The Difference Between a Business Coach, Mentor and a Consultant

If you are someone who runs a business you may come across thousands of people referring you to business consultants and coaches. They'll be telling you that this particular coach or consultant is the right one to help you and your business.

Understanding the difference between the two is very important.

Hence why I've put together this handy little guide so you can decide for yourself which one you really need help from.

Business consulting and business coaching are completely different.

Here's why...

Business Consulting

Business consulting refers to the expert help or guidance which is provided usually to the management and owners of a business to help an organisation in improving its efficiency and performance.

Right, that's the boring dictionary definition out of the way.

In short, a consultant will make recommendations and then does some of the doing alongside the management and owners of a business.

Think of it as "Done For You".

The consultant is concerned with all the aspects of the business; including anyone in the organisation who plays contributes to the success of the business. From the admin team right up to the board and the CEO. A business consultant is interested in looking at all the perspectives, viewpoints and aspects.

It is the job of someone like these business consultants Sydney to provide an outside view to you and then help to implement the recommended changes.

If you think you require temporary help from a business expert who will advise you about some specific aspects of your business then you need to go for a business consultant.

Benefits of Hiring a Business Consultant

1. You’re freed to focus on other tasks

Bringing in a consultant isn’t about being hands-off, but it does let you offload the mental gymnastics of trying to develop and implement every solution yourself. With a consultant handling a particular challenge, you can keep your focus on the big picture, or, at the very least, keep the business running smoothly while improvements are underway.

2. You fill your knowledge gap, no need to become The Expert

You know your business better than anyone, but even the sharpest business owners have blind spots. Consultants step in where there’s a gap, offering the kind of specialised expertise you may not have in-house. Since they’ve worked across multiple industries and organisations, they provide the objective, fresh perspective needed to get unstuck and move forward.

3. You might achieve better results, faster

Let’s be honest: sometimes, business owners hesitate to bring in outside help (often because they’ve had less-than-stellar experiences before). But with the right consultant, you can tap into their experience and plug their specialist knowledge directly into your business, saving you time, money, and plenty of trial and error.

So, whether you’re looking for someone to guide a change initiative, streamline your operations, or inject new energy into a stagnant team, a business consultant’s expertise can give your organisation a valuable edge.

Can Hiring a Consultant Help Me Achieve Better Results, Faster?

Absolutely. One of the main advantages of bringing in a business consultant is their ability to deliver faster, more effective results. Many business owners hesitate, perhaps you’ve been burned in the past by expensive consultants who talked a big game but delivered little substance. But here’s the thing: when you find the right consultant (and yes, they do exist!), you’re essentially shortcutting the learning curve.

A consultant’s specialised knowledge and experience allow them to quickly identify bottlenecks, inefficiencies, or untapped opportunities in your business. Instead of you or your team spending months, maybe even years, working through trial and error, a seasoned consultant can step in, spot issues, and implement proven strategies almost immediately.

Think of it like hiring a guide for a mountain trek. Yes, you could find your way eventually, but wouldn’t you rather have someone onboard who’s climbed the trail a hundred times before and can point out the best shortcuts? By leveraging their expertise, you save yourself not only valuable time, but also money in the long run by avoiding costly missteps.

In short, if achieving results quickly matters (and let’s be honest, when doesn’t it?), a business consultant can help you get there with far fewer detours.

Business Coaching

Business coaching is different because it is client lead.

Business coaches facilitate entrepreneurs, startups, and professionals to grow at a faster pace. They work on a set schedule to share feedback, personalised recommendations, and growth plans with the client.

These goals might be to grow turnover, accelerate their career, or accelerate business growth.

A business coach won't do any of the doing. So it is more of a "Done With You" approach but with some clear guidance and instruction.

Business coaches study their client’s business, understand the current situation and compare against market requirements. They formulate strategies for keeping your resources and your budget in mind and give possible suggestions for business to grow and become more sustainable.

Business coaches are sometimes considered as experts or 'gurus' but quite frankly I hate the word. They know market trends and understand risks and can help you in looking at both, from an expert’s perspective.

A business coach is someone who brings out the best in you. If you think you are someone who is new to the world of business or you have started multiple times but never succeeded then you can get the help of a business coach to help you in becoming more clear and focused.

How Business Coaches Work

Business coaches find solutions by asking, not telling. Their approach isn’t about handing you a ready-made playbook or giving you a list of orders. Instead, they act more like a skilled navigator, using thoughtful questions to help you clarify your vision, uncover roadblocks, and tap into your own potential.

Now, don’t get me wrong. Business coaching isn’t a series of therapy sessions on a comfortable couch where you explore all your feelings about life. You’re bringing someone to the table whose experience and insight can bridge the gap between where you are now and where you want to end up.

Think of a business coach’s expertise in business development and leadership like a pulley, when applied to the weight you’re trying to lift, it makes it lighter. The challenges you’re facing don’t magically disappear, but your new strength as a leader equips you to overcome them.

So, if you’re starting out, feeling uncertain, or have hit a plateau, a business coach offers not just advice, but a framework to help you find your own best solutions and move forward with clarity and confidence.

How Business Coaches Help Entrepreneurs Become Better Leaders

A good business coach isn’t there just to hand out advice from a soapbox, think of them more like a thinking partner and a sounding board for your business journey.

