If you’re an agency owner considering external support for your business growth, you’ve probably encountered these three terms: business coach, business mentor, and business consultant. They’re often used interchangeably, but they represent fundamentally different approaches to business support.
Having worked as both a successful agency founder and now as someone who provides business coaching, mentoring and advisory services, I see the confusion firsthand. Potential clients regularly ask me whether they need coaching, mentoring, or consulting – and honestly, the lines have become increasingly blurred.
This guide will help you understand the real differences between these three approaches, so you can choose the right type of support for your agency’s specific situation and growth stage.
The Core Distinctions
Before diving into specifics, let’s establish the fundamental differences:
Business Consultant: Diagnoses problems and provides solutions. You hire them for their expertise in specific areas to solve particular challenges.
Business Mentor: Shares experience and wisdom from their own journey. The relationship is typically informal and based on their personal success story.
Business Coach: Guides you to find solutions yourself while providing accountability and structure. They focus on developing your capability rather than solving problems for you.
In reality, the best business support often combines elements of all three approaches. But understanding the distinctions helps you identify what type of support you actually need.
Business Consulting: The Problem-Solution Approach
Business consultants are hired to solve specific problems or complete particular projects. They bring expertise in defined areas and typically work to a clear scope with measurable deliverables.
How Business Consulting Works
A consultant will typically spend time analysing your business, identifying issues, and developing recommendations. They might create detailed reports, implement new systems, or provide specialised knowledge in areas like finance, marketing, or operations.
The relationship is usually project-based. You engage a consultant for a specific piece of work – perhaps developing a growth plan or business exit strategy, implementing new financial controls, or restructuring your operations. Once the project is complete, the engagement typically ends.
When Consulting Makes Sense
Consulting works well when you have:
Specific technical challenges that require specialised expertise you don’t have in-house. For example, implementing new accounting systems or developing complex marketing funnels.
Clear, defined problems that need expert solutions. If you know exactly what’s wrong and need someone with specific experience to fix it, consulting is often the most efficient approach.
Limited time for implementation and need someone to execute solutions rather than guide you through the process.
One-off projects that don’t require ongoing relationship or accountability.
Limitations of Consulting
The challenge with consulting is that it often creates dependency rather than capability. You get solutions, but you don’t necessarily develop the skills to create those solutions yourself in the future.
Many agency owners find that consultants provide brilliant recommendations that sit on the shelf because there’s no accountability for implementation. The consultant delivers their report and moves on, leaving you to figure out how to actually execute their recommendations.
Additionally, consulting solutions are often generic. Even when customised for your business, they’re based on the consultant’s experience with other businesses rather than deep understanding of your specific situation, team, and market dynamics.
Business Mentoring: The Experience-Sharing Approach
Business mentoring involves learning from someone who’s achieved success in business, often in your specific industry. The mentor shares their experience, provides guidance based on their journey, and offers support as you navigate similar challenges.
How Business Mentoring Works
Mentoring relationships are typically less formal than coaching or consulting. They might involve regular conversations, informal advice, and sharing of experiences rather than structured processes or methodologies.
The mentor draws primarily on their own experience. If they’ve built and sold an agency, they’ll share insights from that journey. If they’ve overcome specific challenges, they’ll explain how they approached those situations.
When Mentoring Makes Sense
Mentoring works well when you:
Want to learn from someone’s specific journey that’s relevant to your own path. If you’re planning to scale and exit your agency, learning from someone who’s successfully done that can be invaluable.
Need encouragement and perspective from someone who’s been through similar challenges. Sometimes just knowing that someone else has faced what you’re facing and succeeded can be incredibly valuable.
Prefer informal, relationship-based learning rather than structured processes or methodologies.
Have specific questions about situations the mentor has encountered in their own business.
Limitations of Mentoring
The main limitation of mentoring is that it’s based on one person’s experience. What worked for your mentor might not work for your business due to different market conditions, team dynamics, or business models.
Mentoring also tends to be reactive rather than systematic. You get advice when you ask for it, but there’s often no structured approach to identifying and addressing fundamental business challenges.
Additionally, mentoring relationships can become too comfortable. Without clear objectives and accountability mechanisms, they can turn into general business discussions rather than focused development activities.
Business Coaching: The Development-Focused Approach
Business coaching focuses on developing your capability to solve problems and achieve goals yourself. Rather than providing solutions or sharing personal experiences, coaches guide you through structured processes to identify issues, develop strategies, and implement solutions.
How Business Coaching Works
Business coaching is typically structured around your specific goals and objectives. The coach works with you to identify what you want to achieve, develops plans for getting there, and provides accountability for implementation.
The coaching process is collaborative. Rather than being told what to do, you’re guided to discover solutions yourself. The coach brings frameworks, methodologies, and external perspective, but you remain responsible for decisions and implementation.
Coaches focus on both business outcomes and personal development. They help you develop the leadership skills, decision-making capabilities, and strategic thinking required to scale your business successfully.
When Business Coaching Makes Sense
Business coaching works well when you:
Want to develop your own problem-solving capabilities rather than just getting problems solved for you.
Need accountability and structure to implement changes you know are necessary but struggle to execute.
Are committed to personal development alongside business growth. Scaling a business requires evolving as a leader, and coaching addresses both aspects.
Have complex, interconnected challenges that require systematic rather than ad hoc solutions.
