The market rate is the average price or price range that customers generally pay for a service. It's not an exact science and you don't have to limit yourself to a certain price range, but looking at the average will help you get an idea of what customer expectations are and what your competition might be charging for similar services in your area and beyond. Consider your industry's average market rate as a small factor in your own prices. You may have a lot more experience than others in the market, which means you can double the market rate for your services.
On the other hand, you may be just starting out and, even if you have less experience, you can charge much lower prices, which makes you much more attractive to new customers. If you're a small or medium-sized business (SME) looking to grow your business or improve your processes, you might consider hiring a management consultant. One of the main questions you're likely to have is “what is the cost of a business consultant in Singapore for SMEs?” That question is difficult to answer in absolute terms. Depending on the consultant's experience, knowledge and demand, fees can range from a few thousand dollars to several hundred thousand dollars.
Obviously, that doesn't help. So understanding the consulting process is a good start. After the initial contact and meeting with the consultant, they will understand what you, the client, want to achieve and in what specific area you can offer value. A preliminary analysis of the problem will be carried out and, in general, the broad scope of the consulting project will be identified.
Depending on the scale of a project, a larger and more complex project will require extensive study and review by the consultant or consulting team. The purpose of the study and review is to better understand the company, industry, market and competition, as well as to identify problems and prioritize solutions to problems. Or, it could be a feasibility and viability study on whether to continue with the project itself. Depending on the scope of the study and review, you can expect to pay for it because of the amount of work and time it takes to conduct a thorough study and generate the submission of a review report.
Some consultants might propose to do this study (26% revision) as part of the project itself. Most of the projects that my team undertakes usually require 14 to 30 days of research work. If you're hiring a top-tier company, such as one of the big three strategy firms, you can expect to pay tens of thousands or even hundreds of thousands of dollars for a study and review. In the case of a boutique firm, you can expect to pay a few thousand dollars for a study and review.
This rate is generally a fixed cost and not an hourly charge. For companies in Singapore, the Business Development Grant (EDG) is available to provide up to 80% of the funding for a review project of 26% of the study. You can learn more about how to apply for the EDG and what it covers here. Regardless of whether the initial study and review are an independent project or part of a consulting project, the consultant must submit a proposal or review report that provides an initial hypothesis and a proposed plan of action to achieve the objectives.
The consultant must also highlight and explain the KPIs and metrics used to measure them. The proposal will also provide indicative costs to achieve business objectives. The rate for achieving goals depends on many factors. Usually, a good consultant will recommend that you start with a smaller specific project that will have most positive impact in relatively short time (around 3-6 months).
This is enough time to make proper diagnosis, implement, measure and review proposed solutions. Afterwards, you can embark on larger project with scope 12-18 months. Most consultants will charge by hour. The cost of business consultant in Singapore depends on consultant's experience & credentials & whether it's consultant working on project or team.
Another way calculate & measure value rates is agree on fixed rate for agreed area work. Basically consultant will work on project-by-project basis on specific set results with established milestones. Payments can be made according agreed payment schedule provided milestones are reached. This is popular approach working with business consultants, as client can budget for fixed amount over time manage cash flow.
Regardless fee being negotiated should measure investment against potential return ensure consultant worth hiring. Consultant's contribution must have return on investment (ROI) & positive long-term impact even after consultant has completed project. Additional out-of-pocket costs may be incurred part project not covered by consultant's fees. For example if consultant recommends CRM or automated marketing software that can improve marketing processes & save time & accept recommendation must bear cost this software.
Another additional cost that may not be part consulting fee is training. If it is recommended that staff receive training on specific skills that will help company achieve goal & beyond cost training will likely be independent consultant's fees. Other common expenses reimbursed may include air travel expenses (if necessary), transportation, printing (for reports), content development, copywriting & creative communication design work 26%. Value & selling price business consultant also vary depending on consultant's domain expertise experience & professional certifications.
