industry offer to private-sector employers

 Respond to the following:

1. What does this industry offer to private-sector employers who want to develop the talents of their employees?
2. Discuss the future of the industry and its major strengths, challenges, and competitors.
3. As an HR Manager in _______________(please select a type of business), what might the business coaching industry provide for your business? Select two services you think are best to utilize for the organization and explain why they were chosen.

WWW.IBISWORLD.COM Business Coaching in the US August 2017

1

IBISWorld Industry Report 6114

3

Business Coaching in the US
August 2017 Taylor Palmer

Back to school: More affordable and flexible
classes will propel industry growth

2

About this Industr

y

2

Industry Definition

2 Main Activities

2

Similar Industries

2

Additional Resources

4 Industry at a Glanc

e

5

Industry Performance

5 Executive Summary

5 Key External Drivers

7 Current Performance

9 Industry Outlook

11 Industry Life Cycle

13

Products & Markets

13

Supply Chain

13 Products & Services

15 Demand Determinants

15 Major Markets

17 International Trade

18 Business Locatio

ns

20

Competitive Landscape

20 Market Share Concentration

20 Key Success Factors

20 Cost Structure Benchmarks

23 Basis of Competition

24

Barriers to Entry

25 Industry Globalization

26 Major Companies

27

Operating Conditions

27 Capital Intensity

28 Technology & Systems

29

Revenue Volatility

29 Regulation & Policy

30 Industry Assistance

31 Key Statistics
31

Industry Data

31

Annual Change

31

Key Ratios

32

Industry Financial Ratios

33

Jargon & Glossary

www.ibisworld.com | 1-800-330-3772 | info@ibisworld.com

This report was provided to
Trident University (2127866900

)

by IBISWorld on 28 January 2018 in accordance with their license agreement with IBISWorld

WWW.IBISWORLD.COM Business Coaching in the US August 2017

2

This industry includes companies that
offer short duration courses and
seminars for management and
professional development. Training is
provided through public courses or
through employers’ training programs,

and the courses can be customized or
modified. Instruction may be provided
at the company’s training facilities,
client or educational institutions, the
workplace or the home and via television
or the internet.

The primary activities of this industry are

Providing management development

training

Providing professional development training

Providing quality assurance training

Providing business coaching

54161 Management Consulting in the US
This industry advises clients on human resource and training issues.

54161b HR Consulting in the US
This industry advises clients on personnel policies, benefits and compensation, as well as recruitment and
retention.

61121 Community Colleges in the US
This industry prepares individuals for careers and offers associate degrees, certificates and diplomas below
the baccalaureate level.

61144 Business Certification & IT Schools in the US
This industry offers certification courses in office procedures and secretarial and stenographic skills.

61131a Colleges & Universities in the US
This industry prepares individuals for careers and offers degrees at the baccalaureate or graduate levels.

61131b For-Profit Universities in the US
This industry prepares individuals for careers and offers degrees at the baccalaureate or graduate levels.

Industry Definition

Main Activities

Similar Industries
About this Industry

The major products and services in this industry are

Business coaching

Management development training

Professional development training

Quality assurance training

For additional information on this industry

www.amanet.org
American Management Association

Additional Resources

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 3

About this Industry

IBISWorld writes over 1000 US
industry reports, which are updated
up to four times a year. To see all
reports, go to www.ibisworld.com

www.td.org
Association for Talent Developmen

t

www.iacet.org
International Association for Continuing Education and Training

www.certifiedcoach.org
International Association of Coaching

www.coachfederation.org
International Coach Federation

www.pmi.org
Project Management Institute

Additional Resources
continued

Provided to: Trident University (2127866900) | 28 January 201

8

WWW.IBISWORLD.COM Business Coaching in the US August 2017

4

%

c

ha
ng

e

3

0

–

10

0
10

20

2210 12 14 16 18 20Year

Corporate profit

SOURCE: WWW.IBISWORLD.COM

%
c
ha
ng
e

12

-8

-4

0
4
8

2309 11 13 15 17 19 21Year

Revenue Employment

Revenue vs. employment growth

Products and services segmentation (2017)

46.4%
Professional development

training

26.2%
Management development

training

13.8%
Business coaching

13.6%
Quality assurance training

SOURCE: WWW.IBISWORLD.COM

Key Statistics
Snapshot

Industry at a Glance
Business Coaching in 201

7

Industry Structure Life Cycle Stage Growth
Revenue Volatility Low

Capital Intensity Low

Industry Assistance None

Concentration Level Low

Regulation Level Light

Technology Change Medium

Barriers to Entry Low

Industry Globalization Low

Competition Level Medium

Revenue

$11.4bn
Profit

$1.0bn
Wages

$3.5bn
Businesses

51,532

Annual Growth 17-22

1.7%
Annual Growth 12-17

3.5%

Key External Drivers
Corporate profit
Per capita disposable
income
Households earning
more than $100,000
Investor uncertainty
Number of employees

Market Share
There are no major
players in this
industry

p. 2

6

p.

5

FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 31

SOURCE: WWW.IBISWORLD.COM
Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 5

Key External Drivers Corporate profit
A large proportion of the industry’s
customers are corporations, so changes in
business sentiment typically influence
industry demand. When corporate profit is
low, companies are less likely to spend
money on nonessential training for their
staff. Corporate profit is expected to
increase in 2017, representing a potential
opportunity for the industry.

Per capita disposable income

Disposable income levels
influence individuals who take courses
for self-fulfillment. Customers
are sensitive to price, so an increase
in disposable income often leads to
increased spending on education
and training courses. Per capita
disposable income is expected to
increase in 2017.

Executive
Summary

The Business Coaching industry is
heavily reliant on demand from its largest
market, the middle and senior
management of US corporations. After
rebounding from a period where
businesses cut back on nonessential
expenses, including employee business
coaching programs, the industry
flourished. IBISWorld estimates that
revenue will increase at an annualized
rate of 3.5% to $11.4 billion over the five
years to 2017, including expected growth
of 1.4% in 2017 alone.

The industry offers leadership and
management training courses, including
courses to enhance knowledge in
particular areas, such as information
technology and change management. The
industry has benefited from large
corporations and individuals’ growing
acceptance of training seminars. In
response to globalization, businesses
increased their use of training and more
individuals attended programs to learn
about finance and real estate. Over the
past five years, per capita disposable
income levels have grown, which has

spurred an increase in demand from
nonemploying business owners looking
to diversify or strengthen their skill sets
to become more competitive in the
current economic climate. Additionally,
job seekers attempting to strengthen
their bids for positions have also sought
out business coaches more frequently as
income growth has given them the
resources to do so. Corporate profit levels
have also generally benefited the industry
since 2012. During the early portion of
the five-year period, profit growth gave
corporations more funds to allocate
toward discretionary purchases, such as
business coaches. Toward the latter half
of the period, corporate profit levels
began to fall, but because of the growing
acceptance of the benefits of business
coaching, businesses still allocated funds
to industry businesses.

Although some companies will use
internal resources for training,
industry revenue is forecast to increase
at an annualized rate of 1.7% to $12.4
billion over the five years to 2022. In
the future, the adoption of online
training is expected to bolster the
industry. This alternative is a more
affordable and flexible option for
customers and offers lower operating
costs for training providers, putting
upward pressure on margins.

Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook |

Life Cycle Stage

In the future, the adoption of online training is
expected to bolster the industry

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 6

Industry Performance

Key External Drivers
continued

Households earning more than $100,000
Demand for the educational services
provided by this industry mainly comes
from middle and senior managers. An
increase in the number of people in these
positions will increase demand for
services. A proxy for the number of middle
and senior managers is the number of
households in high-income groups.
Therefore, an increase in the number of
wealthy households is expected to raise
demand for industry services. The number
of households earning more than
$100,000 is expected to increase in 2017.

Investor uncertainty
Investor uncertainty controls
investor risk. Investor uncertainty

rises during economic downturns with
investors becoming risk averse.
National debt and interest rate
worries are continuing to increase
uncertainty and reduce demand
for industry services. Investor
uncertainty is expected to increase
in 2017.

Number of employees
Any rise in the number of employees in
the United States will expand the
potential market base for the industry.
Therefore, an increase in the
number of employees typically boosts
demand for industry services. The
number of employees is expected to
increase in 2017.

%
c
ha
ng
e
6
-4

-2

0
2
4
2210 12 14 16 18 20Year
Per capita disposable income
SOURCE: WWW.IBISWORLD.COM
%
c
ha
ng
e

30

-10

0
10
20
2210 12 14 16 18 20Year
Corporate profit
Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 7

Industry Performance

Current
Performance

The rapid pace of technological change
and overall shorter product life cycles
have altered the skills required to be an
effective manager. To keep up with these
changes and develop the skills of senior
employees, many companies use business
coaching seminars, such as the ones
offered by the Business Coaching
industry. Large corporations have placed
a greater value on seminars and
workshops, resulting in higher industry
demand. Courses related to new skills,
such as information technology and
change management, have been growing
areas for the industry. As acceptance of
the value of professional development
and continuing education classes, the
industry has benefited immensely,
because companies looking to host these
courses often seek out industry operators.

