You’re Not Alone: Consulting Services Provide Sound Advice

No doubt you are busy making plans for next season. Many of you are tweaking your business strategies, expanding operations and evaluating what equipment and lotion lines you will carry in 2008. Due to the nature and size of your tanning business, there will be times when you require both legal and financial consultation. This article examines three specific consulting services a salon owner may use—management consultation, accounting consultation and legal consultation.

Finding A Good Consultant

A tanning salon is rarely large enough to employ such services on a full-time or retainer basis. Yet, these services are sometimes difficult to find since the “better” consultants are not listed in the Yellow Pages, on the Internet or via other types of advertising. The best way to locate them is usually through referrals from friends or fellow business associates who operate a business similar in size and scope to yours.

There are many factors for a businessperson to consider when seeking a management consultant. A tanning salon owner or operator is usually an entrepreneurial type who may have expertise in a particular industry or service. At the same time, you may lack familiarity with established techniques in the day-to-day management of a salon. The opposite also may exist—an owner/operator who has a general knowledge of business management, yet lacks experience in tanning.

Daily operations of a salon can be very hectic. The owner/ operator may know existing shortfalls but not have time in his or her overscheduled day to resolve the ongoing problems or to make use of existing potentials.

An analysis of needs and implementation of appropriate programs and controls by a management consultant can smooth operations and allow the owner time to consider the future of the business and develop its strategy. When immersed in running business on a daily basis, it is often easy to overlook the obvious and, therefore, fail to see potential danger signs or opportunities the future holds. This is defined as “functional fixedness” or “behavioral set” and means the solutions to new problems are derived solely from the bias of past experience. A management consultant can offer a new approach and unbiased insight into a person’s existing business.

Accounting Consultants

There are many small businesses that incorporate outside accounting services in their daily programs. These outside services usually provide a general check on their accounting procedures and offer help with the business taxes. However, it is important that every person involved in business has a general understanding of basic accounting so that, when selecting a proper accountant for the business, the right questions can be asked.

Certified Public Accountants are licensed and tested to ensure their basic abilities. It is wise to talk with an accountant in person before making a commitment. If an accountant is vague or speaks only in the jargon of IRS code sections, search for another one who can answer your questions in language you can understand.

Make sure the accountant is familiar with your size and type of business. The fact that his clients may include large corporations is of no benefit to you. Also consider the following questions before hiring your personal business accountant: 

• Are there any overlooked tax advantages?
• What type of funding will be needed over the next year?
• Is a pension plan appropriate? And if so, which one or what kind?
• Are all necessary records kept, and all required federal and local reports made?
• Do the present systems meet the projected growth needs?

In most cases, a small business like a tanning salon only will use the services of an attorney once in a while. However, during those occasions when services are required, you will want to make sure that you have the best possible advice and representation.

Be sure to do your homework when selecting an attorney; the process can be very difficult and frustrating. There is no way to evaluate an attorney from a listing in the Yellow Pages or on the Internet. It is best that an attorney be referred to you by someone who is in a business similar to your own and who is familiar with the attorney’s work. Only then can you be confident that you are selecting someone you can trust with your legal affairs.

If you, on your own, cannot find someone that you trust, you may wish to contact the local Bar Association. You can present the association with information regarding the nature and size of your business, which will help them make the right recommendation for you.

In order to make an intelligent choice, interview or speak with at least three prospects before actually hiring someone to represent you. It is important for you to feel comfortable with your selection and have confidence that the person who potentially will represent you and your business understands the scope and ramifications of the situation.

Listen carefully to what each potential legal consultant has to say and then evaluate the person as follows:

• Is this person vague and evasive?
• Can I relate to this person or does he speak in legal jargon that is confusing to me and hard to understand?
• Do I feel that I can relate to this person and trust him with my problem or need?
• Is this person familiar with my problem or similar problems that have arisen in this type of business?
• Has this person dealt with similar situations and what has the outcome been?

Remember, when considering working with consultants, it is key that they have experience in dealing with your type of business.

Ultimately, dealing with consultation services can be very important to you and the survival of your business. Be very careful and selective in the hiring of outside services because the outcome of their work for you can determine the success of your future investments and the future of your salon.