Management Consulting Firms – A Friend In Need For Startup Companies
Experience is gained through hard work and perseverance. No one arrives in this world with prior knowledge and understanding. An apprentice, by tenacity and dedication becomes an expert. In case of businesses also, it is through a small step that a company gets introduced in the market. With initial sufferings, struggles and undaunted spirit it becomes a concern to look out for. In such cases, some are really lucky with funds while others are not. But, there are bright entrepreneurs ready with brilliant ideas, without having adequate resources. Such projects are known by the name of startup projects or companies.
Some typical features like paucity of funds, but having good ideas and ability to garner good returns in future are common. In earlier times, these projects used to die natural death without having any security. However, with the entry of management consulting firms and angel investors and venture capitalists, new aspirations for such companies are on the rise.
Organizations hire the management consulting firms for variety of reasons including the desire to gain advice and having access to their know-how. The management consulting firms provides the startup consulting services ideas for growth, expansion, solution of problems and creation of new ideas to the startup businesses. Services like new venture designing assistance include areas like business ideation analysis, plan preparations, financial model choosing, marketing and branding, team building, investor sourcing, negotiations, setting up business and information systems-to mention a few. Since, such firms have the requisite skills, their ideas serves multiple purposes:
1. It is required by angel investors and venture capitalists as well as banks for both equity and debt financing
2. Shows financial analysis, including returns, viability, predictions and future actions
3. Valuation can be performed with ease
4. Complete business analysis including competitors scenario
5. Brand positioning
6. What can be expected of the future can be observed and decided upon
7. Unforeseen contingencies and risks and plans to mitigate them
Angel investors and venture capitalists wishes to invest in startup projects since it gives them an opportunity to have a fair share of return, to have a control over the newly started business and also having an important involvement in the business from its inception.
Like the smes, startup companies face the problems of raising funds and such issues may now be solved through alternate investment of funds, equity investments, debt financing, hedge funds and derivatives and not to forget the funds invested by angels and venture capital investors.
There are many recognized management consulting firms that aids in above stated services. Of them, major ones are- AT Kearney, Abacus Consulting, Bearing Point, Logica, KPMG, Huron Consulting Group.
Being a fresh consulting firm is extending its helping hand to startup companies. From raising funds to arranging for angels and venture capital investors to planning, building, developing and expansion for the just begun businesses. In nutshell, it provides a cocoon for harnessing the novice to its ultimate goal.