Overall, industry revenue has grown an
annualized 3.5% to $11.4 billion over the
past five years, including expected growth
of 1.4% in 2017.

Income levels and
corporate profit

Wider economic performance largely
affects growth in this industry. The
market for professional skills and
performance training includes both
individuals and corporations. Personal
disposable income influences demand
from individuals, but the industry’s
greatest share of revenue comes from
large corporations. Over the past five
years, per capita disposable income has
benefited the industry substantially.
Nonemploying business owners with
greater income levels have gained more
resources to contract the services of
industry operators to learn or develop
skills to make them more effective
business owners and more competitive in
their markets. Additionally, growing
income levels have enabled job seekers
looking to become more competitive in
the labor market to take courses with
industry operators.

While per capita disposable income
levels have grown and boosted industry
demand from nonemployers and
individuals, corporate profit has had

a much more uneven effect on the industry
over the period. Corporate profit is a
particularly important driver because
businesses tend to spend more on
employee development when money is
readily available, and corporations make
up the bulk of industry clients. Early in the
five-year period, corporate profit grew
strongly. As a result, businesses invested
in educating senior and mid-level
employees. This practice not only makes
employees more competent at the tasks or
skills they are being taught, but engages
workers and boosts job satisfaction.
Toward the end of the period, however,
corporate profit began to drop. As
businesses lost resources, many of them cut
back on discretionary purchases, but
business coaching was not one of the
services that was cut most frequently.
Business coaching is often seen as an
investment in employees and,
subsequently, a company at-large.
Consequently, clients chose to continue
patronizing business coaches even as
resources were trimmed, and business did

%
c
ha
ng
e
6

-6

-4
-2
0
2
4
2309 11 13 15 17 19 21Year

Industry revenue

SOURCE: WWW.IBISWORLD.COM
Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 8

Industry Performance

Industry structure Though the economy recovered,
depressed demand and profit caused
industry players to cut back on
operational costs associated with
employees, branch offices and wages.
While larger operators can more easily
cut costs associated with branch offices
and employee head count, nonemployers
are more likely to fall victim to declining
profit, forcing them to leave the industry.

This lull in demand particularly
affected nonemploying, sole proprietors,
which account for more than 85.0% of
companies operating in this industry
and less than 20.0% of total industry
revenue. Operators of nonemployer
businesses are primarily former
management consultants or
management-level employees. These
operators often work on a part-time
basis, leaving the industry during
periods of low demand. However,
growth in demand and low barriers to

entry spurred former operators and new
players to enter the market. Over the five
years to 2017, the number of enterprises
is expected to grow at an annualized rate
of 2.3% to 51,532 companies.

New enterprises and establishments
are also leading to higher employment.
Increasing usage of virtual training
sessions has enticed companies to hire
employees with technical expertise to aid
in the delivery of such services, as well as
more consultants and trainers in the
field. Employment is forecast to increase
over the period at an annualized rate of
0.7% to 88,222 workers.

not fall as corporate profit dwindled.
Corporate profit figures are expected to
grow in 2017 and the industry will likely
continue its regular cyclical growth patterns.

Income levels and
corporate profit
continued

Depressed demand and
profit caused industry
players to cut back on
operational costs

Technology The rapidly changing business
environment has assisted long-term
industry growth. Technological
advances have not only increased
required knowledge for employees and
managers, but also changed the
working environment, increasing the
volume and diversity of work that most
employees have to undertake.
Moreover, globalization has pushed
many businesses to expand their
operations overseas, further changing
demands and requirements of
employees. These business conditions
have led to an overall increase in

expenditures on employee and
management training and development.

Professional and management
development education providers have
increased the flexibility of their courses
through the use of the internet and other
technologies. Greater flexibility has
helped increase demand for professional
skills training because it enables people
to attend seminars they would not
otherwise be able to attend. New software
programs have enabled individuals to
attend training courses from home or out
of town. The development of online
education resources has also enabled

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017

9

Industry Performance

Industry
Outlook

The Business Coaching industry is expected
to experience continued growth as the US
economy expands. Demand depends
largely on business sentiment; therefore, as
corporate profit increases over the five
years to 2022, the industry will benefit
from companies having more money to
spend on training. Over the five years to
2022, revenue is expected to increase at an
annualized rate of 1.7% to $12.4 billion.

Demand for industry services has
largely been supported by long-term

trends that will ultimately sustain
recent growth in the industry.
Increasing competition among
corporations, which has been assisted
by globalization and the entry of new
domestic competitors, will encourage
companies to spend on professional
training. Midsize businesses are
expected to be a growth segment as
they experience increasing pressure to
move into international markets to
remain competitive.

some establishments to cut labor and
rent costs as percentages of revenue.
These video conferencing programs have
helped industry operators reach more
clients with less travel requirements. As
operators have been able to take on more
clients and minimize relative fixed costs,
margins have grown.

The industry has also benefited from
a trend of businesses outsourcing their
training and development. The majority

of corporate training is still internal,
but companies are increasingly
outsourcing the training that can be
standardized. This market has yet to
peak, and industry operators regard
internal training programs as one of
their main competitors. With this
knowledge, many operators have
changed course styles and flexibility to
encourage businesses to use their
services rather than training internally.

Technology continued

Economic recovery Over the next five years, industry profit
margins are expected to increase as
demand for training services continues to
rise. This increase is expected partially as
a result of virtual training sessions that
enable employees to conduct seminars
and classes remotely. As a result,
operators can cut down on travel time
and coach more clients each day,
maximizing their revenue and
minimizing relative fixed costs. However,
as the growing number of enterprises
bolsters overall industry competition,
operators will place a premium on hiring
highly skilled workers that command
higher salaries, which will limit some
margin growth. Wages are expected to
grow an annualized 2.3% to $4.0 billion
over the five years to 2022.

Improving profit margins are
expected to continue to bring more
operators and employees into the
industry. Following the economic
downturn, slowing demand was
particularly damaging to sole
proprietors and nonemployers, causing
many to leave the industry amid poor
operating conditions. However, many of
these companies operate on a part-time
basis, making their exits during periods

Improving profit margins
are expected to continue to
bring more operators into
the industry

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 10

Industry Performance

New technology,
rising competition

Distance-education tools can be used to
increase the flexibility of education courses’
delivery, so expansion of distance education
is expected over the next five years. These
courses are unaffected by location and are
becoming more affordable to provide.
Internet-based programs can reduce the
cost of delivering education by reducing
operators’ wage costs. Distance education
also makes training programs available to a
wider potential audience such as out-of-
town individuals. Virtual presence
technologies, such as Skype, have made it
possible for players to provide coaching
services to users who prefer remote courses.

Industry competition is forecast to
increase over the next five years. As a
result, new entrants may seek to

specialize in particular niche markets,
such as quality assurance training for
specific sectors. A survey by the
Association for Talent Development
found that when searching for a
management and professional training
development provider, corporate clients
value businesses with strong knowledge
of the company’s industry. This factor
means there are potentially lucrative
niche markets for smaller training
providers to exploit.

Growing markets Over the five years to 2022, expansion in
corporate profit and the increasing
number of businesses with employees
will provide a platform for industry
growth. However, companies that
reduced spending on training programs
over the past five years will be hesitant to
take on such costs again. Consequently,
growth is expected to slow from current
rates, as these companies will likely use
internal resources to train employees to
reduce costs.

The consumer market for
professional skills and performance
training is also expected to grow.

Demand from individuals is generally
linked to disposable income. Over the
five years to 2022, the industry will
benefit from rising per capita
disposable income. Some individuals
who have been unemployed for an
extended period will likely use services
from this industry to update their
skills as the labor market continues to
grow. Many professional skills
courses undertaken by individuals are
related to real estate. Over the next
five years, improving growth in the
real estate market will spur demand
for related training.

of low demand relatively easy. Over the
next five years, many small players,
particularly nonemployer operators,
will continue to re-enter the industry.
This factor is the primary reason there
will be such strong employment and
enterprise growth during the period.

Over the five years to 2022, the number
of enterprises operating in the industry
is expected to increase at an annualized
rate of 2.9% to 59,333 companies.
Likewise, employment is also projected
to increase at an annualized rate of 2.3%
to 98,643 workers.

