June 18, 2024

South West News

South West News from Gloucestershire to Cornwall

Business Consultancy: The Impact on Corporations Looking to Expand

Expansion can be a tricky thing to pull off effectively. Expand in the wrong way, and you risk forming long-term weaknesses that might be difficult to correct. For this reason, many businesses seek the input of an outside consultant when they’re planning an expansion.

Strategic planning and market analysis

By performing market analyses on behalf of the business, a consultant might be able to pinpoint particular weaknesses and areas with the potential for growth. The business can use this information to grow in the right areas.

Market analysis is a specific kind of market research. It’s time-restricted, meaning that, rather than looking at the market in general, we’re looking at the state of the market at a given time. The information provided by this analysis can be fed back into your business plan, and it might inform your strategic thinking long after this particular expansion has finished.

Access to expertise and networking

An expansion is a rarely performed and hugely consequential operation. Even experienced business leaders don’t have the chance to personally oversee many of them over the course of a career. A consultancy firm, on the other hand, might have witnessed the expansion of many, many different businesses. This expertise will allow any problems to be spotted in advance and avoided.

What’s more, consultants have links to particular kinds of specialised expertise that might come in useful. Since they’ve worked with so many different businesses, they might be able to act as intermediaries between them, which will mean business opportunities.

Operational efficiency and risk management

If your business isn’t operationally efficient, then expansion can risk compounding that inefficiency and making it intractable. As part of their service, a consultant will often seek to address these inefficiencies early on, streamlining operations in advance of the expansion itself.

Of course, it’s unreasonable to expect a consultant to guarantee the success of a particular expansion, or to help you to avoid problems entirely. However, they can reduce the likelihood of problems with the help of the right risk assessment and mitigation strategies.

A risk assessment is a procedure performed before the operation. The business and the consultant will seek to imagine a scenario where something has gone wrong, and then work backwards to determine what the cause of that problem was.

Once a number of potential risks have been identified, mitigation strategies can be put in place. These are measures which will limit the likelihood and impact of the problem in question. So, if you believe that your expansion strategy might be undermined by supply chain problems, then you might seek to diversify your supply chain such that you’re not over reliant on materials from a given location.