Business consultant cost

What a business consultant costs — and the free help to try first

Business consultants charge by the hour, by the project, or on a monthly retainer, and project fees in the thousands of dollars are common. Before you pay for one, know that free business consulting already exists in almost every US county, and that a lot of what a consultant does in the first weeks — gathering your numbers and sizing up your competitors — is work you can do yourself or get cheaply.

How business consultants charge

Rates vary widely with experience, specialty and location, so we don’t quote a single hourly number here. One useful benchmark: in a survey of consultants by Consulting Success, about half of those who price by the project reported an average project of $10,000 or more. Whatever the model, ask for a written scope, a fixed price or a cap, and what you’ll have in hand at the end.

What drives the cost up

• Vague goals. “Help me grow” means paid hours spent working out what the problem is.
• Discovery work. Gathering your sales history, costs and competitor information is often the first, billable, step.
• Open-ended retainers with no defined deliverable.
• Specialists (financing, franchising, healthcare compliance) cost more, and are often worth it for exactly that job.

Free business consulting: where to start

Most owners never use these, and they are free or close to it:

• Small Business Development Centers (SBDCs) — no-cost one-on-one business consulting at nearly 1,000 centers, usually hosted by a local college or university.
• SCORE — a free volunteer mentor, often a retired or working owner, by email, phone or video.
• Women’s Business Centers — free or low-cost counseling and training, through the SBA.
• Veterans Business Outreach Centers — for veterans, service members and military spouses who own or are starting a business.
• Your chamber of commerce, trade association and local library — many run free workshops, peer groups or business research databases.

Free advisers are generalists and their time is shared, so you’ll get the most from them by arriving prepared (below). If you need a specialist or someone to do the work for you, that’s when a paid consultant earns the fee.

Low-cost ways to do the first part yourself

Whoever you work with, free or paid, the first questions are usually the same: how are sales trending, where does the money go, and what are the competitors doing? Answer them before the first meeting and every hour you pay for goes further.

1. Your sales by month for the last two years, so a season can be told apart from a slump.
2. Your main costs, and which services or products actually make money.
3. Your competitors. Search your main service on Google Maps from your shop, list the top five, read their newest reviews, and note their prices and offers. If business has gone quiet, our guide to what to check when business is slow walks through it.
4. The one question you most want answered.

When a paid consultant is worth it

• A loan or investor application where the plan has to hold up.
• A turnaround, when cash is tight and decisions can’t wait.
• Opening a second location, or buying or selling a business.
• A specialist problem your free adviser can’t cover.

In each case, hire for a defined job with a fixed price or a cap, and check references from owners in your trade.

Keeping an eye on competitors between meetings

A consultant looks at your market once. Competitors keep changing: prices, offers, new services, hiring, a new business opening down the street. That’s what our morning brief watches — price changes, what their customers complain about, and who’s competing near you. Plans are on the pricing page.

Frequently asked questions

How much does a business consultant cost?

It depends on how they charge and what you hire them for. Consultants bill by the hour, by the project, or on a monthly retainer. Project fees in the thousands of dollars are common: in one survey of consultants, about half of those who price by the project reported an average project of $10,000 or more. Ask for a written scope and a fixed price before you agree to anything open-ended.

Can I get a business consultant for free?

Yes. Small Business Development Centers (SBDCs) offer no-cost one-on-one business consulting at nearly 1,000 centers across the US. SCORE matches you with a volunteer mentor at no cost, by email, phone or video. Women's Business Centers offer free or low-cost counseling, and Veterans Business Outreach Centers help veterans and military spouses.

Is a business consultant worth it?

It can be, for a specific job with a clear result: a financing application, a turnaround plan, a new location, a pricing overhaul. It is rarely worth it for a vague 'help me grow'. Try the free advisers first, and arrive with your numbers and a specific question so you aren't paying for the first few hours of discovery.

What's the difference between a business coach and a consultant?

A consultant usually studies your business and tells you what to change; a coach usually helps you make your own decisions and holds you to them over time. Many people offer both, so ask what you will actually get each month.

What should I prepare before hiring a consultant?

Your last two years of sales by month, your main costs, a short list of your competitors and what they charge, and the one question you most want answered. The more of this you bring, the fewer billable hours go to gathering it.

How can I see what my competitors are doing without a consultant?

Search your main service on Google Maps from your shop, read the newest reviews of the top three results, and look at their websites and prices, on the same day each week. Or type your business name in the box on this page for a free snapshot of the competitors around you.