They draw on their experience to guide you, but instead of simply telling you what to do, they ask the right questions to help you unlock answers from within your own experience. It’s less “do this, do that” and more about uncovering what’s already working, identifying gaps, and developing your confidence as a leader.

Business coaches are great at spotting patterns, challenging assumptions, and helping you see situations from fresh angles. For entrepreneurs, that means not just learning how to run a business, but growing into the kind of leader who can navigate setbacks, inspire a team, and keep momentum during tough patches.

Here’s what you can expect when working with a business coach:

• Collaborative Goal Setting: Coaches work with you to clarify your goals and define success on your own terms, not just according to some best-selling business book.
• Accountability: They help keep you on track, think of them as your accountability partner who nudges you out of your comfort zone and calls you out (nicely) on your blind spots.
• Growth Mindset: Business coaches introduce frameworks and strategies used by successful entrepreneurs and leaders (think Steve Jobs or Arianna Huffington), but they always tailor these to your specific context.
• Strengthening Decision-Making: Through structured feedback and probing questions, they help you refine your judgment, so you’re not just reacting, but truly leading.

In the end, a business coach helps you tap into your own potential and step confidently into a leadership role. They’re not there to do the heavy lifting for you, but to hand you the right tools and help you build the strength and clarity to lead your business forward.

Similarities and Differences

When it comes to looking at the similarities, both consultants and coaches are:

• paid some fees in order to get access to their expertise
• not an employee of the organisation who hires them
• offer an outsider’s perspective on the business.

And the differences:

• Mainly a difference of approach and focus that the two take to help your business out.
• A business coach focuses on the individual and is needed by someone who is starting out and facing issues of uncertainty and demotivation.
• Whereas, a business consultant focuses on processes, teams and other aspects of the business.
• Consultants address specific issues and matters that businesses need help with in order to get to the next level.

A Combined Approach: The Best of Both Worlds

Now, what if you could have both? Imagine a hybrid setup that draws from the strengths of each, think Marks & Spencer Food Hall meets Apple Genius Bar. You get practical, expert advice (consulting) and the supportive, growth-oriented hand-holding of coaching.

Here’s how this dynamic duo can really move the needle for your business:

• Big-Picture Guidance with Concrete Action: You’re helped to clarify your vision and long-term direction, but you don’t just stare at flipcharts all day, there’s genuine help when it comes to rolling sleeves up and actually making those changes.
• Skill Building & Accountability: Like a top-notch personal trainer, a coach-consultant hybrid guides you to develop stronger leadership muscles, and follows up to make sure you’re actually using them.
• Tailored Solutions: No cookie-cutter advice here. You get strategies engineered for your unique business challenges, whether you’re a solo act or helming the next Pret A Manger.
• Sustained Growth: With someone in your corner who sees the road ahead and knows the pitfalls (because they’ve navigated it a thousand times), you avoid those classic potholes and see real results, faster.

So, if you crave a blend of insightful strategy and hands-on help, this approach just might be your secret weapon for achieving those ambitious business goals.

Can You Combine Coaching and Consulting for Your Business?

Now, you might be wondering, what if your business needs a bit of both? Maybe you’re looking for that all-important guidance as a leader, but you’ve also got specific fires smoldering in your processes that could use a little expert attention.

Well, good news: you absolutely can combine coaching and consulting. In fact, many modern business support programs offer a hybrid approach. You work with someone who both asks the tough questions to help you reflect and grow, and, when it matters, rolls up their sleeves to tackle the nitty-gritty of your business systems or growth strategy.

Picture it as having your cake and eating it:

• You get a sounding board to clarify your vision and boost your confidence as a business owner.
• At the same time, you access actionable advice on implementing new processes, optimising your team, or even taking your marketing up a notch (think of the way McKinsey or PwC might engineer change, but with a personal touch).

Some programs out there are purpose-built for this. They blend reflective coaching to develop your leadership skills with hands-on consulting to help you break through challenges, so you’re not left alone either in the big picture or the daily grind.

So, if you’ve ever thought “I wish I could get both a roadmap and a travel buddy for this adventure”, you’re not alone. The right support might be a blend tailored to your specific needs.

What to Do If You Need Both Coaching and Consulting

Alright, so what happens if you’re sitting on the fence and thinking, “Hang on, I need both, a bit of wise counsel to sharpen me, and some hands-on help to boost the business itself”? You’re not alone; lots of business owners find themselves in this spot at some point.

Here’s the good news: you don’t have to choose just one. Many organisations, especially fast-growing startups and established SMEs, often benefit from a dual approach, drawing on both coaching and consulting expertise.

How does that look in practice? Well:

• You work with a business coach who’ll hold up the mirror, keep you accountable, and dig into your vision, confidence, and decision-making skills.
• At the same time, you might bring in a consultant who can tackle those thorny operational challenges, anything from streamlining your processes to revamping your marketing.

Some professionals offer hybrid programs, or you could assemble your own “dream team”. For example, you might hire a business coach (think ActionCOACH, Shirlaws, or Vistage) alongside a specialist consultant, say, someone from McKinsey, Accenture, or a local boutique consultancy. The combo gives you personalised growth as a leader and practical strategies to move your entire business forward.

Ultimately, the mix depends on what you need right now. But don’t be afraid to combine these approaches. Sometimes, the magic happens when you get both perspectives firing at once.

Hopefully that's cleared things up!