Free Business Coaching Advice

What is Coaching

Business Coaching is a fairly new profession that has started to entrench itself in the business sector. Its origins of course come from the sporting arena where coaches have for centuries helped athletes achieve their goals.

Coaching is a slightly different concept to consulting. But in a nutshell, consulting implies that you identify a problem that a client has and you propose a solution. Coaching is more about the facilitation of a process so that the client can self help.

The analogy to sport is a good one and also helps us to understand the difference between consulting and coaching.

Imagine a tennis coach for instance. The coach talks to the athlete, shows the athlete where their skill levels are inadequate and then sets over a period of time a plan for the athlete to improve. The plan would enable the athlete to think for him or herself in pressure situations and determine the correct shot to play. This is called coaching.

If the coach on the other hand instructed the athlete to play a particular shot (rather than having the athlete decide on the best shot) or took the tennis racket and played a few sets for the athlete then this would be an extreme version of consulting.

Business Coaching therefore is about collaboratively seeking a solution and formulating an action plan. It looks probably at a more broader perspective and helps in the development of a process for that business to proceed. Whereas consulting is more defined around problem solving and the suggestion of specific solutions.

So what does this mean?

We should not concern ourselves with trying to define a label as to whether we are performing mentoring, consulting, coaching or facilitation. Our prime goal should be to make the client money.

In reality, the more business and consulting experience you have then the more that you will interplay multiple disciplines in the one assignment. You will both coach and at the same time steer your client toward a solution that from your experience you know is the best option. You may mentor and train.

Our philosophy at MAUS is to ignore the constraints of definitions and concentrate on the one thing that you were employed for....to make your client money. And I don't think that either you or your client will care whether this is done through coaching, consulting, mentoring or training. At the end of the day it is what makes you and your client comfortable.

Coaching, consulting and profitability?

Some people see themselves as a consultant, others as a coach. There are definitions that separate the two.

Consultants generally deal with identifying problems and then proposing solutions that they actually implement. A coach helps the client find the solutions to the problem themselves by adopting a methodology of questions and in depth exploration that leads to the solution.

In our videos we are concerned more with you making a profit and you helping your clients to make a profit. Clients do not hire a coach, a consultant or a mentor. They hire someone to help them improve their business. They hire someone that btthey feel comfortable with. And in fact many coaches and consultants will often consult and coach in the same assignment.

If we forget about definitions for the moment and look at the processes and profitability, we believe that by adopting a coaching framework you could most likely build a more profitable practice.

Let me explain. As a consultancy, you need to first find a client that understands that they have a problem. They then need to perceive you as an expert and they need to beleive that you can solve their problem. This limits your market size and then when you win the assignment your revenue is limited to solving the problem.

Coaching on the other hand broadens your entire market and offers you a different framework to market your services. In coaching your marketing communication is all about..."Have you achieved what you wanted to achieve in the last year" ... and when the answer inevitably comes back as NO, then your response is " I can help by keeping you focussed on your goals and actions. I can help by offering you simple proceeses to ensure that you achieve these goals and I can be there as a confidant, advisor and sometimes as a mentor to help you to succeed."

Your methodology then revolves around diagnostics, goal setting and action planning. And from a billing perspective you bill on a monthly regular basis. You provide regular management guidance that covers broader issues and problem solves along the way.

Why Exit Strategy?

Consider this: seventeen per cent of small business owners are planning to leave their business in the next two years and 40 per cent are aiming to leave in five years. Whether you live in Australia, USA, Canada, USA, NZ, the UK or South Africa the research is the same. There are a massive amount of Business Owners that will be looking to retire over the coming years.

Thirty per cent of small business owners in Australia are now over 50 years of age and this rate is increasing each year. In Canada it is estimated that within the next 15 years, more than half of the country’s current small business owners are expected to retire. In the US in 2001, 77 million Americans were 50 and older (comprising 28% of the population). By 2020 that segment will be 36% of the population.

There is no doubt that, as the baby boomers near retirement and the average age of small business owners increases, the age-old laws of supply and demand will come into play. In such a crowded marketplace business owners will need to present their business in an appealing, professional manner to stand out from the competition and achieve the maximum return.

