Hiring a marketing consultant too early or late can result in less optimal results. I’m going to explain the exact right stage of your business when a marketing consultant is right. There will be multiple times when a marketing consultant is right for your small business.
Let’s get started with a couple stories of wrong timing that led to poor results.
Example 1: Backwards Timing – Agency Before Training
We had a client that was in the first year of their business with very little working cash flow. This is the most optimal time to use a consultant for a one-time training. The client could’ve learned about how to run their own ads on Meta, improved their local search, and learned how to edit their own website. Instead, they signed up for agency monthly. We were able to create leads, but the higher cost of having someone else run your marketing did not create positive ROI.
Agency “done for you” marketing is best done after year one and after you have a solid base of customers.
Example 2: DIY Gone Wrong
This client would have benefited from the agency “done for you” model because they were already wearing all of the hats at their business. One year in and they had done a great job getting the word out to family and friends, but were ready for the next level of advertising. They had paid for a one hour consultation on how to use Google Adwords for simple targeted ads.
The problem was that they didn’t write down the step for geo-targeting when setting up their ads. Within a day he was getting hundreds of phone calls for services. Only the people calling were on the other side of the U.S. and his business was a 1-2 hour drive service business. His entire budget was blown in 2 days. We got him back on the right track, but it goes to show that sometimes it’s best to let a professional handle it.
When is the Right Time?
The right time is when you are breaking through milestones.
- Milestone 1: After family and friends
- Milestone 2: After 1 year of business
- Milestone 3: Breaking $1 Million
- Milestone 4: Breaking $4 Million
The right marketing consultant has already hit these stepping stones and walked across them. Stumbled, probably, but that knowledge helps you move forward easier.
The milestone after family and friends will be able to give you a quick understanding of what steps are needed next. This advice can range from small digital marketing, events to attend, physical advertising, and more. At this stage of your business, a small investment into understanding your next moves will be extremely valuable.
The 1 year mark is a huge milestone in business development. You made it through one year in business! 20-25% of businesses fail within the first year. At this point you’ll have a good base of clients, which will free up some extra cash flow to invest into marketing. You’ll want to look for a consultant that can advise on how to spend marketing budget and take some things off your plate. This is a good time for a combination marketing and consulting company.
Milestone 3: Breaking $1 Million in sales is a huge success for small business owners. This never happens for 90% of businesses, so congratulations if you’ve made it to a million/year. At this stage of business, you’ll have most of your marketing done in-house or through an agency. Bringing on a consultant at this stage will help determine where to focus efforts to get to the next milestone.
Breaking $4 million a year in revenue feels a lot like breaking $1 million, but with more numbers. This is the final stage where an outside consultant gives the best return on investment. After this, you’ll be able to afford in-house marketing officers that are completely invested in the growth of your company.
Why Hire a Marketing Consultant for Small Businesses
To save time and money.
They have been in your shoes and haven’t done the exact business, but there is a lot of cross over in business practices that will apply to your small business.
Ever wish you could talk to the future version of yourself? What questions would you ask them? I know I’d be looking to ask what mistakes they made and what decisions made the most impact on our life. I’d ask these questions to avoid failure and fast-track my way to success.
That’s why you hire a business consultant.
Choosing the Right Consultant
I would look for past successes in a certain industry. Every industry and business model is different. There are cross overs, but an e-commerce widget store is much different than a local mom and pop hardware store. Business consultants will tell you of their mistakes and successes, but they may not apply to you. Find a consultant that has found success in what you do.
I’d love to be the consultant for every business out there, but the truth is that I have seen success with manufacturing, family business, e-commerce, and local service. My personal successes have come from e-commerce, manufacturing, and family business, but local service successes have come through the lens of my clients. I can speak to their story, but not to their internal struggles.
The struggles that a small business owner goes through are hard, especially with kids. The relationships of family are tested. I can speak to that. I can speak to the struggles of getting past the $1 million dollar mark. I can’t speak to Coca-Cola level advertising budgets trying to increase by 1%.
Find a consultant that speaks to you. Do your interviews and create a relationship of trust.
