company. On the other hand, no advice will be effective if the response to the crisis is not flexibility and readiness for change.

    A good consultant avoids routine because he knows that each of his projects is a different case. While it is true and the rules of business always apply, the way he approaches each separate case each time must be different. Taking into account the peculiarities and individual characteristics of a particular enterprise, the unique challenges it faces.

    How to achieve success through analysis?

    Collection of baseline data, analysis of the actual state of affairs, proposals for courses of action are the scopes of activities, as ConQuest Consulting we perform on a daily basis for the most demanding clients. Our studies have helped many companies streamline current operations and implement pro-growth measures, helping to conquer new markets and achieve higher margins.

    Our work requires the combination and interaction of specialists from different fields, cooperation with external experts, but the most important is direct work with the client and his team. Information gleaned from interviews with managers and employees allows us to extract valuable information that, when shown in the right light, can influence the perspective of the company's management and owners on how they see things, and thus prompt changes.

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