As a small business consultant, you work in a rapidly evolving industry.

Sure, the fundamentals are the same as they’ve been for decades: Give business owners sound advice; help them develop sales and marketing strategies; plan as best as possible for future uncertainties.

But the rapid pace of technological change today – from the rise of the remote workforce, to the emergence of Artificial Intelligence tools like ChatGPT – means consultants must continuously refine their skills, and be ready to embrace the latest consulting tools and techniques.

But amid today’s surge of new technology flooding the marketplace, it’s also important to hone in on the essential consulting tools that can assist you in your work today.

Here are five essential consulting tools that can transform your consulting practice and keep you ahead of the competition. They’re consulting tools meant to add immediate value for your clients, strengthen your relationship as an advisor, and drive growth for your clients and your own consulting business.

1. Collaborative Business Plan Creation

The ability to create comprehensive business plans is a fundamental skill for consultants. Business plans provide a roadmap for a company’s growth and serve as a critical tool for attracting investors and stakeholders. A cloud-based business planning software can simplify the process of creating business plans by offering customizable templates, step-by-step guidance, and real-time collaboration features.

By adopting a collaborative business plan creation tool, consultants can:

• •Deliver professional-quality business plans efficiently: A well-crafted business plan can be the difference between a company securing funding or falling short. A collaborative business plan creation tool streamlines the process of creating a professional, polished business plan that will impress potential investors and stakeholders.

• •Enhance client engagement through real-time collaboration: Real-time collaboration allows consultants to work closely with clients to develop a tailored business plan that aligns with their goals and objectives. This level of engagement fosters a strong working relationship between consultants and clients, ultimately leading to better outcomes.

• •Access business plans from anywhere and at any time: Cloud-based business planning software enables consultants to access their clients' business plans on any device, providing the flexibility to work from any location and accommodate clients wherever they are.

2. Financial Forecasting and Analysis

Financial forecasting and analysis are crucial components of a consultant’s toolkit. Consultants must be able to develop accurate financial projections and analyze financial data to guide clients in making informed decisions. Tools like financial forecasting software and built-in formulas can help consultants create reliable revenue, expense, and cash flow projections, as well as generate essential financial statements such as profit and loss statements, balance sheets and cash flow statements.

By leveraging financial forecasting and analysis tools, consultants can:

• •Provide accurate and detailed financial projections for clients: Inaccurate financial projections can lead to poor decision-making and ultimately be the reason a business fails. By using advanced financial forecasting tools, consultants can develop detailed and accurate financial projections, giving clients the information they need to make informed business decisions.

• •Identify potential financial risks and opportunities: Analyzing financial data allows consultants to identify potential risks and opportunities that may impact a client's business. Armed with this information, consultants can help clients develop strategies to mitigate risks and capitalize on opportunities.

• •Customize financial forecasts to suit clients' unique business models: Every business is unique, and financial forecasts should be a reflection of this. Customizable financial forecasting tools enable consultants to tailor their financial projections to each client's specific business model, ensuring the projections are relevant and actionable.

3. Performance Tracking and Reporting

Consultants must be able to track and report on key performance indicators (KPIs) in order to help clients monitor their progress and make data-driven decisions. Performance tracking and reporting tools that integrate with accounting software like QuickBooks Online or Xero make it easier to track KPIs, set custom alerts, and generate visually appealing reports for clients.

By utilizing performance tracking and reporting tools, consultants can:

• •Monitor client performance and compare against industry benchmarks: Tracking KPIs and comparing them against industry benchmarks allows consultants to identify areas where their clients excel and areas that may require improvement. This information is invaluable in guiding clients toward better business performance and long-term success.

• •Identify areas for improvement and guide clients toward long-term success: Performance tracking and reporting tools enable consultants to spot trends and patterns in their clients' business performance. By identifying areas for improvement, consultants can provide targeted advice and develop strategies to help clients overcome challenges and achieve their goals.

• •Provide comprehensive performance analysis and recommendations: A detailed performance analysis, coupled with actionable recommendations, is vital for clients seeking to improve their business performance. Performance tracking and reporting tools empower consultants to deliver insightful analysis and practical guidance, helping clients make informed decisions based on data-driven insights.

4. Consulting Tools for Project Management

Effective project management is essential for consultants to ensure timely delivery of results and maintain client satisfaction. Project management tools can help consultants track project progress, manage resources, and facilitate seamless communication among team members. 

With the right management tools, consultants can:

• •Improve project planning and resource allocation: Project management tools enable consultants to develop detailed project plans, allocate resources efficiently, and monitor project progress. This level of organization and control is critical for meeting deadlines and delivering results that meet or exceed client expectations.

• •Streamline communication within the consulting team: Seamless communication among team members is vital for successful project execution. Project management tools facilitate collaboration and information sharing, ensuring all team members are on the same page and working towards the same goals.

• •Enhance project transparency and client satisfaction: Clients appreciate transparency and clear communication about project progress. Project management tools enable consultants to provide regular updates on project milestones and deliverables, keeping clients informed and engaged throughout the project lifecycle.

5. Knowledge Management and Continuing Education

To maintain their edge in the consulting industry, consultants must continuously expand their knowledge and stay current with industry trends and best practices. Knowledge management and continuing education tools like webinars and online content libraries can help consultants refine their skills and enhance their expertise.

By leveraging knowledge management and continuing education tools, consultants can:

• •Access a wealth of educational resources and industry insights: Knowledge management tools offer consultants a vast array of educational resources, such as articles, case studies, and research papers, providing valuable insights and helping them stay abreast of the latest industry developments.

• •Stay up-to-date with the latest trends, tools, and techniques: Continuing education is crucial for consultants looking to maintain their competitive edge. Webinars and workshops provide opportunities to learn about the latest tools and techniques, ensuring consultants can continue to deliver cutting-edge solutions to their clients.

Besides your own expertise, having the right set of consulting tools is one of the best ways to deliver results for your clients that set yourself apart from your competition.

By adopting these five essential consulting tools, you can elevate your consulting practice and provide that added value to your clients that can serve as a differentiator for your business. 

If you’re looking for a single tool that can help you harness business planning, financial forecasting, performance tracking, project management and continuing education, try LivePlan for Consultants. It’s business planning and financial management software built to help small businesses and business advisors.

Whether you’re a new or established consultant, continuously refining your skills and embracing new tools and techniques is the key to long-term success in the consulting industry. Stay proactive in your professional development and keep an eye on the latest trends and innovations to maintain your edge.