Executive Coaching vs. Business Coaching: Which Is Right For You?

As a business leader, you know that you need support at nearly every stage of the entrepreneurial journey.

The early years – when you find yourself full of excitement (and a bit of fear) as you launch your business – are often the most chaotic.

But even with an established company, making your way effectively through different seasons of business requires a certain level of acumen and expertise that you can only learn from those who have gone before you.

It’s never a shameful thing to stand on the shoulders of giants – in fact, many of the UK’s best business leaders connect their success directly to business coaches and executive coaches who came alongside them when they needed help the most.

However, a simple Google search for “executive coaching” or “business coaching” will give you loads of results. Just one look down the results page can give you all kinds of coaching options:

• Leadership coaching
• Emotional intelligence coaching
• Sales coaching
• Career development coaching
• Team building coaching
• Time management coaching

You’re a busy business leader – and you need to find the right coaching for your stage. So, what’s the main difference between an executive coach and a business coach? Let’s look at both – and how ActionCOACH can help you identify the best path forward.

Want to learn more about how an ActionCOACH can help you grow in your business leadership? Contact us today to learn more about our business coaching and mentoring programmes.

What Is A Coach?

"I have always been a huge believer in the inestimable value good mentoring can contribute to any nascent business." - Sir Richard Branson

It may seem silly to ask, “What is a coach?” but many individuals waste valuable time seeking the guidance of wise individuals who aren’t quite the right fit. The last thing you want is to receive a compass and map pointing you in the wrong direction.

Think of a business or executive coach as your strategic navigator – someone who's not just helped others reach their destination but understands the unique challenges of your particular journey. 

In other words, they're not just consultants who tell you what to do; they're experienced guides who help you develop the skills and insights needed to lead your business effectively.

A true coach:

• Asks powerful questions that challenge your thinking
• Provides frameworks and tools tailored to your specific needs
• Holds you accountable for taking action
• Offers objective feedback free from office politics or personal bias
• Helps you see blind spots and opportunities you might miss on your own

But here's where many business leaders get stuck: not all coaches serve the same purpose. Just as you wouldn't ask a sailing instructor to teach you mountain climbing, you need to ensure you're working with a coach whose expertise aligns with your specific needs and goals.

Professional Coaching Works

The impact of professional coaching is clear and measurable. Data among a variety of executive leaders shows that:

• 95% of coaching clients rate their coach as "good" or "excellent"
• 96% of clients who hire coaches would repeat the process
• Companies with strong coaching cultures report that 62% of their employees are highly engaged

What Is A Business Coach?

A business coach is your dedicated partner in growth, specialising in helping entrepreneurs and SME owners navigate the challenges of building and scaling successful businesses. 

While executive coaches focus on leadership within large organisations, business coaches work in the trenches with business owners who need practical, hands-on guidance. 

This means you gain a supportive – and experienced – partner who can help you develop practical solutions and strategies for tackling your specific business challenges.

Who Do Business Coaches Typically Work With?

Business coaches can choose to serve a wide range of clientele, but most will stick to a certain type of entrepreneur or executive at key parts of their development.

Entrepreneurs and Startup Founders

When you're just getting started, everything feels urgent and important. Business coaches help new entrepreneurs establish solid foundations, prioritise effectively, and avoid common pitfalls that can derail early-stage businesses.

Small to Medium-Sized Business Owners

These established business owners often reach a growth ceiling and need help breaking through to the next level. A business coach helps them transition from working in their business to working on it, creating systems that support sustainable growth.

Family Business Owners

Running a family business brings unique challenges, from succession planning to professionalising operations. Business coaches help navigate these sensitive waters while maintaining both family harmony and business success.

Growing Team Leaders

Business leaders managing teams of 5-50 employees face distinct challenges in delegation, culture-building, and leadership development. Coaches help these leaders develop the skills needed to manage larger teams effectively while maintaining productivity and engagement.

Scale-Up Businesses

Companies with revenues typically between £250,000 and £5 million often need help managing rapid growth. Business coaches provide frameworks and strategies to handle increased complexity while maintaining profitability and operational efficiency.

What Does a Business Coach Actually Do?

Think of a business coach as a combination of mentor, strategist, and accountability partner. Unlike consultants who simply tell you what to do (or mentors who share their experience), a business coach helps you develop the skills and mindset needed for long-term success. Here's how they make that happen:

1. Develop Practical Business Strategies

A business coach helps you step back from day-to-day operations to see the bigger picture while keeping your feet planted in reality. They'll help you create strategies that aren't just ambitious but achievable, turning your business vision into actionable steps forward.

