Ken Osburn knew the potential of a self-serve car wash, but he did not know much about the day-to-day operations — or if he had the capital to invest. So when the photojournalist retired and wanted something to keep him busy, he sought advice from a consultant at the South Carolina branch of the Small Business Development Centers (SBDC). He had already found a car wash for sale and the owner provided him with several years of profit and loss statements, but he needed outside advice to help him see the potential.

“They looked at it, talked to me about how much money I had. [They] ran the numbers and said, ‘It’s a profitable business. It’s not a business you’re not going to get rich at, but it provides a nice comfortable income.’”

Over the course of a few months, the SBDC helped Osburn develop a business plan so that by the time he went to a lender, it appeared he had done his homework. “It made them think that I was prepared to open a business.”

Osburn knew enough to know what he did not know. That is the exact point when any entrepreneur may need the help of a consultant, said Richard Weinberger, CEO of the Association of Accredited Small Business Consultants and author of Propel Your Small Business to Success: Accelerated Actions to Maximize Profit. While the SBDC is an arm of the U.S. Small Business Administration and most of its services are free, it is just one of many ways to find outside expertise for a new business venture, for one in trouble or for one ready to grow.

When is it that someone should a hire a consultant? According to Weinberger, the answer is when an individual has a problem of both time and knowledge. “The typical small business owner is normally pressed for time and usually has a knowledge base that centers on the technical aspects of his or her business,” he said. Oftentimes, small business owners do not have a strong grasp of all the core functions that are required to operate a business successfully: finance, marketing, strategic planning, management or internal controls. Although many small business owners feel that these core functions are reserved for larger businesses, the reason that businesses are large is that they learned how to grow, Weinberger said.

TO PAY OR NOT TO PAY

In the United States, the Small Business Administration offers a number of free programs aimed at helping businesses. SBDC is a national program that helps businesses with fewer than 500 employees. In most states, the SBDC is connected with a noted business college, providing access to consultants, academics and students, according to Jana McMahan, marketing and professional training manager, with the South Carolina SBDC.

SCORE is another SBA program comprised of more than 15,000 former executives who volunteer their time. They serve more as mentors than consultants, said Joe Waxman, who both volunteers with SCORE and runs his own consulting firm in Hartford, Conn.

“When you hire a consultant, you pay a fee and when they’re done doing all of their analysis of what it is you want them to do, they give you answers to your questions,” Waxman said. “A mentor guides you and trains you how to change your way of thinking. You can bounce ideas off them; most mentors will never say, ‘That’s the stupidest idea I ever heard.’”

There are times, though, when an outside perspective — and perhaps a dose of reality — is required. In those circumstances, Waxman said, a consultant may make sense. He recounts an idea of his to purchase a competitor during his corporate days. Outside counsel showed him the error of his ways and prevented him from making a costly mistake — or making a fool of himself in front of the board of directors.

In a smaller business, competing opinions may require an independent viewpoint. “A business might have a number of managers who have varied opinions,” Weinberger said. “The owner has an opinion. The wife or husband has an opinion. Maybe we need to call in someone objective and someone with a variety of skills in all of these functions.”

The European Bank for Reconstruction and Development works in countries in eastern and central Europe, central Asia and the southern and eastern Mediterranean, providing financial assistance as well as consulting. Its advisory services are available in 25 countries and can offer assistance in strategy, marketing, operations, finance, quality management and energy efficiency.

While other countries may not have these types of programs, local colleges and universities can provide a valuable resource. Many business schools take on projects for their MBA students each year and they can provide legwork if the situation ties in with the course curriculum.

Weinberger’s organization has members around the globe, and he does not see much difference in how the role of a consultant varies. “A consultant is a consultant,” he said. “There are cultural differences in how we deal with certain problems and what our interpersonal relationships are like. I look at the websites of consultants we have in other countries and if we scratched off the country name, we wouldn’t even know that there was difference.”

No matter what type of consultant is hired, if you think you might need one, perhaps it is time to act, Weinberger said. “Intervention at the right time, before it’s too late to make necessary changes, that’s what’s important to understand.”

There are times, though, when an outside perspective — and perhaps a dose of reality — is required.

Tips for finding and hiring a consultant

Consultant Joe Waxman and Richard Weinberger, CEO of the Association of Accredited Small Business Consultants and author of Propel Your Small Business to Success: Accelerated Actions to Maximize Profit, offer these tips for finding a consultant:

• Rely on peers for referrals. “Ask members of the association,” Waxman said. “In a small business, a lot of people are ashamed to admit to their competitors, ‘I don’t know something.’ Put your ego on hold if you want to grow your business.”

• Do your research. Ask about experience and credentials, how long they’ve been consulting, their college background and whether they have experience that directly relates to your need.

• Check references. “It’s really easy to put any type of testimonial on a website,” Weinberger said. “Even though there’s a website with great testimonials, talk to those references and find out what the comfort level was like. Find out if they know of anyone else who used that same consultant.”

• Discuss the expectations — and cost parameters — thoroughly. “It’s important to discuss what kind of results the consultant is going to give, an oral report, a written report,” Weinberger said. And it’s important to know what kind of time the consultant expects of the business owner.

• Pay attention to the details. Does the consultant do all the talking? Does he or she offer a reasonable sales pitch?

• Go with your gut. Finally, make sure the consultant is someone with whom you have a good rapport as you’ll be working closely together in the coming months.