Economic recovery
continued

Industry competition is
forecast to increase over
the next five years

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 11

Industry Performance
The industry has grown faster
than the overall economy

There is increasing acceptance of the value
of training offered by this industry

The type of training offered is adapting to
changes in the business environment

Life Cycle Stage
SOURCE: WWW.IBISWORLD.COM
20

15

10
5
0

-5

-10

%
G

ro
w

th
in

s
ha

re
o

f
ec

on
om

y

% Growth in number of establishments

-10 -5 0 5 10 15 20

Decline
Shrinking economic
importance

Quality Growth
High growth in economic
importance; weaker companies
close down; developed
technology and markets

Maturity
Company
consolidation;
level of economic
importance stable

Quantity Growth
Many new companies;
minor growth in economic
importance; substantial
technology change

Key Features of a Growth Industry

Revenue grows faster than the economy
Many new companies enter the market
Rapid technology & process change
Growing customer acceptance of product
Rapid introduction of products & brands

Management Consulting

Book, Magazine & Newspaper Wholesaling

HR Consulting
Computer Stores

Community Colleges

Business Coaching

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 12

Industry Performance

Industry Life Cycle The Business Coaching industry is
expected to grow faster than the overall
economy during the 10 years to 2022.
Industry value added, a measure of the
industry’s contribution to the overall
economy, is expected to increase at an
annualized rate of 2.3% over the 10 years
to 2022, while the US economy is
expected to grow at an annualized rate of
2.1% over the same period. Since the
beginning of the economic recovery and
subsequent expansion, there have been
steady increases in the number of
operators, rapid technological change and
new products, skewing industry growth.
Therefore, the industry is currently in the
growth phase of its life cycle. More
companies have embraced professional
skills programs as an important method of
training key management personnel,
which is indicative of the industry’s
growing life cycle stage. Senior managers

are leading organizations in an
increasingly competitive and global
economy, so businesses use this industry’s
services to teach managers to navigate
these problems.

The type of training provided by this
industry is adapting to the changing
needs of businesses. Newer training
courses include those related to
information technology, security
management, information management
and change management. These moves
have supported long-term growth for
players offering these courses. After
many part-time operators left the
industry amid poor operating
conditions, the number of enterprises
operating in this industry exploded, and
is expected to increase an annualized
2.6% over the 10-year period, including
the return of many who previously
exited the industry.

This industry
is Growing

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 13

Products & Services The product segmentation of this industry
has undergone changes over the past
decade. The advent of business coaching
and ongoing changes to the business
environment have affected the content of
training courses. Increasing globalization,
widespread use of technology and an aging
workforce have all contributed to these
changing services. In general, these factors
have increased demand for services
provided by this industry. Courses in this
industry relate to professional development,
management development, quality
assurance training and business coaching.

Professional development training
The most common service provided by
this industry is in the field of professional
development, which includes seminars
and courses on topics such as finance and
accounting, communication and
interpersonal skills, marketing and time
management. These courses appeal to a
broad group of people with a wide range
of skills and are more likely to include
individuals than programs in the
management development training
segment. Many providers of these
services have experienced a surge in

Products & Markets

Supply Chain | Products & Services | Demand Determinants
Major Markets | International Trade | Business Locations

KEY BUYING INDUSTRIES

61131a Colleges & Universities in the US
Participants completing seminars and short courses in this industry may choose to further their
education (in particular at a post-graduate level) at a university or professional school.

61131b For-Profit Universities in the US
Participants completing seminars and short courses in this industry may choose to further their
education (in particular at a post-graduate level) at a university or professional school.

81392 Professional Organizations in the US
This industry may offer professional skills training services to their members.

92 Public Administration in the US
The public sector accounts for nearly 25.0% of the market for this industry. The government
contracts professional skills training services for employee training and for unemployment
assistance programs.

99 Consumers in the US
Consumers are the primary source of demand for this industry.

KEY SELLING INDUSTRIES

42492 Book, Magazine & Newspaper Wholesaling in the US
This industry provides the books and resources used in education and training courses.

44312 Computer Stores in the US
This industry provides the computer hardware and software that is used in training and for
administrative purposes.

45321 Office Supply Stores in the US
This industry provides notebooks and other stationary requirements.

53112 Commercial Leasing in the US
This industry provides office space to business coaching companies.

54151 IT Consulting in the US
This industry develops websites from which business coaches can market their services and
provide classes.

Supply Chain
Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 14

Products & Markets

Products & Services
continued

demand with the recovery and
subsequent growth of the economy. This
segment is expected to account for 46.4%
of industry revenue in 2017.

Management development training
Management development training is
generally targeted at middle- and senior-
level management. Courses in this
segment include seminars on topics such
as strategic business management,
leadership, management and supervisory
skills, sales management and IT
management. The primary market for this
segment is made up of corporations that
are trying to develop their managers. This
segment also experienced declines as a
result of the economic downturn because
the decline in corporate profit caused
many of these companies to cut back on
training expenses, which has ultimately
reduced demand for this segment. In the
next five years, the segment is expected to
return to growth, though, as businesses
begin spending on training services once
again. In 2017, management development
training is projected to make up 26.2% of
industry revenue.

Quality assurance training
Quality assurance training is a growing
segment of this industry and is expected

to increase over time; accounting for an
expected 13.6% in 2017. This segment is
primarily focused on improving
production processes as well as the end
result of the processes. Increasing
requirements for the formal quality
certification of products and business
systems are expected to spur demand for
quality assurance training over the next
five years. Furthermore, this segment has
received a boost following several high-
profile cases, such as dangerous levels of
lead paint found in children’s toys.

Business coaching
The business coaching segment has
experienced rapid growth as demand for
more personal executive training has
increased. Management training experts
believe that this is due to the flattening
out of businesses, which is leaving
management more isolated than before.
Due to the isolation, managers often
employ coaches to share ideas with, learn
from and help develop their leadership
skills. Employment trends toward higher
instances of job transition, self-
employment and changing management
styles are also cited as reasons for the
increased demand for business coaches.
Furthermore, some managers feel that
traditional management styles no longer

Products and services segmentation (2017)

Total $11.4bn

46.4%
Professional development
training
26.2%
Management development
training
13.8%
Business coaching

13.6%
Quality assurance

training
SOURCE: WWW.IBISWORLD.COM
Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 15

Products & Markets

Major Markets This industry provides training to
individuals through public open-
enrollment programs and to corporations
and government departments through
custom-designed programs. Services
provided by this industry to the private,
public and nonprofit sectors are most often
aimed at middle management and above.

Age breakdown
While data is not available for which
sector that industry business comes from,
there is data pertaining to the age of the
relevant industry clients. Customers
younger than 25 years old account for
just 4.1% of industry revenue. These
people are much less likely to be in

Demand
Determinants

Demand for services from the Business
Coaching industry is influenced by
business sentiment, corporate training
budgets, course quality and employer
perception of course value, change within
corporations and the price of training
courses. Demand from individuals is
influenced by growth in household
disposable income, price and perceptions
of quality and value.

Corporations comprise the largest
market segment for this industry;
therefore, demand for industry services is
largely influenced by corporate training
budgets. These budgets, in turn, are
affected by business sentiment, overall
economic growth and the perceived value
of training programs to company
performance. Periods of high business
sentiment often spur investment in
employee training programs, while
difficult economic times cause companies
to reduce spending on nonessential
training. Corporations often cut training
budgets when profit falls, leading to
lower demand for the services provided
by this industry.

Employer perceptions of the value of
management and development training
strongly influence demand for
performance skills training. There is

likely to be a higher level of demand for
training programs that are highly
respected and valued by corporations.
Training programs have generally
become more widely accepted, a driving
factor in industry growth during the past
five years.

Change within a company can also
spur demand for industry services. An
increase in the pace of technological
improvements or a reduction in
product or process life cycles can
translate to an increase in demand for
professional skills and performance
training. Similarly, companies may
choose to invest in training programs
during restructuring campaigns.

The price of training is an important
factor of demand. Seminars and short-
duration courses are not essential
services and, therefore, must be
affordable for both individuals and
corporations, depending on the target
market of the training program. The
level of disposable income influences
demand for self-fulfillment courses that
are taken by individuals. More flexible
course arrangements have boosted
demand because they permit individuals
to take classes remotely and on their
own schedules.

Products & Services
continued

work and they need to learn new
techniques to achieve what is required of
them. This segment accounts for 13.8% of
industry revenue.

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 16

Products & Markets

Major Markets
continued

management positions than other age
groups. Therefore, they have less use for
business coaching and are less likely to
have their companies pay for coaching.
This also explains why the proportion of
industry business goes up for those in the
age groups between 26 and 35, 36 and 45
and 46 and 55. After that age bracket, the
proportion of industry revenue the age
brackets account for shrinks, as older
workers are less likely to seek out
business coaching.

Private sector
The majority of enrollments in this
industry are through corporations and
the private sector. The majority of
participants are from middle
management and upper-middle
management. In this segment, training
courses and seminars may be
customized to some degree to meet the
specific requirements of the particular
corporation. The training may be
general in nature or on a specific topic
relevant to the company at the time.
For instance, companies might send
senior employees to a training seminar
on change management during a period
of company restructure. However, low
corporate profit caused many
companies to reduce spending on

training expenses, slowing demand for
training in this segment. Demand from
this segment is expected to return as
business sentiment continues to
improve over the next five years.

