Business spending on coaching will exceed $1 billion this year. Although once considered a perk reserved exclusively for senior executives at multinational corporations, today coaches are just as likely to be found at entrepreneurial start-ups and small businesses. Still, confusion exists about exactly what coaching is and the kinds of results it delivers.

I’ll argue that enhancing self-awareness is the most important benefit of coaching, because without it things don’t change. Finding out how one is perceived by others can be eye-opening. An individual may have strengths that are not being used to his or her best advantage or weaknesses that turn out to be strong points that are over-used or applied in the wrong situations. Sometimes people assume that others are perceiving things, processing information, and learning in the same way that they do. Or, behaviors may be driven by mistaken rationales or beliefs.

Coaches assist people in developing skills in areas like organization, time management, leadership and strategic development. They also challenge the personal assumptions and beliefs that can result in clients doing of more of what’s not working, or overlooking painfully obvious solutions to problems.

Among the beliefs that I’ve encountered in my coaching practice are, “No one can do the job as well as I can” (therefore I must do everything myself); “I can’t afford good people” (so I must settle for mediocre performance); “If I ignore the situation, it might fix itself” (so I won’t confront the issue); and “I am 100% responsible for everything that people in my department do” (which means that I must review everyone’s work).

Leadership is a particular concern for the small business owner or entrepreneur. It can be quite difficult to go from being the “content expert” (the one who creates the product or service) to the “person in charge of the company.” Coaching can be invaluable for helping these executives develop and communicate a strategic plan, clarify their role as president or CEO, delegate authority to others, and focus attention on a long-term vision.

A company’s stage in the business life cycle also informs the coaching process. Executives in early-stage companies, for instance, need help managing the myriad of details involved in selecting the appropriate business structure, locating professional service providers, deciding between hiring versus outsourcing, developing marketing and sales strategies, and getting orders in the door.

Managing a growing enterprise can carry with it as much or even more stress than the initial start-up. Common issues involve revising a strategy or business plan, hiring the right talent, developing more sophisticated operating systems, evaluating competitive threats, growing at the right pace, and for many business owners, the need to delegate day-to-day tasks to other people.

In established companies, executives grapple with changing customer needs, encouraging innovation, and finding ways to increase productivity and efficiency. Sometimes there is expansion into new markets, or major new product offerings as a means of capturing additional share. Here the needs may be for methodologies to evaluate opportunities, the hiring of more experienced managers, a new management structure, or deciding on major investments in new technology or machinery.

Finally, the company may be in the throws of major change, such as a sale, merger or acquisition. In cases like these, where the quality of leadership, management, and especially communication plays such a huge role in the transaction’s success, a coach can assist the management team in working through the business, psychological, and emotional issues inherent in these kinds of events.