Businesses today use consultants more and more for a variety of reasons. The main reason is that every business will at some time come to crossroads and will not always be sure which direction to take.
Even though a person has been running a business for many years there always comes a time of uncertainty, caused by a decline in the business, or difficulties due to the economic climate.
Sometimes we all get a period in our life when we are drained of inspiration and new ideas and this is the time when an external consultant can be of great value.
Another reason for using a consultant is to get confirmation that what you are doing in your business is correct. This is a worthwhile exercise as it gives you renewed confidence in yourself and the knowledge that you are still doing a good job.
What a business consultant does is take a detailed look at a business without having the passion that often causes business blindness especially when harsh decisions are needed.
A simple analogy: how easy it is to tell another person their child is doing wrong when you can see no fault in your own child!
If you choose a business consultant who has experience in the business issues that concern you most then his advice should be helpful and put you in the right direction. Other types of consultants may be specialists in a particular industry, or in one particular aspect of a business.
Then there are general business consultants who have run a business and their knowledge differs because they know exactly what you’re going through, having been through the problems themselves when they were in business.
I have started, operated and sold many businesses in different industries. To me there is no difference in running a business irrespective of the industry as everyone has the same objective, to make money.
Business consultancy has grown rapidly over the years simply because they are providing a reality check, similar to having an annual health checkup to see that everything is working correctly.
Having a consultant look at your business is a worthwhile exercise; it is the checks and balances that every business should do from time to time.
Another way of using a business consultant is as a mentor. Many companies, after having an initial consultation period, use the consultant on a monthly basis either by an office visit, Skype, or telephone. Some even go further by making the consultant the chairman of the business so that he can give direction, not only to senior management but to the staff and overall business in all its operations.
Consultants bring with them not only their own business experience but the additional experience they gain on a regular basis from other companies they advise.
Using a business consultant is clearly a win – win situation for everyone.

http://www.howtosucceedinbusiness.com/blog/why-use-a-business-consultant/

There is never a good time for small businesses to swing and miss on a new product launch. But when companies are trying to survive a tough economy, owners must pay close attention to the process to avoid the psychological—and financial—toll of a failed launch.

A lot of business owners will never try something again if they have a first-time failure, says Andrew J. Sherman, author of Harvesting Intangible Assets and a partner with Jones Day, a law firm in Washington, D.C. “For a small company to try a new product or service and have it fail, and to not learn from the failure and try it again is a travesty.”

Follow these steps to ensure successful product development.

1. Build the right budget. Launching a new product might never happen without a reasonable budget at the outset of the project. Underfunded projects rarely make it to the launch phase, and overfunded projects can result in wasted time and money, Sherman says. Owners need to figure out the total costs related to a new product, set a realistic budget, and hold team members accountable for meeting those numbers. While numbers vary based on industry and company size, it’s not uncommon to allocate 20 to 30 percent of a company’s budget to new product development, Sherman says.

2. Focus on markets. For a product launch to be successful, owners should avoid “inventor syndrome” and focus on creating products and services customers want, Sherman says.

“What we have to avoid is entrepreneurs and small business owners who are looking for that invention to be their legacy instead of worrying about whether the invention is something customers want, need and will pay for,” he says.

3. Invite collaboration. Collaborative environments can lead to more successful product launches. The group responsible for putting together the launch should elicit feedback from salespeople or distributors, as well as potential customers, to find ways to improve key elements of the launch. Such elements could include the pricing and positioning of the product.

4. Eliminate wasted time. Sherman emphasizes the discipline owners must implement throughout the product launch. Those planning the launch should identify its key steps and indicate the stakeholders responsible for carrying out those steps. Steps in the launch-planning process include compiling a realistic budget, collaborating with individuals at all levels of the company and evaluating risk. 

http://www.nfib.com/business-resources/business-resources-item?cmsid=58902