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Forbes
3 days ago
- Business
- Forbes
Why Small Business Owners Should Hire A Consultant
By Olanrewaju Babalola Running a small business is a bold and courageous endeavor. It demands grit, creativity, and an extraordinary ability to wear multiple hats all at once. You juggle sales, marketing, operations, customer service, and finance—sometimes with no formal training in any of them. In this high-stakes balancing act, the right support can make all the difference. This is where consultants come in—not as temporary fixers, but as strategic allies who help small business owners build more resilient, scalable, and successful enterprises. But here's the challenge: not all consultants are created equal, and not every 'expert' adds value. In today's entrepreneurial landscape, where uncertainty is constant and speed is critical, small business owners need to choose consultants carefully. In this article, we'll explore why having an entrepreneurial consultant isn't a luxury but a smart investment, and what to look for when choosing one. Contrary to popular belief, business consultants aren't just for large corporations with deep pockets. In fact, small businesses may stand to benefit even more from external expertise, especially when resources, time, and experience are limited. Think of consultants as accelerators. They help business owners clarify direction, identify blind spots, avoid costly mistakes, and move faster toward their goals. Small businesses create two-thirds of net new jobs in the U.S. economy, but face disproportionate barriers to accessing strategic advice, especially in finance, technology, and operations. Consultants bridge these gaps. Consultants can also prevent burnout. Too many founders work in the business rather than on the business. A good consultant steps in with systems, strategies, and accountability—so the founder can reclaim their energy and focus on what matters most. While there's no shortage of professionals offering advice, not everyone who calls themselves a consultant is equipped to support small businesses. Beyond knowledge, the right consultant brings alignment, empathy, and real-world practicality. Let's break down what truly sets great business consultants apart. You want a consultant who understands what it's like to build something from scratch. That means they think like an owner, not a hired gun. They understand the emotional weight of entrepreneurship—cash flow anxiety, employee dynamics, market changes—and they tailor their advice accordingly. Entrepreneurial consultants don't just analyze; they relate. They've been in the trenches, and their advice reflects lived experience, not just textbook knowledge. This type of consultant doesn't pitch cookie-cutter frameworks. They design solutions that respect your budget, bandwidth, and unique business model. Too many consultants deliver a thick report filled with recommendations—then vanish. But what a small business really needs is execution support and accountability. Outcome-driven consultants focus on impact: increasing revenue, reducing costs, improving retention, scaling operations. They track metrics, align with KPIs, and stay engaged until goals are met. A report is nice. A result is better. The best consultants don't walk in with all the answers. They ask questions first. They listen deeply. Then they build solutions with you—not for you. This approach, often called 'co-creation,' is especially effective in dynamic, resource-constrained environments like small businesses, where flexibility and ownership are key to success. Co-creation fosters buy-in from the team, encourages experimentation, and leads to more sustainable implementation. Small businesses aren't just systems and strategies. They're made of people—employees, customers, partners, and families. Entrepreneurial consultants who understand this human element deliver better, longer-lasting results. They're able to read the room. They coach the founder. They help navigate hard conversations. They empower teams. In short, they help you build a business that works for people. Some consultants create dependency. Every time something changes, the client has to call them back. That's bad business. Great business consultants leave you and your team stronger. They transfer knowledge, build capacity, and introduce tools that keep working even after they're gone. This is what separates a trusted ally from a transactional vendor. If a consultant isn't empowering you to stand on your own, they may not have your long-term best interests in mind. Small business challenges are rarely isolated. A marketing issue might stem from poor customer service. A hiring problem might be rooted in unclear strategy. Strong consultants practice systems thinking—the ability to see how different parts of the business interact. They connect the dots across departments and help you make decisions with broader consequences in mind. Don't hire consultants who solve in silos. Hire those who build bridges between your people, processes, and purpose. This approach results in smarter strategies and stronger businesses. Here's a quick checklist to help you decide if a consultant is truly an ally: More from Many small business owners wait too long before seeking help. They bring in a consultant when sales are down, staff morale is low, or they feel stuck. But the best time to build relationships with consultants is before you're overwhelmed. Think of it as an investment in clarity, confidence, and growth. The right consultant won't just solve problems—they'll become a long-term thinking partner. A true ally who helps you navigate complexity, seize new opportunities, and become the kind of business leader who builds not just a company, but a legacy. Choose wisely. And remember: the strongest entrepreneurs are never alone.
