In this article, we’ll provide an all-encompassing review of how to hire a freelance consultant for your business; this includes explaining why WHO you hire matters, HOW to choose the right consultant, and four suggestions for anyone new to hiring freelance consultants. This article exists for you if you are a Black woman or someone who sees their humanity and relates to their needs.

There are many types of consultants, so as you may have gathered from the article’s title, we’re going to focus on business consultants specifically. In the following paragraphs, we’ll tell you everything you need to know to get started with a freelance business consultant. We welcome and encourage you to revisit this article as necessary.

Here's what we'll cover:

1. What is a Freelance Business Consultant?
2. The Business Case for Hiring a Freelance Business Consultant
3. Which Economic Conditions Incentivize Starting a Business?
4. What Does a Business Consultant Do?
5. Tips and Reminders for Hiring a Business Consultant
6. Explore Freelance Business Consulting Services
7. How Can You Get Started Today?

If you're a business owner or aspiring entrepreneur, let's break the ice with a fun game. How good are your sales skills? Take this four-question quiz to test your knowledge, then join us in a free 15-minute consultation to get the answers.

What is a Freelance Business Consultant?

• A business consultant is an expert in business analysis who provides professional advice, services, or research to help you achieve your goals.

• A freelance business consultant is a professional who provides the benefits mentioned above as part of consulting services on a contractual basis.

The consultant may offer a one-time recommendation or ongoing support for your business. So, depending on your needs, you might hire a freelance business consultant to help with one project or employ them continuously to help with specific tasks and projects within your organization. When carefully selected, a freelance business consultant is an incredible asset capable of designing profitable processes, coordinating partnerships, and developing otherwise beneficial strategies.

Unfortunately, many small businesses are hesitant to hire outside help. Some fear the cost, while others feel like they have everything under control. However, black women are starting businesses faster than any other demographic in the country, and the reality is that they need help. As a small business owner, it’s only a matter of time before you encounter problems that you can’t resolve on your own. This guide will help you navigate the process of hiring a freelance business consultant for your unique situation.

In general, a freelance business consultant can help with:

1. Client Acquisition – How do I get new clients?
2. Marketing and Sales – How do I sell more effectively?
3. Business Strategy and Planning – What should my business goals be?
4. Operations and Systems – How do I make sure my team is productive?

Most freelancers work remotely, meaning they don’t have an office in your city or state. Instead, they use technology to connect with clients via email, video, and phone chats. Their projects are typically managed online through project management software like Asana, Trello, or Jira. Your consultant may offer all or some of the above services, so consider your needs and the consultant’s expertise before enlisting outside help.

The following chart depicts how an online business owner might split their focus and highlights tasks and concerns associated with each area of focus.

The Business Case for Hiring a Freelance Business Consultant 

In 2020, “Black women represent[ed] 42% of new women-owned businesses—three times their share of the female population—and 36% of all Black-owned employer businesses.” – Forbes, Black Women Were Among The Fastest-Growing Entrepreneurs—Then Covid Arrived

Now, despite a staggering 17% of Black women in the process of starting or running new businesses (compared to 10% of white women and 15% of white men), only 3% of Black women run mature businesses. To be sure, a mature business is one with stable systems and predictable growth.

So, it’s clear that black women are taking more advantage of economic opportunities today than ever before. But, with most of the population floundering, stuck in a moment of perpetual drowning, it can only mean one thing – these women must adjust their strategy or join the 45% of businesses that fail within their first five years.

Which Economic Conditions Incentivize Starting a Business?

“Black women are starting businesses faster than any other demographic in the country.” – Sabrina Whittaker

The growth of black-owned businesses is born from increased internet access, technological advancements, and economic conditions that make starting a business feasible. To provide context, here are some key economic factors that have incentivized black women to open up shop:

• Economic Inequality: 

Economic inequality has hit Black women especially hard over the last few decades. Today, they earn 63 cents per dollar earned by White men, hold fewer C-suite positions at work, and face microaggressions through challenged authority, non-responsiveness, and interruptions more frequently than other women in the United States.

As a result, many Black women choose self-employment to achieve financial independence and stability. Of course, economic downturns can be difficult for individuals and companies alike. Still, these downturns can also lead to entrepreneurship as people look for ways to make money or find jobs.

The U.S. economy has seen some significant changes over the last few decades, and as the economy has changed, so have the reasons people start businesses. So, successful business owners must either understand the economic landscape or regularly consult with someone that does.

• Technology: 

The internet makes it easy for anyone to start a business online — even if you don’t have much money or experience. Those looking for work outside of traditional corporate environments often turn to entrepreneurship to supplement their incomes without leaving their homes or offices behind entirely. It’s not uncommon for people to have a side hustle in addition to a full-time position.

• Rising Inflation: 

Inflation describes a scenario where there's more money in circulation than needed to meet demand or than available for purchase by consumers. The benefit of some inflation is that it can spur entrepreneurship.

