Being a first-generation entrepreneur, or one trying to monetise a disruptive idea, can be quite a challenging task. Although there has been a steady growth in entrepreneurship across India, thanks to the supportive socio-political environment, a lot of startups fail, despite raising initial rounds of funding. Business consultants or external business auditors can help entrepreneurs give shape to their business ideas and support them with their own knowledge and experience, to move their concept forward.
Business consultants for startups are generally successful entrepreneurs themselves, with a
proven track record across multiple sectors and can add tremendous value to an entrepreneur’s vision. Let’s look at what such consultants bring to the table.
Industry experience
Having worked in a diverse set of businesses, an external consultant can bring valuable insights and experience to the table. These can include nuances about talent acquisition and
retention, optimising operational costs, an instinctive understanding of potential clients, as well as identifying and fixing loopholes in the business’ overall approach and processes. Further, having an external perspective on things can help startups sense how they are faring in the industry, which is vital for long-term success.
An impersonal perspective As a person with no direct interest and investments in the company, a business consultant can point out flaws or drawbacks that are roadblocks
to the business’ growth – this analysis would not be influenced by the opinions of the people behind the startup. As consultants, they offer an unbiased and objective perspective, which can go a long way in making or breaking a startup.
A long-term vision and roadmap Most entrepreneurs start a business to monetise their ideas and scale things up into a successful enterprise. Accordingly, they draw up a roadmap for their growth. However, keeping in mind the dynamic business and political environment around them, these roadmaps need to be constantly modified so as to reflect the most relevant needs of the business. This is where a business consultant can provide timely advice in order to ensure there is not only an objective plan but also a larger, more relevant vision and growth map.
Problem solving Startups face challenges and roadblocks on an almost daily basis.
Although these are common, an entrepreneur often gets bogged down or lost in the task of fixing these problems, most likely achieving only short-term goals. And then these problems may arise again, demanding a larger chunk of an entrepreneur’s productive time.
External consultants can help identify the root cause of issues and circumnavigate them in a manner that leads to a permanent solution, thereby enhancing productivity and streamlining processes.
Fund raising and scaling up
Invariably, a time comes in the business cycle of every startup when the founders need to approach private equity investors and venture capitalists. Preparing presentations and showcasing the best of the company’s performance, etc, can be crucial here.
While creating the backgrounders and getting the documents in place requires meticulous effort, an external business consultant can help draw out an effective presentation plan, verify and help showcase key achievements in an impactful manner, while also sometimes liaisoning between the potential investors and the entrepreneurs.
As per the Start-up India government portal, India has the second largest startup ecosystem in the world, currently, which is expected to witness YoY growth between 10 per cent and 12 per cent. However, as per a report by the IBM Institute for Business Value and Oxford Economics, about 90 per cent of Indian startups fail within the first five years due to varied reasons, including lack of innovation and a sustained business plan. Under such circumstances, getting an external business consultant, who is also a seasoned entrepreneur with a proven track record, can be a critical step towards success.
The author is the CEO of Tringo Solutions India Pvt Ltd, Think and Blink Pvt Ltd, and Bellaforma India Pvt Ltd.