Forbes
07-05-2025
- Business
- Forbes
Looking For Small Business Funding? Be Ready To Manage Funds First
By Olanrewaju Babalola Without internal structure, discipline, and foresight, capital can do more harm than good to a small ... More business. getty It is a well-worn phrase that small businesses are the backbone of the economy. Small businesses create jobs, stimulate innovation, and serve as catalysts for community and economic development. And yet, conversations around their struggles often echo the same refrain: 'There is lack of funding.' That narrative, while partially true, is increasingly one-sided. What we rarely ask is: are small businesses truly ready to access the funding that is already available? Or more precisely, is the challenge really the absence of funding or the inability to access and manage it effectively? Looks like it's time we flipped the coin. Plenty of funding opportunities do exist. There are microloans from development banks. Equity investments from angel networks. Grants from foundations. Credit lines from fintech platforms. Our options have grown significantly. Yet, many small businesses still struggle to get in the door. This is where we must distinguish availability from accessibility. While significant funding is available to support entrepreneurs, many business owners are still not equipped to meet application documentation requirements, provide accurate financial records, articulate clear growth plans or present fundable business models. In other words, funding is available, but not accessible—and that inaccessibility is often a function of internal capacity, not just external barriers. The Overplayed Side of the Coin: External Barriers to Funding Of course, we must acknowledge the legitimate systemic hurdles: Cumbersome loan processes that intimidate or confuse business owners. High collateral requirements that exclude startups and microenterprises. Limited awareness of available funding options, especially outside urban centers. Biases and inefficiencies in financial institutions and grant-making bodies. These barriers are real. But when we focus only on these, we may unintentionally tell small business owners: 'It's all out of your control.' And while well-meaning, this narrative can become disempowering. More articles from AllBusiness: The Overlooked Side of the Coin: Internal Readiness for Funding On the flip side lies what is less often discussed but equally important: many small business owners are not fund ready. In other words, they are not ready to absorb and use funds efficiently. They operate without financial statements or cash flow forecasts. They lack a basic understanding of credit terms, repayment schedules, or interest implications. They have no strategic plan for how to use funds productively—or worse, they treat grants and loans like windfalls rather than business instruments. They are unaccustomed to formal accountability, governance, or reporting. These are not necessarily character flaws; they are capacity gaps. And these are signs that more support is needed before and after the money hits their account. If we are honest, throwing money at an unprepared business doesn't solve its problems; it often magnifies them. Consider two entrepreneurs: Entrepreneur A receives a $10,000 grant to scale an agro-processing venture. But without a growth strategy or plans to use the funds efficiently, the money is spent on shiny but unnecessary equipment and haphazard expansion. Within a year, the business is worse off—overextended, disorganized, and more stressed than before. Entrepreneur B, denied funding, focuses on strengthening operations by streamlining processes, building a customer base, and improving recordkeeping. A year later, the business is fund ready and able to secure an investment on better terms. This contrast underscores a hard truth that funding is a catalyst and not a cure. It amplifies what already exists. And without internal structure, discipline, and foresight, capital can do more harm than good. Entrepreneurs Should Be Ready to Manage Funding The conversation about small business challenges needs a reset. We must stop positioning lack of/access to capital as the only or ultimate barrier to growth. It is part of the puzzle—but so is the ability to use capital effectively. The reality is nuanced: Yes, external systems need reform. Yes, more inclusive capital must be mobilized. But yes—entrepreneurs also need to be prepared to manage that capital. This is not about placing blame. It is about everyone working together and doing their part, learning to take responsibility. We must invest in both access and 'absorption.' This is a dual investment strategy that: Improves external support such as simplified funding processes, inclusive eligibility criteria, and contextualized advisory services. Strengthens internal capacity such as financial literacy, operational discipline, strategic planning, and governance. Funders, policymakers, and development organizations should invest just as heavily in readiness-building as they do in disbursing capital. Some institutions are already modeling a better way. Community Development Financial Institutions (CDFIs) have long understood that capital alone isn't enough. Many CDFIs have evolved their approach—having loan officers wear two hats, serving as a loan officer and a business mentor. Beyond loan 'production,' they help entrepreneurs with business planning, credit education, financial forecasting, and even post-loan support. This blended approach (capital plus capacity) has made CDFIs especially effective in underserved communities. They recognize that readiness is not a given, but a process that can be developed with the right tools and guidance. Recently, I have seen small business owners also rising to the challenge. More and more entrepreneurs are starting to see that getting ready for funding is just as important as finding where to get it. They are signing up for training, asking for advice from people with experience, keeping better records, and making clearer plans for how to grow their business. Whether they are doing these to check boxes on a loan/grant application form or not, I think it is encouraging. Entrepreneurs need to feel just as confident asking, 'Am I ready to be funded?' as they are in asking, 'Who will fund me?' Responsible Funding Management Leads to Sustainable Growth So, the next time you hear someone say, 'small businesses can't access funding,' pause and ask: is the funding truly unavailable, or is it simply out of reach due to internal limitations? Sustainable business growth requires more than funding. It requires readiness and responsibility. And until we start addressing both sides of the coin, we'll continue mistaking availability for access, and challenges for excuses. Olanrewaju Babalola is an entrepreneurial consultant and business analysis professional with about a decade of experience in strategic, client-facing roles across diverse industries including education, retail, financial services, and consulting. He has guided hundreds of small businesses at different stages around the world to become better in their outputs and outcomes, as a trusted advisor and mentor. He writes about entrepreneurship and small business, leadership, innovation, business analysis and business education. His insights have been featured in numerous business articles on platforms like MSN Small Business, Small Business Currents, BusinessDay, Businessing Magazine, Business Africa Online, and more.