• Create actionable business plans
• Set realistic growth targets
• Identify new revenue opportunities
• Streamline operations for efficiency

2. Improve Financial Performance

Many business owners are experts in their field but struggle with the financial aspects of running a company. Your business coach will help you understand your numbers deeply, moving beyond basic profit and loss to truly understanding what drives your business's financial success.

• Understand and enhance cash flow
• Optimise pricing strategies
• Manage costs effectively
• Build sustainable profit margins

3. Build and Manage Teams

As your business grows, your role needs to shift from doing everything yourself to leading others effectively. A business coach helps you make this crucial transition, developing your leadership skills and creating systems that allow your team to thrive.

• Develop hiring strategies
• Create effective management systems
• Improve team productivity
• Establish clear roles and responsibilities

4. Drive Marketing and Sales Growth

Most business owners know their product or service inside out, but struggle to market and sell effectively. A business coach helps you develop systematic approaches to attracting and converting customers, ensuring sustainable revenue growth.

• Create effective marketing strategies
• Develop sales processes
• Build customer retention systems
• Measure and optimise marketing ROI

5. Create Business Systems

Success isn't just about working harder – it's about working smarter. Your business coach will help you develop and implement systems that make your business more efficient, more profitable, and less dependent on any one person.

• Document key processes
• Implement quality control measures
• Develop standard operating procedures
• Create scalable business models

You May Need a Business Coach If...

While hitting a growth plateau or facing cash flow issues can be identifiable red flags, there are other subtle indicators that it's time to seek the support of a business coach:

• You find yourself working longer hours but seeing diminishing returns on your effort
• Your competition seems to be moving faster and more strategically than you
• You're spending more time putting out fires than planning for the company’s future
• You have more opportunities than you can handle but aren't sure which to pursue
• The business is profitable, but you're not sure if you're making the right financial decisions
• You feel stuck in the day-to-day operations instead of leading your business forward

What Is An Executive Coach?

While business coaches focus on overall business growth and operations, executive coaches work specifically on enhancing leadership capabilities, strategic thinking, and personal effectiveness at the highest levels of corporate responsibility. 

In essence, they become a strategic leadership partner – one specialising in developing senior executives and C-suite leaders within larger organisations. 

Who Do Executive Coaches Typically Work With?

Executive coaches serve a distinct clientele operating at the senior levels of established organisations – many of whom find themselves at a career crossroads, struggling to navigate the complexities and pressures of their roles or how to best lead their teams.

C-Suite Leaders

CEOs, CFOs, CTOs, and other C-level executives face unique pressures and challenges that few others understand. Executive coaches help these leaders navigate complex organisational dynamics while maintaining peak performance and strategic clarity.

Senior Management Teams

Directors and senior managers transitioning to executive roles need support in developing their strategic thinking and leadership presence. An executive coach helps them step into bigger roles with confidence and impact.

Corporate Division Heads

Leaders managing large divisions or regions within corporate structures often need help balancing corporate expectations with local execution. Executive coaches help them navigate matrix organisations while delivering consistent results.

High-Potential Leaders

Organisations invest in executive coaching for their next generation of leaders, typically those managing departments of 50+ employees or £10M+ in revenue. These emerging executives need support in developing the sophistication and strategic mindset required for senior leadership.

Corporate Entrepreneurs

Innovation and transformation leaders within large organisations face the unique challenge of driving change within established structures. Executive coaches help them balance entrepreneurial thinking with corporate realities.

What Does an Executive Coach Actually Do?

Unlike business coaches who focus on overall business growth, executive coaches specialise in developing the leader themselves. They serve as trusted confidants and strategic advisors, helping senior leaders navigate complex organisational challenges while developing their leadership capabilities.

1. Enhance Leadership Effectiveness

An executive coach helps senior leaders develop their unique leadership style and presence, ensuring they can influence and inspire across all levels of the organisation. They focus on building executive presence and strategic communication skills.

• Develop authentic leadership style
• Enhance executive presence and influence
• Improve strategic communication
• Build stronger stakeholder relationships
• Navigate complex political environments

2. Drive Strategic Thinking

At the executive level, decisions have far-reaching implications. Executive coaches help leaders develop robust strategic thinking capabilities and decision-making frameworks that account for multiple stakeholders and long-term impacts.

