If you’re looking for a business coach because you or your business are drowning in debt, you have commitments you cannot meet, and your business is spiralling out of control, then you may be looking at the wrong solution.
A business coach will be able to help you personally through the next chapter of your business journey, but if your business is in dire straits then it is unlikely that a business coach will save your business.
It is a common misconception that you hire a business coach when sales are way down, cash flow is tight, and things are generally going bad. Although, a business coach will be great support and will most likely be able to guide you through this difficult time, it is unreasonable to think that any one person has the ability to turn things around quickly.
Rather than turn to a business coach, it could be a good time to seek the advice of an accountant, and possibly a specialist in company liquidation or administration.
You’ll need to get honest with yourself to understand why your business got into this mess in the first place. Sometimes a business will run in to trouble because of circumstances out of your control, or, you may have just made some bad decisions.
It’s not all doom and gloom, there are some circumstances when a business coach can help you.
You have a lot of people or companies that owe you money
If the reason your business is in a cash flow crisis is due to people not paying you, then hire a business coach now. You need help to develop a system and strategies to collect your money quicker. Unless you’re a bank, it is not reasonable to have people that owe you money for more than 30 days… maximum!
You have demonstrated that you and your business is capable of increasing sales quickly in the past
If you have been able to dramatically increase your sales and cash flow in the past, then there is a chance you could do it again. Working with a business coach could be the one thing that will drive you to make it happen.
There was an unusual but major change that caused the downturn in business
Sometimes a business can experience a downturn in sales because of an unusual one-off event. For example, maybe your business partnership has broken down and your business relied on your business partner to bring in the sales. Now that they’re gone it’s up to you and you’re not sure what to do to bring in more sales. A business coach could help you work out and implement a plan to get your business back on track.
How do you know if it’s too late for a business coach to help you?
You have creditors knocking on your door and constantly ringing you trying to collect money
If you’re already struggling to pay your current suppliers, then it is unlikely that you’ll be able to pay someone else. A business coach will typically start from $1000 per month and upwards, often with a minimum contract period. You’ll need to be able to pay your business coach for this period.
You need an urgent quick fix
If your situation is desperate and you need a miracle cure, then a business coach is not the answer. Working with a business coach is a long-term approach to growing a business. Sure, they may have some ideas to give you a quick win or two, but it is rare that a business coach will be able to give you the instant injection of sales or cash that you need to get out of trouble.
You haven’t lodged or paid your taxes
If you have been using GST or PAYG payments as an overdraft for your business instead of lodging and paying your taxes, you’re in dangerous territory. This can and will quickly spiral out of control. Your first and topmost priority should be contacting and negotiating a way to get square with the tax man before you incur any more expenses in your business. In Australia the ATO will aggressively collect their amounts outstanding if you let this get out of hand.
Your product or service is not good
If your product or service is the reason your business is in trouble, then it’s probably time to hang up the towel and call it quits. It is irresponsible to keep promoting your business if you can’t deliver what your customer wants or needs.
Whatever the reason, you’re reading this article about business coaching because you feel like you need help.
If you’re unsure what to do next, contact us and we’ll see if a business coach is able to help.
About the Author
Ben Fewtrell is a sought-after Business Coach, Keynote Speaker and trainer who has featured in Virgin’s Inflight Magazine and Entertainment Portal, SKY Business and “Secrets of Top Business Builders Exposed”. He is also the host of the popular Business Brain Food Podcast where he interviews leading experts on anything and everything business.