Forbes
16-04-2025
- Business
- Forbes
How To Grow A Small Business Sustainably
By Olanrewaju Babalola Without a holistic approach to growth, businesses risk inefficiencies and wasted resources. In today's fast-paced market, small businesses need more than just quality products and services to stay competitive. Long-term success requires a well-rounded strategy that aligns with overall business operations. One effective tool to help understand and optimize your processes is SIPOC (suppliers, inputs, process, outputs, and customers). This framework provides a clear picture of how your business functions from start to finish, enabling you to craft a more effective growth strategy. While it's crucial to focus on specific areas in the early stages of entrepreneurship, sustainable growth requires a broader perspective. Entrepreneurs must step back and take a strategic view of their entire business ecosystem to ensure all moving parts work together seamlessly. Without this holistic approach, businesses risk inefficiencies, wasted resources, and missed opportunities for expansion. Drawing on insights from my undergraduate research on total quality management (TQM)—a holistic business approach focused on continuous improvement—this article explores four key concepts aligned with SIPOC that can drive sustainable business growth: participative management, process management, relationship marketing, and quality education. Participative management fosters a culture where employees, suppliers, board of directors, and even customers (in summary, all stakeholders in the business) contribute to decision-making. Often, this approach leads to improved employee engagement and a more innovative workplace. Businesses that embrace participative management benefit from higher morale and stronger alignment with company goals. Success Story: As an employee-owned business, King Arthur Baking actively includes employees in shaping its company policies and product development on a long term. Going into the pandemic, when there was an immense amount of uncertainty, different stakeholders within the organization came together to figure out solutions in ways that they didn't have to do before. Customers also tend to play a role by providing direct feedback on new recipes and baking trends, which influences product offerings. Why It Works: How to Implement: Successful participative management creates an organizational culture where everyone feels heard and valued. It transforms a traditional top-down leadership approach into a collaborative, innovative workplace that drives sustainable growth. Process management involves mapping out every operational step and identifying inefficiencies to optimize work activities. Businesses that excel in process management ensure consistency, reduce waste, and scale effectively. Without efficient processes, companies risk increased costs and poor customer experience. Success Story: Over the past five years, Amarra, a New Jersey-based manufacturer and wholesaler of special-occasion dresses, integrated artificial intelligence into its operations to enhance efficiency and customer experience. With AI-powered inventory management systems, Amarra has reduced overstocking by 40% and decreased content creation time by 60%. Why It Works: How to Implement: An effective process management strategy ensures that businesses remain agile, competitive, and capable of handling increased demand without compromising quality. Strong relationships with customers, suppliers, and the community create a competitive edge. Relationship marketing focuses on engagement across all stages of interaction to foster trust and loyalty. Businesses that prioritize relationship marketing enjoy increased customer retention and supplier reliability with a stronger brand reputation. Success Story: Zingerman's Bakehouse focuses solely on community as it seeks to be a good neighbor in Ann Arbor, Michigan. With relationship marketing at heart, the bakery is mindful of how loud its trucks are, how it manages the garbage, and how much it gives back to neighbors, among other things. Zingerman's maintains close ties with local farmers and food producers to ensure quality and reliability, while also engaging customers with educational food events and personalized service. Why It Works: How to Implement: Relationship marketing turns one-time buyers into long-term brand advocates, creating a sustainable and profitable customer base. A culture of lifelong learning is essential for business growth. Quality education does not start or stop at formal training. It could be gotten through mentorship, peer-to-peer learning, and skill development. Small businesses that invest in education often see increased innovation and productivity. Success Story: Northern California-based Philz Coffee invests tremendously in specialized staff training for technical roles like coffee origination and roast-mastering, but equally in soft skills like hospitality and emotional intelligence for baristas. Why It Works: How to Implement: Businesses that prioritize quality education create a workforce that is not only skilled, but also motivated to contribute to long-term success. More articles from AllBusiness: The success stories of these small businesses highlight the impact of integrating participative management, process management, relationship marketing, and quality education. When businesses align these four elements, they create a synergy that enhances superior business performance. Key takeaways: For small businesses looking to scale, these principles offer a structured path to sustainable success. By taking a holistic approach to business growth, entrepreneurs can ensure they are thriving in an ever-evolving marketplace. With a strong foundation in participative management, process management, relationship marketing, and quality education, businesses can achieve sustained success and maintain a competitive edge for years to come. About the Author Olanrewaju Babalola is an entrepreneurial consultant and business analysis professional with about a decade of experience in strategic, client-facing roles across diverse industries including education, retail, financial services, and consulting. He has guided hundreds of small businesses at different stages around the world to become better in their outputs and outcomes, as a trusted advisor and mentor. He writes about entrepreneurship and small business, leadership, innovation, business analysis and business education. His insights have been featured in numerous business articles on platforms like MSN Small Business, Small Business Currents, BusinessDay, Businessing Magazine, Business Africa Online, and more. 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