What does a business coach do?

[SmallBizOrg]

Hello

Hopefully an experienced business coach will be able to answer some questions...

I am working on my website that will be a one-stop-shop for small business owners. There they will be able to find information about how to manage their businesses + tools like CRM, webmail, calendar, autoresponder, voip+pbx, ordering management system, CMS, bookkeeping and invoicing system, scheduling, project management, timesheets etc etc. + services (from accounting/bookkeeping, web+graphic design, virtual assistant etc etc). Services will be provided by third parties for most part to the benefit of small business owners that will have easy access to all of the above. In this regard I will create a directory or alliances with all sorts of business services providers like accountants, business lawyers, business insurance brokers, web designers, virtual assistants and call centers.

Browsing this forum I came across a couple of threads related to "business coaches" which I wasn't very familiar with but which sounds like a category that I should add to my website to partner with. In this regard I have a few questions to help me understand better their services and how to best approach and include this category in my site:

-is this a regulated industry like accountants and lawyers?
-is there an association and an "official" industry website available?
-is there a professional designation? are there any certifications and exams required for somebody to offer these services?
-what education background and work experience do business coaches typically have?
-what kid of services, more exactly do they provide? do they make any plans for the client (like biz plan, marketing plan, operations plan) or just point them into the right direction? do they provide any connections? do they refer other business services (accountants, etc?)
-what kind of rates do they typically charge and how much would a client pay to a business coach per year (median "ticket" per year)?
-how can a small business owner find a local business coach? is a lot of "business coaching" done online or is it primarily a local activity?
-how do business coaches market themselves primarily? how do they get clients?
-anything else I should know?

[huggytree]

i had a free business coach from this website for a few months......completely worthless....never did 1 thing except for frustrate me....he would ask questions designed for you to answer them and solve the problem yourself....everything he said was so vague that it meant nothing to me

any plus he saw in my business he took credit for even though he did nothing......

if they were so smart why arent they running million dollar companies instead of making a working mans salary....from my experience a complete waste of time

to give true business coaching you need someone in your own industry who is more successful than you are.....and why would they do that?

its all very similar to business books...they are all so vague they really tell you nothing

[Brian Altenhofel]

if they were so smart why arent they running million dollar companies instead of making a working mans salary....from my experience a complete waste of time

I wouldn't take one experience and judge an entire group by it, especially if it was a free experience.

I know a few business coaches that are *very* successful. They are also very experienced and either specialize in an industry or specialize in a certain part of business.

I've never heard of a legit business coach (or personal coach, for that matter) just asking questions to guide you into coming up with your own solution to a problem. The business coaches I know take a look at your business as a whole, compare it to data they have on what works for other businesses like yours, and advise you on making a smart decision based on the totality of your circumstances and their data. They perform audits to help you understand exactly what is going on in your business and pinpoint the returns that each of your activities is generating.

Some companies (even very large multi-billion dollar privately-held companies) will practically hand over the reins to good business coaches. Sure, while the buck technically stops with the officers and especially the CEO, the business coaches will often get asked for their input on decisions. I know of some situations where an entire department is pretty much outsourced to a business coaching firm.



As for the OP's questions...

Regulation may depend on the state, but I think they aren't in most places. What someone wants to look for in a business coach is someone who's either run multiple businesses or a very large amount of satisfied clients. I know some business coaches with no education, and I know one with a doctorate, though typically a business coach will have an MBA. Most business coaches have a network of service providers they use. With some coaches, it's basically a referral list; with other coaches, it's in the contract. I've seen rates as low as $30/hr (no real experience) to as high as $800/hr (the type I described above). To find one locally, check with reputable professional services providers (lawyers, CPAs, etc) or maybe an economic development center - they'll likely know who's legit, and with the professionals you might even be able to "map" who typically refers clients to whom. I'd make an educated guess that more than 80% of new clients are referrals from current clients.

[Paul]

I think to be a coach you need experience and knowledge in the particular business and in general.

I think a truly effective coach has to be able to do most of the things you listed and have real world experience in the particular industry or business they are coaching. I think they need very specific experience to provide true guidance and help solve real problems.

As a bit of a follow up to Huggy, you don’t need a long term coach with just theoretical knowledge. You don’t need a cheering section or a “let’s work it out” sideliner; that’s a different kind of ‘coach” that can also be valuable. But, from a business coach you need answers and action specific to the situation, not generalized formula you can get from any one of a million books or courses.

