Everyone needs advice now and then. Business owners are no exception- according to the Bureau of Labor in 2020, two out of ten new businesses fail in the first year of operations. This rate only increases year after year. Only about two thirds of businesses survive the second year and by the tenth? Seventy percent of new businesses fail.
As an entrepreneur, these statistics taken alone are scary. More than just scary, this failure rate can be incredibly discouraging. So, it’s important to look beyond the plain figures and analyze the reasons why. According to a report by CBInsights that looked at startup failure postmortems, 38% struggled with cash flow. 19% used a flawed business model. 15% had issues with pricing and cost. All of these problems could be linked back to an entrepreneur’s inexperience. An easy solution? Find someone with experience to be your mentor.
This is where business coaches come in. Typically, they are entrepreneurs themselves who already know what it takes for a business to be successful. Similar to every other kind of coach, their personal experience in the field paired with official certification qualifies them to give advice to people just starting out on their own entrepreneurial journey.
In the words of Eric Schmidt, the chairman and CEO of Google, “In the business context, a coach is not a repetitious coach. A coach is somebody who looks at something with another set of eyes, describes it to you in words, and discusses how to approach the problem.” He himself learned the benefits of hiring a coach despite already being a CEO of a major corporation at the time. This is because successful people recognize the benefits of coaching and use it.
His coach provided a fresh perspective and creative solutions to help him continue to be successful in his professional life. The focus of their mentor-mentee relationship became finding proven systems and practical solutions that Schmidt could actively implement to overcome obstacles in his daily life.
This is the key distinction between a business coach and a therapist. Coaching is primarily focused on helping you work towards the future. This means looking ahead and setting clear goals to progress your business. Your business coach, like any other coach, might briefly discuss your feelings, motivations, or mindset. There is absolutely nothing wrong with that, but these topics should not be the crux of your sessions. That is not to dismiss the importance of knowing your motivations or the power of the right mindset. The value in understanding these things is undeniable, but if you want to focus on discussing your feelings, hire a therapist too.
The truth is that entrepreneurs are twice as likely to suffer from depression, according to a study conducted by Michael Freeman at UC Berkeley. Starting something so high risk by yourself can get very lonely very quickly. So of course, it makes sense that people would want to discuss these feelings with someone they believe would understand such as their business coach. This is not their purpose though.
Just like you should not expect a coworker to help you work through such serious issues, you should not expect this of your business coach either. They are simply not qualified. What are they qualified for? Taking a long, hard look at your business model and profit margins to help your new business be part of the thirty percent that make it past the ten year mark.
If starting to look for a business coach feels daunting, look no further than right here at ideamix. Our idealab workshops offer private programs with experienced coaches who can help you get your business to where you want it to be. Be proactive and look into it today.
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