Starting a business is like a chess game, it needs a strategy and proper planning in the field. It always involves taking risks. Taking risks, however, does not mean going into business blindly and then expecting great results. Taking risks in entrepreneurship involves careful planning and hard work.
According to statistics published in 2019 by the Small Business Administration (SBA), about 20% of business startups fail in the first year. About half succumb to business failure within five years. By year 10, only about 33% survive.
These numbers might be discouraging but cold statistics like this are not intended to discourage entrepreneurs, but to encourage them to work smarter and harder. Proper planning and a well-thought-out strategy can do the trick, right? But with the right partner, your business can soar higher than what you expected in the first 5 years of operation.
Considering a consultancy firm as a partner for your business would be the best idea you could do for your start-up business. When you have the idea, you need the right partner to keep you on track of your target and goals.
There are 5 advantages when considering consultancy firm as a partner for your business:
Gain an outside perspective.
Starting a business is overwhelming and complicated, there are too many unknowns before taking the plunge, but the truth is, business is risky because a lot of people don’t have a proper understanding of the business that they are doing or the marketplace they are operating in. If you have a consultancy firm as a partner, you will be able to get their know-how and expertise.
Take advantage of valuable resources.
No matter how hard business management works to grow and develop their company, there may come a time when outside help is needed. Consultants work closely with business owners and managers to help identify challenges, offer advice, and propose practical solutions. You might think of consultants as doctors, who diagnose the problem and prescribe a remedy that alleviates pain.
Bring in new business skills.
Though the rate of business failure in the first two years is around 20%, it doesn’t mean that you have to fail. A business consulting firm can help to identify time-tested strategies that help an organization grow and thrive by not only cutting costs, but making the most of their resources and making smarter business decisions based on a careful analysis of all the available data.
Save Time, Money, and Stress.
In today’s economic environment, it is important that businesses stand out, tighten their operations, and increase sales or billable services while trimming unnecessary expenses. Many businesses struggle to get the edge on competitors, the day-to-day operations of the business are more than enough to keep management busy. Hiring a consultant can help business improve performance and make necessary changes to achieve success.
Prompt employees to reach goal
Consultancy firms not only encourage you to apply the necessary steps in running a business, but it also allows you to empower your people. A consultant allows you to hone your people management skills because handling people the right way might be one of your biggest asset in reaching your targets.
These are some of the advantages in starting up a business with the right partner but it doesn’t mean that there will be no failure, no mistakes and no risks. Business always involves a certain level of risk, what’s important is you have a solid plan and together with the right partner to deal with them, it will minimize the negative effects they may have on your business.
RIFCO is the leading consulting firm in Asia. Is your business performing? Turn around your business with RIFCO. With our Business Turnaround Advisory, we will help you realize your potential and figure out how to transform your business from a period of losses to profits.
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