For those seeking to be an Executive Coach there is often a big decision to make: whether to start an independent business, join an existing firm, or to be employed as an internal coach in a large organization. Explore the pros and cons of each option.
Starting a Business
- Pros:
- Flexibility – as an independent business owner there is the greatest flexibility in terms of business model and services.
- Decision-making control – an independent business owner makes all of their own decisions including work hours, who to take on as a client, and where to focus efforts.
- Earning Potential – an independent business owner retains all profits.
- Cons:
- Financial Risk – the independent business owner is financially responsible for expenses and unsure of income.
- Multiple Roles – the independent business owner is the sales team, the administrative team, customer service, etc. in addition to the actual service provider until the business grows enough to bring on others.
- Time to Focus on Specific Expertise – with the multiple roles involved and the demands for earning, a business owner is often facing time limitations for further developing expertise.
Joining a Coaching Firm
- Pros:
- Support Gaining Clients – when joining a firm, a coach has help getting clients.
- Daily Interaction with Colleagues – working with others in a firm is often a motivator for being at work and the day-to-day conversation is typically supportive.
- Help with Challenges – within a firm there is opportunity for getting advice and logistical assistance with challenges.
- Cons:
- Loss of Private Clients – often joining a firm means giving your contacts to the firm.
- Shared Earnings – coaching fees are shared with the firm.
- Directed Niche – firms typically direct the type of coaching offered.
Employment in a Large Organization
- Pros:
- Health and Vacation Benefits – large companies have great benefits.
- Greatest Level of Security – large companies are more secure in terms of the job.
- Built-in Clients – large companies have the full client base on hand.
- Cons:
- Restricted Work Focus – the type of coaching is job related only.
- Corporate Culture and Politics – as an employee, navigating the culture is required.
- Capped Earning Potential – large companies will have salary caps.
Whatever the decision, executive coaching is incredibly rewarding work.