Public sector
The public sector is another important
segment for this industry. This market
is largely focused on the federal
government, so there is a high share of
larger professional and management
development training establishments
in Washington, DC. Over the past five
years, this segment has remained
relatively steady.

Individuals
Training through open-enrollment
programs for individuals’ accounts for
a significant proportion of industry
revenue. Establishments offer a range
of courses and seminars in cities
throughout the United States. These
courses generally follow a standard
format, and enrollment is open to all
members of the public. Distance
education courses, where students can
work at their own pace, are also
offered. In some instances, this market
segment may benefit from the federal
government’s Work Investment Act,

Major market segmentation (2017)

Total $11.4bn

34.9%
Customers between
36 and 45 years old

0.9%
Customers older
than 65 years old

34.2%
Customers between
46 and 55 years old

16%
Customers between
26 and 35 years old

9.9%
Customers between
56 and 65 years old

4.1%
Customers less

than 25 years old

SOURCE: WWW.IBISWORLD.COM
Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 17

Products & Markets

International Trade Given that this industry offers only
seminars and courses of short duration,
international participants are unlikely to
attend courses offered in the United
States; therefore, trade levels within this
industry are relatively small. However, an
increasing number of establishments in
this industry are offering their courses
over the internet, enabling overseas
residents to participate.

Additionally, several of the larger
enterprises in this industry also
operate outside the United States,

either through establishing overseas
branches, the sale of a franchise to an
overseas operator or through licensing
an overseas enterprise to deliver
training courses. For instance, the
Center for Creative Leadership operates
campuses in Singapore and Brussels
and also has network associates in
several other countries. These network
associates are licensed to offer one or
more of the center’s programs and
assessments to the public or the
managerial staff of organizations.

Major Markets
continued

which provides funding for some
professional development training for
the young and unemployed. This
market has experienced a decline over
the past five years due to reduced
spending on classes related to finance
and real estate.

Nonprofit sector
The nonprofit sector is one of the industry’s
significant downstream markets. Over the
past five years, this market segment has
grown rapidly due to increased acceptance
of the benefits of management training
within the sector.

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 18

Products & Markets

Business Locations 2017

MO
1.5

West

West
West

Rocky
Mountains Plains

Southwest

Southeast

New
England

VT

0.5

MA
2.9

RI

0.3

NJ
2.5

DE
0.3

NH
0.5

CT
1.6

MD
2.4

DC
0.9

1
5
3
7
2
6
4

8 9

Additional States (as marked on map)

AZ
2.4

CA
11.5

NV
1.2

OR
1.6

WA
3.1

MT

0.4

NE
0.3

MN
2.1

IA
0.7

OH
2.7

VA
3.7

FL
7.6

KS
0.9

CO
4.6

UT
1.6

ID
0.4

TX
6.9

OK
0.6

NC
3.3

AK

0.1

WY

0.2

TN
1.4

KY
0.7

GA
3.4

IL
4.6

ME
0.5

ND
0.1

WI
1.6 MI

2.4
PA
3.6

WV
0.2

SD
0.3

NM
0.7

AR
0.3

MS
0.3

AL
0.6

SC
1.1

LA
0.9

HI
0.3

IN
1.4

NY
6.3 5

6
7

8

3
21

4
9
SOURCE: WWW.IBISWORLD.COM

Mid-
Atlantic

Establishments

(%)

Less than 3%
3% to less than 10%
10% to less than 20%
20% or more

Great
Lakes

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 19

Products & Markets

Business Locations The distribution of industry
establishments closely follows the US
population. The most populated region of
the United States, the Southeast,
accounts for 23.5% of establishments,
followed by the West with 17.8% and the
Mid-Atlantic with 16.0%.

Highly populated regions, particularly
those with centers of major business
activity, benefit from higher demand for
professional skills training. Regions with
a large number of corporate headquarters
will have higher demand for professional
and management development training
because a large proportion of the market
for this industry is made up of
corporations. Larger establishments are,
therefore, more likely to be located in
these regions. The distribution of
businesses in this industry has not
changed much over the past five years;
although the share of establishments in
the West has declined from 20.2% in
2012 to just 17.8% in 2017 due to a drop

in establishment numbers in states other
than California. California still accounts
for the largest segment of industry
establishments at 11.5%.

%
30
0
10
20

So
ut

hw
es

t

W
es

t

G
re

at
L

ak
es

M
id

-A
tl

an
ti

c

N
ew

E
ng

la
nd

Pl
ai

ns

R
oc

ky
M

ou
nt

ai
ns

So
ut

he
as

t

Establishments
Population

Distribution of establishments vs. population

SOURCE: WWW.IBISWORLD.COM
Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 20

Cost Structure
Benchmarks

Cost structures vary across the industry.
Some operators may benefit from
operating efficiencies or offering more
online courses to reduce their labor costs.

Additionally, some operators primarily
offer classes in their clients’ workspaces,
while others coach from their own
facilities, which dramatically alters rent

Key Success Factors Being part of a franchising chain
New establishments in this industry
can benefit from offering courses under
license from a larger organization.
This reduces the costs associated
with establishing new courses and
maximizes economies of scale.

Ability to alter goods and services
produced in favor of market conditions
Establishments in this industry must be
able to change or adapt the courses
offered to suit the needs of attendees. For
instance, recently there has been
increased demand for IT management
training and quality assurance training.

Having a good reputation
The perceived value of a company is
important for the recruitment of new
clients for seminars and workshops.

Access to highly skilled workforce
Trainers in this industry must have
an appropriately high level of skills
and experience.

Provision of superior after sales service
Establishments that provide a
higher level of after-sales service
have a competitive advantage
over those that do not in
cementing client relationships.

Market Share
Concentration

In 2017, IBISWorld estimates that the
two largest companies account for less
than 5.0% of industry revenue. As a
result, the Business Coaching industry is
highly fragmented, with a large number
of small enterprises operating throughout
the United States. The vast majority of
operators are nonemployers that service
only their local area. Nonemploying
businesses represent more than 85.0% of
all companies operating in this industry.
Similarly, there is also a large number of
operators that have a relatively small
number of employees. 72.8% of
employing companies have fewer than
five employees, while companies with
fewer than 10 employees represent 85.2%
of employing enterprises. The low
barriers to entry into this industry and
growing demand have helped
nonemploying companies carve out a
niche and a space for success in this
industry. Additionally, the wide range of

client industries has led to specialization
that has discouraged any one company
from gaining significant market share in
this industry. As a result, most
competition occurs on a regional basis.
While larger companies operate in
several locations, the dominance of
smaller companies is emblematic of an
industry with low market share
concentration. Additionally,
concentration has fallen over the past five
years, as technological advances have
made it easier for nonemployers to enter
the industry. Teleconferencing
technologies, like Skype, have enabled
individual operators to bolster flexibility
in their offerings and availability, cutting
into barriers for entry and success. This
has offered a lower-priced option for
many businesses that may have otherwise
been priced out of service by the larger
companies, bolstering already-high levels
of fragmentation.

Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks
Basis of Competition | Barriers to Entry | Industry Globalization

Level
Concentration in
this industry is Low

IBISWorld identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 21

Competitive Landscape

Cost Structure
Benchmarks
continued

expenditures. The cost structure for
nonemployer enterprises will also vary
from that of the larger operators.

Profit
In 2017, the Business Coaching industry
is expected to generate profit margins,
measured by earnings before interest and
taxes, representing 8.9% of revenue. Over
the past five years, the industry
experienced a rise in profit margins due
to an expansion in industry demand. As
the benefits of business coaching have
become more widely accepted, an influx
in demand has enabled operators to
minimize relative fixed costs, like rent
and utilities. Additionally, operators have
invested in more technology, which has
enabled them to maximize profit.
Business coaches have implemented
voice over internet protocol and video
conferencing technologies, which have
enabled them to reach more clients in a

given day. Instead of traveling to
different locations to coach disparate
clients, coaches can maximize time and
video conference with more clients
because of the lack of travel time. This
has led to an increase in margins.
However, the low barriers to entry in the
industry and expanding demand have
enticed a high number of new entrants.
This has caused some operators to lower
prices to stimulate demand in a
competitive environment, which has
constrained margin growth.

Wages
Wages and salaries account for the
largest portion of industry revenue
because most teaching is conducted on a
face-to-face basis. Wages account for an
expected 31.1% of industry revenue in
2017, which includes wages for teaching,
administration and management staff.
The wages category also includes an

Sector vs. Industry Costs

n Profi t
n Wages
n Purchases
n Depreciation
n Marketing
n Rent & Utilities
n Other

Average Costs of
all Industries in
sector (2017)

Industry Costs
(2017)

0
20

40

60

Pe
rc

en
ta

ge
o

f
re

ve
nu

e

80

100

SOURCE: WWW.IBISWORLD.COM

5.1 8.9

39.0

4.0
3.02.0

12.0

31.1

17.3

4.4 1.4
7.1
8.3

55.0

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 22

Competitive Landscape
Cost Structure
Benchmarks
continued

allowance for the wages of self-employed
operators in the industry. This proportion
is lower than the average for the overall
industry. Over the past five years,
nonemployers have taken advantage of
technological advancements in voice over
internet protocol software and
teleconferencing equipment. The
flexibility that these permit have enabled
more part-time work, which has cut into
wage outlays.

