One in four small businesses plan to hire a financial advisor in 2021, new survey data shows

WASHINGTON, January 12, 2021 /PRNewswire/ — With the lasting financial impacts of COVID-19, some small businesses will seek advice from financial experts to improve their bottom line. A new survey from Clutcha leading B2B reviews and ratings platform, found that 24% of small businesses in the United States plan to hire a financial consultant or advisor in 2021.

Financial consultants and advisors provide outside advice to small businesses making financial decisions regarding accounting, payroll, investment strategy, and more.

The survey of 500 small businesses also found that while 44% of small businesses have hired a consultant in the past, only 29% plan to hire one in 2021. This decline comes amid the COVID-19 pandemic. underway, which has forced the closure of small businesses and layoffs around the world.

Small businesses should include consulting services in their 2021 budgets to gain valuable outside perspective and expertise across a range of business functions.

IT consultants are the top choice for small businesses in 2021

The shift to remote work environments means small businesses need secure networks and digital operations.

Nearly a third of small businesses (29%) plan to hire an IT consultant to meet the demands of a digital environment.

IT consultants can help small businesses by providing cybersecurity solutions, implementing new technologies, or helping to migrate to new technologies or digital platforms.

Dan Baileypresident of WikiLawnhired an IT consultant after a security breach left his company vulnerable.

“The consultants were able to fix our backdoor security issues, recover data lost in the breach, and give us resources to ensure we don’t make the same mistakes twice,” Bailey said. “For that, I would say they have been invaluable”

WikiLawn is among the 39% of small businesses that have ever hired an IT consultant.

Some Small Businesses Consider Hiring Marketing, Legal, and Strategy Consultants

Consultants are often a financially strategic alternative to hiring full-time staff.

A quarter of small businesses (25%) plan to hire a marketing consultant; 23% are considering hiring a legal advisor; and 17% plan to hire a strategy consultant in 2021.

Legal consultants in particular can help small businesses navigate the legalities of working in person, such as Etienne Lumiereco-owner of Mattress Nolafind.

“The company just wanted to make sure our actions didn’t compromise the rights of our people while keeping the company operational,” Light said. “Our consultant suggested using a hybrid type of operation. Employees who can do their jobs remotely can continue to do so, but employees who need to be physically present should return.”

The legal consultant helped Light minimize the risk of viral transmission while keeping the business running smoothly.

Read the full report here:

For questions about the survey, feedback on the results, or an introduction to the sources featured in the report, contact Kelsey McKeon at [email protected].

About the clutch
Clutch is the leading review and assessment platform for IT, marketing and business service providers. Every month, more than half a million buyers and sellers of services use the Clutch platform, and the user base is growing by more than 50% annually. Clutch was recognized by Inc. Magazine as one of the 500 fastest growing companies in the United States and was ranked among the top 50 startups by LinkedIn.

Kelsey McKeon
[email protected]
(202) 350-4344