In the past, business coaches were viewed as a luxury only accessible to corporate leaders whose companies were willing to invest vast sums—sometimes tens of thousands of dollars—for elite training.
However, coaching services tailored for small enterprises are increasingly recognized as essential. As of recent reports by IBISWorld, the business coaching sector is valued at approximately $11 billion, encompassing over 56,000 firms across the United States. The costs of these services can be substantial, with rates for even entry-level, non-certified coaches starting around $100 per hour, while well-known consultants may charge thousands.
A significant number of business owners attest to the invaluable support they receive from their coaches, and research backs up their effectiveness. A study from the Manchester Consulting Group, focusing on Fortune 100 executives, revealed an impressive return on investment (ROI) of nearly six times the cost of coaching services. Research by the International Coach Federation (ICF) indicated that individual clients achieved a median ROI of 3.4 times their expenditure. According to Meryl Moritz of the ICF, the effectiveness of a business coach can significantly impact an entrepreneur’s success—provided there is a good fit between the coach and the business owner, and that the latter has realistic expectations.
“Many believe that hiring a small-business coach means they will receive a consultant’s direction on how to make their business thrive,” explains Moritz, who also runs a professional coaching company. “Conversely, a proficient coach is someone who comprehends your situation, challenges your thinking, and supports you through your difficulties, encouraging you to re-engage when you encounter setbacks. They equip you with the necessary tools to become the leader you aspire to be.”
When seeking a business coach, consider the following factors:
- What is the coach’s philosophy? Coaches can have diverse approaches—some may integrate spirituality, while others might employ analytical methods or psychological tools. Therefore, it’s crucial to inquire about the coach’s philosophy, their ideal client profiles, examples of their success stories, and their definition of success. This insight will help you determine if their methods resonate with your needs.
- Avoid seeking clones. Moritz highlights that it’s common to gravitate towards a coach with industry experience or similar personal backgrounds. “You should seek someone who can quickly adapt to your industry and objectives, pushing you to think differently,” she advises. “The goal is to find a coach whose perspective contrasts with yours.”
- Does the coach help clarify your objectives? As you assess potential coaches, look for someone who inspires you to realize your potential and facilitate necessary transformations in your business. “The changes brought about should be clear and perceptible,” Moritz notes. “While coaching can have a therapeutic aspect, it mainly focuses on collaborative planning.”
- What qualifications do they hold? Noteworthy accrediting bodies include the ICF, the Worldwide Association of Business Coaches, and the International Association of Coaching. Some universities, including Columbia, offer business coaching certification programs. However, since coaching remains largely unregulated, understanding a coach’s qualifications provides assurance that you are engaging with a trained professional adhering to an ethical code, many of which necessitate referrals to other experts if they can’t meet client needs.
Leanne Ely
Founder
Business: SavingDinner.com, an online meal planning service based in Charlotte, North Carolina
Coaches: Carrie Wilkerson and Cameron Herold
Results: Business revenue doubled in the first year of coaching, starting in 2009.
I launched the original menu planning website in 2001. However, by 2008, I was up against 85 competent competitors innovating in the space, making it clear that I needed to adapt. It was a challenging year, and I felt financially strapped.
Realizing the need for a new direction, I engaged my first coach, Carrie Wilkerson, after purchasing one of her webinars. Our phone conversation revealed her inspiring journey from humble beginnings, and her values resonated with me. It mattered that she recognized my situation as a single mother striving for business success.
I was taken aback when she quoted a $10,000 fee, but I took the plunge and wrote the check. Within a short time, she proved her worth: she advised me to raise my prices significantly and implement a clearance sale for my older services, which I had not adjusted since launch. Additionally, she suggested letting go of three out of four employees and revamping my social media approach. I followed her guidance meticulously, and within a year, my revenue had doubled.