Purchases
Purchases account for a significant
proportion of overall costs, at 12.0% of
industry revenue. Purchases include
materials, equipment and property and
leasehold improvements. Course
development costs, which are associated
with developing and refreshing courses,
are also considerable. Since it is
important for providers to offer courses
that are current, they must frequently
invest in updating course material. Over
the next five years, this segment is
expected to increase, due to higher costs
of the cost of materials and equipment.

Marketing
Advertising and marketing expenses
make up a large cost for industry
operators because business coaching is
still gaining acceptance and competition
is strong. The larger companies in the
industry have emphasized the
importance of marketing and advertising
in their operations. Marketing is expected
to account for 3.0% of industry revenue
in 2017, and is projected to increase as
operators continue to incorporate new
products into their portfolios.

Rent and utilities
The cost of rent varies among operators:
while some own their training facilities,
others rent them. Operators that serve
business clients may use the business’
facilities to reduce costs. This move
reduces capital and also rent and utility
expenses, which are estimated to
represent 4.0% of industry revenue.
Rent and utilities costs have actually
increased over the past five years
because more coaches have started using
video conferencing services. This has
caused more coaches to operate out of a
facility, as opposed to coaching from
their clients’ facilities.

Other
Depreciation represents only a small share
of total revenue for this industry because
seminars and training courses are
generally of a short duration, and facilities
are rented on an as-needed basis. Other
capital requirements for operators are
minimal; therefore, depreciation is
estimated at 2.0% of industry revenue.
These costs have grown since 2012, as
more operators have implemented video
conferencing services.

Industry operators also incur a
variety of other expenses, such as fees
for legal and accounting work.
Operators must also pay for other
day-to-day costs of running a business,
such as administrative expenses and
travel to and from clients. Continuing
education and training fees also
contribute to these costs. For those who
are self-employed, self-employment
taxes account for a significant amount
of profit earned.

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 23

Competitive Landscape

Basis of Competition Industry establishments experience
both internal and external competition.
Since the industry is fairly fragmented
with a large number of owner
operators, competition occurs mainly at
a regional level.

Internal competition
Businesses within the industry compete
on the basis of quality, reputation,
industry-specific knowledge, price,
flexibility and marketing ability. Since
most clients of this industry are in
higher-level positions in their
organizations, they are typically seeking a
high-quality educational service with a
short duration. This fact is influenced not
only by the standard of course content,
but also by the quality of trainers.
Trainers need to be highly knowledgeable
and respected in their teaching fields.

Reputation is an important factor and
can include both the reputation of the
training provider and of the content of
the course. Well-known training courses
(e.g. courses based on Stephen Covey’s 7
Habits of Highly Effective People and
seminars presented by well-respected
trainers) or courses offered by
organizations such as the American
Management Association can benefit
considerably from a good reputation.
Specific industry knowledge creates
another basis of competition between
providers. For instance, a good
understanding of a client’s particular
industry may give an education provider
a competitive advantage over others.

Establishments within this industry
also compete on the basis of price.
Although prices may be difficult to
compare because of the range of

different courses offered in terms of the
topics covered, the length of the training
course and the level of course support
before and after training. Effective
marketing strategies can be a point of
competition; therefore, businesses
undertake a range of marketing and
advertising activities to attract both
corporate and individual clients.

Flexibility in terms of course design
and scheduling will give establishments
within this industry a competitive
advantage. Industry operators provide
set courses, and customize their training
to suit the needs of the client. Flexibility
in the scheduling of courses is important
because the vast majority of participants
in training offered by this industry are
full-time employees, often in senior-level
positions. As a result, several
establishments in this industry offer
self-paced programs or online courses.

External competition
Industry participants are experiencing
increasing external competition from
other education operators involved in
the Colleges and Universities industry
(IBISWorld report 61131a) and the
For-Profit University industry (61131b).
This competition is evident in the large
increases in Masters of Business
Administration degrees, which involve
similar content to some of the courses
delivered through the Business
Coaching industry. Industry operators
also experience competition from
internal training and development
departments of larger corporations.
Internal training providers benefit
from higher knowledge of the workings
of the company.

Level & Trend
Competition in
this industry is
Medium and the
trend is Increasing

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 24

Competitive Landscape

Overall, there are few barriers to entry
into the Business Coaching industry.
Investment requirements are low, and
there is minimal regulation of the
industry. As a result, the industry has a
low concentration with a large number of
owner-operated businesses. The ease of
entry enables these nonemploying
businesses to enter and exit the industry
in line with changing conditions.
Business coaches are good examples
because they have minimal fixed costs
and can set up or leave the industry with
little expense incurred.

The major cost of entering this
industry relates to the development costs
of creating suitable training programs
and the promotion of new courses. The
initial costs of establishing an enterprise
in this industry are relatively low. Most
classes are of a short duration, and
training facilities and equipment can be
hired on an as-needed basis to minimize
capital costs. Businesses providing
corporate training may also use the
client’s facilities, lowering expenditures
by reducing the need to rent out sizable
training facilities.

Reputation is important; therefore,
new establishments in this industry
may initially experience difficulties
attracting students. Establishments
generally need to have a quality
training reputation to attract both
individual students to public seminars
and courses and corporations seeking
customized training for their
professional and management staff.
Obtaining accreditation from an
organization such as the International

Association for Continuing Education
and Training (IACET) or the
International Coach Federation (ICF)
is one way that an establishment in
this industry can develop a good
reputation. The IACET Authorized
Provider Program assesses programs
based on a series of criteria that
measure all aspects of an educational
provider’s program development. The
ICF has an accreditation program that
costs $1,000 (for a renewable three-
year approval) and includes over 176
hours of training. The cost and time
required to gain accreditation may,
however, represent a barrier to entry
for some potential operators.

Over the next five years, it is likely that
barriers to entry will increase as more
operators attempt to enter the industry.
As a result, IBISWorld expects that more
stringent certifications will be imposed
on existing and prospective business
coaches. The increasing enterprise figures
will give prospective clients more choices
when choosing a business coach and
being certified is likely to become more of
a necessity in this industry.

Barriers to Entry checklist

Competition Medium
Concentration Low
Life Cycle Stage Growth
Capital Intensity Low
Technology Change Medium
Regulation & Policy Light
Industry Assistance None

SOURCE: WWW.IBISWORLD.COM

Barriers to Entry

Level & Trend
Barriers to Entry
in this industry are
Low and Increasing

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 25

Competitive Landscape

Industry
Globalization

This industry has a low level of
globalization, with all of the larger
enterprises being domestically owned.
The international reach of these
enterprises is growing; however, through
the establishment of branches overseas,
licensing programs to operators outside
the United States and increasing use of
distance-education methods. For
instance, industry leader Franklin Covey
earned more than 20.0% of its total sales
outside of North America in fiscal 2017.

Despite this expansion, the vast
majority of people served by this
industry are located in the United
States, and companies with operations
overseas account for only a small
percentage of total industry revenue.
Given the highly fragmented nature of
this industry, with more than 85.0% of
establishments being nonemployers,
the level of domestic ownership of
certain establishments is likely to
remain low.

Level & Trend
Globalization in
this industry is
Low and the trend
is Increasing

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 26

Other Companies The majority of companies in this
industry are small players that operate
on a local basis. Furthermore, more
than 85.0% of industry enterprises are
nonemploying sole proprietorships.
Although these nonemployers generate
less than 20.0% of industry revenue,
their prevalence is indicative of the
industry’s low market concentration.
As a result of this low concentration,
the industry’s largest players also
generate a relatively small share of
industry revenue.

Franklin Covey
Estimated market share: 1.5%
Franklin Covey is a learning and
performance solutions company that
provides management development
training and a range of related services to
organizations and individuals. The
company was formed in 1997 when
Franklin Quest acquired the business
created by Stephen Covey, author of The
7 Habits of Highly Effective People. With
more than 800 associates, Franklin
Covey now has just one operating
segment, organizational solutions, which
is responsible for the company’s training
and seminar services. Domestic revenue
accounts for the vast majority of the
company’s more than $200.0 million in
total revenue from fiscal 2016. IBISWorld
estimates that Franklin Covey will
generate $171.1 million in industry-
specific revenue in fiscal 2018.

Organizational solutions segment
offers courses on strategic execution,
productivity, leadership, sales-force
performance and communication
training. Consultants provide on-site

training for organizations and schools,
while the company offers a measurement
methodology along with its courses to
quantify the results of the training.

