Independents, Firms, and Fractionals: Who’s Your Consulting Soulmate
This is the second in a series of articles on hiring a consultant originally published on our LinkedIn page.
In this article, we’re going to talk about the different types of consultants you can hire to help you figure out which model will work best for you.
🕴️Independent/Freelance
These types of consultants are just like they sound - individuals who work on a per-project basis. It includes sole proprietorships or other businesses that consist of one person doing the work.
Freelancers are often thought about for tasks like content creation or social media management, but they are used across the business for everything from project management and corporate strategy development to business transformation.
Like all consultants, freelancers are specialized, their engagements may be small or large, and they probably work with multiple clients.
Fees are typically for time (hourly or daily rate) or for a project.
Note that in many countries there are specific laws about how to categorize temporary workers, which is especially relevant for freelancers, so be sure to research the rules that apply and draft any contract accordingly.
🏤 Boutique Consulting Firm
Boutique firms are small to medium sized companies that focus on a narrow band of services, such as strategy, marketing, or technology. This is the category Chelsea Strategies falls into, as our focus is on helping mid-size AdTech companies achieve their business goals through partnerships, though we do also offer other services.
Where independent consultants are a "team of one", boutique firms have the team and infrastructure that allows an engagement to scale beyond what one person can do alone. As such, working with boutique firms usually means broader engagements than independent contractors.
Some boutique firms (including Chelsea Strategies ) also have proprietary approaches and methodologies within their areas of expertise.
Fees are typically set on a per project or monthly retainer basis, though some boutique firms may charge hourly fees.
🏢 Large consulting firm
You might hear people refer to the Big 4 or Big 5 of consulting firms, such as McKinsey or Boston Consulting Group. Large firms have usually been operating for many years, have a well known brand, and tend to offer expertise across multiple business types and areas.
Practice areas for large consulting firms are broadly divided between strategy and implementation work. Implementation work includes technology deployments, risk management and regulatory compliance. Some firms also offer financial advisory services.
Large firms have a lot of resources, so not only can they help you in a lot of different areas, but they often have the people available for a quick turnaround. Given all these factors however, they are the most expensive option with the minimum cost for an engagement usually starting at $500k-$1M.
🌗 Fractional Leader
Fractional leadership is rising in popularity, and benefits for both the fractional and the company. If you need ongoing work in a particular area, but not enough to support a full time employee, you can hire a fractional for a certain number of hours per week. As an employer, you save money by only paying for the amount of time and responsibility you need.
The big difference between fractionals and any other options is that those doing fractional work are a part of your company, so they are more deeply embedded than if you were to hire a freelancer or a firm.
According to Fractionals United , fractional leadership is a fast-growing trend and an excellent way to get top-level, highly experienced talent to transform your business without hiring (and paying for) a full time employee.
For many businesses, even C-Suite roles may only require a few hours a week or month, but they still need an extremely high level of expertise and experience. Hiring a fractional leader means you can have someone who knows the ins and outs of the role and can give you exactly the amount of time you need.
One or all of these options might work for helping your company grow and thrive. No matter what your situation is, hiring a consultant might be the most efficient and successful way to solve any problem you have.
Read more about making the most of working with a consultant.
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