Business Coaching is a rising field of interest. More companies are hiring business coaches to boost their productivity. The benefits and advantages of business coaching imply the value provided by a business coach to help boost the company’s growth through their sessions.
According to this article from CNBC, Google’s executives credit Bill Campbell, Silicon Valley’s ‘trillion dollar’ coach with a major part of the organization’s success. Many other organizations also claim that entrepreneurs report increased self-confidence, resilience, and performance at the workplace after working with a business coach.
A business coach’s primary duty is to assist their client in growing their business from where it is to where they desire it to be. Business coaches offer expertise to different kinds of businesses; including struggling, successful, or emerging businesses. A good business coach supports business owners throughout their entrepreneurial journey by establishing short-term and long-term goals, improving operations, and solving problems.
There are more entrepreneurs in the world now than ever before. Young people are eager to learn and lead. For such driven entrepreneurs, undertaking business coaching is a necessity. Since business coach helps their clients in realizing their full potential, the demand for one such guiding hand on the team is growing very quickly. In addition to their expertise and experience, a business coach also offers comfort and positivity to the owner, helping them believe in themselves and their ideas.
The benefits and advantages of Business Coaching
1. Increasing Productivity
Productivity can be defined as the ‘ability of an individual to create and learn.’ A business coach assists the owner in defining his responsibilities and removing pointless activities from his schedule. The coach also encourages the client to stay motivated towards achieving his short and long-term goals. This makes way for important tasks and helps improve the coachee’s productivity. It also means that more time can be dedicated to planning and forming growth strategies for the business. A report by the Personnel Management Association says that executives that have received coaching and training have been successful in increasing their productivity by 86% instead of the regular 22% by the latter alone.
While the productivity of a client can be increased it is important to ensure that this growth is consistent and doesn’t come at the cost of the client’s mental or physical health. Since it is a skill that an individual can gradually develop to improve work performance, it is a soft skill that stays with the client long after the coaching sessions are over.
2. Increasing Customer Service
The biggest benefit of hiring a business coach is that the coach provides you with a fresh, neutral, third-party perspective regarding your business idea and its execution. The feedback from your business coach will not only help you identify your shortcomings but would also assist you in fixing them.
A business coach can help you understand your audience and their demands through their vast industry experience and knowledge. This is a benefit that is obtained majorly from the coach and hence, is difficult to duplicate. However, frequent feedback might help the client in finding a pattern and learning from recurring mistakes. Hence, learning this soft skill will take some time but with a good business coach, nothing’s ever impossible.
3. Reducing Costs and Expenses
One of the primary benefits of hiring a business coach is the fact that you’ll have someone who is completely honest with you regarding your business’ expenditure. Oftentimes, the owner of a business has certain set notions. This could lead to expenses that are of no benefit to the business. To gain a neutral perspective on your business operations and to find ways to cut costs, you should consider hiring a business coach. In fact, 23% of executives report that their operational costs are lower after subscribing to a business coach.
A good business coach carefully monitors your inputs and helps you identify irrelevant expenses. These funds can then be used for other crucial and more profitable activities. This will also provide your business with better financial results. The process of cutting costs can be both slow or fast; depending on the frequency of modifications in the company’s operations.
4. Increasing Bottom-line Profitability
The bottom-line profitability of a company refers to its ultimate earnings after all the expenses have been deducted from the total revenue. A business coach can help accelerate deal flow and generate consistent revenue. Business coaching has a major bottom-line impact on your business as a coach can help you in utilizing resources effectively and efficiently to produce profitable output.
This comprehensive assessment of your business requires the presence of a good coach who possesses analytical thinking and problem-solving skills. Learning how to increase your business’ bottom-line profitability is a hard skill that can take years to develop and learn. Hence, hiring a business coach is a crucial element in improving your business’s financial status.
5. Learning Team Building
A huge part of business coaching sessions is to develop trust and create rapport with the employees and owners of the business. This helps a business coach to understand the issues and challenges faced by the people in the organisation. When these issues are identified and understood by the business coach, the process of team building becomes smooth.
The coach will assist you in targeting your weaknesses and make sure that the people you hire for your business are just what you need. A business coach is extremely useful in building your dream team. This is a single soft-skills-based process that advances over an extended duration of time.
6. Reduction in Conflict
A business coach is not a part of your business in the traditional sense but must also work for the betterment and advancement of your organisation like every other employee. This yields two advantages; the coach acts as a mentor who oversees your operations and provides feedback and offers you a neutral, third-party perspective on conflicts.
This leads to a relationship of trust between the employees/owners and the coach. The coach then ensures that there is minimal conflict in the workplace and provides positive constructive criticism to keep the employees’ spirits and dedication high. It is an easy soft skill to master; with just two ingredients – providing clarity to your employees about their responsibilities and empowering them to perform their jobs.
7. Improving Business Relationship with Clients
Client relationship management is an integral part of running a business. It not only ensures higher sales but also assists you in creating a loyal customer base. This can be achieved only when the company has competent personnel to maintain the organisation’s customer relationship culture.
To create such a culture, hiring a business coach becomes a necessity. The coach ensures that the employees are trained for exceptional personal service and provides them with regular feedback and coaching on existing skills. It can be said that developing good business relationships with clients can be a difficult task that requires a long time commitment but the assistance of a business coach could help in making the process easier and faster.
8. Improving Organizational Strength
A business coach acts as a pillar during times of crisis and can offer you a stable and structured approach for leading your organisation forward during tough times. The primary condition is that both the parties (the coach and the client) agree on realistic expectations from one another.