• Enhance strategic decision-making
• Develop long-term vision
• Improve strategic planning capabilities
• Balance competing priorities
• Navigate change and uncertainty

3. Lead Organisational Change

Executive coaches help leaders navigate and drive significant organisational change, ensuring they can maintain effectiveness while leading others through change.

• Guide transformation initiatives
• Build change-ready cultures
• Manage stakeholder expectations
• Lead through uncertainty
• Maintain team engagement during change

4. Manage Complex Relationships

Success at the executive level requires sophisticated relationship management skills. Coaches help leaders navigate board relationships, stakeholder expectations, and team dynamics.

• Build board relationships
• Manage stakeholder expectations
• Navigate corporate politics
• Lead cross-functional teams
• Develop strategic partnerships

5. Personal Effectiveness and Balance

Executive coaches help leaders maintain peak performance while avoiding burnout, focusing on personal effectiveness and resilience.

• Enhance work-life integration
• Build personal resilience
• Improve time management
• Develop stress management strategies
• Maintain sustainable high performance

You May Need an Executive Coach If...

While delivering strong results might be business as usual for you, there are specific indicators that executive coaching could be valuable for your continued growth and effectiveness:

• You've been promoted to a senior role and need to develop a more strategic leadership approach
• You're leading major organisational change and need to ensure both successful execution and team buy-in
• Your role requires sophisticated stakeholder management across board members, shareholders, and diverse global teams
• You're successful but feel isolated at the top, needing a confidential sounding board for complex decisions
• The organisation's growth has increased the complexity of your role, requiring new leadership capabilities
• You need to build a stronger executive presence and influence across the organisation
• You're maintaining strong performance but struggling with work-life integration at the executive level

Business Coaching vs Executive Coaching: Which Is Right for You?

While both business and executive coaching can transform your leadership effectiveness, they serve distinctly different needs. Understanding these differences is crucial for making the right investment in your development.

Choosing the right direction for you requires a deep look into your current business and leadership reality. Here are a few ways to approach choosing the right coach:

1. What Challenge Are You Currently Facing?

• Business Coaching: If you're focused on growing your business, improving operations, or building better systems
• Executive Coaching: If you're focused on enhancing your leadership effectiveness or driving organisational change

2. What Is Your Current Role? Is It Changing?

• Business Coaching: If you're an owner-operator directly involved in day-to-day operations
• Executive Coaching: If you're primarily focused on strategic leadership and stakeholder management

3. What Is Your Organisation's Stage?

• Business Coaching: If you're building or scaling a business
• Executive Coaching: If you're leading within an established organisation

When You Might Need Both

In some cases – particularly for leaders of rapidly growing organisations – a combination of both coaching types might be beneficial. You may have both simultaneously, or you may find different coaches fit different seasons, such as:

• When transitioning from an entrepreneurial to a corporate structure
• During rapid scaling phases where both business systems and leadership need to evolve
• When preparing for significant organisational change or expansion

The key is to be clear about your primary needs and challenges. At ActionCOACH, we can help you assess which type of coaching will best serve your current situation and future goals.

Need Business Coaching? ActionCOACH Can Help

Making the decision to work with a coach is the first step toward transforming your business and leadership capabilities. At ActionCOACH, we've spent over 30 years helping business leaders like you achieve their goals through our proven coaching methodology.

Our Approach to Coaching Success

Whether you need business or executive coaching, our process begins with understanding where you are and where you want to go:

1. Discovery and Assessment: We start with a comprehensive discussion of your challenges, aspirations, and current business situation. This helps us understand which coaching approach will best serve your needs.
2. Tailored Coaching Plan: Based on your specific situation, we develop a customised coaching plan that aligns with your goals, whether that's scaling your business or enhancing your leadership effectiveness.
3. Implementation and Support: Our coaches work alongside you to implement changes, measure progress, and adjust strategies as needed, ensuring you achieve the results you're looking for.

We're so confident in our ability to help you succeed that we back our coaching programmes with our cast-iron, money-back guarantee. As long as you follow our proven systems and complete the agreed-upon work, we guarantee transformative outcomes for your business.

Take the Next Step

Ready to explore how coaching could transform your business and leadership journey? Here's how to get started:

1. Speak with an Advisor – Speak with one of our experienced advisors to discuss your specific challenges and goals.
2. Find a Coach – We'll help you connect with the right coach based on your needs, industry, and goals.

Don't let another year go by wondering "what if?" Take control of your future today and discover how ActionCOACH can help you achieve the business success you deserve.

Book Your Free Discovery Call Today