Advisory vs consulting: Which is right for your business needs?

Navigating the business world can sometimes feel like you’re trying to find your way through a maze. If you’re feeling especially troubled, consider availing of a business advisory or consulting service. There are many pros and cons when it comes to advisory vs consulting services, that’s why it’s essential to know what each service offers exactly. 

In this comparison guide, you’ll learn what these services provide and how they operate. From how the client relationship would look to the average engagement length, you’ll learn everything to know when it comes to business advisory vs consulting services. 

What is business advisory?

Discussing big-picture planning with a business advisor (Source: iStock)

Business advisory is about providing ongoing guidance to help you make better and more informed decisions. You can think of it as having a trusted mentor on your side, someone who also understands what your business’ landscape, long-term goals, and needs are. 

Business advisors come from various backgrounds, like finance, operations, or management, and their wealth of knowledge and experience can be used to tackle ongoing business challenges.

What is business consulting? 

Collaborative problem-solving in a consulting session (Source: iStock)

Business consulting is more about delivering specific solutions to immediate problems. Whether it’s improving operational efficiency, enhancing sales strategies, or addressing marketing hurdles, consultants provide specialised knowledge and skills to tackle your immediate challenges on a project basis. 

Just like an advisory firm, consulting firms aim to solve problems and fix strategies, as well as analyse specific issues and implement solutions to them.

Business advisory vs consulting: Which one do you need?

If you want to know more about the differences between consulting and advisory services, you need to think about factors like the type of service you need and how long you can afford to pay for them. Below is a list of comparisons to help clarify these differences for you so that you could make a better and more informed decision for your business.  

In terms of the services

Consultants analysing data to tailor business services (Source: iStock)

When it comes to services, business advisors provide help on a broad scope of business areas. They can offer guidance and assistance on overall business strategy, growth opportunities, risk management, financial planning, and everything in between. Essentially, an advisor would help you navigate the complexities of running a business while keeping an eye on long-term growth.

For consultants, their services tend to be more specialised. For example, they tend to work on a specific problem like streamlining your supply chain or further developing a marketing campaign that’s not performing as well as you wanted. Their aim with your business is to provide targeted solutions and recommendations that can lead to quick improvements and success.

In terms of toolbox

An advisor and consultant would be equipped with different skill sets, knowledge, and methodologies to better support your business. 

For business advisors, since they can help you in a wide range of areas, they typically also possess a wide range of different skills like creative thinking, negotiation, and business acumen. Advisors also often have access to and know how to effectively use a network of resources like market research, industry-specific software, and strategic frameworks.

On the other hand, since consultants tackle specific problems, their strongest skills are conceptual thinking, practical grounding, and time management and organisation. They also tackle problems with a data-driven approach and an emphasis on measurable outcomes. Because of this, consultants typically use performance metrics, process optimization techniques, or industry benchmarks to help diagnose issues and guide solutions. 

In terms of client relationship

Client-advisor collaboration for strategic decision-making (Source: iStock)

Another key difference between a consulting and an advisory service is the client relationship. Business advisory relationships tend to be a collaborative relationship. Advisors want to build trust with you so that they can understand your business inside and out and give expert advice.

Consultants, however, usually have a more transactional relationship with businesses. Once the project or problem you hired them to solve is finished they typically move on unless you choose to engage them again for more consulting work.

In terms of engagement length

Business advisors work with businesses for a long time, often spanning months or even years. This allows them to create a deeper understanding of your business and the challenges it faces. With this kind of experience and knowledge, they become better equipped to provide tailored advice and guidance. 

For business consultants, their engagements with a business are usually shorter and more project-based. They’re usually hired for a project or problem that lasts a few weeks up to months. And once they’ve given their feedback and recommendations, the engagement normally wraps up.

In terms of overall goals

Defining client goals in an advisory session (Source: iStock)

The difference between advisor and consultant goals is based on the end result. Business advisory services are centred around growth and sustainability. Advisors want to see your business succeed and last in the long-run, and this happens through a holistic approach to your operations. Business advisors are focused on the bigger picture, so they help you set strategic objectives and assist you in navigating changes in the marketplace. 

On the other hand, consultants are often driven by improving performance and solving problems for your business. Their overall goals revolve around delivering immediate and specific results. Those results depend on your business’s needs, whether it’s reducing costs, improving business administration, or increasing sales. 

In terms of service cost

When it comes to the service cost, advisory services in the UK can range from £100 to £500 per hour, with monthly and yearly contracts differing on the type of service provided. Business advisory services can sometimes be more expensive upfront, but the long-term investment and relationship can pay off in the long run. 

Consulting services can be more budget-friendly since you’re only engaging with their services in the short-term. Hiring a business consultant costs £80 to £250 per hour on average. However, if your business frequently faces issues or needs assistance with multiple projects, those costs can add up over time, especially if you decide you need to hire a consultant to help out. 

Need business help? Find a business advisor or consultant on Airtasker

Whether you’re leaning towards seeking help from a business advisor or considering hiring a business consultant, both options can bring a lot of value to your business. 

If you’re ready to look for an expert, post a task on Airtasker. Just indicate your business goals, needs and budget, and wait for professional business helpers to contact you if they find that their skill set fits what you’re looking for. 

Improve your business as soon as possible with the expert help of business consultants and advisors near you!