Carrie and I collaborated for two years and have remained friends. My business continued to expand; by 2014, I employed 15 staff members, and the company had transformed remarkably. Eventually, I realized I needed to evolve into a CEO. After reading Cameron Herold’s book Double Double twice, I brought him on board in 2013. He assisted in establishing clear objectives, devising systems to achieve them, and assigning specific metrics to each business aspect. For instance, I aimed for a 40% revenue increase, so we developed a plan to optimize my operations through enhanced content management, improved sales funnels, and refined marketing strategies.
In the past, I would jot down goals and later discover them after several months, thinking, “Oh wow! I did quite well!” Now, with the help of my coach, I implement concrete projects aimed at these goals. It’s akin to undergoing precision surgery. I’ve noticed that the more I invest in myself, the greater my earnings. After calls with my coach, I feel energized and motivated to effect changes because I recognize the high cost of expert guidance.
Justin Moore
Founder
Business: Elephant in the Room Men’s Grooming Lounge, located in Tulsa, Oklahoma
Coach: Clay Clark
Results: A second location was launched in 2013 and booked full within three months, leading to a total of five venues across Oklahoma.
Six months prior to opening my first location, I engaged Clay. I sought to validate my business idea’s potential for success, given his stellar reputation locally. Tulsa is noted for being a conducive environment for small businesses; however, I understand the vulnerability many talented entrepreneurs face when starting new ventures. I appreciated Clay’s business structure, which included a monthly retainer and a 5% commission on sales.
With Clay’s assistance, Elephant in the Room started off on the right foot. He guided me to hone in on a specific demographic rather than appealing to all men, devising targeted marketing strategies to attract affluent clients by distributing gift cards in upscale areas. He recommended implementing a membership model, offering a steady income flow and cultivating an aura of exclusivity that enhances our brand image. Clay also optimized our website, vastly improving our search engine optimization (SEO). Additionally, he coined the memorable name “Elephant in the Room,” a far better option than my initial choice, “B.Spoke.”
By involving Clay before the business launched, he was instrumental in shaping my business plan and connecting me with a banker who provided a loan at a time when funding was challenging to secure. Each week, Clay and I would have an hour-long phone meeting, which maintained a consistent focus on areas like sales performance, funnel metrics, customer feedback, and any changes from the prior week. Together, we would devise immediate action steps for improvement.
Two and a half years post-launch, both our venues were fully booked, boasting 800 active memberships. Clay introduced me to a franchising consultant, leading us to strategize on selling 30 to 40 franchises annually. His guidance added a depth of expertise to my venture that I significantly lacked, drawing out the success my business has achieved.
Ben Cooke
Co-founder
Business: Lucid Public Relations, headquartered in Los Angeles
Coach: Doc Barham
Results: Tripled revenue and staff in one year, alongside improvements in communication and workplace culture.
I was oblivious to the coaching realm until a client connected me with Doc; I had assumed it was exclusive to corporate leaders. At that point, my business partner and I were in the nascent stages of our company and aimed for growth, acutely aware of the challenges within our industry.
From the outset, I formed a strong rapport with Doc, sharing an interest in alternative healthcare and a background in psychology. He presented me with perspectives that illuminated aspects of life that intertwined personal and professional experiences.
Doc helped me recognize my struggles with passive aggression, which can poison an organization. He guided me to address these issues and actively foster a healthier workplace culture. Consequently, we now have a vibrant community where employees love coming to work, resulting in enhanced productivity.
We also focused on specific goals and actionable strategies, such as revenue growth through an innovative sales pitch, networking, and targeting ideal clients. One of Doc’s enduring philosophies is, “What got you here won’t get you there.”
Though I no longer work with Doc consistently, he continues to offer sessions for our entire staff a couple of times each year. His most recent session covered the distinctions between zero-sum and non-zero-sum strategies, sparking engaging discussions that lasted for weeks.
Since that time, I’ve encountered several business coaches, many of whom I know wouldn’t align with my needs. Identifying the right coach is crucial; fortunately, my first experience was with one who was an excellent fit for me.
