Difference Between Business Consulting & Business Coaching: Which One Do You Need?

Introduction

Ah, again, there comes a question: “Do I need a business consultant or a business coach?” The catch is that it is like deciding between a GPS and a map- the GPS tells you where to go, while the map helps you figure out how to get there.

Both sound useful, but which one will make your business profitable?

We are sure the next question coming to your mind is, "Wait, aren’t they the same?" Don’t worry- you’re not alone. Internet searches might confuse you, too, but here’s the thing: A business consultant fixes your business problems. A business coach fixes YOU.

Consultants get inside the data, and coaches dig into your mindset. One is for strategy, and the other is for growth.

Got it? Or is this getting complicated already? If it is, we are still here!

Let’s break it down and add a bit of a twist (something those other forget)—here, maybe the real question is not who you should hire but when and why.

Curious? Keep reading, and let’s resolve this mess of difference between business consultant & business coach!

What’s the Difference Between Business Consulting & Business Coaching?

Although business coaching and consulting may seem similar, they have huge differences that can impact your business's outcomes. So, let us understand these differences!

To put a bow on it: Coaching is “done with you”, and consulting is “done for you”. Simple enough?

1) Business Consulting

Consulting is all about giving expert advice and requires a strong knowledge of the subject.

Business consulting is a practice that offers independent and expert advice and support to businesses/organisations to improve their performance and efficiency.

It aims to develop, refine, and coordinate strategy, transformation, and tactics to support a client's business direction, positively affect business performance, and improve an operating result.

Business consultants are experts in specific subject matter and offer technical and professional advice to clients. Either way, consulting mainly involves helping leaders solve business challenges and problems.

Consultants then understand the situation and devise the best cost-benefit course of action for your business.

2) Business Coaching

Coaching revolves around helping you grow personally and professionally.

Business coaching means “partnering with clients in a thought-provoking and creative process that encourages them to maximise their personal and professional potential.”

Business coaches can also be known as mentors because they support, educate, and motivate you. An effective business coach will also advise you on implementing and prioritising strategies.

Practically, coaching is good for business owners who love doing everything themselves but need advice about direction.

Benefits of Hiring a Business Consultant

You ask, "Aren’t we all brilliant on our own?" Well, as much as we'd like to believe we know everything, there is always somebody out there with excellent expertise and knowledge who can work wonders.

1) An expert on demand

The business consultants will enter your business packed with specialised knowledge that can handle your unique challenges.

Think of them as the wise & brilliant characters of the business world- ready to take up solutions you might not even know you needed.

2) Fresh perspectives on the table

Don't lie. We all have been there, so close to the problem that we couldn’t see the forest for the trees.

That’s where consultants come in with an objective & fresh viewpoint, free from the emotional baggage that often clouds our judgment.

Imagine having a friend who tells you when spinach is stuck in your teeth in the first place. It might be uncomfortable to address that, but then, looking back at it, you realise it was really helpful!

3) Cost savings

Let us talk money. Thinking how? Here you go - Hiring a consultant can actually save you some good cash in the long run.

You only pay for their services when needed- there are no heavy salaries or benefits to worry about. This means less mess and more fineness.

4) Time management skills at its best

Not only in business but everywhere, time is money, and consultants are big time-savers.

They know best practices and can quickly identify inefficiencies in your processes.

It’s like having a personal observer for your business operations, helping you get fit without all the sweat and blood.

5) Solutions made for YOU

One size fits all? Not in consulting!

Consultants consider everything, and then they take the time to understand your specific needs and develop customised strategies just for you.

6) Excellent networking opportunities

Consultants often come with an extensive network of contacts. Whatever problem you face in your business, they will sort it out by dialing that one number.

On the other hand, they will also reach out to potential clients that benefit your business.

Benefits of Hiring a Business Coach

Let’s get inside the benefits of hiring a business coach,

1) Coaches come with clarity and focus

One of the primary benefits of hiring a business coach is gaining clarity.

Many entrepreneurs know how to do business and how to enter the market, but they get stuck in daily tasks and sometimes do not even have clarity in vision, losing sight of their long-term goals.

Find the right business coach to articulate your vision and set clear objectives.

