How To Choose a Business Coach & Know If They Are The Right One For You
If you own a business, you may have decided that you are ready to scale or create a strategic plan for business growth. Or maybe you realize you need a trusted advisor to help you make the right decisions.
If so, you are likely ready to hire a business coach. Many entrepreneurs struggle with finding a coach that is a good fit. It is tricky to find a good match for their business and for them personally. The coach/founder or CEO relationship requires a lot of sharing and personal trust. It's a giant leap for someone that hasn't worked with a coach before. Due diligence will help you find the right coach to scale and thrive.
You want to know that the coach you work with has the right type of experience and that they understand the challenges of your particular business and business maturity.
So how do you figure all of that out?
We recently sat down with Scaling Up Coach Peter Smith. He shared how his journey to becoming a coach first started when he was an entrepreneur and decided to hire a business coach to help him scale his business.
After a successful career in major global corporations, Peter started a business in the telecommunication space. While running that business, he learned about business coaches and eventually sought one out.
The impact of launching Scaling Up through the help of a coach in his company was significant enough that he turned one store into two. Peter says, "I'm really fortunate that when I talk to a client, I can say hey, I've got skin in the game from both sides of the fence."
We talked about a checklist of items you can use to help you evaluate if a coach is right for you and how you can find a coach when you are ready to start working with one.
You can also listen to "How To Know If A Business Coach Is Right For You" a conversation we hosted recently in The Scaling Up Coaches Club on Clubhouse.
Listen to Scaling Up Coach Peter Smith shares his journey from deciding to hire a coach to becoming a coach himself and what it taught him about choosing the right coach.
Before we start: Understand your reasons for wanting a business coach.
The interaction between an entrepreneur and a business coach is more than just business. It's also a personal relationship that requires a lot of trust and shared values. Once you decide you are ready to hire a coach, it helps to have some criteria to help you find the best match.
Scaling Up Coach Peter Smith says," It's almost like engaging with a doctor. It's got to be somebody you feel absolutely comfortable with and comfortable in their presence. Sometimes that connection is simply not there either from the coach or the client's perspective. You have to accept that."
You won't know that comfort level or if there is good rapport until you talk with a coach, so how do you narrow your search to know which potential business coach to interview?
Peter advises that the most important criterion is to focus on your desired outcome. The outcome you seek is why you decided to reach out to a coach.
The outcome you desire and your own needs drive the boxes you will be putting on your checklist and how you should rank them in order of importance.
The reasons are unique to every situation. For some CEOs, that could be for help scaling a company beyond where you have experience; for others, it might be because results have plateaued; for others, it could be industry upheaval or transformation.
You want someone who checks all boxes, but first, you must decide which boxes are right for you.
What criteria do you use to evaluate if a business coach is right for you?
Industry experience
Experience with company size or maturity
Previous roles
Geography
Solo practitioner or part of a network
Methodology
Certification
Years of experience - both in their previous role and as a coach
How important is it for your business coach to have worked in the same industry as yours?
While it is not a deal breaker, having a coach with experience in your industry is nice. However, the business coach's expertise does not have to come from their prior roles in business.
It is often just as helpful if your business coach has worked with other business owners in your industry or sector and helped them achieve success. Some coaches have also previously worked in consulting within specific sectors before becoming a business coach.
It's also beneficial to think broadly when considering industry and not too niche. A broader range of knowledge is often helpful for providing advice that helps you fill in gaps.
Business coaching services should complement the size of your business.
Many coaches have extensive experience coordinating and managing a workforce of ten to 100 employees.
If scaling your company is a top goal, then you probably want to work with someone that has run or coached companies the size you are planning to grow to over the next few years. Coaches with that experience will often have the roadmap to get there.
On the flip side, if you are a small business owner, you probably want a coach who has worked in small business coaching.
The same goes for business maturity. A start-up has different issues for scaling than a well-established company with lots of revenue and employees.
Peter says, "You will hear many different opinions on this. I personally have worked with small mom-and-pop companies to corporations. The Scaling Up methodology is best suited to large companies with an executive team because that is generally the group of people we work with the most."
