Ever wonder why entrepreneurs hire small business consulting firms when there’s often a hefty price tag on the services? I’m a numbers person. A lot of my business decisions come to the bottom line. I’m constantly asking myself how this action will either save me money or make me more money. With that in mind, I’m going to share with you why it makes sense to hire a business consultant at times.
Accelarated Business Funding Program
To begin, I’m going to share with you one of my programs, called the Accelerated Business Funding Program. This is the main program I use to help my clients get the funding they need for their business. It’s an 8-week program, where I use a combination of coaching and consulting to walk my clients through the process of preparing for funding, finding funding, and applying for funding opportunities. It’s priced at $999.
I’ll be the first to say that you can fumble through the funding process on your own. You might even be successful in obtaining funding. You certainly wouldn’t be the first to obtain funding without help. In the process, you may lose out on valuable opportunities because you didn’t come at it with the right approach. You might find yourself logging a lot of valuable time trying to figure things out. You might even find it cost you more money in the end because you’re not aware of less publicized opportunities. But like I said, you can do it alone, if you like.
One of the cornerstone pieces of my Accelerated Business Funding Program is the 10X factor. This is where small business consulting firms save you money. Let’s do a little bit of math. I want you to see where the Business Funding Program makes sense and when it doesn’t.
Let’s say you have a $50,000 project. With a typical bank loan (if you know how to secure one), they’ll likely say you need to come with at least 25% equity. That’s $12,500 on a $50,000 project, with the bank loaning you $37,500. You’ve been diligently saving and you’re pretty close. Right now you have about $10,000.
You decide to enroll in my Business Funding Program, which is about a $1,000. I share with you not only where to go for money to reduce your equity requirement, but also how to prepare to get funded. You follow the program, do the work, and find the programs for your business needs. As a result, you reduce your equity requirement to 10% and secure the money you need for your project.
What does the math look like?
$5,000 = 10% of $50,000
$1,000 = Your investment in the Business Funding Program
Your total out-of pocket cost (equity + program) = $6,000
As a result of going through the program, you managed to keep $4,000 in your pocket for capital, emergencies, savings, or other needs. Not only are you able to keep more money in your pocket, you’re able to get money for your business faster, because you don’t have to wait while saving the additional $2,500 that would be needed to get you to $12,500 required by the bank.
Let’s look at another scenario.
You have a $20,000 project. The bank said you need to come up with 25% in equity, which comes to $5,000. You have about $2,000.
Same situation as before when you enroll in my Business Funding Program.
What does the math look like?
$2,000 = 10% of $20,000
$1,000 = Business Funding Program.
Your total out of pocket cost = $3,000
Remember, you only had $2,000 to begin with. Now you’re short $1,000 in equity. The math doesn’t work in this situation. You would need at least $3,000 to break even. Here’s the kicker though. $3,000 is still less than having to come up with the full $5,000. This means going through the program could potentially get you the money you need quicker. However, you need to plan appropriately.
Do that math yourself using any of my business funding programs to see which works for you.
I do want you to know that I talk about being about to 10X your money. I love helping entrepreneurs leverage their money. However, going through my program does not guarantee you’ll be able to 10X your money or even get funding for that matter. Every situation is different and I don’t control funding organizations. In the end, they make the decisions based upon the information you provide them. What I can do is help you prepare, so you can present yourself in a way that improves your chances.
The bottom line is, when you work with small business consulting firms, do the math. Look at how you can potentially improve your bottom line.