When a company is thinking about hiring a corporate business consultant, many questions need to be answered to ensure that this is the right move for the business. Due to businesses generally maintaining strict budgets, one of the most common considerations is the cost of the service. Prices vary and fluctuate as there are many factors and services to consider. So, what are the typical costs of a corporate financial consultant? The answer will be discussed in more detail below. By the end of this guide, you'll have a clearer picture of the typical costs of a corporate financial consultant.
The Upfront Corporate Financial Consulting Fee
Financial consultants typically charge an upfront one-time setup fee of $1,000 to $3,000 for the creation of a financial management plan. This usually involves the creation of financial documents that offer a holistic and tailored strategy for budgeting, investing, tax, and risk management.
The Ongoing Corporate Financial Management Fee
Once a business has successfully worked with a financial consultant to establish a financial plan, the consultant can then provide ongoing financial management. The cost of ongoing management is either a flat yearly fee that can range between $2,000 to $8,000 or a yearly fee that is roughly 1–2% of the total value of the funds that the consultant must manage. Consultants often use tiered pricing that is based on the value of the funds managed to determine what to charge a particular client. As the managed amount goes up, so does the cost. However, the corresponding percentage goes down. For example, if a consultant must manage $100,000 in assets, then they may charge a client at a rate of 2% per year. That 2% is only $2,000. If the same consultant must manage $1 million in assets, then they may charge a client at a rate of 1% per year. That 1% would be a much higher fee of $10,000, though it's a lower percentage.
Corporate Financial Consultant Hourly Fees
When a corporate financial consultant is called upon for active consulting that is outside the realm of the first two fees, they typically charge an hourly fee of $100 to $400. These corporate consulting sessions often last 2–3 hours.
Corporate financial consultants are a powerful tool in any business owner's arsenal. As demonstrated above, there are many layers to their pricing structure. Hopefully, by reading this guide, you've equipped yourself with the proper tools to navigate their pricing and select a corporate financial consulting solution that is just right for you.