Why Working with a Consultant Is Good for Small Businesses

Since founding the financing firm Cash Flow Partners in 2015, entrepreneur and CEO Edward Espinal has grown the company into a multimillion-dollar operation. With extensive experience in strategic development and business financing, Edward Espinal is an in-demand consultant who has worked with start-ups, established companies, and small businesses looking to expand. 

Establishing or growing a business is especially difficult for first-time entrepreneurs who may not be familiar with all of the financial options available. Here are a few of the most common reasons that working with a business consultant may benefit a small company:

- Expertise. While a business owner may be knowledgeable about his or her specific sector, running a successful business requires expertise in multiple areas, including human resources, tax law, and business banking. Working with a consultant can bring expertise to a small company without the need to undergo training or hire a full-time expert. 

- Networking. One of the most overlooked benefits of hiring a consultant is the ability to tap into his or her network of current and former clients and industry partners. For new companies, a respected advocate in the field can open many doors.

- Workload. Entrepreneurs are often more passionate about certain aspects of their business than others. Hiring a consultant to manage unfamiliar or disliked components of launching or expanding a business allows company owners to focus on the parts of the job they love.

How Much Money Do I Need to Start a Small Business?

Corporate financing executive Edward Espinal is the founder and CEO of Cash Flow Partners, a New Jersey-based lending company. Edward Espinal helps entrepreneurs find the money they need to start new businesses.

According to data from the Small Business Administration, the average cost of starting a home-based franchise ranges from $2,000 to $5,000. However, these averages are not consistent, and many companies require more capital depending on location, their marketing plan, and the industry.

Usually, the total cost of starting a business consists of capital expenditures and expenses. Capital expenditures are one-time costs that usually may be written off through depreciation over time. Property, vehicles, and inventory are examples of capital expenditures.

Expenses are all the costs of operations in the start-up phase, including rent, travel, office supplies, state incorporation fees, and legal fees. Ideally, these costs are kept to a minimum and extra funds are left to cover unexpected costs.