Coaching: National Trend for Business Profitability

A recent study done by a practice development research company found that the average business can increase its profit margin by an average of 46% by using a business coach. This is especially critical during a recession. Working with a business coach can make the difference between a business that struggles and a business that thrives.

Small- to mid-sized companies play a vital role in the economy especially in our current recession. They provide about 75 percent of the net new jobs added to the economy each year. If you are a business owner it is important to keep your business growing and your cash flowing. Today, coaching is critical to success and profit.

More and more, small businesses and entrepreneurs are using coaches. Four years ago, less than 5% of small business owners invested in coaches. Now up to 20% of American small business owners and entrepreneurs are reaping the measurable benefits from business coaches.

But, business coaching and training are not just for small businesses. Today, many organizations expect their senior leaders and middle managers to coach their team members toward higher levels of performance, increased job satisfaction, personal growth, and career development. Those that do, back up their expectations with training in coaching skills and access to feedback tools. What these statistics suggest is that an effective business coach can deliver at least $2 for every one dollar invested. This investment is quickly recovered due to the immediate increase in individual performance.

It’s no wonder so many business owners get overwhelmed when trying to direct their operations. Take a look at some of today’s business climate statistics – running a business is no easy feat! Two (2) million businesses are started each year in this country; 80 percent of them will never make their 5th anniversary; 50 percent of the remaining 20 percent will never make their 10th anniversary; and 86 percent of most businesses today are operating below their potential in sales and profitability.

Using a business coach allows growth and improved profits; less money on marketing; less time at work; smoother running and efficient operations; better trained sales staff with better tools for them to use; current customers who buy more often; a dramatic rise in the average value of each sale; better trained and motivated employees; and a reliable strategic plan that is understandable and easy to implement.

Here are just a few quick results from coaching.

*A client gained access to information about a major contract that would allow the business to double in size. This client did not even think about going after this business prior to coaching but was talking with the CEO about moving his business to him within a few days after a coaching session.

*A talented and gifted writer who had wanted to write a book for over 10 years had a writing schedule and an outline of the chapters of his new book within one week.

*An executive had 10 high-level meetings scheduled with people never thought possible within 30 days.

*A professional, not happy with his current circumstances, developed an operational plan to begin his own business including no-cost marketing, a way to easily attract clients, and a roster of clients before opening his doors. Now his days begin with excitement instead of dread.

*A professional changed how marketing was done and went from generating $50,000 to now being on target for over $100,000.

These are just a few of the results of how quickly and how dramatically changes can occur.

Unfortunately, many business professionals including attorneys, accountants, psychologists, and many others, sometimes don’t know how or feel uncomfortable in allowing people to know about their businesses and how they can really help the people they are intent to help. These professionals work long, hard hours and with little change in their financial situations year after year. After coaching, these professionals are able to market to their audiences easily without any queasy feelings and can double or triple their incomes.

In essence, business coaching is on the rise because it produces fast results for clients. As a major trend in the world, maybe you should consider what coaching could you for you and your business.