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

Sometimes, navigating the corporate world is like trying to find your way through a maze. Consider using a business advisory or consulting service if you're experiencing particularly difficult times. Knowing the precise benefits of each service is crucial since there are a lot of advantages and disadvantages to choosing between advisory vs. consulting services.

You’ill learn more about the benefits and characteristics of these services in this comparison guide. You’ll discover more about the difference between business advisory vs. consulting services, from the typical engagement duration to the nature of the client connection.

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 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 informed decision for your business.  

In terms of the services

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

When it comes to services, business advisory firms 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 consulting firms, their services tend to be more specialised. For example, consultants 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 consult vs advise 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 advisors 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 are 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 are 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 US can range from $500 to $10,000 per month. 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 $100 to $350 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

Either choice can significantly benefit your company, whether you're thinking of hiring a business consultant or a business advisor. Post a task on Airtasker when you're prepared to seek out an expert. Airtasker can assist you in finding professional business helpers in this area, and they will get in touch with you if they believe their skill set matches your needs.

In order to improve your business as soon as possible, post a task today and connect with some of the most trusted pros in the consulting and advisory industry!