What Is Strategy Consulting? (And when to hire a consultant to do it for you)

Strategy consulting helps businesses make better decisions to achieve long-term goals. For SaaS companies, it’s especially useful for solving challenges like scaling, pricing, and market expansion. Here’s a quick breakdown:

• What It Is: Focused advice to address specific business challenges and create actionable plans.
• Why SaaS Companies Need It: Helps with growth models, pricing strategies, customer acquisition, and market opportunities.
• When to Hire: Struggling with growth, data issues, or entering new markets? A consultant can help.
• Key Benefits: Fresh perspective, industry expertise, faster results, and long-term frameworks for success.

Quick Comparison of Consulting Types

Consulting Type	Focus	Deliverables
Strategy Consulting	Long-term goals	Strategic plans, market analysis
Management Consulting	Overall performance	Process optimization
Software Consulting	Tech solutions	System architecture
SaaS Consulting	SaaS-specific growth	Pricing models, growth strategies

Hiring a consultant can save time, reduce mistakes, and provide expert guidance when it’s most needed.

Management Consulting Vs Strategy Consulting (Differences Explained)

Main Benefits for SaaS Companies

Let’s explore how strategy consulting can specifically help SaaS companies tackle challenges and seize opportunities.

A Fresh Perspective

Strategy consultants provide an unbiased view of your business, helping uncover hidden opportunities and inefficiencies. Their independence from internal dynamics allows them to propose bold, actionable solutions. As Alastair McKee, global business strategy and operations manager at Google, explains:

"Many organizations struggle to think about where to go and how to get there when their people are busy actually running the business."

This perspective is especially helpful when dealing with critical decisions like scaling, pricing strategies, or entering new markets.

Specialized Industry Knowledge

Consultants bring deep expertise in your industry, turning complex insights into actionable plans. Their knowledge spans tools, compliance requirements, and shifting market trends, offering a clear advantage.

Knowledge Area	How It Helps Your Business
Vertical Solutions	Expertise in tools and compliance for your sector
Market Dynamics	Insights into trends and competitors
Best Practices	Frameworks that drive growth and efficiency
Risk Management	Strategies to avoid common pitfalls
Integration Strategy	Guidance on connecting with sector-specific tools

For horizontal SaaS solutions that need more customization or vertical SaaS products with ready-to-use features, this expertise ensures you stay ahead of market demands.

Accelerated Results

Consultants help you achieve growth faster by using proven methods to avoid common missteps. Their approach speeds up decision-making and implementation in areas like:

• Operational Efficiency: Streamlining resources, costs, and workflows
• Technology Alignment: Ensuring IT systems align with business goals
• Performance Measurement: Defining and tracking success metrics

For example, Artisan Strategies focuses on improving SaaS customer activation and retention with targeted strategies instead of trial-and-error approaches.

What’s more, consultants don’t just deliver short-term fixes. They create frameworks and processes that keep delivering results long after the engagement ends. By equipping your team with the right tools and knowledge, they ensure you’re prepared for future challenges.

Right Time to Hire a Strategy Consultant

Common Warning Signs

Certain signs indicate your SaaS company might need strategy consulting. Struggles with data accuracy or reporting often point to deeper operational challenges. Here are some key signals to watch for:

Warning Sign	What It Indicates
Data Quality Issues	Inconsistent metrics or unreliable ARR calculations
System Limitations	Tools unable to support pricing models or usage tracking
Growth Plateaus	Stagnant user acquisition or retention rates
Resource Strain	Teams overwhelmed by business model and reporting demands

If your current systems can't keep up - especially with complex needs like usage-based billing or tiered pricing - it might be time to bring in outside expertise. These challenges often arise before significant business changes.

Key Business Situations

Beyond warning signs, certain transitions make strategy consulting especially valuable. Research shows companies using strategy consultants are 2.5 times more likely to outperform competitors and achieve 10% revenue growth.

Here are scenarios where consulting support can make a big difference:

1. Market Expansion Initiatives
   Entering new markets comes with challenges like understanding compliance requirements and competitive landscapes. Consultants offer frameworks and experience to guide these efforts.
2. Business Model Evolution
   Switching to more complex pricing models can be tricky. Consultants help navigate challenges such as:
   • Usage-based billing
   • Credit-based systems
   • Hybrid model optimization
   • Managing contract variations
3. Performance Optimization
   Companies often reduce operational expenses by up to 15% within the first year of applying consultants' recommendations. This is particularly helpful when dealing with:
   • Market saturation
   • A slowdown in innovation
   • Digital transformation projects

In-House vs. Consultant Skills

Sometimes, an external perspective is what you need, especially when internal resources are stretched thin.

Here’s how to evaluate when to bring in a consultant:

Internal Capability	When to Hire a Consultant
Strategic Planning	When third-party validation is needed for big decisions
Industry Knowledge	When specialized insights into emerging trends are required
Problem-Solving	When dealing with complex challenges needing proven methods
Resource Allocation	When extra bandwidth is necessary for critical projects

While your team may excel at daily operations, consultants offer unbiased insights and specialized expertise to help you tackle major growth opportunities.

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How to Pick the Best Consultant

Required Skills and Background

Choosing the right strategy consultant for your SaaS company means finding someone with a solid mix of industry knowledge and hands-on experience. You’ll want a consultant who understands SaaS business models, pricing strategies, and market trends. On top of that, they should bring technical know-how in areas like UI/UX, coding basics, and analytics, paired with strengths in strategic planning, data analysis, and project management.