Center for Creative Leadership
Estimated market share: 0.9%
The Center for Creative Leadership
(CCL) is a nonprofit organization
founded in 1970 in Greensboro, NC. CCL
now operates at five campuses, with one
in Brussels and another in Singapore. In
addition to having its own campuses, the
company provides courses online and
through a network of associates. Each of
the more than 500 associates, which are
located in eight different countries, are
licensed to offer one or more of CCL’s
programs. CCL undertakes research and
educational training programs on
modern leadership issues. The company
is routinely ranked among the top
providers of nondegree executive
education programs by publications that
include the Financial Times and
Business Week.

CCL offers a range of leadership
development courses designed for middle
and senior managers. It provides 15
different open-enrollment courses and
tailored courses for corporate training.
CCL provides customized programs for
more than 2,000 client organizations
each year. About 80.0% of its program
participants are from the private sector
and 5.0% are from the public sector. The
remainder is involved in the education
and nonprofit sectors. IBISWorld
estimates that CCL will generate $105.0
million in US industry-specific revenue in
fiscal 2018.

Major Companies
There are no Major Players in this industry | Other Companies

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 27

Capital Intensity The Business Coaching industry has a
low level of capital intensity. IBISWorld
estimates that for every dollar spent on
wages, industry operators will spend
$0.07 in capital investment. As is the case
for most industries in the education
sector, wages and salaries account for a
high proportion of industry revenue,
resulting in high labor intensity. Business
coaches are often skilled and accredited
workers with experience in the fields in
which they coach. This type of worker
often commands a high salary, which
pushes up labor expenditures. Capital
investment is mainly in equipment, such
as computers, and technology, such as
voice over internet protocol software.
Over the past five years, capital intensity
decreased slightly; in 2012, for every

dollar spent on wages, industry operators
spent closer to $0.08 in capital
investment. Many operators have

Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility
Regulation & Policy | Industry Assistance

Tools of the Trade: Growth Strategies for Success

SOURCE: WWW.IBISWORLD.COM

La
bo

r
In

te
ns

iv
e

Capital Intensive

Change in Share of the

Economy

New Age Economy

Recreation, Personal Services,
Health and Education. Firms
benefi t from personal wealth so
stable macroeconomic conditions
are imperative. Brand awareness
and niche labor skills are key to
product differentiation.

Traditional Service Economy

Wholesale and Retail. Reliant
on labor rather than capital to
sell goods. Functions cannot
be outsourced therefore fi rms
must use new technology
or improve staff training to
increase revenue growth.

Old Economy

Agriculture and Manufacturing.
Traded goods can be produced
using cheap labor abroad.
To expand fi rms must merge
or acquire others to exploit
economies of scale, or specialize
in niche, high-value products.

Investment Economy

Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
fi rms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.

Management Consulting

Book, Magazine
& Newspaper
Wholesaling

HR Consulting
Community Colleges

Offi ce Supply Stores
Business Coaching

Level
The level of capital
intensity is Low

Capital intensity

0.5

0.0

0.1
0.2
0.3
0.4

SOURCE: WWW.IBISWORLD.COM
Dotted line shows a high level of capital intensity

Capital units per labor unit

Business
Coaching

Educational
Services

Economy
Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 28

Operating Conditions

Technology & Systems Establishments in this industry need to
keep pace with the rate of technological
change in major corporations to ensure
that the training provided is up-to-date
and relevant, which includes updating
existing courses and providing new
training courses as client industries
evolve. For instance, training courses are
now available for project management,
software design and other IT-related
management topics.

Technology developments are
changing the way courses are delivered.
An increasing number of operators in this
industry now offer training via the
internet. The use of the internet as a
communication device is also enabling
better pre- and post-training support and
networking, which enables companies in
this industry to establish an ongoing
relationship with their clients. For
instance, the Center for Creative
Leadership holds webinars, online
seminars that often include online

discussion forums. Similarly, the
American Management Association
provides pre- and postblended learning
support for its instructor-led courses.
Online materials prepare students with
subject matter before their courses and
enable better revision of the course
contents after it has been completed.

Advancing technology has also enabled
operators to improve administrative
efficiency. Management software can
incorporate human resources and
financial and client information, enabling
operators to have a better understanding
of their customers, resulting more
accurate and timely monitoring of
outcomes. These improvements will
enable companies to direct their
marketing more effectively to potential
students. The monitoring of student
outcomes also ensures the expectations
of students and client corporations are
met, leading to better client feedback and
a clearer demonstration of past results.

Capital Intensity
continued

invested in capital so that they can coach
and remain in communication with
clients online. These technologies are
rather inexpensive and has not bolstered
much capital spending. However, it has
had a far greater impact on the number
of part-time workers in this industry.
Telecommunication equipment has
increased flexibility for potential
entrants, as they can provide coaching
from their homes, bolstering the entry of
workers operating as nonemployers. This
has decreased capital intensity slightly.

This industry generally provides
training on a face-to-face basis. However,
alternative training delivery methods,
particularly via the internet, has grown in

popularity in recent years. Currently, the
internet is primarily used in blended
learning, which uses online elements to
complement classroom training. Online
learning is expected to develop further
over the coming years.

As training courses in this industry
are predominantly short in duration,
many establishments are able to rent
premises and equipment on an as-
needed basis, rather than purchasing
them outright. In addition, training
programs provided to corporations can
be held at the client’s training facilities
or workplace. This ability results in
lower capital costs than would otherwise
be the case.

Level
The level of
Technology Change
is Medium

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 29

Operating Conditions

Regulation & Policy There is little regulatory control of
establishments operating in this industry,
as there is no centralized government
authority and states assume varying
degrees of responsibility. In general,
establishments in this industry are able
to operate with considerable
independence and autonomy.

Industry operators are not required to
have specific accreditation to operate
seminars, short duration courses or
self-study programs. However, some
establishments have gained recognition

for their courses from key institutes,
such as the Project Management
Institute and the International
Association for Continuing Education
and Training (IACET). The IACET is a
nonprofit association that was
commissioned by the Bureau of
Education in 1968. It authorizes
education providers that meet strict
guidelines in relation to the quality and
standard of education provided. The
association’s authorization gives an
assurance to prospective students that

Revenue Volatility

The Business Coaching industry has a
low level of revenue volatility. Many of
the services offered by this industry fall
under the discretionary spending
category; therefore, revenue is subject to
changes in the level of disposable income
and corporate profit. Nonemploying
entrepreneurs looking to boost their
skills and expand their business and job
seekers looking to become more
competitive in the hiring market often
seek out business coaches and pay for
them out of pocket. Per capita disposable
income growth has been relatively steady
over the period, which has contributed to
low volatility. Corporate profit has grown

overall, but experienced some volatility.
However, changes to the business
environment have encouraged companies
to provide professional training to senior
employees, increasing demand for
business coaching services, regardless of
corporate profit fluctuations. Increasing
acceptance of the benefits of business
coaching has consistently benefited the
industry, resulting in steady revenue
growth. Additionally, the industry has
clients in a wide variety of different
industries. As a result, a decline in
revenue in one market can be offset by an
increase in another segment, thus
reducing the industry’s volatility.

SOURCE: WWW.IBISWORLD.COM

Volatility vs Growth

Re
ve

nu
e

vo
la

ti
lit

y*
(%

)

1000

100
10
1
0.1

Five-year annualized revenue growth (%)
–30 –10 10 30 50 70

Hazardous

Stagnant

Rollercoaster

Blue Chip

* Axis is in logarithmic scale

A higher level of revenue
volatility implies greater
industry risk. Volatility can
negatively affect long-term
strategic decisions, such as
the time frame for capital
investment.

When a fi rm makes poor
investment decisions it
may face underutilized
capacity if demand
suddenly falls, or capacity
constraints if it rises
quickly.

Business Coaching

Level
The level of
Volatility is Low

Level & Trend
The level of
Regulation is
Light and the
trend is Steady

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 30

Operating Conditions

Industry Assistance This industry receives no direct
government assistance, with
establishments generally operating quite
autonomously. Industry establishments
are not required to comply with onerous
regulations; however, some businesses
may benefit from the Federal
Government Workforce Investment Act.
In 2015, this Act was budgeted to give
nearly $3.3 billion to public-sector job

training and employment systems to
ensure a certain level of employee
training within the employment market
in the United States. The level of
assistance that this legislation gives to
the whole industry, however, is limited
because it is aimed at providing training
to unemployed individuals, whereas this
industry predominantly targets
management and professionals.

Regulation & Policy
continued

the company’s processes and procedures
are of a high quality and standard.

For the business coach segment there
is the International Coach Federation
(ICF), a nonprofit organization that has
devised an industry code of ethics and
professional standards for business
coaches. By providing credentials, it
aims to improve the profession’s
reputation. More than 9,000 people
have been certified as coaches by the
ICF, and its membership count exceeds
20,000 people in 100 different countries
over the world.

