What is a Business Consultant?

Consultants are essential to businesses that want to improve their performance. Typically, consultants advise these businesses in many areas such as operations, profitability, management, and even structure.

Consultants have their work cut out for them because their advice can stretch over so many different areas. You may need some expertise in management, strategy, human resources, finance, and IT (just to name a few fields).

In addition to having all of this knowledge, consultants typically work long hours, we're talking an average of 56 hours a week, but many work even beyond that, to around 70-80 hours. Spending that many hours at the office, you'll probably end up with some good friends, at least.

A management consultant, also sometimes called a management analyst, helps a company or government entity layout and execute projects with the coveted outcome of becoming more productive or competitive. To achieve this goal, they may recommend various strategies to modify the organization's structure or operation methods in ways that result in increased profits, better practices, and improved efficiency.

Management consultants may specialize in a particular industry, such as healthcare, manufacturing, or education. Alternatively, their focus may be on a function, such as human resources, information technology, financial restructuring, or inventory control.

The reported annual salary for a management consultant in the U.S is approximately $83,610, or $40.2 per hour. However, this figure can vary significantly depending upon academic qualification, having previous experience, and possession of the aforementioned skills.

A principal consultant is a senior member of a consulting firm's staff who offers expertise, resources, and guidance to help clients succeed in their businesses. Their responsibilities may include identifying and contacting potential clients, building strong relationships with existing clients for repeat business, maintaining frequent client communication, making regular client visits, and ensuring client satisfaction.

Their additional responsibilities may include conducting meetings with clients and management to determine projects' scopes, budgets, and timelines, developing business proposals and regulating project terms and conditions with clients, identifying potential clients through networking, referrals and communities, and tracking project progress and identifying and correcting any delays.

Principal consultants need to have experience working in consulting at a senior level, the ability to build relationships with clients, and excellent interpersonal, communication, and teamwork skills. They should also have the ability to manage projects and teams.

Principal consultants need to have a bachelor's or master's degree in their field. They typically earn $57.72 an hour, which translates to $119,634 annually.