The coach will then provide the owner with greater self and contextual awareness to help them gain insights into their performance. Along with this, the coach also offers the business’ personnel with an enhanced ability to communicate. The combination of these skills helps in generating a good coaching outcome by binding the various arms of the organization together. An eventual improvement in the organization’s strength can be achieved. It is a permanent hard skill that can be achieved only through training and hands-on experience. An estimated 67% of business owners and executives report increased team performance due to their business coaching program.
9. Improving Management Skills
Managers are the key links between the employees and the owners of an organisation. Business coaching can help reinvigorate their jobs by challenging them to attempt new-age initiatives and create better relationships with the rest of the team.
Improving the management skills of their clients can help ensure the smooth functioning of the business and inculcate greater understanding between the mind (top-level management) and the body of the organisation (workers and employees). Efficient management can simply be considered as a basic benefit of having a business coach but could take quite some time to flourish.
10. Improving Leadership Confidence
Running a business is definitely a rewarding experience but it also requires a ton of work and sacrifices on the part of the owner. To make this process more enjoyable and easy, you need someone to support you when things get rough. A business coach does exactly that. Not only do they stand by their client to offer advice based on their expertise and knowledge but they moreover boost the confidence of the owners by being a reliable source of support.
This encourages the owner to keep going and believe in themselves. It’s an excellent example of how support and guidance can give people courage and leadership confidence. A confident leader is bound to take firm actions and can go to any lengths to make sure their objectives are achieved. A vast majority of business owners (an estimated 67%) credit business coaching for the terrific boost in their leadership confidence.
11. Improving Problem Solving Capacity
When a neutral expert enters the sphere, an individual is likely to listen better and think more rationally. This is especially true when it comes to solving business problems/ overcoming obstacles. The client will listen to the suggestions and the possible consequences of such suggestions as theorised by the coach. It will certainly improve the problem-solving capacity of the parties involved and would lead to better business decisions. Hence, a business coach who is well-versed in the art of crisis handling should be the number one priority on your list.
12. Improving Technology Proficiency
A good business coach either has years of experience, or an exceptional ability to adapt to the dynamic business sphere. Since coaching has now changed from being an activity for underperforming employees to an elite, new-age, performance-boosting technique, executives are looking for the most up-to-date business coach. These coaches are paid well for their services and are not only responsible for the development and training of their clients but are also expected to keep these clients updated with the latest technology in the market.
A coach must make sure that his clients are competing in the business league with the best technology at hand. They must identify and provide access to the latest technology that is useful for their client’s business. In this manner, a company that hires a business coach effectively improves its technology proficiency.
Are Business Coaching Benefits Permanent?
Yes, business coaching benefits are permanent. This is because the person hiring a business coach subscribes to a training service with several long-lasting impacts instead of a ‘product’ that has limited uses.
The boost in the client’s confidence and communication skills will stay irrespective of the coach’s tenure. Management skills and personal productivity would rise as long as the client keeps working on the coach’s feedback. Similarly, problem-solving capacity, organizational strength and team building are other elements that require work from both the coach and the client. While they can be retained without a coach, these skills require constant monitoring and feedback. Hence the company needs an individual to fill in these responsibilities.
Other benefits like advancing technology proficiency, reduction in conflict and bottom-line profitability; can be lost if a business coach is absent. These skills require complete supervision and the presence of a neutral third party, which are the primary characteristics of a business coach. The organisation must assign these responsibilities to different experts or must choose a competent business coach with a versatile skillset. The choice is an easy one.
Is it hard to be a business coach?
Yes, it is hard to be a business coach. Admittedly, you do not require a specific educational background or qualification to become one but most successful business coaches are either entrepreneurs with years of experience or have an exceptional business coaching record. Most managers cannot replace a business coach as it is difficult to let go of their ‘leader’ status and change into a role that requires more ‘listening’.
A business coach has to take the backseat when it comes to helping the employees understand their skills and shortcomings. Simply dictating their strengths and weaknesses from your perspective (which could be biased or uninformed) is not enough. The coach must be an empathetic listener who is open to learning more about the employee without any consideration. To learn more about the responsibilities of a business coach and how to become one, refer to this guide.
Which business coaching benefits are more important?
The most important business coaching benefits include; increased productivity of the client, enhanced leadership confidence, greater problem-solving capacity and improved technology proficiency. These are permanent benefits that will remain with the client long after the coaching sessions are over. They are majorly concerned with the client’s personality and require constant work and time. It is almost impossible to achieve these skills without a business coach to monitor your feedback.
Reduction in conflicts, improving business relationships and enhancing customer service come next. These skills are semi-permanent and can be retained if the employees are diligent and focused. To develop these skills, an impartial and competent individual is required and a good business coach ticks all these boxes.
Team building and enhancing organisational strength are additional important benefits that a business coach provides. These can certainly be developed without a business coach but the process will become easier and faster with their presence. Similarly, increasing bottom-line profitability and reducing costs does not mandate the role of a business coach but it’s no surprise that having one would certainly help. The coach can carefully analyse your business’ expenditure and can easily distinguish between what’s significant and what isn’t. This is usually overlooked by owners who’re too accustomed to their business’ status quo.
Are life coaching benefits different from business coaching benefits?
Yes, life coaching benefits are different from business coaching benefits. A life coach focuses on the life of the individual as a whole, including but not limited to, his financial status, mental health, and career plans. On the other hand, a business coach focuses only on enhancing skills that will make their client’s business success.
Overall, a life coach has more responsibilities and uses general coaching tactics to make their client’s life easier while a business coach works together with the client on specific business goals and strategies.
The world of coaching is expanding and people are looking for/to help. There are countless benefits of coaching and it is difficult to arrange them in decreasing order of importance. This is because every client is different and has different priorities. While some may be looking to boost their confidence/leadership skills, others just might need better financial advice. Make sure you know exactly what you’re looking for and get a great coach to help you along the way.