Want ongoing support through multiple growth phases rather than just solving immediate problems.
Limitations of Business Coaching
Business coaching requires significant commitment from you. If you’re looking for someone to solve problems for you, coaching can feel frustratingly slow.
Coaching also works best when you’re ready for change. If you’re not prepared to challenge existing approaches and implement new systems, coaching will be less effective.
The Hybrid Approach: Why the Lines Are Blurred
In reality, the most effective business support often combines elements of coaching, mentoring, and consulting. This is particularly true for agency owners who need both strategic guidance and practical implementation support.
My Approach at Move at Pace
Having built and exited my own creative agency, I bring elements of all three approaches to business coaching and business advisory services:
Consulting expertise from 13 years of solving real agency challenges – from selling my first logo for £150, to systematic approaches for scaling sales and operations from £300k to £2.2M annual revenue.
Mentoring perspective from having navigated the complete agency journey, from founding the business in my bedroom to the successful exit and acquisition process.
Coaching methodology that focuses on developing your capability to create sustainable growth rather than just solving immediate problems.
This hybrid approach works because different situations require different types of support. Sometimes you need specific expertise to solve technical problems. Sometimes you need encouragement from someone who’s been through similar challenges. And sometimes you need structured development to build new capabilities.
When Hybrid Approaches Work Best
Hybrid approaches are particularly valuable for:
Complex transformations that require both strategic insight and implementation support.
Scaling challenges where you need to develop new capabilities while solving immediate problems.
Exit preparation where you need both systematic business building and insights from someone who’s successfully navigated the exit process.
Leadership development that combines skill building with real-world application and accountability.
How to Choose the Right Approach
The type of support you need depends on your specific situation, goals, and readiness for change:
Choose Consulting When:
- You have specific, technical problems that require specialised expertise
- You need solutions implemented quickly by experts
- You’re clear about what needs to be done but lack the expertise to do it
- You prefer project-based engagements with clear deliverables
Choose Mentoring When:
- You want to learn from someone’s specific journey and experience
- You need encouragement and perspective from someone who’s succeeded in similar circumstances
- You prefer informal, relationship-based learning
- You have specific questions about situations the mentor has encountered
Choose Business Coaching When:
- You want to develop your own problem-solving and leadership capabilities
- You need accountability and structure to implement necessary changes
- You’re committed to personal development alongside business growth
- You have complex, interconnected challenges that require systematic solutions
- You want ongoing support through multiple growth phases
Choose Hybrid Approaches When:
- You’re facing complex transformation that requires multiple types of support
- You need both strategic insight and implementation guidance
- You’re preparing for major business transitions like scaling or exit
- You want the benefits of coaching combined with specific expertise and experience
Questions to Ask Potential Advisors
Regardless of which approach you choose, ask these questions to ensure you’re getting the right type of support:
“What’s your specific experience with businesses like mine?” Look for relevant industry experience and understanding of your particular challenges.
“How do you approach problem-solving?” This reveals whether they’re more consultative (providing solutions), mentoring-focused (sharing experience), or coaching-oriented (developing your capability).
“What does a typical engagement look like?” Understanding their process helps you evaluate whether it matches your needs and working style.
“How do you measure success?” This shows whether they focus on delivering solutions, sharing insights, or developing capabilities.
“What ongoing support do you provide?” Some relationships end after initial deliverables, while others provide ongoing development and accountability.
Making the Investment Decision
Different approaches require different levels of investment:
Consulting typically involves project-based fees ranging from £5,000-£50,000+ depending on scope and complexity.
Mentoring can range from informal arrangements to formal programmes costing £1,000-£10,000+ annually.
Business Coaching usually involves ongoing monthly fees ranging from £700-£1,500+ depending on the level of support and coach experience.
Hybrid Approaches often provide better value by combining multiple types of support, typically ranging from £1,500-£6,500+ monthly for comprehensive programmes like those offered through Move at Pace business coaching.
The key is matching the investment to your specific needs and expected outcomes. A £10,000 consulting project that solves a critical problem quickly might provide better ROI than a £50,000 coaching programme if you need immediate solutions. Conversely, coaching that develops your long-term capability might provide much greater value than consulting that only addresses immediate issues.
The Bottom Line
The distinction between business coaching, mentoring, and consulting matters less than finding the right support for your specific situation. The best advisors often combine elements of all three approaches.
What matters most is finding someone with relevant experience, proven methodologies, and an approach that matches your needs and working style. Whether they call themselves a coach, mentor, or consultant is less important than their ability to help you achieve your goals.
For agency owners facing the complex challenges of scaling from £300k to £1M+, the most effective approach often combines strategic expertise, real-world experience, and structured development. This might mean working with someone who’s built and scaled an agency themselves (mentoring), uses proven methodologies for systematic growth (coaching), and can provide specific expertise in areas like pricing, operations, or exit preparation (consulting).
The key is being clear about what you need and finding advisors who can provide that support effectively. Whether that’s solving immediate problems, learning from experience, developing new capabilities, or some combination of all three.
Ready to explore which approach might work best for your agency? For a comprehensive understanding of how business coaching specifically works for growing agencies, read our complete guide to business coaching for growing agencies. Or if you’re ready to discuss your specific situation and determine the best type of support for your goals, book a discovery consultation to explore your options.