Business Coaching vs Mentoring: Which One Does Your NZ Business Actually Need?

by Sean Foster | July 23, 2025 | Business Coaching

When considering some form of business development, two terms often come up: business coaching and mentoring. While many use them interchangeably, they serve distinct purposes. For business owners across New Zealand, understanding the difference can help you choose the right kind of support. And be aware that as you search for your ideal business coach or mentor, that they themselves, may be unclear. So arm yourself with the right questions so that at least you know.

This article breaks down the key differences, benefits, and how to decide which option is the right fit for your needs

What is Business Coaching?

Business coaching is a professional relationship where a trained coach works with a business owner or business person to help them:

• Clarify business goals
• Create actionable strategies
• Develop leadership and management skills
• Improve financial performance
• Stay accountable to progress

A business coach often has a wide timeview focus, from understanding past, to current, to future performance related issues. They typically use structured methodologies to deliver measurable results, and will usually charge for their services.

Related Article: Is Business Coaching Worth It? What NZ Business Owners Need to Know

What is Business Mentoring?

Business mentoring is typically less formal and is built on the transfer of knowledge, experience, and wisdom from a more experienced businessperson to someone less experienced. A mentor offers:

• Guidance based on real-world experiences
• Long-term professional relationship
• Insights into industry-specific challenges

Often a mentor is a retired person who has in some manner already traversed the challenges that you are facing, although over time, the context of the variables at play are often different. Mentoring is usually not a paid service, although a Koha is often welcomed.

Key Differences Between Coaching and Mentoring

Which One Does Your NZ Business Need?

Choose Business Coaching if you:

• Need help with specific goals such as profit growth, scaling, or operational efficiency
• Struggle with time management, strategy, or team leadership
• Want an accountability partner to drive momentum
• Prefer a results-driven and structured approach

Choose Business Mentoring if you:

• Want to learn from someone who's "been there, done that"
• Seek industry-specific advice or guidance on navigating challenges
• Are looking for long-term guidance without strict deliverables
• Are confident that you can find a mentor with the exact experience you are after.

Related Article: What Can a Business Coach Help Me With?

Can You Have Both?

Absolutely. Many successful New Zealand business owners benefit from combining both approaches. Coaching can give you the immediate tools and strategies for growth, while mentoring provides industry specific experience and personal wisdom. In fact, while it is extremely rare to find a mentor that can also business coach, it is more likely to find the opposite.

Depending on the business coach, it is not necessary that they have any direct experience within your industry as they are focusing of behaviours and using tools that are applicable across industries.

Real-World Examples: Blending Coaching and Mentoring in NZ

I can speak personally here and from a New Zealand perspective. I run both a business coaching business and volunteer as a business mentor to Business Mentors New Zealand and to the Auckland Business Chamber. The nature of these engagements between mentoring and business coaching is stark. I have also networked extensively with other business coaches and mentors and the feedback is very consistent.

Business mentoring engagements tend to be short-lived as the mentor is typically called in to assist with a specific, industry challenge and their experience is what is sought after. While business coaching tends to be months to years of engagement as they work on a far broader set of challenges.

How to Choose the Right Fit in New Zealand

• Define Your Goals: Are you after tangible business results or broader guidance?
• Research Local Coaches and Mentors: Look for testimonials, industry expertise if after a mentor, and personal fit.
• Consider Time Commitment: Both forms demand your time, however business coaching is usually a lot more demanding of your time because they work on a broader set of variables.
• Cost: Business mentoring is usually free, while business coaching comes with a fee, but the real cost is your lost opportunity, what financial gains are you missing out on? If you only need targeted, short-term advice and feel confident in other areas of your business, mentoring offers unbeatable value. However, if you’re facing several challenges and need ongoing support or accountability, paid business coaching is often the better choice.

Related Article: How to Find the Right Business Coach Near You in New Zealand

Final Thoughts

Whether you choose business coaching, mentoring, or both, the key is to find support that aligns with your needs and aspirations. My final advice on this subject is to discuss your requirements with various providers to figure out where your best value lies. And this value is value, i.e not the lowest cost but rather which option and person will get you the results you are after and that it makes financial sense.

Ready to explore how business coaching or mentoring can help your business thrive? Contact us today for a personalised consultation.

Business mentors New Zealand can be found here.
Auckland Business Mentors can be found here.