Taxation
About one-fifth of employing
establishments in this industry are
exempt from federal income taxation,

according to US Census data. These are
educational organizations and
establishments operated by nonprofit
organizations that are recognized as
exempt from federal income tax under
section 501(c)(3) of the Internal Revenue
Code. Nonprofit organizations are also
authorized to receive tax-deductible
charitable contributions. Educational
organizations may include
establishments that conduct public
discussion groups, forums, panels or
other similar programs. A qualifying
organization may also present a course of
instruction by correspondence or through
the TV or radio. The proportion of
industry revenue generated by tax-
exempt establishments has stayed
relatively flat over the past five years.

Level & Trend
The level of
Industry Assistance
is None and the
trend is Steady

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 31

Key Statistics
Revenue

($m)

Industry
Value Added

($m)
Establish-

ments Enterprises Employment Exports Imports
Wages
($m)

Domestic
Demand

Number of
employees

(Mils)
2008 9,811.6 3,801.3 40,173 39,880 77,943 — — 3,232.2 N/A 137.2
2009 9,252.8 3,641.1 39,068 38,795 73,081 — — 2,826.8 N/A 131.3
2010 9,415.0 3,611.2 38,635 38,357 71,110 — — 2,820.4 N/A 130.4
2011 9,446.6 4,205.0 43,457 43,175 78,172 — — 2,948.6 N/A 131.9
2012 9,602.5 4,187.1 46,342 46,020 85,175 — — 3,294.0 N/A 134.2
2013 10,045.2 4,975.7 47,887 47,560 91,340 — — 3,730.1 N/A 136.4
2014 10,419.5 4,596.4 49,446 49,191 87,968 — — 3,502.4 N/A 138.9
2015 10,881.5 4,562.1 49,061 48,890 85,781 — — 3,430.4 N/A 141.8
2016 11,224.0 4,715.9 49,847 49,621 86,253 — — 3,461.7 N/A 144.3
2017 11,379.1 4,787.1 51,946 51,532 88,222 — — 3,539.2 N/A 145.7
2018 11,600.2 4,901.1 53,683 53,105 90,720 — — 3,640.0 N/A 146.9
2019 11,792.3 4,993.7 55,882 55,093 93,010 — — 3,731.6 N/A 147.3
2020 11,958.1 5,098.8 57,652 56,687 95,097 — — 3,814.3 N/A 147.8
2021 12,146.8 5,187.4 59,203 58,079 96,930 — — 3,891.2 N/A 148.6
2022 12,353.4 5,281.0 60,606 59,333 98,643 — — 3,966.0 N/A 149.3
Sector Rank 9/25 10/25 6/25 5/25 14/25 N/A N/A 10/25 N/A N/A
Economy Rank 715/1777 544/1573 202/1777 179/1777 477/1777 N/A N/A 513/1777 N/A N/A

IVA/

Revenue
(%)

Imports/
Demand

(%)

Exports/
Revenue

(%)

Revenue per
Employee

($’000)
Wages/Revenue

(%)
Employees

per Est.
Average Wage

($)

Share of the
Economy

(%)
2008 38.74 N/A N/A 125.88 32.94 1.94 41,468.77 0.03
2009 39.35 N/A N/A 126.61 30.55 1.87 38,680.37 0.03
2010 38.36 N/A N/A 132.40 29.96 1.84 39,662.49 0.02
2011 44.51 N/A N/A 120.84 31.21 1.80 37,719.39 0.03
2012 43.60 N/A N/A 112.74 34.30 1.84 38,673.32 0.03
2013 49.53 N/A N/A 109.98 37.13 1.91 40,837.53 0.03
2014 44.11 N/A N/A 118.45 33.61 1.78 39,814.48 0.03
2015 41.93 N/A N/A 126.85 31.53 1.75 39,990.21 0.03
2016 42.02 N/A N/A 130.13 30.84 1.73 40,134.26 0.03
2017 42.07 N/A N/A 128.98 31.10 1.70 40,116.98 0.03
2018 42.25 N/A N/A 127.87 31.38 1.69 40,123.46 0.03
2019 42.35 N/A N/A 126.79 31.64 1.66 40,120.42 0.03
2020 42.64 N/A N/A 125.75 31.90 1.65 40,109.57 0.03
2021 42.71 N/A N/A 125.32 32.03 1.64 40,144.43 0.03
2022 42.75 N/A N/A 125.23 32.10 1.63 40,205.59 0.03
Sector Rank 18/25 N/A N/A 5/25 18/25 23/25 11/25 10/25
Economy Rank 476/1573 N/A N/A 1373/1777 440/1777 1645/1777 1197/1777 544/1573

Figures are in inflation-adjusted 2017 dollars. Rank refers to 2017 data.

Revenue
(%)
Industry
Value Added
(%)

Establish-
ments

(%)
Enterprises

(%)
Employment

(%)
Exports

(%)
Imports

(%)
Wages

(%)

Domestic
Demand

(%)
Number of
employees

(%)
2009 -5.7 -4.2 -2.8 -2.7 -6.2 N/A N/A -12.5 N/A -4.3
2010 1.8 -0.8 -1.1 -1.1 -2.7 N/A N/A -0.2 N/A -0.7
2011 0.3 16.4 12.5 12.6 9.9 N/A N/A 4.5 N/A 1.2
2012 1.7 -0.4 6.6 6.6 9.0 N/A N/A 11.7 N/A 1.7
2013 4.6 18.8 3.3 3.3 7.2 N/A N/A 13.2 N/A 1.6
2014 3.7 -7.6 3.3 3.4 -3.7 N/A N/A -6.1 N/A 1.9
2015 4.4 -0.7 -0.8 -0.6 -2.5 N/A N/A -2.1 N/A 2.1
2016 3.1 3.4 1.6 1.5 0.6 N/A N/A 0.9 N/A 1.8
2017 1.4 1.5 4.2 3.9 2.3 N/A N/A 2.2 N/A 1.0
2018 1.9 2.4 3.3 3.1 2.8 N/A N/A 2.8 N/A 0.8
2019 1.7 1.9 4.1 3.7 2.5 N/A N/A 2.5 N/A 0.3
2020 1.4 2.1 3.2 2.9 2.2 N/A N/A 2.2 N/A 0.3
2021 1.6 1.7 2.7 2.5 1.9 N/A N/A 2.0 N/A 0.5
2022 1.7 1.8 2.4 2.2 1.8 N/A N/A 1.9 N/A 0.5
Sector Rank 19/25 19/25 7/25 10/25 14/25 N/A N/A 15/25 N/A N/A
Economy Rank 1165/1777 975/1573 270/1777 288/1777 637/1777 N/A N/A 779/1777 N/A N/A

Annual Change
Key Ratios
Industry Data
SOURCE: WWW.IBISWORLD.COM
Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 32

Apr 2015 – Mar 2016 by company revenue
Apr 2012 – Apr 2013 – Apr 2014 – Apr 2015 – Small Medium Large
Mar 2013 Mar 2014 Mar 2015 Mar 2016 (<$10m) ($10-50m) (>$50m)

Liquidity Ratios

Current Ratio 1.4 1.1 1.2 1.7 2.3 n/a n/a
Quick Ratio 1.0 0.8 1.0 1.6 1.9 n/a n/a
Sales / Receivables (Trade Receivables
Turnover) 9.1 10.0 8.6 11.3 10.4 n/a n/a

Days’ Receivables 40.1 36.5 42.4 32.3 35.1 n/a n/a
Cost of Sales / Inventory (Inventory Turnover) n/c n/c n/c n/c n/c n/a n/a

Days’ Inventory n/a n/a n/a n/a n/a n/a n/a
Cost of Sales / Payables (Payables Turnover) 13.1 11.7 30.4 13.1 15.6 n/a n/a

Days’ Payables 27.9 31.2 12.0 27.9 23.4 n/a n/a
Sales / Working Capital 11.4 112.6 39.5 14.2 6.7 n/a n/a

Coverage Ratios

Earnings Before Interest & Taxes (EBIT) /
Interest 8.3 7.1 9.8 9.1 17.9 n/a n/a

Net Profit + Dep., Depletion, Amort. / Current
Maturities LT Debt n/a n/a n/a n/a n/a n/a n/a

Leverage Ratios

Fixed Assets / Net Worth 0.5 0.6 0.4 0.5 0.5 n/a n/a
Debt / Net Worth 2.9 3.8 2.6 1.6 1.0 n/a n/a
Tangible Net Worth n/a -15.5 2.6 3.0 25.9 n/a n/a

Operating Ratios

Profit before Taxes / Net Worth, % 94.5 47.3 42.3 33.7 30.5 n/a n/a
Profit before Taxes / Total Assets, % 18.0 10.2 13.7 9.5 14.3 n/a n/a
Sales / Net Fixed Assets 38.1 42.9 63.4 49.2 126.5 n/a n/a
Sales / Total Assets (Asset Turnover) 2.4 2.3 2.6 2.6 2.8 n/a n/a

Cash Flow & Debt Service Ratios (% of sales)

