Vince Lombardi and Phil Jackson are proof that good coaching can lead a sports team to success. Some business experts argue that the same holds true for entrepreneurs.
Business coaching involves taking a hard look at the strengths and weaknesses of a business and its owner in search of ways to improve both, explained Doug Dowd, owner of a Growth Coach franchise in Chadds Ford, Pa.
Most entrepreneurs break out on their own because they have a real passion for something, like cooking or flower arranging, he said, but many don’t know the first thing about running a business. A coach comes in to help an entrepreneur set goals, plan for the future and make hard decisions to make the business run more efficiently, he said.
“A lot of times, business owners don’t know who to ask or how to change,” he said. “A business coach gets a business owner to face reality.”
The idea has been steadily increasing in popularity since the mid-1990s, but the recent economic meltdown has convinced even more business owners to give it a try, said Barbara Necar, associate state director of the nonprofit Small Business Development Center, at the University of Delaware.
Most business owners recognize that they should be planning more, but few ever really do it, she said, especially when they are struggling to stay afloat as it is.
“They need to look at strategy instead of what broke today,” she said.
Coaches at the center use analytical tools to show entrepreneurs where they can make changes to cut significant costs or improve cash flow, she said.
Many entrepreneurs become so involved in their businesses, they find it impossible to step back and look at the big picture, she said, and that’s where a coach can be most helpful. By studying the whole business, a coach can identify problems an overworked entrepreneur might have missed, she said.
But that doesn’t mean they always listen to the coach, said Doug Roof, owner of business coaching franchises of The Alternative Board in New Castle and Kent counties. The coaching system works best when the coach guides the entrepreneur to the ideas, but lets him discover them for himself, said Roof, and that involves asking a lot of questions.
Business owners can also be hostile to the accountability a coach brings, he said, but it is vital.
Entrepreneurs are seated atop their organizational pyramids and there is no one to hold them accountable when they fail to complete a goal, said Roof. A coach makes sure owners stick to their plan and timeline, he said.
But there is a third element of business coaching that is especially important during a depressing economic downturn.
“The coach is a bit of a cheerleader without wearing the skirt and doing the pom-pom thing,” said Roof.
Many business owners who seek coaching at the Small Business Development Center are desperate for help, Necar said, and focusing on the positive is a big part of the job. However, sometimes it is too late to coach a business out of trouble and meetings turn to talk of last-ditch refinances or liquidation, she said.
But there are opportunities in every economy, she said, even one spiraling toward rock bottom. A coach brings objectivity and experience that can help entrepreneurs find a break.
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Business coaching at many for-profit companies starts at about $300 for a few one-hour meetings to $1,000 for more intensive one-on-one work. The Small Business Development Center, with offices in Newark, Wilmington, Dover and Georgetown is free. For more information, visit www.delawaresbdc.org or call (302) 831-1555.
