When To Hire A Consultant: An Outsourcing Primer

By Peter Child, Investigative Science Incorporated

With the proposed Natural Health Product Regulations just around the corner, many manufacturers are starting to wonder where they will get the help they need to meet the requirements of the regulations and, more importantly, how to keep the costs down. As we all know, consultants are expensive. Or are they? In this article we’ll discuss when it makes sense to get outside help. And how to get the most for your money.

Everybody knows that when you need to fly somewhere, you hire a pilot. You could, in theory learn to fly the Boeing 767 yourself, but few people do. The same argument applies to consultants. When the expertise you need is either technically difficult or time consuming to learn, it makes sense to hire outside help.

When your car needs repair, most people take it to a mechanic. It’s not that many of us wouldn’t like to do the repair but we simply don’t have the hoist needed to get at the spark plugs, the correct tool to get the door panel off, or the interface to download the onboard computer records. That’s another case when it makes sense to hire outside help; when specialized facilities or equipment are needed.
I don’t fix my own brakes, nor my own furnace. The reason is that the downside of failure can be either a crash or an explosion. That’s another time to hire outside help; when the downside of failure is catastrophic.

But what about the cost? Hourly rates for consultants can range from under $100 per hour to several hundred dollars per hour, depending on the level of expertise required. You need to weigh that cost against the benefit. I recently had my gas fireplace repaired. The repair took 39 minutes and cost $211. That’s over $300 per hour! Under the circumstances though, would it have been smart to try fixing it myself, or ask the repairman to hurry up, or leave parts out?

You also need to weigh the cost against the time it would take you to do the same job. Be realistic here! Assume that your time is worth $50 or $100 per hour and do the math. A good consultant should be able to accomplish the job faster than you could, for additional savings. Make sure of this before you hire them.

The better consulting firms will give you a firm quote up front that lays out the time required for each task. Ask your consultant to structure the quote to perform the work in phases; with a review after each phase and points at which you can call it quits when you’ve reached the limit of your budget. I’d suggest hiring your consultant first for a small job, say under $5000, to see what they are like. If you are not happy, don’t hire them for the big job! The initial meeting and proposal are usually free so don’t be afraid to shop around. Get several quotes for the work.

If there is technical uncertainty associated with the work your consultant is doing, their invoices probably qualify you for a Scientific Research-Experimental Development (SR-ED) tax credit. Your consultant can advise you. It will save you a bundle. You may also qualify for government research grants. If you do both you can offset most of your R&D costs.

Once you have hired a consultant, stay in touch weekly. A good consultant will call you frequently to let you know how the work is going. If they don’t call you, call them. Keep a record of how the work is going, specifically regarding the completion of the tasks described in the proposal. Once you are comfortable that they are handling your work competently, you can relax, put your feet up and congratulate yourself on your wise use of outside help.

About the Author:
Peter Child is the co-founder of Investigative Science Incorporated, a consulting firm with offices and laboratory in Burlington, ON, The firm offers technical support for the natural health products and pharmaceutical industries, as well as a range of services in the areas of quality assurance and forensic chemistry.