Cash from Trading 59.3 62.5 53.7 62.0 64.0 n/a n/a
Cash after Operations 10.0 6.7 5.3 4.1 3.6 n/a n/a
Net Cash after Operations 9.5 4.9 6.0 6.0 3.6 n/a n/a
Cash after Debt Amortization 0.7 1.0 1.3 1.6 1.1 n/a n/a
Debt Service P&I Coverage 3.2 1.8 1.8 4.6 8.6 n/a n/a
Interest Coverage (Operating Cash) 4.4 5.3 8.8 22.7 23.6 n/a n/a

Assets, %

Cash & Equivalents 21.7 20.0 25.8 29.2 31.6 n/a n/a
Trade Receivables (net) 30.5 24.1 31.4 28.6 34.6 n/a n/a
Inventory 3.7 3.9 2.8 2.0 2.8 n/a n/a
All Other Current Assets 6.6 5.6 9.2 3.4 3.3 n/a n/a
Total Current Assets 62.6 53.5 69.2 63.2 72.3 n/a n/a
Fixed Assets (net) 13.0 12.8 12.9 12.3 16.0 n/a n/a
Intangibles (net) 15.8 21.4 12.5 15.4 2.6 n/a n/a
All Other Non-Current Assets 8.5 12.2 5.5 9.1 9.1 n/a n/a
Total Assets 100.0 100.0 100.0 100.0 100.0 n/a n/a
Total Assets ($m) 988.2 1,437.0 1,117.5 882.0 44.8 173.4 663.9

Liabilities, %

Notes Payable-Short Term 7.0 13.3 14.0 11.7 19.6 n/a n/a
Current Maturities L/T/D 4.1 5.0 2.8 1.7 2.1 n/a n/a
Trade Payables 10.4 15.6 7.8 10.9 13.9 n/a n/a
Income Taxes Payable 3.0 1.1 0.1 0.2 0.3 n/a n/a
All Other Current Liabilities 32.1 27.5 39.3 28.3 19.9 n/a n/a
Total Current Liabilities 56.6 62.5 64.0 52.9 55.8 n/a n/a
Long Term Debt 18.7 20.7 18.6 17.7 5.6 n/a n/a
Deferred Taxes 0.7 0.4 0.4 0.7 0.6 n/a n/a
All Other Non-Current Liabilities 8.2 10.5 1.8 10.2 9.5 n/a n/a
Net Worth 15.8 5.9 15.1 18.4 28.5 n/a n/a
Total Liabilities & Net Worth ($m) 988.2 1,437.0 1,117.5 882.0 44.8 173.4 663.9

Maximum Number of Statements Used 30 34 35 33 17 9 7

Industry Financial Ratios

Source: RMA Annual Statement Studies, rmahq.org. RMA data for all industries is derived directly from more
than 260,000 statements of member financial institutions’ borrowers and prospects.
Note: For a full description of the ratios refer to the Key Statistics chapter online.

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 33

Jargon & Glossary

BARRIERS TO ENTRY High barriers to entry mean that
new companies struggle to enter an industry, while low
barriers mean it is easy for new companies to enter an
industry.

CAPITAL INTENSITY Compares the amount of money
spent on capital (plant, machinery and equipment) with
that spent on labor. IBISWorld uses the ratio of
depreciation to wages as a proxy for capital intensity.
High capital intensity is more than $0.333 of capital to
$1 of labor; medium is $0.125 to $0.333 of capital to $1
of labor; low is less than $0.125 of capital for every $1 of
labor.

CONSTANT PRICES The dollar figures in the Key
Statistics table, including forecasts, are adjusted for
inflation using the current year (i.e. year published) as
the base year. This removes the impact of changes in
the purchasing power of the dollar, leaving only the
“real” growth or decline in industry metrics. The inflation
adjustments in IBISWorld’s reports are made using the
US Bureau of Economic Analysis’ implicit GDP price
deflator.

DOMESTIC DEMAND Spending on industry goods and
services within the United States, regardless of their
country of origin. It is derived by adding imports to
industry revenue, and then subtracting exports.

EMPLOYMENT The number of permanent, part-time,
temporary and seasonal employees, working proprietors,
partners, managers and executives within the industry.

ENTERPRISE A division that is separately managed and
keeps management accounts. Each enterprise consists
of one or more establishments that are under common
ownership or control.

ESTABLISHMENT The smallest type of accounting unit
within an enterprise, an establishment is a single
physical location where business is conducted or where
services or industrial operations are performed. Multiple
establishments under common control make up an
enterprise.

EXPORTS Total value of industry goods and services sold
by US companies to customers abroad.

IMPORTS Total value of industry goods and services
brought in from foreign countries to be sold in the
United States.

INDUSTRY CONCENTRATION An indicator of the
dominance of the top four players in an industry.
Concentration is considered high if the top players
account for more than 70% of industry revenue.
Medium is 40% to 70% of industry revenue. Low is less
than 40%.

INDUSTRY REVENUE The total sales of industry goods
and services (exclusive of excise and sales tax); subsidies
on production; all other operating income from outside
the firm (such as commission income, repair and service
income, and rent, leasing and hiring income); and
capital work done by rental or lease. Receipts from
interest royalties, dividends and the sale of fixed
tangible assets are excluded.

INDUSTRY VALUE ADDED (IVA) The market value of
goods and services produced by the industry minus the
cost of goods and services used in production. IVA is
also described as the industry’s contribution to GDP, or
profit plus wages and depreciation.

INTERNATIONAL TRADE The level of international
trade is determined by ratios of exports to revenue and
imports to domestic demand. For exports/revenue: low is
less than 5%, medium is 5% to 20%, and high is more
than 20%. Imports/domestic demand: low is less than
5%, medium is 5% to 35%, and high is more than
35%.

LIFE CYCLE All industries go through periods of growth,
maturity and decline. IBISWorld determines an
industry’s life cycle by considering its growth rate
(measured by IVA) compared with GDP; the growth rate
of the number of establishments; the amount of change
the industry’s products are undergoing; the rate of
technological change; and the level of customer
acceptance of industry products and services.

NONEMPLOYING ESTABLISHMENT Businesses with
no paid employment or payroll, also known as
nonemployers. These are mostly set up by self-employed
individuals.

PROFIT IBISWorld uses earnings before interest and tax
(EBIT) as an indicator of a company’s profitability. It is
calculated as revenue minus expenses, excluding
interest and tax.

Industry Jargon

IBISWorld Glossary

BLENDED LEARNING A combination of both online
and traditional instruction.

CHANGE MANAGEMENT An organizational process
aimed at empowering employees to accept and
embrace changes in their current business environment.

DISTANCE EDUCATION Education delivered to
students who are not physically on site in a traditional
classroom or campus.

WEBINAR A presentation, lecture, workshop or seminar
that is transmitted over the internet.

Provided to: Trident University (2127866900) | 28 January 2018

WWW.IBISWORLD.COM Business Coaching in the US August 2017 34

Jargon & Glossary

VOLATILITY The level of volatility is determined by
averaging the absolute change in revenue in each of the
past five years. Volatility levels: very high is more than
±20%; high volatility is ±10% to ±20%; moderate
volatility is ±3% to ±10%; and low volatility is less than
±3%.

WAGES The gross total wages and salaries of all
employees in the industry. The cost of benefits is also
included in this figure.

IBISWorld Glossary
continued

Provided to: Trident University (2127866900) | 28 January 2018

Disclaimer

This product has been supplied by IBISWorld Inc. (‘IBISWorld’) solely for use
by its authorized licenses strictly in accordance with their license agreements
with IBISWorld. IBISWorld makes no representation to any other person
with regard to the completeness or accuracy of the data or information
contained herein, and it accepts no responsibility and disclaims all liability
(save for liability which cannot be lawfully disclaimed) for loss or damage
whatsoever suffered or incurred by any other person resulting from the use

of, or reliance upon, the data or information contained herein. Copyright in
this publication is owned by IBISWorld Inc. The publication is sold on the
basis that the purchaser agrees not to copy the material contained within it
for other than the purchasers own purposes. In the event that the purchaser
uses or quotes from the material in this publication – in papers, reports, or
opinions prepared for any other person – it is agreed that it will be sourced
to: IBISWorld Inc.

At IBISWorld we know that industry intelligence
is more than assembling facts
It is combining data with analysis to answer the
questions that successful businesses ask
Identify high growth, emerging & shrinking markets
Arm yourself with the latest industry intelligence
Assess competitive threats from existing & new entrants
Benchmark your performance against the competition
Make speedy market-ready, profit-maximizing decisions

Who is IBISWorld?
We are strategists, analysts, researchers, and marketers. We provide
answers to information-hungry, time-poor businesses. Our goal is to
provide real world answers that matter to your business in our 700 US
industry reports. When tough strategic, budget, sales and marketing
decisions need to be made, our suite of Industry and Risk intelligence
products give you deeply-researched answers quickly.

IBISWorld Membership
IBISWorld offers tailored membership packages to meet your needs.

Copyright 2017 IBISWorld Inc

www.ibisworld.com | 1-800-330-3772 | info@ibisworld.com