Consulting firms are a valuable asset to any business, providing a range of services from strategy to problem solving and planning. They can be extremely profitable companies, charging high fees for their services. But what do consulting firms actually do? To answer this question, it's important to understand the functional roles they play. Consultants can help companies develop strategic plans (strategy consultant), implement software systems (IT consultant), reduce costs (operations consultant), or design and execute marketing strategies (marketing consultant).
They can also assist entrepreneurs in setting up their businesses, ensuring they comply with best practices. It's possible for consulting firms to hire other consultants, which can add value to the company. An IT consultant can help a company with IT strategy, but they are often called upon to carry out long-term implementation projects. Financial advice (or consulting) can take many forms, and when auditors inspect the financial statements provided by the consulting firm, they may not be able to detect fraud or money laundering.
Consultants may also be asked to support a faction in business struggles or promote the client's interests. The reason consulting firms are so effective at laundering money is because the consulting services are irrelevant and prices are not transparent. Unlike an employee, a consultant is hired as an outside contractor and usually works with a company or individual on a short or partial basis to address specific problems. However, anyone can become a first-rate consultant with the right training and resources.
The final product of consulting projects is usually documents (often slides) containing analysis and recommendations. The consultant can advise the business owner on best practices and provide presentations and strategies that can help the new company or management succeed. They may also train current staff in online marketing tasks or handle them for the client. Consulting services are part of the tertiary sector and generate several hundred billion dollars in annual revenues. At MConsultingPrep, we believe that anyone can become a first-rate consultant; you can do so by watching our Youtube series and reading other articles on this site.