Sixty six per cent of owners, in this country, plan to use their business as their primary source of retirement income; forty three per cent aim to realise a lump sum benefit from the business; and 31 per cent expect an income stream.

For these people selling the business in order to retire, it is of paramount importance that the sale price will allow them to retire comfortably and not compromise their quality of life.

Research shows 70 per cent of businesses think succession and exit strategy planning is important but only 12 per cent have a documented plan. Unsurprisingly, the main motivating factor for the creation of a plan is age.

A major impediment to succession planning is that most entrepreneurs don’t understand the drivers that underpin the creation of an exit strategy. Selling a business is a marketing exercise that requires planning, preparation and a compelling pitch. An exit strategy needs to be achievable and have a realistic timeframe and measurable milestones.

The MAUS Accredited Partner Program unveils the key issues that need to be addressed in an exit plan, encompassing all the unique features of your client's business, life situation and price expectations.

How do I add coaching to my existing consultancy business?

Coaching is a slightly different concept to consulting. We explain this in further detail later in this page. But in a nutshell, consulting implies that you identify a problem that a client has and you propose a solution. Coaching is more about the facilitation of a process so that the client can self help.

In reality, the more business and consulting experience you have then the more that you will interplay both disciplines in the one assignment. You will both coach and at the same time steer your client toward a solution that from your experience you know is the best option.

Our philosophy at MAUS is to ignore the constraints of definitions and concentrate on the one thing that you were employed for....to make your client money. And I don't think that either you or your client will care whether this is done through coaching, consulting, mentoring or training. At the end of the day it is what makes you and your client comfortable.

The important part about coaching is that it can increase dramatically the profitability of your business. Let me explain. As a consultancy, you need to first find a pliable client and then find someone with a problem that falls within your expertise. This limits your market size and then when you win the assignment your revenue is limited to solving the problem.

Coaching on the other hand broadens your entire market and offers you a different framework to market your services. In coaching your marketing communication is all about..."Have you achieved what you wanted to achieve, I can help by acting as a coach". Your methodology then revolves around diagnostics, goal setting and action planning. And from a billing perspective you bill on a monthly regular basis. You provide regular management guidance that covers broader issues and problem solves along the way.

So there are two major things you will need to do if you are to transform your business. You will need to improve your understanding of the coaching process, you will need to study and understand the marketing process (how to win clients) and how you gear your company towards this opportunity and you will need to implement a set of systems and processes to transform your business.

Fortunately we have done most of the hard work for you. I would suggest you contact us and set up a free coaching session. We will examine your skills, give you some free advice and point you in the right direction. Click here for a complimentary coaching session.

I am an accountant, how do I add coaching to my existing business?

For years accountants have been trying to diversify their business away from just compliance work. In fact business coaching can be highly rewarding and highly profitable.

We have recently talked with 5 practices (2-5 partners) that have all decided that they want to get into the area of "management guidance and advice".

The biggest barriers stopping any accountancy firm from moving into this area is confidence, processes and the gearing of the business.

Out of the five practices that we recently held talks with, all had geared their business so that one of the partners had more time available to expand the practice in a new area. But each was holding back because the partner was not feeling confident enough to dive into the area of business coaching. This lack of confidence was also highlighted because of the lack of business coaching processes.

MAUS is not an accountancy business and does not have any qualified accountants that works as advisors. We understand business coaching, we understand the processes and systems to make coaching work.

Over the years through the experience of Peter Hickey, who successfully authored and launched products that have been sold to thousands of accountants (including MAUS Profit Builder, The Consultants Guide to Business Planning and MAUS KPI Manager) Peter has a unique understanding of the barriers that confront an accounting practice in this transitional period.

If you are serious about adding a business coaching business to your practice we can provide you with some free advice that may make your starting point much easier. Click here for a complimentary coaching session. There is no obligation.

I am part of a network- what can I do?

We would like to see all coaches and consultants running a profitable practice. Our processes and methodologies may help and may add in nicely to the existing processes that are available through your network.

We do not see ourselves as competitive to any other network or franchise. In fact we are open to supplying our products and even mentoring processes to these networks at discount prices. Why not give us a call and we can discuss further.

We are in the process of negotiating with some international partners about licensing our material for worldwide distribution. Call our head office for partnering opportunities.