Ask yourself: What do I truly want to achieve? A coach will guide you in answering that question, ensuring your efforts align with your aspirations.

2) Improved self-awareness

Coaching helps you become more self-aware by taking you towards the journey of introspection and reflection.

Utilising the conversations and feedback, coaches will help you see what you cannot see, understand your motivations, and identify mindset blocks that may be holding you back.

This increased self-awareness will then let you make better decisions and take actions that match your goals.

3) They have a great accountability

Let’s face it: Self-discipline can be a challenge & it asks for a solid consistency.

A business coach will offer the accountability many entrepreneurs don't know they need. They help you set deadlines and push you to hold them.

Now think this way: How often do you let your own goals slide? But with a coach, those days are over.

4) Helps in skill development

The job of a business coach is not only to point out what is wrong, but at the same time, they can also help you develop the skills that are needed for improvement.

A business coach will increase the level of growth in areas such as leadership qualities, communication, and strategic planning.

5) Offers emotional support and resilience

Entrepreneurs out there can strongly agree that entrepreneurship can be isolating and stressful.

A business coach provides emotional support during hard times, helping you build resilience against setbacks.

They encourage a mindset shift from looking at failures as roadblocks to seeing them as opportunities for growth.

Factors to Consider When Hiring a Business Coach

A business coach is someone who encourages their client to develop themselves and find their own answers. In other words, a coach teaches you to fish instead of giving you the fish.

Google the term “business coach,” and you’ll find about 896,000,000 results.

This clearly means that there is no shortage of business coaches offering to help you build a successful business, reach six figures and even seven figures, or grow a team! Oh, but wait.

Someone claiming to have made six figures doesn’t make it true and doesn’t tell the whole story.

A person can invoice 100K but only personally make 50K after expenses. Is that who you want to be learning from and guided by? Or would you instead learn from the person who invoices 250K, netted 100K, and only worked 30 hours a week?

Just give it a thought before saying yes!!

1) Make sure there is chemistry

Here is the thing: When you are hiring a business coach, you need to hire someone with whom you are comfortable talking about uncomfortable things in your business you might not share with anybody else.

The reason? When you share your fears and concerns, both of you can openly work it out without any errors in communication and discussions.

2) Look for the best expertise in town

How can you ensure that the coach you have hired is best for you? You can ask questions, crawl through their website, search them out on Google, and check their social media handles, too.

This way, you can confirm that they walk their talk and that their experience sets well with your business and goals.

3) Ask for testimonials

Because testimonials reflect experiences and a coach's past performance and effectiveness.

So straight up, ask for the testimonials and do your due diligence.

A coach should be happy to provide references because you’re also demonstrating how seriously you take the relationship.

4) Look for a coach interested in you and what you’re doing

While you can pay for advice and invest thousands in business coaching, it is as simple as that: you can’t buy interest. Ideally, you must work with a coach who cares about you and what you want to achieve.

5) Look for someone who is okay with sharing failures

Failures offer the greatest opportunities for learning and growth, and you want to work with a business coach who is willing to share their failures and what they learned openly.

6) Look for a complementary skill set

If you have a weakness in a specific area, seek out a coach whose strengths are in that area so they can guide you through the challenges with experience.

7) Ask for a single session

Understand that this is not a free session, you are hiring them for a single coaching session. Come to the session with a specific challenge and test the waters before diving in.

This will give you an opportunity to sample their coaching style and see if it’s a fit.

Factors to Consider When Hiring a Business Consultant

When hiring a business consultant, it becomes important to understand their valuable role in your business’s success.

Let us understand the factors that you need to keep in mind while hiring a business consultant;

1) Analyse what you need

This is very important! Do not go on a hunt for a consultant; first, take a moment to reflect on what you actually need. Are you facing operational challenges, or do you need help with marketing strategies? Knowing your requirements is essential because it helps narrow down your options.

2) Prioritise relevant experience

Experience matters, especially when we are talking about consultancy.

You want someone who has been around for a while and knows the ins and outs of your industry.

Choose the right business consultancy services & consultant with an excellent track record in your field who can offer insights that someone fresh off the boat simply can’t provide.

