The Business Coaching Craze

The Business Coaching Craze

Over the past ten years, coaching has gradually risen to a billion dollar industry while outpacing the growth of the consulting business.

There are over 25 million small businesses and self-employed professionals in the United States. These companies are typically operated by an owner who started the company, but who has little or no formal training in managing and growing a business. As a result, most owners over time tend to become overworked and overwhelmed with low-value activities. They very often lose focus and fail to take advantage of their time and talents. They need a proven coaching process that helps them sharpen their vision, goals and focus. A process that will help them concentrate their talents, energy and efforts on high-priority, high-return actions. A coaching system to improve their business structure and strategies.

One individual to discover the coaching craze is Action International's founder Brad Sugars. Action International has grown to over 600 franchisees that typically target small businesses with $500,000 to $10 million in sales. Action International charges $1500/month on a one-year agreement per client for 1 to 1.5 hours of coaching a week. Training includes a 10 day boot camp and 12 week academy.

How does coaching differ from consulting? "Coaches motivate people to action. They help them prioritize their projects and goals. They help them plan their work and work their plan but they don't necessarily give them the actual strategies to execute, steps to take, business or marketing plans to follow, nor do they give financial or legal advice.

Driving Force: Why is business coaching hot? "Over 85% of small and medium-sized businesses fail in the first five years. There is a huge market to help these small businesses. Also, it is not just the tools; it's the accountability that makes coaching work. Most business owners are not accountable to anybody," says Action International U.S. Sales Manager, Richard Bernstein.

Risks: Although the coaching profession has experienced strong growth, coaches can run into the same problems that have crippled consulting businesses. The heavy spending days of corporate consulting has reduced engagements from long-term to short-term with CEO's demanding a better return on investments. Business coaches will have to prove their value to small business owners.

The World of Business Brokers

Business brokers are the matchmakers of the business