The business or the corporate world is getting crowded and competitive every day.
About 50% of startups fail within the fifth year of their start, while the majority of them struggle years before they start generating enough revenue.
What is the reason? And, what is the possible solution?
Well! One major reason is lack of experience and poor(or no) guidance. Most budding entrepreneurs are not experienced enough to cope with changing business demands; fail to make the right decisions, manage a variety of tasks, and get discouraged. The majority of them move ahead with hit-and-trail ideology; some hit their goal while others fall badly.
That’s where startup consultants or business consultants come in!
Like a sportsperson needs a coach, a student needs a teacher; more like that an entrepreneur or a business enthusiast needs a business coach.
Today we have Anu Khanchandani, the founder of “The Grey Cells” and a startup specialist and coach. We will learn from her about the role of a startup consultant or business consultant for the growth of a startup or business. And, try to find out the vast possibilities that can be a reality with the right business consultant.
About Anu Khanchandani:
Have been in the digital product industry for more than 24 years in various roles, in India and abroad in CMM-Level 5 organizations like Syntel (India), Delta Technology (USA), Reuters Asia (Singapore).
Have consulted more than 100 startups in the capacity of CTO, principal mentor in their startup journey right from validating their startup ideas to scaling them to profitable businesses.
Interview
Q1. How do you describe the present ecosystem of the business world?
In the past, the business ecosystems were entity-based. Groups such as corporate, government, etc. came together with a common business goal to work in a collaborative manner.
Today, business ecosystems are more relationship-based. There may be business entities with different goals collaborating to create a new offering that never existed. E.g., an insurance company collaborating with a hospital to imbibe healthy living habits in its patients. A completely parallel, disruptive line of thinking thereby resulting in a relationship that brings value more than just a business association.
Also, with digital initiatives being at the core of any Business ecosystem now, the world is moving into a completely different era powered by disruptive ideas.
Q2. Who is a business consultant?
I won’t go into theoretical definitions of a Business Consultant.
According to me, a Business Consultant is a person “who has been there and done that” for the domain in which they claim to have expertise in. They are generally preferred to be an external entity so that they can bring their expertise to the table with an unbiased view so that you can benefit maximum from the same.
Q3. How a business or startup consultant makes it easier to conduct business and grow?
There are multiple ways in which a business or startup consultant can impact the well-being of an organization. Of course, a marketing consultant can bring about a specific impact on the marketing aspect of the organization, an IT consultant will probably impact the digital transformation aspect, and so on and so forth.
Q4. How does the business owner find out if they really need a business consultant or not? Or, is it simply; when things aren’t good, get a consultant?
There could be many reasons which might prompt a need for a Business Consultant. Definitely “when things are not good” is not one of the reasons.
- The primary reason why Business Owners start thinking about Consultants when they do not have expertise in a particular domain of their business. Most common example in this Digital Transformation era is the need for an IT Consultant to handle the entire process.
- A Business Owner is expected to be a Superman or Superwoman who can handle everything related to the business from A to Z. With time being a major constraint to launch a successful business, the core focus of the Business Owner should be Business Development. Some business processes can be headed by a Consultant with that expertise to save time for the Business Owner.
- Sometimes expertise is best rented than employed in-house, especially if it is temporary in nature. A consultant fits into that scheme of things perfectly.
- Consultants are adept at activities which are strategic in nature. Strategy needs an unbiased approach which a consultant can provide effectively. Converting a business owner’s vision to a tangible roadmap is one such example.
- A consultant who works with multiple organizations in a given domain can bring an Industry perspective to the table which plays a very important role from the holistic point of view.
Q5. As a business consultant, what is your major objective for the startup that takes your consultation?
I always have the firm belief that a consultant has a primary objective to bring about transformation.
I have always believed in showing the way by hand-holding and having the entrepreneur himself/herself arrive at a solution to a problem rather than solving the problem for them myself. The joy and delight that I have seen on their faces once their problems are solved or milestones are reached is incomparable to handing over an off-the-shelf solution.
I believe that an entrepreneur knows his/her business best. My role as a consultant is to ask them the right questions and nudge them on towards finding the solution themselves and making it their victory for their business.
Q6. What specific industry you are serving as a business consultant and what is the major challenge you face in that particular industry?
I have served many Startups as a consultant across various domains right from Art to Finance.
Since my last major stint has been in the Finance domain, I would like to bring to light a challenge in this domain. The startup Fintoo, provides a Digital Solution for Financial Planning – how to decide where to invest your money. The major challenge in the Personal Finance industry is building trust so that people use your solution. Finally it is a matter of someone’s hard earned money that you are claiming to give a solution to. Marketing around that emotion has been a challenging yet exciting experience.
A common area where more startups need consultancy is Data Privacy. With so many regulations governing access to one’s personal data it has become mandatory for business owners who collect data in any format to ensure they follow protocols to avoid any legal hassles for the business down the line.
Q7. What is the ground work that needs to be done by a business owner and how to measure if the ground work is up to the mark or not?
There have to be quantifiable reasons why you should be believing in your idea and you are sure that this is going to work.
There are some specific ground activities that you can do to quantify your belief in your idea. They are going to tell you how saleable your idea is.
- Conduct a survey and get feedback
- Do a thorough Market Research to feasibility for your business idea
- See how competitors are ranking in the same domain and see where you stand
- Scout social media networks for related posts and mentions of your business idea.
Q8. According to Lance Linden, consultants are like “borrow your watch and tell you what time it is”. What is your opinion on it?
Sure, there must be reason enough for Lance Linden to have said that! 🙂 . However, I would like to reframe it. My opinion is “Consultants are like – hold your hand and help you read the time on your watch”!
Often business owners have expectations that once they have a consultant on board he/she is going to do for them what they find difficult to do themselves. This is a myth.
A consultant is an external entity. They have been brought into the picture because they excel in their domain. They do not excel in your business. You excel in your business. The way they can help is by asking you the right questions related to your business so that you can take the right decisions to form and scale your business in the right way.
Wrapping Up
Whether you are going for the personal or professional level. You always seek people to give you the right advice.
Having a Consultant for anything is a great idea to be successful. Consultants give you the right advice to build the foundation for your business. They will solve all your queries related to your business. Hence, give you the ability to take the right decision for your business.
This was so insightful and interesting! Thank you so much!