How Much Should You Pay Business Consultants?

business meetingIf you have been thinking about buying a business in Utah, you should already have considered the cost of hiring a consultant to facilitate the process.

The national average rate of hiring business consultants cost between $50 and $80 per hour, as of August 2018. The actual rate might have changed today, yet these prices could serve as your reference when asking quotes among different companies. Some might be willing to offer a free one-time service for 15 or 30 minutes.

How Consultants Charge Clients

The size of your company will affect the rates charged by a consultant. By definition, small businesses could only have around ten employees up to more than 50 people. The service provider can charge a flat rate for certain services such as ongoing consultancy. As an example, those who plan on buying a business in Utah might want to think of an exit strategy ahead of time.

Hence, they might want to hire consultants regularly to guide them on successfully buying and selling a business, if necessary. Consulting prices in Utah can be more competitive since the state is among the top states for companies, according to an analysis.

Best States for Businesses

Utah ranked as the third most ideal state for businesses mainly because of a highly educated workforce, favorable economy and the number of venture capital transactions. Almost 35% of its adult population holds a bachelor’s degree, which is the 12th highest in the country. This also means that the chances of your business consultant finishing college are quite high.

Massachusetts and Colorado ranked as the top two places for business. These states have the highest percentage of adults with a college degree, and they account for more than 40% of their adult population.

Should You Hire a Freelancer?

business owner

Another option for small businesses involves hiring the services of a freelance business consultant. The emerging gig economy in the U.S. provides small businesses with different ways to save money by choosing to hire independent contractors. But take note that not all freelancers can deliver services rendered by consulting firms.

If you need help with marketing campaigns, hiring a freelancer could be a cheaper option. You should expect to spend at $25 per hour to hire a consultant for market research, campaign planning and digital marketing among other tasks. IT tasks like cybersecurity can be delegated to freelance consultants as well, and they can charge between $40 and $140 per hour.

While it’s cheaper to hire independent consultants for some services, you should leave more complicated transactions to employed professionals. Business deals such as mergers and acquisitions entail a different approach that a freelancer’s resources might not be able to handle for you.

In the end, you should aim to have quotes from at least three different consultants to compare the best rates. Ask for references from previous clients to know more about your chosen consulting firm. Remember that it’s better to invest more than the average price to guarantee the quality of service.