An MBA with no actual business experience can certainly recite case studies and whip up a flow chart. But, they can’t help you merchandise a retail store, create a restaurant menu, plot out a tradesman’s project or train a sales force without experience.

Only someone who has done those things can help. Many on this forum are experts in their fields and can be great coaches in those fields. Some may be experts in several fields ,but speaking for myself I would never attempt to “coach” in a business I don’t truly understand.

The business you described providing certain business services can be a viable business. Just be careful about presenting yourself as an all around coach, you may very well disappoint clients, like Huggy was, who expect more than you may be prepared to deliver.

[billbenson]

The way I would look at a business coach is to 'get you thinking'. A business coach isn't necessarily a guy with the answers. He may have been in business for a long time and does have some good answers. But has he been in your business?

I would look to a business coach as more of a question man. If you have a resteraunt, do you know what your food costs are per plate. Do you know what your advertising costs are? What are your programming skils if you are a web designer. How does the average person scan a web page if you want to be a web designer.

Over time, a good consultant will know a lot of answers. That will also lead him to ask you better questions. Don't expect him to know all the answers. Expect him to show you what you don't know. Where you need to study or improve.

[SmallBizOrg]

Thanks guys, these views and sharing your experiences are helpful.

@Paul -No, I don't intend to present myself or my business as an all around coach. Most of the services will be done by third parties, including business coaching, if i am to add that category to the menu. My role will be to create and manage the infrastructure, the tools and organize the whole ecosystem. Will also create original content or curate as case may be to educate and inform small biz owners in specific areas they may be interested in.

[huggytree]

the business coach i had DID have experience in my field...he ran a large plumbing company for a good chunk of his life....i wont use his name, but those who have been here for 6-8 years will remember him...

ive heard of guys who charge $40,000 and come to your business and teach you how to run it properly for a month.....im sure one of those business coaches would be great.....

[billbenson]

I know who you are talking about huggy and used him briefly as well. I'll just stand by my statement that a good coach is someone that can get you thinking and researching in the right areas. He's not a teacher that shows or tells you how to do stuff.

[Paul]

I know who you are talking about huggy and used him briefly as well. I'll just stand by my statement that a good coach is someone that can get you thinking and researching in the right areas. He's not a teacher that shows or tells you how to do stuff.

I do disagree BUT it may just be a matter of defining terms.

I think of a coach as an advisor, one who can and does provide hands on solutions. I believe you think of a coach as a mentor or motivator, one who provides guidance and support. Others referred to a coach as more of an analyst.

I suppose any of those can be useful.

[Harold Mansfield]

I guess there are different levels of everything. I've always been surprised at Social Media consultants who don't have 10's of thousands of followers. But you start to realize that some people may not be on the Fortune 500 level, but they are still light years above someone who is just starting out, has nothing, and doesn't understand anything.

There are so many levels of success in business, so it stands to reason that there are different levels of coaches and consultants. You have to climb the ladder.

[billbenson]

I agree with both Harold and Paul. And I certainly wouldn't knock the industry. I just feel that to many people look at it as someone to build their business. That's not what they do. They show you what you need to learn!

[huggytree]

I know who you are talking about huggy and used him briefly as well. I'll just stand by my statement that a good coach is someone that can get you thinking and researching in the right areas. He's not a teacher that shows or tells you how to do stuff.

im sure there are crappy business coaches just like their are crappy everything else

the theme i came away from my experience is they make you figure things out for yourself.....and if you cant or in my case where their was no solutions its just a waste of time....we would just talk in circles weekly and never moved on to anything

[Harold Mansfield]

From what I've seen when a company needs to make a change or turn things around they hire a new CEO. When they need to run more efficiently they hire an efficiency expert. When they need to learn new service areas they hire a consultant who knows that area.

I work as a consultant almost everyday. I spent a lot of my time teaching people how the web works or else they never understand that you can't just push one button to get things done. But many times people expect me to tell them how to make money, how to actually run their business..which I don't and will not do. I get the "I have great idea, but can't figure out how to make money with it" call at least twice a month.

I've had to make people do things like sit down and figure out their shipping costs, or figure out who their target market is.

Sometimes I think people expect that when they hire one expert or one type of consultant that that person will solve all of their problems and teach them everything about business. That's pretty unrealistic.

You hire the right people for the job. There is no all-in-one consultant out there, so it stands to reason that every coach isn't the same.
Personally, I don't need anyone to motivate me to think. Seems like a waste of money to me. Personal motivation is not my issue. I don't need a hand holder. If I need help, I need a consultant that tells me how to do stuff and best practices that I can't find information on.