Skill Area	Key Requirements
Industry Expertise	Knowledge of SaaS business models, pricing strategies, and market dynamics
Technical Knowledge	Familiarity with UI/UX design, coding basics, and analytics tools
Strategic Planning	Skills in growth modeling, competitive analysis, and market positioning
Data Analysis	Ability to track KPIs, improve conversions, and understand customer behavior
Project Management	Expertise in planning timelines, managing resources, and effective communication

Look for consultants who can point to measurable results. For instance, a consultant for Compass Working Capital boosted client enrollment by over 300% through service improvements and better coaching practices.

Once you’ve narrowed down your options, use targeted interview questions to refine your choice.

Key Interview Questions

Ask questions that dig into their experience, approach to challenges, and ability to deliver real results. Here are some examples:

Question Category	Sample Questions
Experience Validation	"What specific results have you achieved for SaaS companies in previous engagements?"
Strategic Thinking	"How would you approach optimizing our pricing model for different market segments?"
Problem-Solving	"Describe a challenging strategic issue you've addressed, particularly outside your core expertise."
Implementation	"What is your process for ensuring that your recommendations are successfully adopted?"

"Drive, adaptability, and good humor are the three traits of a successful strategy consultant"

Their answers - and how they handle follow-ups - can reveal their level of engagement and readiness to help grow your SaaS business.

Personality and Work Style Match

Technical skills matter, but cultural fit is just as important. Pay attention to how they communicate - are they clear, direct, and genuinely interested in your business? Collaboration style is another key factor. For example, a consultant working with Exyn Technologies helped refine product development processes and streamline problem-solving.

You’ll want someone who’s curious about your challenges and flexible in their approach. As Sean Boyce from NxtStep puts it:

"SaaS consultants specialize in product development, marketing strategies and customer retention to drive business growth"

When evaluating cultural fit, prioritize a collaborative mindset over technical jargon. A consultant who works well with your team can make a bigger impact.

Getting Results from Consulting

Setting Project Goals

Clear goals are the foundation of successful consulting projects. Using the SMART framework - Specific, Measurable, Achievable, Relevant, Time-bound - helps ensure your objectives are both clear and actionable.

Goal Component	Example
Specific	Increase enterprise customer conversion rate
Measurable	From current 2.5% to 4%
Achievable	Based on industry benchmarks
Relevant	Aligns with revenue growth targets
Time-bound	Within 6 months of implementation

Breaking larger goals into smaller milestones makes it easier to track progress and stay on course.

"Effective project management begins with setting clear, achievable goals that align with the project's vision. Without well-defined objectives, projects can become disorganized, timelines can stretch, and teams may lose focus."

Information and Team Readiness

Preparation is key before your consultant even steps in. Consulting expert Helene Laffitte highlights this crucial step:

"Bringing stakeholders and teams into the fold before the consultants even set foot on the premises does more than just prepare the ground; it sows the seeds of ownership and commitment."

Focus on these three areas to ensure your organization is ready:

• Data Preparation: Organize and clean your data for easy access.
• Team Alignment: Clarify roles and responsibilities across teams.
• Resource Allocation: Ensure tools, budgets, and time are set aside for the project.

When these elements are in place, you’ll create a smoother path for collaboration and execution.

Following Through on Changes

The real work begins with implementation. Strategy consultant Girish Bhat stresses the importance of securing buy-in:

"Before you implement the recommendations ensure that the key stakeholders have had an opportunity to review, discuss and possibly even challenge the recommendations. Without buy in, implementation will be slow in the face of resistance and may result in lower than targeted improvements or in extreme case may even result in failure."

An effective action plan should include:

Component	Description
Timeline	Specific dates for each implementation phase
Ownership	Clear responsibility assignments for each task
Resources	Required tools, budget, and team support
Metrics	KPIs to measure success and impact
Checkpoints	Regular review meetings to track progress

Encouraging a mindset of continuous improvement ensures your organization learns from both successes and setbacks. Frequent check-ins and open communication keep the project on track and help deliver lasting results from your consulting efforts.

Conclusion: Making the Final Decision

Choosing between in-house solutions and hiring external consultants can feel like a tough call. But breaking it down into key factors can help simplify the process. While hiring a strategy consultant can be a big investment, it often provides strong returns.

Here’s a quick comparison to guide your decision:

Factor	In-House Solution	External Consultant
Cost Structure	Internal hires are typically 2–3× cheaper	Rates range from $5,000–$10,000 per day
Project Timeline	Works best for ongoing, long-term initiatives	Perfect for short-term, high-impact needs
Industry Expertise	Limited to internal company knowledge	Offers insights from various industries and practices

Studies show that on-demand consultants can reduce costs by 48–63% compared to traditional consulting firms. However, cost alone shouldn’t drive your decision - your company’s specific challenges and goals should take center stage.

When might a strategy consultant make sense for your SaaS company? Here are some common signs:

• Struggling to focus on growth while managing day-to-day operations
• Missing out on proven industry practices
• Repeating avoidable mistakes due to knowledge gaps
• Needing an objective, outside perspective to evaluate your processes and goals

Keep in mind: Success depends on setting clear goals and following through with strong execution. Interestingly, 91% of independent consultants report delivering better value for money compared to traditional consulting firms.