"Having said that, however, I've had clients that have been under 5 million that have rolled out the program very successfully. My personal experience is that it's equally adaptable across all types of business."
How important was the previous business role the coach had?
Coaches have a variety of business backgrounds and business skills. One thing you want to look for is if the roles they have held prior to becoming a coach gave them the type of perspective you will need to help you make decisions. Some business owners feel more comfortable with a potential coach who has run their own business.
Peter answered, "The thing with business coaching is that it is an extremely noisy and unregulated market. Anybody can read a book, put a sign on their doors, create a business card, and start trading. These guys promise improvements that are just not sustainable or realistic."
"Having run a business yourself where you risk everything to open the doors every morning is a pretty compelling statement, as is having some corporate experience. It gives you a set of experiences to leverage to add value and improve businesses."
Some business coaches also specialize their coaching services around specific areas like strategic planning, cash flow management, helping you set and execute business goals, or hiring the right people,
Should I be looking for a professional business coach near me? Or is geography a factor in a good business coaching relationship?
Geography used to be very important for the coaching relationship. Many people would choose someone in their geographic area simply because of availability. The widespread adoption and flexibility of platforms like Microsoft Teams and Zoom give CEOs more options.
Since a coach is only a flight away, it's more important to have someone you trust than someone in your area. Many coaches factor travel into their coaching engagements traveling to spend time with their clients in person several times per year.
Peter shared, "If I've got the choice of running a workshop virtually or in a conventional boardroom with whiteboards and flip charts, give me a boardroom any day. I think that human connections are important. You can't get the same intimacy level virtually as you do face to face."
Language is essential. You want a fluent coach in the language you are most comfortable with, and your executive team members use. There are, however, some geographic considerations outside of the virtual vs. in-person decision.
Another geographic factor for many CEOs is understanding the business culture. The business culture of Asia is very different from Europe, which is very different from the United States. Your coach should also be fluent in your area's business culture.
Does it matter if your coach is a solo practitioner or part of a network of business coaches?
The coach's network is also significant. Their network can provide resources and best practices to help you with specific issues. A coach within a network can also make referrals of their own.
Coaches often can tell in the first one or two conversations with a prospective client if they will be able to build that level of trust or serve a CEO appropriately. When they have a strong network and sense that it may not be the right match, they will refer the CEO to another coach in their network who might be a better fit.
The network of coaches inside Scaling Up Coaches was one of the draws to choosing to become a Scaling Up coach for Peter. Joining a network of coaches was a big plus. Peter says, "There are 14 Scaling Up Coaches in Australia and New Zealand. I know them all very well. And suppose a prospective client approaches me and someone else in the network has a particular stronger industry experience. In that case, I will refer it over to that coach. We're a collegial, supportive group. We get on very well. Ultimately, we're all competitors, but that commitment to finding the best possible result for the client has got to go beyond just the revenue that would come in your door."
How important is the coach's methodology?
Coaches that work with specific methodologies provide additional resources and proven strategies that other successful business owners have used.
A methodology is generally a framework to help you create a roadmap to success, manage your strategic planning and make business decisions.
When a coach works with a specific methodology vs. a fully bespoke coach offer, you can often find other practitioners of that methodology in your peers for additional advice or knowledge.
How you feel about the methodology can help determine if the coaching offering will support your long-term vision and help take your business to the next level. A clear understanding of the methodology will help you get a better feel for the services you will get from a potential coach.
If you are unsure if the methodology is correct for you, many resources are usually available to explain the specifics in further detail. You can look for books, online courses, or other entrepreneurs to help you evaluate the methodology.
Peter explained that the methodology helped him make his final selection when choosing a business coach.
"What grabbed me was the fact that the platform was so simple—focusing on People, Strategy, Execution, and Cash. The tools for these in Scaling Up were very easy to use and embed within the organization. Because we were a retail business broadly, many of the staff were Gen Z in their early 20s. They have a fairly complex set of values before they buy into anything. They found it simple as well. We got their buy-in and support easily because of the simplicity. They could see the positive impact and results we were getting from using the Scaling Up methodology."
How important is it for your business coach to be certified or have years of business coaching experience?
