IN the fledgling years of his business, consultants were not Donal Kelly’s favourite people. The managing director of Donegal-based Seamless Aluminium found that trusting consultants without vetting their credentials was costly.

“We suffered in the early days,” said Kelly. “In the 1980s, we had people coming in here advising us on things like tax and grants. We were at their mercy and ended up with our hands in the dog’s mouth. When the dog closed his mouth, he took the fingers.”

On one occasion, a consultant drew grant money awarded to Kelly’s firm but never passed it on. “We had to put it down to experience. When looking for a consultant, it is worthwhile to make a few calls, to get references and to talk to people for whom they have worked. In the long run, it can save you a lot of money.”

Kelly continues to use consultancy services to drive his business forward but now he ensures he checks their track record before retaining advisers. “We are very happy with the consultants we have working at the moment. We found them through recommendations and made sure we knew where we stood before we took them on, in terms of the percentage they were on and so forth. We were not left with a big bill and no results.”

Without expert advice, any business owner can be left floundering when it comes to the macro-level strategic decisions that could affect the fortunes of the company for years to come. Is now the time to enter export markets? Should the company move to acquire a competitor? What should the succession plan be when the firm’s founder decides to step back from the helm?

Fortunately, there are plenty of places to turn for guidance and once SME owners follow Kelly’s advice and vet consultants and advisers before entrusting them with critical business information or hefty fees, they can use advisory services to develop business strategies.

Before turning to professional consultants, consider all the free advice that is available to SME owners. Organisations such as Enterprise Ireland, the Irish Small and Medium Enterprises Association (Isme), the Small Firms Association and the Chambers of Commerce offer extensive advice or training on strategic management issues to their clients and members.

Many of these organisations offer mentoring services, where experienced, mature owner-managers who are now taking a step back from their own companies will sit down with a younger business owner and share their expertise.

Mentoring can involve once-off or continuing support. “Sometimes, a mentor will go in for a day to discuss one particular issue,” said Mark Fielding, the chief executive of Isme. “Sometimes they will act as a kind of non-executive director, without actually being a director. It is tailored to suit the individual companies.”

In addition to their own experience, most mentors also have a network of contacts to draw on. For example, says Fielding, the SME owner might need a specialist in cost reduction and the mentor may know of a reliable person.

Other useful sources of free advice on strategic issues include trade bodies such as the Irish Software Association or sector-specific semi-states such as Bord Bia or the Crafts Council. Business Innovation Centres should also be able to help technology-based businesses.

Once the free sources of advice have been exhausted or if a strategic issue arises that needs very specific expertise and experience, it will be time to consider paying for advice in order to further the fortunes of the company. When it comes to fee-based advisers, the choice is almost endless.

At the top of the heap are the large global consultancies. The “big four” accountancy firms, Deloitte & Touche, Ernst & Young, KPMG and Price Waterhouse Coopers (PwC), all have strategic and management-consulting teams that specialise in dealing with SMEs and should prove particularly useful when it comes to issues such as mergers and acquisitions, disposing of a business or succession.