Business Coaching Industry

Business coaching has grown significantly since the 1980s, becoming a key component in helping business owners grow and expand; also providing an edge to stay ahead in today’s competitive world. One new trend in many coaching environments is the addition of the peer advisory concept, which allows owners and key executives the opportunity to share challenges and experiences with their peers.

Up to 40 percent of Fortune 500 companies polled in Fast Company Magazine are using coaching to improve their businesses, adding that they would not do so if a positive Return on Investment (ROI) was not being achieved. Most firms involved with coaching organizations conclude that work output and quality were also greatly impacted as a result of coaching. Some companies showed a 529 percent ROI, along with other immeasurable benefits, including:

• 53 percent reported an increase in employee satisfaction
• 60 percent reported an increase in productivity
• 50 percent reported financial benefits

Each year, around the globe, more and more are ambitious Presidents, CEOs and Executives are eager to learn best practices and/or emerging trends to help them increase profitability and create more value. Trends continue to show coaching environments offer a setting in which business owners and executives can discuss their most pressing issues.

Other recent studies on coaching report the following:

• The Economist reported “The Executive and Business coaching industry is growing by about 40 percent a year”
• “Annual spending on executive coaching in the United States is estimated at $1 billion,” according to Harvard Business Review
• According to Inside Business, “The Australian Institute of Management says 70 percent of its member companies hire coaches”

The Alternative Board® Market Potential

TAB Members – Presidents, CEOs, managing partners and owners of small and medium-sized privately held companies are the target market for TAB membership. The majority of current TAB member companies report annual revenues of less than US$1,000,000 up to US$100,000,000 with 2-249 employees. They represent quite a wide range of industries. 59 percent of current membership falls within the ten industries listed below. 41 percent of current membership comes from over 54 other industries—making the TAB member market extremely diverse.

1. Wholesale Trade-Durable Goods
2. Business Services
3. Engineering, Accounting, Research, Management & Related Services
4. Construction-Special Trade Contractors
5. Home Furniture & Equip Stores
6. Building Construction-General Contractors & Operative Builders
7. Miscellaneous Retail
8. Printing, Publishing & Allied Industries
9. Wholesale Trade-Nondurable Goods
10. Legal Services

Coaching helps business owners take their enterprises to the next level by offering expertise and solutions ranging from marketing, sales, human resources and/or finance; taking the business in a new direction. The end result is a client who has learned how to become a more effective owner and leader, which will bring more stability and growth to their company.

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