Executive Coaching vs Business Coaching: What’s the Difference?

You’re searching for a coach.

At Building Great Businesses, we help Sydney business owners build businesses that work without them.

Half the listings say “executive coaching”. Half say “business coaching”.

Some coaches claim to do both.

Are they the same thing? Different names for identical work?

Not quite. The distinction matters.

The Terms Are Often Confused

Google “business coach” and you’ll see executive coaches.

Google “executive coach” and you’ll see business coaches.

The confusion is understandable. There’s overlap.

But they’re designed for different clients with different goals.

Executive Coaching Defined

Executive coaching focuses on individual leadership development.

Typically in a corporate context. For people climbing the ladder or already at the top.

Who uses it: Senior managers, directors, VPs, C-suite executives in established companies.

Who pays: Usually the company, not the individual. Part of leadership development programs.

What it addresses:

• Leadership effectiveness and style
• Communication skills
• Team management and motivation
• Strategic thinking
• Executive presence
• Behavioural change
• Work-life integration
• Career advancement

The goal: Make you a better leader. More effective. More influential. Ready for the next level.

The focus: Your performance as an individual contributor to the organisation.

Business Coaching Defined

Business coaching focuses on whole-business improvement.

For people who own and run the business. The entrepreneur. The founder.

Who uses it: Business owners, founders, entrepreneurs running their own companies.

Who pays: The owner. It’s their investment in their business.

What it addresses:

• Revenue and profit growth
• Team building and accountability
• Systems and processes
• Owner time extraction
• Business model optimisation
• Operational efficiency
• Strategic planning
• Hiring and delegation

The goal: Make your business work better. More profit. More time. Less reliance on you.

The focus: Business performance and owner extraction.

The Key Distinction

Executive coaching: You’re in someone else’s business. Goal is to perform your role better. Climb higher. Lead more effectively.

Business coaching: You own the business. Goal is to make the business perform better. Profit more. Require you less.

One develops you as a leader in a structure. The other develops your business as a system.

Where They Overlap

Both involve leadership development. Both work on decision-making and strategic thinking.

If you’re a business owner, you need to be a good leader. So business coaching includes leadership work.

If you’re an executive, business acumen helps. So executive coaching might touch on commercial thinking.

But the emphasis differs.

An executive coach helps you influence a board you don’t control.

A business coach helps you build a team that runs things without you.

Different Contexts, Different Challenges

Corporate executive challenges:

• Managing up to CEO and board
• Leading through matrix structures
• Navigating politics and influence
• Building executive presence
• Cross-functional leadership
• Change management in large organisations

Business owner challenges:

• Everything depends on you showing up
• Team lacks accountability
• Working 60 hours, profit not matching effort
• Can’t take a holiday without things falling apart
• Don’t know how to hire properly
• Revenue growing but profit isn’t

See the difference? Different problems. Different tools needed.

Who Pays Matters

Executive coaching: Company pays. Part of talent development budget.

This changes the dynamic. There’s often a three-way relationship. Coach, executive, company sponsor (usually HR or CEO).

Confidentiality matters but isn’t absolute. Progress gets reported to someone.

Business coaching: Owner pays. Their money. Their choice.

Two-way relationship. Coach and client. What gets discussed stays there.

No corporate sponsor to please. No HR check-ins. Pure focus on what the owner needs.

Outcomes Measured Differently

Executive coaching success:

• 360-degree feedback improvement
• Promotion achieved
• Team engagement scores up
• Leadership effectiveness rating increased
• Successful project delivery
• Behavioural change demonstrated

Business coaching success:

• Revenue increased
• Profit margin improved
• Owner hours reduced
• Team performance and accountability up
• Systems implemented
• Business running without owner present

One measures leadership impact. The other measures business metrics.

Typical Clients

Executive coaching client: Sarah is VP of Marketing at a tech company. 15 years in corporate. Managing a team of 40. Being considered for CMO role. Needs to develop executive presence and strategic influence skills.

Business coaching client: Sarah owns a marketing agency. Built it to $1.2M revenue over eight years. Team of nine. Working 55-hour weeks. Profit is okay but she’s trapped in delivery. Wants to step back and have the business run without her.

Same name. Completely different situations. Different coaching needed.

Which Do You Need?

You’re an executive or senior manager: Executive coaching makes sense.

Working in someone else’s company. Want to advance your career. Need leadership development.

Ask your company if they provide it. Many do for high-potential talent.

You’re a business owner or entrepreneur: Business coaching is your fit.

You own the company. Revenue and profit matter. Team and systems are the challenge. You want more time and better results.

This is what BGB does. Business coaching for owners.

You’re an entrepreneur building a team: Could go either way.

Leadership development matters (executive coaching angle). But business performance is the priority (business coaching angle).

Look for business coaches who include strong leadership development. Best of both.

Can Executive Coaches Do Business Coaching?

Some can. Many can’t.

Executive coaching trains you to work with individuals on behavioural change. Corporate context. Leadership frameworks.

Business coaching requires understanding of business fundamentals. P&L. Margins. Systems. Team structure. Operational challenges.

Different skill sets.

The best business coaches often have both. Leadership development skills plus real business operating experience.

At BGB, we’re business coaches who include leadership work. Because you can’t extract yourself from the business if you’re not developing leadership in your team.

But we start with the business, not the individual.

The BGB Approach

We’re unambiguously business coaches.

Built for business owners doing $500K-$5M. People who own the company.

Our focus:

• Business performance (revenue, profit, margins)
• Team optimisation and accountability
• Systems that work without you
• Owner extraction (time back)
• Growth without chaos

We work on your leadership. But in service of business outcomes.

Not climbing someone else’s ladder. Building your own business to work without you.

Bottom Line

Executive coaching: For corporate leaders. Develops your individual leadership effectiveness. Company often pays.

Business coaching: For business owners. Improves whole-business performance. You pay.

Choose based on who you are and what you’re trying to achieve.

If you’re an employee, even a senior one. Executive coaching.

If you own the business. Business coaching.

Don’t hire an executive coach to fix your P&L. Don’t hire a business coach to help you get promoted.

Match the coach type to your actual situation.

FAQs

Can business owners benefit from executive coaching?

Sometimes. If you’re working on personal leadership development in isolation, sure. But if the goal is business improvement, business coaching is better matched to the challenge.

Is executive coaching more prestigious than business coaching?

No. They’re different services for different clients. Neither is “better”. Executive coaching often costs more because corporate budgets are larger, not because it’s superior.

What if I’m both an executive and a business owner?

Not uncommon. You’re a senior executive with a side business, or you own a business while consulting to others. Clarify which role needs development, then choose accordingly. Or work with coaches who bridge both.

Related Reading

• What Makes a Good Business Coach? 7 Essential Qualities
• Business Coach vs Mentor: What’s the Difference?
• The 11 Benefits of Business Coaching (Backed by Research)

Need Business Performance Improvement?

BGB specialises in business coaching for owners.

Not corporate leadership development. Business transformation.

More profit. More time. Team that works without you.

See our approach or book a Quick Fit Call.

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