In terms of the large, national SMB consulting firms, as well as others, there is often a significant mismatch between the consulting these firms want to deliver and what SMBs typically need (see table below).  There are several reasons for this, as the consulting they prefer to do:

• Is formulaic, or cookbook-style, i.e. relatively easy

• Can be performed by very junior personnel, with little or no experience

• Generates high levels of billable hours

• Can be sold, i.e. they can present a theoretically supported business case or need

• Can be legally justified in court, if the need arises

The only problem is that the consulting projects many firms like to perform often cannot be financially justified.  That is not to say that they are not potentially useful or even valuable.  But for most SMBs, they will experience either a very low or negative ROI by having a consulting firm perform them.

Top 10 Problems Consultants Like to Solve	Top 10 Problems Faced by Small Business
1.       Job Descriptions & Reviews	1.       Financing
2.       Internal Controls & Budgeting	2.       IT Systems
3.       Policy & Procedure Manuals	3.       Not Having the Right Executives
4.       Installing New Accounting System	4.       New Product & Service Development
5.       Inventory Management: Security, turnover	5.       Marketing & Advertising
6.       Fixed Assets Controls	6.       Executive Conflict (management stalemate)
7.       Chart of Accounts & Financial Reporting	7.       Sales Management
8.       Insurance Costs & Coverage	8.       Customer Service & Quality Issues
9.       HR Policies & Employee Benefits	9.       Employee Attraction & Retention Issues
10.   Pricing, Estimating & Billing	10.   Accurate and Timely Business Reporting

Some of the large, national SMB consulting firms deliver low-quality service (see A Rare Exception), but they are still very successful due to complex, multi-stage marketing systems which leads to high-quality and successful sales efforts. 

Note that many local firms, as well as very specialized national consulting firms, do provide very high-quality consulting services.  But the issue highlighted by the table still holds, regardless of the quality of the service.  And that is that no matter how brilliantly the consulting service provided, if it isn't financially justified, the expenditure may have been largely wasted.

For examples of some of the major consulting categories. click Here.