With so many people jumping into the coaching game, years of experience or certification can be an excellent benchmark to understand if someone can help you.
Suppose they have been a business coach for many years with numerous clients or have undergone a rigorous certification process. In that case, you know that they have good knowledge and expertise. Working with them is less risky than someone with no track record.
Peter shared, "It's a compelling statement to say to a client. 'Here is a platform that 70,000 organizations globally have successfully implemented. And business coaches using this methodology have to go through a certification process. "
"Not only that, it's a rigorous process that not everybody completes. Not everybody has cut it. It is an enormous amount of work. I think that's a good thing because it's not just like reading a book and thinking I can do this and certifying yourself."
"I'm also certified by the International Coaches Federation. They have fairly stringent criteria for certification as well. But as soon as you mention that you are a Certified Scaling Up Coach, the conversations get much easier because prospective clients know you have undergone a detailed certification process."
Peter shared that even corporate experience and being a successful entrepreneur isn't enough alone to know you will be a good business coach. "I'd gone from being a telecommunications entrepreneur for nearly nine years to being a business coach."
"I also had strong experience with global organizations and working with iconic brands like Goodyear, Apple, and Samsung. But that didn't qualify me to be a business coach. I accepted that there was a study work that I had to do to become qualified."
What red flags do you look for when deciding on a business coach?
One red flag is if a coach lacks references or testimonials to provide you.
Do they have proof of their own and their clients' results? You can look for these on the coach's website or LinkedIn profile.
Peter says another flag you can look for is if they have professional indemnity insurance. "I want to be certain they had the required professional indemnity insurance. So if something goes pear-shaped in the business from what they recommended, and it's a total disaster, this coach has insurance coverage that will mitigate any damage to my business."
So what are some personal criteria that might affect the business coaching relationship?
One of the ways to know if a relationship is right for you is if you find the coach to be calm.
Peter shared, "Clients usually investigate a coach at the bottom end when the business is in real trouble. Or at the top end, when their results have plateaued. You won't find many clients coming to you when their business is flying and doing well. It's essential from a coach's point of view. to exude calm. Because from the client's point of view, the bankruptcy court may be the next step if this doesn't work."
Peter says, "If the guy wasn't listening to me, and just wanted to tell me what a good guy he is, or is always saying what a great coach he is or what he is going to do. That would be a red flag. And I would want to see that this guy is genuinely interested in my needs and that he is calm and measured and knows his stuff."
Accountability should also be on your radar when deciding which coach is right for you. A coach should be able to outline the business coaching services they offer and the deliverables you can expect. They should ask, "Do I have your permission to hold your team accountable for completing these tasks or activities?"
Peter explains, "I expect clients to hold me accountable. I fully expect that the people that I'm working with hold me as accountable as I'm holding them. It's truly reciprocal."
A coach must also have enough presence to command your team's attention and hold their interest. They must gain respect and be engaging enough to facilitate challenging conversations.
How do I choose the right business coach?
You can use these criteria to help you with hiring a business coach. Or you can connect with an organization that will do this service for you.
Scaling Up Coaches offers a coach-matching concierge service. Over the years of seeing how complex this process was for CEOs, the Scaling Up Coaches team decided to create a better experience for entrepreneurs.
The Scaling Up Coaches community designed a profile that is provided to each prospective client to complete. The Scaling Up Coaches team also keeps accompanying updated profiles on all certified coaches and works with them on projects and continuing education throughout the year.
After completing your profile, you set up a time for a short conversation with a team member who will learn a little more about your business coaching services needs and style. Since the team member regularly interacts with the entire network of coaches, they can match you to a coach who is most likely to be a good fit.
You will be introduced to your matched coach, after which you will have the opportunity to interview them and learn more about their background, expertise, and personality to ensure you feel comfortable.
If you feel that the match is not quite right, you simply reach out to the Scaling Up Coaches team to refine your likes or dislikes, and they will match you with another option.
There is no obligation to hire a coach when using the free consultation for the coach-matching process. Still, most people who go through the process start a coaching engagement because they have found the right business coach, someone they feel meets their needs.
