I grew up in a small town in East Tennessee surrounded by cow fields. This taught me something valuable early on and forgive the less tactful, yet ironic words in advance: I became really good at detecting bullshit. When something doesn’t smell right, it’s clear to the senses! That skill becomes more valuable each day along my entrepreneurial journey, especially when evaluating business relationships.
Today, as both someone who has worked with multiple coaches and now serves as one myself, I’ve learned that choosing the right business coach requires the same instinct for authenticity—and a systematic approach to avoid costly mistakes.
The Biggest Misconception About Business Coaching
A common misunderstanding I encounter is that entrepreneurs think a business coach is there to tell them how to work in their business. That’s not the role at all.
An effective business coach’s job is to share experience and suggestions on how you might work better on your business. They’re there to strengthen you as a leader, not to give you operational directives.
A good coach guides rather than dictates, allowing you to use capabilities you haven’t fully developed yet as a leader. This way, you learn for yourself and won’t need to keep going back to the well every time you face a similar challenge.
Coach vs. Mentor vs. Consultant: Why the Distinction Matters
People often use these terms interchangeably, but there are important differences:
A mentor is typically seen as more experienced and many see it as a one-way relationship where they’re on a higher pedestal. This can feel intimidating and while this may not be the case, it’s a clear distinction that many neglect to address. The best leaders want to be seen on a similar level—more experienced in years and situations, but not above you.
A consultant is more like a hired gun who comes in with a specific directive, conducts analysis, and delivers solutions. It’s more transactional and business-oriented, with less focus on leadership development.
A business coach focuses on building your leadership skills and is a bit more motivational oriented in nature- all while drawing from their own experience. Think of Phil Jackson coaching Michael Jordan. Jackson had played basketball and won championships as a player, so he understood what Jordan was going through, but he was now in a different role—guiding rather than playing. They operated as partners in pursuit of excellence. Even with Kobe, it wasn’t coincidence he went on to coach the Lakers to several championships.
The Five Essential Evaluation Criteria
- The Trust Factor Above All Else
The first thing I look for when evaluating a potential coaching relationship is simple: Do you gain a sense this is a person you can trust?
This trust factor is crucial because there will come a point where you’ll feel like you’re standing at a cliff and your coach is pushing you off. You won’t know that you have a bungee cord attached, but they do. I’ve had clients tell me afterward that in the moment, they felt like I was being unreasonably demanding—until they realized I was actually supporting them through the challenge they needed to face.
Without trust, that growth dynamic becomes near impossible.
- Have They Walked the Walk?
I believe it’s essential that a coach has actual experience relevant to what you’re trying to accomplish. Ask directly: “What’s your proven track record for how you can help me?” Don’t get lost in flashy testimonials.
Look for specific, concrete examples of challenges they’ve navigated personally. When I work with clients, I share stories from my own journey—the acquisitions that worked, the ones that didn’t, and what I learned from both. If a coach can’t point to real battles they’ve fought and won (or lost and learned from), that should raise concerns.
- Methodology That Adapts to You
A good coaching methodology should have subcomponents that can be applied on a one-off basis. The coach should be able to diagnose your specific business, then determine which pieces are highest priority and best fit your situation.
This requires both flexibility from the coach and openness to change from you.
- Communication Style That Resonates
Pay attention to whether the potential coach operates at extremes on what I call the truth-versus-tact matrix. Are they so bluntly candid that their guidance won’t emotionally resonate with you? Or are they so diplomatic that you won’t get clear direction?
I once had to deliver some tough feedback to a CEO about their timeline expectations. It was June, and they wanted to complete a strategic initiative by “May of next year.” I looked at them and simply laid out the facts: how long would each component actually take to accomplish? By walking through the practical steps rather than attacking their planning, they came back and said, “I see your perspective. I’m moving this up to complete by the end of the year.”
The best coaches find this balance, delivering truthful messages with appropriate tact.
- Values Alignment
Ask potential coaches directly about their personal core values. Just like in hiring, ask questions related to your company’s core values and see how they respond.
Measuring ROI: What Good Coaching Delivers
How do you know if your investment is paying off? While the specific metrics vary by company, the investment typically pays off significantly. A 2024 ICF and PwC global study found that organizations see an average ROI of 7x the coaching cost—a return that few other leadership investments can match.¹
Look for these measurable outcomes:
A stronger, more aligned leadership team is present in almost all situations when you have a good coach. There may be turbulence in the process, but given ample time, the result should be more cohesive leadership.
Improved employee satisfaction as measured by eNPS (Employee Net Promoter Score). If your coach is advising on scaling through people, strategy, execution, and financial prudence, your employees should be happier.
Reduced stress and anxiety levels for you personally. A good coach helps you understand your zone of genius and work in your flow state. That may sound too Woo Woo – reality is that it’s backed by science and is a significant factor coaches need to understand.
Better customer satisfaction reflected in NPS scores, as improved leadership typically cascades down to better customer experiences.
The Questions That Matter Most
Before making your investment, ask these essential questions:
- “How is this going to help my company from a high level?”
- “How will this improve my leadership and my executive team’s capabilities?”
- “How will this make our company run smoother?”
- “How do you see this improving our financial profitability?”
The Bottom Line
If something sounds too good to be true, it probably is. Trust that instinct I developed growing up around those Tennessee cow patties—if you get that smell, you better watch where you step next!
In my own journey, I’ve made the mistake of ignoring red flags because I wanted a particular relationship to work. The best investment I ever made was learning to trust my gut about people early in the process rather than hoping things would improve.
Here’s my final piece of guidance: Look objectively at your current level of contentment with where the business is. What’s the very clear path that needs to happen to get to your next stage of growth? If you don’t have a clear answer on how to get there, that’s exactly how a coach helps.
The right coach has walked the walk, climbed their own mountains, and can help you navigate yours. What I’ve learned is that they’re not there to carry you up the mountain—they’re there to help you develop the strength to climb it yourself.