How do I win new clients ?

Can you win clients without cold calling? Is there a way to effectively get clients to come to you?

Winning new business is getting harder and harder! The question you might ask...is it possible to win new clients without cold calling?

Yes, absolutely. This is what we concentrate on when a new coach joins our network. There are two areas, one is your positioning and the second is your technique.

Winning new clients can be one of the most frustrating, time consuming and expensive elements of your business…..…and it is one that is often done very poorly.

Without leads and an effective sales conversion system..…it doesn’t matter how good your internal systems, your personnel and your product is…….your business will simply fail.

What is education based relationship marketing?

Education based relationship marketing is based on the idea of adding value to your prospects.

This is achieved by providing prospects with valuable ideas and helpful information on topics that are most important to them.

The goals are to build trust and establish a dialog that is not just centred around a sales pitch. The more you don’t sell “openly” the more your potential prospects start to trust and want to establish a relationship with your firm.

You do however in the presentation of your information position yourself as an expert. You do this by including references to your stature and standing, past client or years experience in the field you have chosen to supply information.

But the education can’t just be a one off…….you must set up a communication plan that keeps you in front of your prospect. This over a period of time convinces your customers that you are the type of firm that they would want to deal with.

Building Trust

By acting as an authority in a niche area you gradually start to build trust with your prospect. By producing “solution based” educational material you are even able to solicit leads. The goal of this type of marketing is to produce information which you offer in magazines, seminars and PR programs. You offer this information and in return you receive the contact details of your prospects.

But that is where it starts. You have the warm leads but you still have to convert them to a converted sale. This is where you need to build your communication program and keep offering value. The basis of the communication plan is to continue to refine the prospect down into “problem areas” and to match these “problem areas” with products or services your practice offers. You need to establish good “teaser” information. For example, “7 things to know before buying a car”,“10 things not to do when building a house.” In diagram 1 we simplify this process into 6 separate steps that could form the basis of your communication plan. In diagram 2 we explore in more detail each step and we indicate some of the details that you need to address.

How do you develop an educational message?

The first step should be to decide who your prospects are. This comes back to your original marketing plan and financial modeling. Those with established businesses will have a good understanding of who their prospects are, those that are starting a business should think long and hard at the outset of who they are trying to attract.

Try not to attract people that you can’t convert to a profitable assignment. Think about your end goal, your billing rates and the number of clients you need.

Then you need to get inside the mind of your prospect. Work out every step of their day to day routine keeping in mind the product or service that you offer that might be “the solution”.

You need to then develop material that contains a “step by step” guide.

How do you get the message out?

In years past and when I established my consultancy in 1990 we were constrained by seminars, mainstream advertising and expensive mail shots. These days our education material can be broadcast at a very low cost via the internet and through webinars.(Web seminars). We can use email or fax. Of course traditional channels such as coupon advertising, leaving material with your channel is all very effective provided it can be cost justified.

How to implement this process in your business!

Space was of a premium so we have had to limit this article but if you would like examples of actual lead generation programs that were developed for business consultants, management consultants and business coaches then go to our website at www.corprat.com. We are also conducting free seminars on “How to win clients” across the country where we discuss a “step by step” system that you can implement on a shoestring budget.

What to remember from this article!

1. You need to exchange the information for your prospects details. The point is to get your prospects details so you can establish trust

2. Create good “teaser” information to encourage prospects to leave their contact details.

3. DON’T GIVE A SALES PITCH!

..................About Author

Peter Hickeyis a bestselling author and designer of a number of multi award winning business tools that are now being used by more than 60,000 companies around the world.

Peter is an international consultant and trainer who has worked or consulted for large public companies on three continents. Peter Hickey has lectured in tertiary institutions, conducted training programs for small and large businesses and held a variety of senior management positions.

Winner of the Ernst & Young NSW “Entrepreneur of the Year” award in 1999.

Founder of a software company that was listed as one of BRW’s fastest growing 100 private companies in 2000. Peter successfully built the company from a one man business to a multi-million dollar concern. The company was acquired 10 years after its inception by a multi billion dollar publisher. Peter Hickey is now the CEO of Corprat Pty Ltd, specialists in marketing, lead generation and business development.

The website of MAUS can be found at www.maus.com