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What size consulting firm should you partner with?

By Amara Zulfiqar 5 years agoNo Comments

One of the key factors in choosing partners is partner size. The size of the firm will usually determine the depth of their specialization, their price, their eagerness to work with you. Fortune 500s have recently seen a move away from large players largely because of their rigidity and due to challenging economic conditions. Reasons why you should pick a larger player are fairly obvious but here are a few reasons why you should consider the smaller firms more seriously.

 

  • More eager to get into a partnership:

When a firm is small, they are more eager to get new business and more exposure. Hence, they would be more willing to take opportunities like partnerships. On the other hand, a large firm usually has its plate full and would take more time and be more reluctant to join hands with another firm.

  • Do not have bureaucratic structure of big firms:

Large business firms have a bureaucratic structure. The whole process is cumbersome and decision-making is time consuming. In a small firm, however, you can get things done easily and quickly. Communication is also more conveniently done.

  • More open to innovation:

Small business firms are more open to innovations because they don’t have to worry about cost and organizational structure or the risk factor since the overall investment is less and the employees are more motivated. Whereas a large firms has a bigger chain and they have to invest and train the staff which takes up more resources and time. In addition to that, there is always the risk of loss in a larger firm.

  • Significant client contact:

Smaller firms are more approachable. The clients have a one-on-one interaction with everyone and are more comfortable since it’s almost as if they know everybody personally. Bigger firms have a corporate environment that inspires reservation.

  • Record keeping is less/Less tax

Record keeping is a very essential part. So for a bigger firm, it is difficult to keep the record while a smaller firm does not have very advanced record keeping. Moreover, bigger firms are taxed twice in a year while the smaller firms are taxed only once.

  • Partnerships are less onerous

Partnership with a small firm is less burdensome as it requires less work and less attention than a larger firm. Obviously when a business is big the staff is also big and their training procedure also requires a lot of time and money. Handling and understanding the workings of bigger firms is also more cumbersome.

  • Keeps the bigger players in check:

Larger firms don’t have to work hard. Their business is already good enough while smaller firms are more eager to work hard. And in this way it keeps the bigger players in check by bringing down prices and because smaller players will do a lot more for the buck than larger players.

Sometimes a bigger firm is more beneficial but in most of the cases a smaller firm is less tiring and more beneficial in the longer run. With diligence and motivation, it has the potential to give you more profit than a bigger firm that is content with what it has and perhaps will not put in equal effort to acquire new business.

Category:
  Management Consultants
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About

 Amara Zulfiqar

  (10 articles)

Ammara is a copywriter for allied Consultant. She works closely with technical teams to document their work and to ensure our potential is correctly portrayed on the web.

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