Three Ingredients You Need to Run a Successful Business: Phase 3
Tax accountant and business advisor, Stephanie Mellick, shows you how to navigate the three key stages of a new business start-up to maximise your chances of success.
Starting a business is an incredible journey, but it’s not one for the faint hearted. As an accountantant and business coach for over 11 years, I know what it takes for a SME to succeed in a sea of competitors. The best piece of advice I can give? Proper planning. .
The well-managed businesses with hefty profits go through three key phases of business development – evaluation, establishment and growth – with their eyes wide open. In part three of this series we take a deep dive into business coaching.
Phase 3: Using a business coach
Mary Kay Ash of Mary Kay Cosmetics famously stated: ‘Ideas are a dime a dozen. People who implement them are priceless.’ This is where a business coach can be invaluable.
The fastest way to learn is to study a successful person who has walked the path you want to walk.
According to Forbes magazine article entitled ‘The Success and Failure of the Coaching Industry’, coaching is estimated to be a $2 billion global industry that is rapidly growing. Having said that, not all coaches are made equal.
Here’s what to look for in a great business coach:
1. Experience: Just like any relationship, before you sign up with prospective coach, do your due diligence. They do not have to have established the type of business you are pursuing, but they should have a track record of success personally and with their clients. It’s also okay if that person has also shared in failure; it’s the greatest learning curve out there. Try to talk to their previous and current clients for feedback.
2. They help you take action, rather than mentor: A mentor is defined as a ‘wise and trusted counsellor or teacher.’ A coach walks with you along the journey, while a mentor has already walked the journey you are embarking on. A mentor can share their stories, wisdom and insight and ask as a sounding board; a business coach is there to ask you the tough questions about your business and lend a helping hand.
3. Good communication skills: An astute business coach will know the questions to ask to prompt the owner to think futuristically.
4. They know numbers: Regardless of turnover levels, it is essential that someone is always keeping an ‘eye on the numbers’. All businesses must deal with uncontrollable variables but a business coach will help you prepare for the future. In an established business, they can assist in recommending systems and policies to protect your SME. While growing or exploring new ventures, they help ensure any changes planned are the best ones available.
5. Reporting is their bread and butter: Often, a business’ monthly reporting is produced but the management team don’t read them. Reports can be difficult to understand, out of date or simply don’t address the needs of those reading them. However, reports are vital and business coaches should be there to help you act. Someone needs to keep a constant watch for issues arising from the company’s regular financial numbers and be pulling and pushing the appropriate levers of the business to ensure growth and success.
6. They have sector-specific know-how: There’s a lot to be said for having a coach who knows your industry back-to-front. Look for someone who has the expertise, and who is actively thinking about effective outcomes and moves that will be advantageous in the current industry landscape. This can also help you minimise risk and plan effectively.
Business evaluation, establishment and running can be hard – really hard. But it’s usually worth it, especially if you have the right financial advisors with you on the journey.