Recovering from an economic recession means running smaller budgets, leaner teams and fewer frills than ever before. Does business coaching fit into the ‘extras’ category? Well, ask the many Fortune 500 companies that have continued to use business coaching even through the toughest times. Or the small business about to go bust but didn’t thanks to that worthy investment in business coaching. So the question is not so much whether you can afford business coaching but how you can find ways to fit it into your budget. Here are a few answers.
Over the last few years, study after study has shown that businesses have grown several times over after investing in business coaching. The Price Water House Coopers and Associate Research Study demonstrated that businesses gained over 7 times their investment in coaching. Quarter of the businesses surveyed in the same study pegged their returns from coaching between 10 and 49 times the initial investment. According to the Manchester Study, the average ROI for businesses was about 5.7 times the investment in coaching. These studies signal to companies that coaching is not an add-on or bonus training program but almost a necessity. The figures also explain why global multinational companies have hired business coaches or invite executive coaching teams to their offices routinely. More often than not, people question if something is affordable when it’s more a luxury than a necessity. Increasingly, business coaching is proving to be a necessity.
But what about the small business?
For many entrepreneurs of small businesses, it is easy to be sceptical about business coaching and write it off as something that managers and leaders at big companies can afford and benefit from. However, in recent times, even small entrepreneurs have realised that coaching is a worthy investment. Better engagement, improved performance, greater results boost the bottom-line of any business, irrespective of the size. Often, the demands on small business owners are even greater than the demands on top business leaders. Independent entrepreneurs don’t have a litany of staff they can delegate work to. Areas like Marketing, Finance and Team Building often fall upon the business owner. Business coaches can help guide the small business owner and help him navigate his way through these various roles successfully. Unlike a consultant, a coach will be there at every step of the way to help an entrepreneur perform better and achieve results. The relationship is one of full commitment and support. Can a small business not afford this?
Paying for expertise
Business Coaches are usually successful businessmen, executives, CEOs, sales heads, marketing experts and more. While they offer general advice on business growth and success, they also come with several years of business expertise and specific domain expertise. Many business owners have found that they’re able to tackle several key problem areas thanks to expert business coaching advice. Areas like revenue flow, hiring practises, sales growth and debt management are extremely crucial, especially for small businesses. Business coaching helps across several areas and in the long run the investment pays for itself by contributing directly to revenue generation, sales management and profit.
Employees of mid-size or big companies will find it simple enough to afford business coaching. Simply ask your employer to pay for it! If executives and management at a large company are serious about improving the performance of their teams and growing the company they work for, they cannot underestimate the value of training and development. Given the data as far as ROI is concerned and the fact that businesses of all sizes hire business coaches, leaders and executives ignore business coaching at their own risk.
Don’t wait too long
Sometimes, businesses hire coaches when things have gone horribly wrong. Business coaches have to work extra hard and the client has to work much harder to put the business back on track. It is best not to wait till it’s too late to improve productivity and performance. When you can afford not to have business coaching is the best time to get business coaching. Having an objective eye telling you what you’re doing right, how you can do it better and avoid the mistakes you may be making is a step to greater success and glory.
Get it while you can afford it. And when you think you absolutely can’t spare money for coaching, that’s probably when your business needs it the most.