For example, someone may become an entrepreneur because they expect to fetch a high price, and it seems like easy money. On the other end of the spectrum, people are less willing to spend because purchasing goods and services is challenging for those with limited incomes.

Sometimes, this inspires people to create businesses where they can sell those goods and services directly to consumers at lower prices than they would otherwise pay in retail stores or online marketplaces like Amazon, eBay, or Etsy. However, this is a risky strategy for new businesses because they can hardly ever afford to compete on price. 

If you’re looking to start a business, you may be wondering whether now is the right time. The short answer is yes, but it depends on what type of business you want to start. For example, the early days of the pandemic may be over, but many of your potential customers still feel its effects. In this case, it’s a good idea to consider running your business remotely or updating your company’s safety practices to ease health concerns.

So, starting a business may seem risky, especially if you’ve recently started your career or don’t have much experience managing finances or running a business. However, there are also economic factors that make starting a business more appealing now than ever before:

• Low-Interest Rates:

Interest rates remain at a historic low, which means it’s more affordable than ever to take out loans for equipment or start-up costs.

• Incentives:

Some cities and states offer incentives for businesses that hire locals or create local jobs. For example, some areas provide tax breaks for new companies that employ and pay residents above minimum wage requirements.

• Tax Breaks:

You can deduct up to $1 million in start-up costs from your taxes over five years if you incorporate as an S corporation or LLC (rather than as a sole proprietor).

If you need help starting or growing your business, a freelance business consultant can help by developing solutions tailored to your situation.

What Does a Business Consultant Do?

Now that we understand why business consultants are necessary, let’s explore what they do in-depth, so you know what business consulting looks like in practice, how much it costs, and how to find the right person for the job.

Business consultants are experts who help people solve problems, improve performance, and grow their businesses. You may be surprised to learn that a business consultant doesn’t use a set methodology or process for solving problems and instead has extensive knowledge of many different industries, functions, and business models.

They work with companies to identify their most significant challenges, then help those companies develop plans to overcome specific issues. Sometimes, a freelance business consultant temporarily joins your team to oversee changes. The scope of services offered by business consultants varies widely, but most include one or more of these categories:

Before Initial Meeting

Congratulations! At this point, you've found a consultant you're ready to move forward with and they're probably just as excited as you. Right now, the freelance business consultant is reviewing the opportunity to analyze the project scope and draft an initial proposal for your review. They'll also be estimating your budget needs according to any information they've collected via forms you've completed. This step is complete when you accept a proposal and schedule your first meeting.

First Meeting

During your first meeting you'll review the proposal with your business consultant. You should feel comfortable asking questions and concerns relevant to your business. This is your chance to clarify your needs and modify the proposal to fit your situation. This step is complete once the two of you agree on a set of terms and end the call.

Alternatively, if you first met your consultant in person or during a free consultation, your proposal will be sent to you AFTER your first meeting so a second call may be necessary to confirm the details of your proposal. If you agree with what's been proposed, you're ready for the next step.

After the First Meeting

After your first or second meeting, the consultant will offer you a formal contract. While some agencies have you sign yearly contracts, we offer a three-month agreement as standard because businesses tend to report quarterly, meaning it's the shortest commitment available to those seeking ambitious results.

The exception to this format is hourly consulting, which is scheduled on-demand according to availability. You'll know this is the case because instead of being offered a contract, your consultant will take payment upfront to discuss a pressing business need. After your consultation, you're provided with a summary of notes and recommendations according to what was discussed.

NOTE: Consultants commonly use calendar booking systems to accept appointments; our agency uses Acuity Scheduling, for example. This is a great option for business owners looking to write a business plan or have their content and processes audited, but not looking to start a new project or campaign.

Onboarding

The onboarding process differs according to who you're working with, but you can expect to receive a welcome email after signing an agreement. It'll likely contain a pre-project questionnaire and provide instructions for booking your first official consultation.

Your business consultant will be looking to create a baseline from which to measure progress, so expect to provide information about your revenue, overhead costs, customer acquisition costs, and profit and loss statements.

Planning

One of the most important things that business analysts do is analyze data. They use this data to create reports and recommendations for you, so during the planning stage you'll work with your freelance business consultant to determine the highest-priority issues in your organization, set project goals, and draft an initial action plan to fix any problems that have been identified.

This is also the time to discuss ad budgets and other costs associated with doing business. Remember, your consultant can provide detailed information about how well your organization is performing overall and where it needs improvement. 

Executing

Nobody really knows how the sausage gets made, but execution involves research and analysis followed by the assignment of a high-level strategic approach. Afterwards, timelines and deliverables are defined, and you're presented with a prescribed action plan.

Final Approvals

Towards the end of the planning and approval process, your business consultant will share their final plan and timeline with you. They'll seek your feedback and incorporate appropriate changes before scheduling future meetings and establishing a report cadence.

Look at you! You've done the hard part.

You've hired a freelance business consultant and committed to better business habits. We're proud of you and here to support you however we're able. Good luck on your journey.