Where Did the Small Business Consulting Market Go?

bigfish consulting blog - small business and millennials

Did the Small Business Professional Consulting Market just get disrupted and replaced with….nothing? If we look at this from the Top-Down….

 Large Private Companies:

  • “Hire-in” the consulting knowledge and or expertise it needs to keep the creative and intellectual property inside the building and on a controllable and accountable W-2 employment relationship.
  • Hire paid Board Members for sage advisory and expanded professional network

That’s a great strategy too!

Corporate America, et.al. uses other large consulting firms for valuable services. They will access the consulting markets:

  • To find valuable, relevant and the latest expertise
  • Move more quickly and keep up with market pressure
  • Avoid adding costly executives and analysts to payroll

It’s a great system!

Entrepreneurs, Small Business and Mid-Sized Businesses:

This group is being slaughtered by the “zero-margin” delivery of products and services. Cash Flow is not only King, but the judge and jury on what a small business can afford to execute.

In the past, a healthy profit margin in this sector helped pay for a variety of professional services. Great guidance from “been-there-done-that” professionals who help execute growth strategies and all things business. Some professional services continue like legal, financial services, insurance, etc., but yet again, on a tighter profit margin than in the past and they seek additional creative revenue streams.

The Entrepreneur, Small Business business “owner demographic” has changed:

The new “Young Professional” (GenX, Millennial) is the new “start-up” and small business owner. This group perceives paying for any “professional consulting services” is waste and “fat” that should be cut from day-to-day business operations.

This new “Young Professional” will look for a work-around when it comes to hiring “professional consulting services” through subscriptions, DIY on the web, smart cloud based software (Salesforce, etc), and leveraging free stuff through their peer-to-peer network.

So if they buyer of Small Business Professional Consulting Services:

  • Doesn’t have the profit margin to afford the service
  • Doesn’t see the need to pay for the services

Than where did the Small Business Professional Consulting Market go?

More importantly, where can it go?

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