We live in an era of booming entrepreneurship. People have more opportunities, better access to information, different ways to secure finances, etc., which has led to a rise in the number of new businesses. Fresh new entrepreneurs, some of them with little experience in their careers, are establishing their ventures with assistance from seasoned mentors or business coaches.
This has given birth to a new industry of business coaching. Experienced business owners, mentors, teachers, and similarly skilled individuals now provide advice, as well as some assistance in establishing new businesses for a substantial fee.
Why do we need regulation in the business coaching industry?
Unlike other industries, this one isn’t properly regulated. Business mentors or coaches aren’t accredited or certified for their skills. People only have information regarding a coach’s past successes to rely on, which isn’t the most trustworthy foundation for any business relationship. Here are some reasons why this industry must be regulated:
- Gives new business owners trustworthy information
How do you know if a business coach is reliable, provides good, legal advice, and won’t ruin your business before it has a chance to take off? Their previous successes mean nothing if they can’t replicate them reliably every time they coach a new entrepreneur. Regulation and accreditation mean businesses coaches have to live up to certain established standards.
Coaches can’t just rely on what they consider high-quality services, which ensures business owners aren’t wasting their money. If this industry is regulated, business owners have more reason to trust coaches and know their advice will be helpful.
- The reputation of the business coaching industry
Without regulation or proper accreditation, the business coaching industry can’t have a stellar reputation. Many entrepreneurs don’t believe they can benefit from a coach, so they’re not willing to invest enough in engaging the services of one. Regulation adds legitimacy to this industry, giving business coaches some authority or recognition. This also ensures the failure of one or two mentors doesn’t impact all professionals in the industry. That does happen today because the field isn’t regulated.
- Establish quality standards
How do you determine which coach offers superior services? How do you know what is good service? Establishing a regulated set of standards ensures entrepreneurs know what to expect from coaches. These can also act as a guideline for new coaches; letting them know what they need to learn before venturing into this industry. Most professional fields like teaching, psychology, psychiatry, etc., are regulated so coaching should be too, especially if it impacts the finances as well as careers of people involved.
- Protecting business coaches
Without regulation, business coaches are vulnerable to lawsuits. There are no minimum established standards so clients can blame professional mentors for almost any error or failure, even if it wasn’t the mentor’s fault. That’s why it’s important to implement regulation because it can show mentors provided all possible assistance and have no culpability in a venture’s failure. There have already been some successful lawsuits against professionals in this industry, and verdicts are unpredictable.
If this industry is regulated, professionals can receive training in accordance with industry standards. Most coaches don’t have any formal training in this field aside from their education and experience. They don’t know of common obstacles, of how to deal with different kinds of entrepreneurs in different industries, etc. Professionals rely solely on their experience, which leads to uncertain results. With regulation, it’s easier to establish formal education in this field, allowing mentors to have a more comprehensive knowledge about coaching. They’ll learn new skills that might help improve quality of coaching as well.
As you can see, regulated business coaching can benefit all. While there might be some hurdles to overcome at first, but the effort is worth it.
For more information on how Max My Profit can help you with your business, please contact us here