Can a Business Coach Contribute to Your Company?

A teacher, a motivator, a consultant, a friend. Those are just a few of the ways company owners describe their business coaches. Most entrepreneurs start their own businesses because they are independent and self-sufficient, yet there are times when an unbiased outsider can boost a business. Consider these five reasons why you may need a business coach -- and five reasons you may not.

A business coach can help you:

  1. Set priorities. As an independent business owner, you may feel overwhelmed. With limited time and resources, it can be tough to prioritize tasks and goals. Should you launch a direct mail campaign or create a blog? Should you open a branch office or expand the one you have? Is it time to hire more sales representatives or not? A coach can help you sort through your choices and make the best decisions.
  2. Get an objective view of your business. Sometimes business owners are too emotionally invested in their businesses to make impartial decisions. This is especially true in family businesses, says Thomas Mungavan, president of Change Masters® Inc., a Minnetonka, Minn.-based firm that has coached more than 2,000 professionals. "A business coach can come in, be that objective person, deliver the tough message, then leave," says Mungavan.
  3. Handle issues outside of your expertise. Just because you're a leader in your industry doesn't mean you have all the skills to run a business. You may be in over your head drafting employee non-compete agreements, writing five-year business plans, conducting market research, etc. "A business coach can fill that critical gap in knowledge or experience," says Mungavan. A coach can either provide services or guide you to someone who can. Because business coaches work with lots of companies, they have an extensive list of contacts so they can likely suggest marketing firms, IT vendors, insurance agents and so on.
  4. Feel less isolated. Running your own business can be lonely, particularly if you don't have partners or a management team. A business coach can help you feel connected.
  5. Revive a stagnant business. Are you stuck in a rut? Are your sales slumping or has your creative well dried up? A coach can rejuvenate your company when it hits a dead end.


But you may not need a business coach if:

  1. You already have a trusted mentor or advisory board. Other experienced business owners may provide the same guidance as a business coach.
  2. Cash flow is too tight. A business coach may be a luxury you can't afford right now, especially if the person charges a couple hundred dollars an hour with a set number of minimum hours. Instead, consider resources you receive as a member of NFIB and industry-specific trade associations.
  3. You're simply procrastinating. "[Sometimes] people need to step up, make decisions and do something," says Mungavan. "They know what the right answer is, but they're avoiding it." While a business coach may push you to make a move, it's not always the best use of your money, says Mungavan.
  4. You risk becoming dependent. Relying too heavily on your business coach can cost a lot of money and undermine your skills. If you allow a business coach to make all the hard decisions, you may limit your personal and professional development.
  5. Your current vendors provide sage advice. For example, a good accountant can council you on finances and a marketing firm can advise you on a long-term promotional strategy.