Can a Business Coach Help in Business Turnaround?

Can A Business Coach Help In Business Turnaround

When you started your business you most likely imagined it going up, up and then up some more. 

Reality hits at some point (for every business) where business owners find themselves in a challenging situation, struggling to stay afloat. These can be temporary and brief, or feel never-ending. How flexible your business is depends on how well your business structures are.

For me starting out, my business structure was non-existent. Looking back I don’t see how it could have been anything but the disorganised mess that it was. I had no business training and no financial experience. I was in my 20s and had a product I was passionate about: what else could I possibly need 😂. 

If this is you, there’s still time to get in before the collapse. Consider hiring a business coach to help turn things around. They can easily spot the problem points and steer you clear of disaster. If, like me, you left it too late, a good business coach can still help in business turnaround.

Business coaches are professionals who provide guidance to businesses and business owners to help them improve their operations, increase profitability and achieve their goals.

A business coach can help a struggling business in several ways:

  • Provide an objective perspective on the business structure
  • Identify areas that need improvement
  • Help the business owner develop a plan of action to address those issues
  • Assess other risks and how to overcome them before they are a problem

A business coach can also provide support and guidance for implementing a new plan, helping the business stay on track and making necessary adjustments along the way. 

Ideally, a business coach will provide valuable insight and expertise based on their own business experience as well as their coaching work with other businesses, which can be especially helpful for businesses that are struggling with issues that are new or unfamiliar to them – someone somewhere before you has had the same issues and come through.

Where to get Help with Business Turnaround

If your business is not meeting targets or you find your profits sliding backwards there is something wrong within your company. I hear so many business owners blaming external factors, that’s not it. Yes, there are external factors you are going to need to navigate but when you have strong systems and flexibility, you can always push beyond the problem. It’s about being responsive to what’s happening, not reactive. So the current building industry crisis for example, that started way back in 2020 and big building companies assumed things would get better and they could continue as-is until normal business resumed. They have been haemorrhaging money for three years and now the debt is millions. There were warnings and indications that things needed to change, but not everyone headed them. Rather than change, they quit.

When a business is struggling you need to be honest and address it so you can start a turnaround. There is no point limping on in the same direction solo. The faster you get professional help, the quicker you can see better results (and the less damage you’ll do in the interim). 

Turnaround management and crisis management can help businesses navigate financial crises and avoid bankruptcy.

The process involves implementing strategies to improve the financial health of the company to increase profitability and risk assessment to shore up against hardship to ensure long-term success.

Where to start with your business turnaround?

A business recovery plan is often the first step in the turnaround process. This plan outlines the steps that will be taken to restore profitability and stabilise the business. Profitability restoration may involve cost-cutting measures, revenue growth strategies or a combination of both.

To achieve long-term success, businesses can target one specific area or develop a recovery plan that branches across a number of trouble spots including:

  • Business growth
  • Financial management
  • Operational efficiency
  • Business strategy
  • Leadership development
  • Strategic planning
  • Market analysis
  • Risk management

Business transformation and restructuring may also be necessary to ensure the company is on the right track. This can involve redesigning the business model, improving employee productivity, and optimising your return on investment.

How Can a Business Coach Help in Business Turnaround?

A business coach can help your business turnaround by providing guidance and support for better performance, increased profitability and reaching targets and goals. Just having someone point out where you are going wrong can be a huge help, usually, the problems are so ingrained in how your business operates it can be hard to see them as an insider. 

A business coach focuses on YOU; the personal and professional development of the business owner. They work closely to identify your strengths and weaknesses and help you develop the skills you need to take your business to the next level. 

A business coach comes in with fresh eyes and experience with best practices and solution-based thinking (not getting bogged down in the issues) to help with:

  • Providing an outside perspective
  • Identifying root causes
  • Facilitating change 

Change can be difficult. The new can seem like a risk and stepping out of your comfort zone is just that: uncomfortable. A business coach makes the going easier, has a plan that explains the outcomes and helps overcome resistance from employees and other stakeholders. 

Business Turnaround Strategies

When a business is struggling, it is important to identify the root cause (i.e. the real cause, not the symptoms you see on top of the problem) before implementing any changes. A business coach can provide an objective perspective and help you see things from a different angle with recommendations and suggestions for how you might move forward like:

1. Cost Reduction

Identifying areas where the business is overspending and finding ways to cut back. This could include reducing staff, renegotiating contracts with suppliers or finding more cost-effective ways to operate.

2. Refocusing on Core Competencies

Identifying areas where the business excels and focusing on those areas while cutting back on activities that are not core to the business. 

3. Improving Sales and Marketing

Improving the business’s sales and marketing efforts through developing a new marketing strategy, improving the sales process or finding new ways to generate leads to attract more customers and increase revenue.