3) Assess their approach

Every consultant has their own style and approach. Let us see how!

Some consultants may focus on solid strategies, while others might rely on creative brainstorming sessions.

It’s essential to find someone whose methods align with your company culture. Would you prefer a consultant who gets deep into analytics or one who engages in collaboration and team workshops?

4) Look for the reviews

The power of a good reference is impeccable.

Speaking to previous clients can give you a clearer picture of what to expect. Did they deliver on their promises? Were they easy to work with? Trust us, it's always helpful!

5) Assess their communication skills

A consultant’s ability to communicate effectively is very important. 86% of employees blame the lack of effective collaboration and communication as the leading cause of errors in the workplace.

They should be able to explain complicated ideas most simply and keep everyone on the same page.

How will your team understand their strategies if they can’t understand their thoughts clearly? Frustrating, right?

6) The comparison - Cost vs value

While budget is always a consideration, remember that the cheapest option is not always the best one.

Prioritize the potential value against the cost of hiring a consultant.

Will they save you money in the long run by upgrading efficiency or avoiding costly mistakes?

Situations Where Business Consulting May be Best

Situation 1 - Looking for a mergers (acquisitions) or market shift

When you are about to face significant changes like mergers or market shifts, these processes are pretty intimidating, and a consultant can help you keep your balance.

Situation 2 - Launching a new product or service

When you are launching a new product or service, it is another prime opportunity for consulting.

Situation 3 - A fresh perspective

When your team is stuck in a mess, a fresh eye can add innovation. A consultant can bring new ideas that reinvigorate your team’s approach.

Situation 4 - Improved operational efficiency

When you want to improve operational efficiency, consultants can identify all the errors and smoothen up the processes.

Situation 5 - Increased growth

Lastly, if you're planning for growth, having a consultant can help create a strategic roadmap made to fit your goals.

Situations Where Business Coaching May be Best

Situation 1 - Growth feels more like stress than a win

If growing your business feels more chaotic than rewarding, a coach can help you structure and scale without any stress.

Situation 2 - When you keep getting ideas but do not hit the mark

Have great ideas but never acted on them? We feel you! A coach keeps you accountable and pushes you to take action that leads to success.

Situation 3 - Work-life balance is unmanageable

Feeling burned out? Do not worry, business coaches can help build systems to free up your time while still generating results.

Situation 4 - Your team is a mess

Managing people shouldn’t feel like a task, and if it does, a coach can sharpen your leadership traits and create better team harmony.

Situation 5 - Vision without execution?

You know where you want to go but not how to get there? A coach will definitely help you turn your visions into doable steps.

Situation 6 - Confidence floating?

Feeling off your game despite pitting all the efforts? Not to worry, as a coach rebuilds confidence and reminds you why you started in the first place.

3 Questions to Decide Whether to Hire a Consultant or Coach

If you’re still deciding whether to hire a consultant or coach, consider the following three questions.

Question 1

Are you looking for someone to do the work for you or teach you how to do it yourself?

Here is the catch: The difference between a consultant and a coach is that WHO does the work. If you’re hiring a consultant, they are doing the work. If you’re hiring a coach, you’re doing the work.

Question 2

Are you willing to give someone else control to make changes?

Here is the catch: If you are, you will be okay working with a consultant. If you aren’t, you may want to consider hiring a business coach more closely.

Question 3

Are you passionate about personal growth as well as business growth? Or do you only care about one versus the other?

Here is the catch: A coach could be best for you if you focus only on personal growth. If you’re focused only on business growth, a consultant or business coach may be best.

What if you Need Both Business Consulting and Coaching?

If you feel that your business needs both consulting and coaching approaches, then combining both can maximise the level of success and outcomes.

Business consulting will come with the approach of satisfying specific strategic solutions. In contrast, business coaching will improve team effectiveness and leadership skills, ensuring strategies are implemented effectively for the best results.

Business Coaching & Consulting - We Offer Both!

We offer a blend of business coaching and consulting that supports you in developing both the mindset and strategy to grow an aligned, progressive business.

Before you leave, learn more about our consulting & coaching program by contacting us, & find our unique, strategic approach to growth that will enable you to find solutions to your challenges and break through into new revenue growth.