Canadian Farm Business Advisory Services

Tips for Selecting a Consultant

Understanding the Role of the Consultant

Understanding the consultant's role is critical in creating a good working relationship that achieves desired results. Remember that the role of a consultant is to supplement your knowledge so you can make sound, informed decisions. Although the consultant will guide you in decision-making, you are responsible for making the final decision.

Defining the Work

It is easier to select a consultant if you know what results and deliverables you want. Deliverables are the components of the finished product (the plan) that you expect the consultant to complete.

Clearly state what needs to be done. Specify what you expect to be produced (e.g. a business plan), keeping in mind the elements of Specialized Business Planning Services (SBPS) and Planning and Assessment for Value-Added Enterprises (PAVE) plans. This initial effort will save time.

Finding a Consultant

Ask around. Word of mouth is often the best way to find out which consultants have done good work in the past.

Use lists of qualified consultants. Although we cannot recommend a particular consultant to you, you can obtain lists of qualified consultants from various professional organizations, colleges, universities, and government agencies.

Surf the Web. You can find some excellent directories of consultants on the Internet.

Checking the Consultant's Résumé and References

References are a valuable tool when selecting a consultant.

Ask for a résumé and references. Ask for a résumé of the consultant's qualifications and experience. Check with at least two references or clients. Specifically ask the reference what the consultant did. Ask yourself if the consultant's work is similar to the work you want the consultant to do for you.

Ask the reference if they were satisfied with the consultant's work. If not, ask why.

Ask the reference in-depth questions about the consultant's work. This may trigger memories of problems or concerns they may have had with the consultant.

Interviewing the Candidates

Once you have narrowed down your list of consultants, a discussion with each candidate is critical to making your final selection. Do not just rely on the proposal or quote from the consultant. During each discussion, look for individuals who recognize your needs and demonstrate sound knowledge of the industry and your situation.

Personally meet with the candidates. In some situations, a telephone call may be appropriate. However, a face-to-face meeting is preferred. To give structure to the meeting, we have a prepared set of questions you may want to ask the consultant to help you determine his/her expertise:

Many consultants specialize in a particular area. Choosing a consultant with the exact area of expertise you want can increase the quality of the work and may reduce the cost.

• What is the consultant's area of expertise?
• Has the consultant ever completed a feasibility assessment business plan or a succession plan?
• Does the consultant's area of expertise match what you want them to do for you?
• Has the consultant done similar work with business plans for other clients?

Many consultants involved with business planning will have education in accounting, business management, agriculture, commerce, finance or economics. Consultants specializing in succession planning may also have post-secondary education in family counselling, mediation, estate planning, financial planning, or law. In many cases, experience is the teacher.

• What is the consultant's experience and education?
• How many years of experience does the consultant have?
• Is the consultant a member of a consulting or professional organization?
  • If yes, which one and how long?
  • If no, does he have a level of education and experience that is necessary to get the job done?

Choosing a consultant who is knowledgeable about the industry will improve the quality of the result and decrease the amount of time needed to achieve the result.

• What is the consultant's knowledge of the industry?
• Has the consultant worked in the industry?
• Does the consultant personally know the industry players?

Pick a consultant with whom you feel comfortable. Since you will be spending a lot of time with this person, a trusting and credible relationship is critical.

Choose a consultant with whom you can communicate. Both parties must be open and straightforward with each other to gain the maximum benefit.

Determining the Cost of the Consultant's Services

Cost is important when selecting a consultant.

Negotiate the price. The price the consultant quotes may be negotiable. If possible, consider quotes from more than one consultant. You should expect all invoices and quotes to be itemized for easy identification and tracking. Note that consultants should not charge you for their costs before you enter into a contract with them (e.g., their time to prepare their proposal or to attend meetings to discuss their ideas with you).

Interim Payments for Succession Plans and Follow-up Plans. Agriculture and Agri-Food Canada can make interim payments for succession plans, as long as you clearly explained the need for these payments in your proposal. Interim payments can also be made if you have included follow-up in your initial plan. The consultant should provide you with a schedule for payment. Any payments during the course of the work are interim payments. If interim payments are requested in the proposal, you should make arrangements to allow for these payments. There may be breaks in the flow of work, (i.e. where a decision has to be made prior to continuing; or payment for hiring outside experts). Remember, reimbursement may take some time, cash flow may be a concern, and interim or progress payment is normal; however, progress payments must be specified in the original contract.

Final Payment. Ensure that the work is finalized as specified in the contract and has been approved by Agriculture and Agri-Food Canada before a final payment is made. Trying to get someone to complete work on a contract after they are paid in full is more difficult.

Other Considerations

Does the consultant carry Errors & Omission Insurance? Insurance protects you and the consultant. If he/she values his/her clients, and his/her business, he/she is likely to carry Errors & Omission insurance. The consultant should specify where this insurance is held and provide verification.

Does the consultant carry Commercial Liability Insurance? This is to protect you and the consultant in the case where physical damage has been done to your business by the consultant. The consultant should specify where this insurance is held and provide verification.

Stay involved in the project. Although you have hired a consultant, you are still responsible for the project. Once you have selected a consultant, you are ready to apply for the program.

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