In my previous blog, I discussed the nine reasons family business leaders resist coaching, making the point that most do not understand how coaching works or the many advantages of hiring an outsider who can bring an independent perspective and guide you to managing the challenges you face quickly and confidently. Virtually none know the benefits and return-on-investment of business or executive coaching.
You’re not alone if you need help unlocking your business’s full potential or enhancing your leadership skills. Many entrepreneurs and executives face the same challenge. But here’s the good news: with the proper guidance, you can break through these barriers. Coaching offers a proven path to success, whether you’re looking to scale your business or fine-tune your leadership.
Explore how business and executive coaching can transform your growth and leadership journey.
Business Coaching vs. Executive Coaching
There are many advantages to hiring an outsider who can bring an independent perspective and guide you to managing the challenges you face quickly and confidently.
While business coaching focuses on organizational growth and optimization, executive coaching sharpens leadership skills for those at the helm of larger organizations.
Below are some of the benefits of having a coach and the distinction between the two types of coaching.
NOTE: Many experienced coaches, like myself, enjoy delivering both services.
So, what is business coaching?
It’s a collaborative process in which a professional and experienced coach helps a business owner or entrepreneur clarify their vision and business goals, develop leadership skills, and create actionable plans to improve business performance so they can experience more personal fulfillment.
Business coaching is action-oriented and focused on the needs of a growing company or organization. Business coaches work with clients across various industries and professions to enhance their performance, define processes, optimize the organizational structure and people for maximum growth, and address individual and organizational roadblocks, e.g., blind spots, to realize the dreams of the owner and leadership team.
A business coach is a partner, providing insightful guidance to identify opportunities to improve, capitalize on strengths, and strategize for long-term success. Whether you’re a startup founder, a next-generation leader in a family business looking to scale your business, OR someone in between, a business coach acts as a trusted advisor to help you and your company drive more success and experience more personal fulfillment.
So, what is executive coaching?
Executive Coaching, by contrast, aims to help individuals in high-level management or leadership positions enhance their leadership abilities, strategic thinking, and organizational impact. It focuses specifically on leadership development and empowerment. Executive coaches tend to work with leaders in the C-suite and other high-level decision-makers within larger organizations, where the coaching relationship is more focused on helping individuals hone their leadership skills and steer their organizations toward tremendous success.
An executive coach is a trusted sounding board that fosters self-awareness, emotional intelligence, and strategic thinking. Through this process, leaders embrace their full potential, inspire their teams, and drive transformative change within their organizations.
When combined, business and executive coaching can be transformative for business owners and leaders. It offers tailored guidance to overcome challenges and maximize potential. By leveraging the right tools and systems, business owners can streamline operations, focus on what matters most, and achieve sustainable growth.
By following the above guidelines, business owners can harness the power of coaching to elevate their leadership, streamline their operations, and drive their businesses and themselves toward more success and personal fulfillment.
Interested in talking about business or executive coaching for you or your business? Schedule a consultation with me here.
Business Coaching Statistics Don’t Lie (…well, they can’t be all that wrong)
Let’s delve into the transformative power of having a business coach. From small shops to Fortune 500 companies, the success stories of business owners who have harnessed the power of coaching are genuinely inspiring, serving as a beacon of motivation for all.
Consider this: one-third of successful entrepreneurs use a mentor or support/mastermind group. In stark contrast, only 14% of entrepreneurs who failed at business did this. This stark contrast is a cautionary tale, highlighting the potential pitfalls of going it alone in business.
Several studies, including from iPEC and Fast Company, have found that companies using business coaching see significant improvements, such as increased revenue, enhanced leadership, and better employee engagement.
- 86% of business organizations earned a positive ROI on their investment in business coaching, underscoring its effectiveness and potential for success.
- Coaching improved 61% of business coaching clients’ business management skills.
- Fast Company reports that 39% of CEOs have an executive business coach.
- 96% of executives who worked with an executive coach said they would repeat the process if given a chance.
Why do they see increased revenue, leadership, and employee engagement?
The five most common benefits of executive coaching, according to ICF Global Study 2009 found:
- 80% showed increased self-confidence
- 73% developed improved business relationships
- 72% improved their communication skills
- 71% improved their interpersonal skills
- 70% rose their level of work performance
According to SCORE, the top three areas business coaches and mentors are asked to help business owners with:
- 61% ask for help dealing with human resource issues
- 59% ask for help with business growth and expansion
- 53% ask for assistance with starting a new business
The ROI of Coaching
This issue has been studied many times, and there is a wide variety of data on the subject, including:
700% median ROI in the ICF Global Research Study – that’s a 7x return on investment from business coaching. The top 19% of companies in this study saw a 5000% ROI – profiting 50 times higher than how much they invested in business coaching.
Another way to look at ROI business coaching data is by comparing it to the competition.
63% of businesses and organizations that provided coaching for their employees reported higher revenue and income growth than their competitors.
Have I made my point yet?
Why Leaders Don’t Pursue Coaching
The 2021 study by Sounding Board investigated why companies don’t offer coaching for their leaders, executives, or other employees and why some business owners don’t pursue it themselves. Here is the data that the study produced:
- 59% of businesses did not offer coaching because of the cost. Perhaps their budget constraints were that dire, or they did not want to invest; perhaps the study goes into more detail. However, cost was the deciding factor nearly 60% of the time.
- 41% did not pursue coaching because they felt measuring the ROI would be too hard.
- 41% also did not feel their organization’s culture would support coaching
- 35% said getting their leadership to buy into business coaching was the major roadblock
By embracing coaching, family business owners can strengthen their leadership, smooth out operational challenges, and secure a thriving future for generations to come.
Ready to unlock your family business’s potential? Schedule a consultation with me today and let’s build a strategy tailored to your legacy.