Unquestionably, the process of starting a new business can be confusing and involved. Even a small venture might pose plenty of questions to the unexperienced business owner. Some might even wonder if help is available to get started, asking the question, “Do you need a consultant to help you set up your business?”.

The biggest problem when starting a new business is cash flow. You start with a certain amount of money, and hope that sales take off quickly enough to sustain the business expenses. The reality is, getting help in the beginning may come at a huge cost. You are paying a consultant to help set up your business, yet you have no revenue. So funds earmarked for other things such advertising, promotional materials, and even casual staff are consumed by one person. Further, it is generally recommended that each function of a business contribute to sales. Typically a consultant, however, does not assist with sales, and will drain large chunks of cash in the beginning when you can least afford the costs.

Another aspect that you should consider when deciding whether or not you need a consultant to help set up your business, is how much you want someone else to know about your product or business model. Your lawyer and accountant are bound to confidentiality, and have a vested interest in helping you since they want to keep you as a long-term client. But a consultant's service is generally short-term. Admittedly, non-disclosure statements exist, but substantial risk is still present. Basically if you are already paying a lawyer and an accountant, they should be enough to help you get everything in place.

In addition, qualifications and expertise will impact your decision to hire a consultant. Do not make the mistake of employing the services of someone who has considerable experience and credentials in setting up bricks and mortar businesses if you plan to base your business solely on an internet model. The two methods of earning an income are hugely different. You should also think about the fact that you know and understand your product or service. Your personality adds to what you have to offer. Can a consultant really capture what you are bringing to the business?

Contrarily, there may be some benefits in hiring a consultant to help you set up a business. In fact, specific types of consultants might be advantageous to your situation. For example, let's assume that you are starting a business that requires an office or warehouse facility for many staff. Someone experienced in logistics can help you to achieve optimum productivity by laying out your equipment accordingly. Likewise, a media consultant might help you to get the best price and exposure on advertising. The consultant does not necessarily need to be available for all aspects of your business setup.

Finally, if you do choose to hire a consultant, please be fully aware of the myriad of scams that exist. Have your lawyer draft a proper contract between you and the consultant. The document should include specific, quantifiable actions and timelines. It should also address the issue of poor quality work, or work that has not been completed at all or by deadlines. Consultants tend to talk big, but in reality, you might end up with nothing more than a huge expense. It is imperative that you complete serious due diligence before handing over one cent to someone who claims to be experienced.