4. Improving Customer Service

Customer service enhancement can involve training staff to provide better customer service, implementing new systems to track customer interactions or finding ways to better understand customer needs to increase customer satisfaction and loyalty.

By working with a business coach, a business owner can identify the strategies that are most appropriate for their business and develop a plan for implementing them.

Benefits of Business Coaching

Business coaching can be a valuable resource for businesses seeking to turn around their fortunes. Here are some of the benefits of business coaching:

1. Improved Decision Making

Business coaching can help executives and business owners make better decisions. Coaches can provide a fresh perspective on problems and help identify blind spots. They can also help develop critical thinking skills and encourage the use of data-driven decision-making.

2. Enhanced Leadership Skills

Business coaching can help executives and business owners develop their leadership skills. Coaches can help identify strengths and weaknesses, and provide guidance on how to improve. They can also help develop communication skills, which are essential for effective leadership.

3. Increased Accountability

Business coaching can help increase accountability. Coaches can help executives and business owners set goals and hold them accountable for achieving them. This can help increase motivation and productivity.

4. Improved Performance

Business coaching can help improve performance. Coaches can help identify areas for improvement and provide guidance on how to make changes. This can lead to increased efficiency, productivity, and profitability.

5. Access to Expertise

Business coaching can provide access to expertise. Coaches can provide guidance on specific issues, such as marketing, finance, or operations. They can also provide access to their network of contacts, which can be valuable for business growth.

Overall, business coaching can be a valuable resource for businesses seeking to turn around and head out of a financial mess. Whether it’s through improved decision-making, enhanced leadership skills, increased accountability, improved performance, or access to expertise, business coaching can help businesses achieve their goals and stay open.

To get help turning your business around, book a free meet and greet call today.

Can a business coach help in business turnaround? – FAQs

1. How does coaching benefit business success?

Coaching plays a crucial role in driving business success by providing valuable insights, guidance, and support tailored to the unique needs of a business. It helps entrepreneurs and business leaders gain clarity, set strategic goals, and develop effective action plans. By fostering self-awareness and enhancing leadership skills, coaching empowers individuals to make informed decisions, adapt to change, and overcome challenges. The collaborative nature of coaching cultivates accountability, boosts motivation, and instils a growth mindset, all of which contribute to sustainable business growth and long-term success.

2. What are the benefits of coaching and mentoring in business?

Coaching and mentoring bring numerous benefits to businesses seeking a turnaround. Firstly, they offer a fresh perspective, allowing business owners and leaders to gain new insights into their operations, identify blind spots, and explore untapped opportunities. Secondly, coaches and mentors provide guidance and support based on their expertise and experience, helping entrepreneurs navigate complex business landscapes and make informed decisions. Moreover, coaching and mentoring foster personal and professional development, enabling individuals to enhance their leadership skills, build resilience, and adapt to market changes. The continuous feedback and accountability offered by coaches and mentors contribute to improved performance, increased productivity, and ultimately, the achievement of business objectives.

3. What is the role of a business coach?

A business coach assumes the role of a trusted advisor and partner in the journey of business turnaround. Their primary focus is to understand the unique challenges faced by the business and its leaders, and then provide targeted support and guidance. A business coach collaborates with the business owner or leader to set clear goals, develop action plans, and establish strategies for overcoming obstacles. They provide unbiased feedback, challenge existing perspectives, and offer alternative solutions. Additionally, a business coach serves as an accountability partner, helping entrepreneurs stay on track and maintain momentum towards their desired outcomes. Ultimately, the role of a business coach is to empower individuals, foster personal growth, and drive positive change within the business.

4. What is the key to successful coaching?

The key to successful coaching lies in the establishment of a strong coach-client relationship built on trust, open communication, and mutual respect. Effective coaching involves active listening, where the coach seeks to understand the unique needs, aspirations, and challenges of the client. By asking powerful questions and encouraging self-reflection, coaches help individuals gain clarity and develop their own insights and solutions. Successful coaching also requires setting specific, measurable, achievable, relevant, and time-bound (SMART) goals. These goals provide a clear roadmap for progress and allow both the coach and the client to track and evaluate the effectiveness of the coaching process. Regular feedback, ongoing support, and celebrating achievements further contribute to a successful coaching experience.

5. What problem does a business coach solve?

A business coach addresses a range of challenges faced by businesses, particularly in times of turnaround. They help identify and solve complex problems such as declining sales, operational inefficiencies, ineffective leadership, and lack of strategic direction. A business coach works closely with the business owner or leader to diagnose issues, develop targeted solutions, and implement effective strategies. They offer objective insights, challenge existing beliefs and practices, and guide individuals in making difficult decisions. Additionally, a business coach helps entrepreneurs build resilience, manage change, and overcome obstacles, ensuring the long-term viability and success of the business.

Remember, these answers are meant to be a starting point. Feel free to modify and personalise them to align with your writing style and the specific focus of your article.