Small Businesses Admit They’ve Wasted £12.6bn On Bad Consultants
Accounting was the most sought after area for advice, followed by insurance, IT, payroll and pensions, and website building
UK small businesses have admitted they’ve wasted £12.6bn on consultants that didn’t improve the performance of their business.
According to a report by Zeqr, UK enterprises spent £60bn on external experts last year – though an estimated one million small firms didn’t get value for money.
Accounting was the most sought after area for advice, with businesses forking out £9.1bn for help with their numbers. This was closely followed by insurance (£5.3bn), IT (£4.1bn), payroll and pensions (£3.3bn), and website building (£3.1bn).
Despite the high costs, its suggested that 49% of small businesses avoid hiring external consultants because of over inflated costs, with 36% citing scepticism about their level of expertise as a barrier.
Dr David Fraser, business expert and author, said:
“Smaller organisation should not be attempting to source all the expertise they need internally. That’s not affordable – but nor is the kind of exorbitant fee larger consultancies typically want to charge, often for recycled material not really tailored to the true needs of the client.
“There’s definitely a need for an efficient way for businesses to access diverse external expertise in an only-buy-what-you-need fashion and, of course, the best external experts will always put the client’s needs ahead of their own business goals. Buyers should look for quality and experts who truly understanding their issue.”