The year 2020 is proof that when the going gets tough, the tough get going. Testimony to the strength of the human spirit to survive, there were people who, whether out of necessity or in pursuit of a dream to be self employed, started their own businesses. Despite the pandemic and slowed economy there were 136 347 new companies registered in Australia between June and November 2020. That’s an average of 22 724 new startups every month. Believe it or not, this is higher than in 2019.
Why start a business in a pandemic?
The pandemic has presented opportunities for would-be entrepreneurs. A crisis like this highlights the next set of challenges that the world needs to meet in order to survive and move forward. Finding solutions to these challenges gives rise to new ideas, new companies, new markets and new industries.
If you can start a company that provides a valuable solution to meet the needs of people in an environment that is characterised by declining demand and rising unemployment, you are set to survive the crisis and thrive beyond it.
Thinking beyond a recession-proof income to support your lifestyle, your family, starting a business in a pandemic is about self actualisation. It’s been a year of reflection. Perhaps in your reflection, you have discovered that you no longer want to work for a boss. Perhaps you have always dreamed of being an entrepreneur but you have just never had the guts to take the plunge or perhaps you have no choice but to take the leap. Either way, one of these are giving you the push you need to get going.
The number of new businesses that were born last year – amidst a pandemic – shows that there are many more out there.
Small business survival rates
Around 20% of businesses fail in their first year and about 60% don’t survive beyond year three. A survey of over 100 startups by CBInsights analysed the reasons why and showed that 42% of new businesses fail because there is no market need for their products or services, 29% because they ran out of money, 23% because they didn’t have the right team in place and 19% because they were outcompeted. Interestingly, 17% failed because they did not have a business model.
For a new business owner that has never tread the path before, navigating the challenges of starting and growing a new business is tricky, confusing, frustrating and often disheartening. Few companies survive on love and passion alone.
In business, it is survival of the fittest. Those who have planned, set goals, structured their teams well, managed their finances optimally, and pivoted to changing market conditions that could impact their businesses are more likely to survive.
The growing need for business coaching
As the world of business moves faster and gets more competitive, it is difficult for business owners to keep up with both the changes in their industry as well as the innovations in sales, marketing and management strategies.
Too often, small business owners work too hard in their businesses rather than on them. What this means is that they are stuck in the daily grind and do not have a macro view of the different areas of their business than could be affected by changes in the market. A lack of systems and processes to support changes is also evident within smaller companies.
They need guidance, reassurance and motivation as they navigate their way, especially during the early set-up stages. This is prompting more and more business owners to turn to a business coach; someone to bounce ideas off, offer objective advice and help them to regain focus.
Now more than ever, the marketplace is open to business coaching as business owners seek the mentorship and guidance of business coaches to help them navigate the new business landscape.
This could be the time to launch your business coaching career
Becoming a business coach presents an opportunity to take control of your future with a recession proof business while helping others to survive or maybe even thrive through their recession!
Business coaching is considered a crisis and recession-proof profession for a number of reasons. Firstly it is already one of the fastest growing industries in the world, second to Information Technology. Business coaching growth is expected to far out-pace economic growth globally.
Secondly, the demand for business coaches also tends to increase during times of crisis as business owners look for expert advice on transforming their companies in response to increasingly tighter and challenging markets.
Business coaching can also be done remotely and from anywhere in the world. Setting up a business coaching practice is also fairly quick, even today’s environment. As life and times have changed so dramatically, you are not limited to one-on-one or executive coaching to make money. There is an array of complimentary services that you can offer, with each providing inroads into another.
Do you have what it takes to be a business coach?
If have a passion for people and enjoy motivating, mentoring and supporting others on their journeys to success, business coaching is a rewarding career path and it can be quite lucrative too.
The International Coaching Federation defines business coaching as “partnering with clients in a thought-provoking and creative process that inspires them to maximize their personal and professional potential.”
Ideally, you should know how to succeed in business and in life, have managerial experience or have experience in running your own business. Business coaches are experts in their field, so with their experience and knowledge, they understand what it takes to set up a business for success. Read our blog on Business Consulting versus Business Coaching to figure out if you were born to coach.
There are no official licenses or certifications required to start practicing your new profession. But, that does not mean that training, qualifications and experience don’t matter or that anyone and everyone can be a business coach.
You do need business acumen and should have experience in running a business or at management level in business. Most business coaches will have had some level of training and experience in management, marketing or commerce. A diploma or degree in business studies, commerce or psychology will all add to your credibility.
Start the New Year in a new career as a business coach
Ready to take the plunge? Remember that starting a business coaching business is like starting any other business. It involves planning, setting up systems and processes, creating a brand, defining your niche, marketing, financial decisions, finding premises, buying equipment and winning customers.
Read our blog Business coaching 101 – steps to getting started for helpful advice on starting your new business coaching business.
To get up and running as quickly as possible, having the backing and training of a credible brand is always a great move. ActionCOACH’s training is unparalleled, and the ongoing support is unmatched in the industry. With ActionCOACH, you also have access to proven methodologies, processes and strategies help you grow your new business, as well as help you to get the best results for your clients. Becoming part of the ActionCOACH family for instance connects you to a worldwide network of professionally certified experts from day one.
ActionCOACH is the world’s number one business coaching franchise with more than 25 years of experience. When you become an ActionCOACH, you are instantly part of an established, credible and trusted community of business coaching experts. The training is unparalleled, the ongoing support is unmatched and the access to the library of ActionCOACH’s proven systems and process will put you ahead of the competition. Read our blog Business coaching: franchise or DIY? to learn more about the pros and cons of buying into a franchise or going it alone.