Coaching Tools to help Coaches Get More Coaching Clients. Suzan Schmitt: The Coach Marketer

Coaching Business: 5 Secrets to Financial Success

December 21, 2008

What should I charge? This is the first question that stumps many coaches and it is easy to understand why that is the case.

The key for a new coach is to fill your coaching schedule and ensure that you can cover your expenses. Many coaches start coaching part-time until they have established a small client base and feel comfortable marketing their coaching business. I started by coaching 100 one dollar sessions so that I could reach the requirements of ICF and gain confidence as a coach.

Determine your monthly business financial needs.

All businesses have expenses and coaching is no different. There are all sorts of expense that can go unrecognized like photo copies and membership fees. List all of your monthly expenses such as telephone, office rent, gas, merchant fees, office supplies, advertising, marketing, networking expenses, business tools, website charges, and continued education. You must know what your

expenses are so you can determine your required revenue.

Analyze your monthly living expenses to determine the minimum income required to maintain your lifestyle.

This will require you to track all of your monthly living expenses in written form so that you can accurately determine the minimum amount you need to earn to cover your living expenses. Many coaches under estimate the amount they need and are forced to abandon their coaching business due to financial collapse. Be certain you have an accurate estimate of the amount you need to cover your expenses each month.  My living expenses were far higher than I expected because I did not think about all the monthly fees like cable TV, telephone, hair styling, gym memberships, and dontations to church.

Keep a three to six month cash reserve on hand at all times.

It takes time to develop a new business and make it profitable. If you do not have enough cash on hand to live for three months with no income then you are probably not ready to begin coaching full time. If this is, the case keep you current job and save your coaching revenue until you have a three-month reserve. This is a great way to ease into full-time coaching and to experience the new business learning curve comfortably. Shortly after I had my coaching business going full steam the economy took a huge dive and I found my revenues declining. It took several months to generate the new business that I needed to make up for the losses due to the economic downturn so my cash reserves came in handy.

Have a business plan.

You must have a complete business plan and strategy. The plan is what is going to happen and the strategy is how it is going to happen. Many coaches fail to write down a one, three, or five year business plan and by failing to plan, they simply fail. Businesses that succeed have a business plan and strategies to ensure the success of the plan. If you want a step by step guide for getting your coaching business off the ground then get my "Coaching Business Blast Off" home study program.

Determine your rates based on what the market will bear for your services and remain flexible.

Your rates as a new coach will likely be lower than the market average. Go to the internet and determine what coaches in your area are charging. Attend local International Coaching Federation meetings, ask other coaches for their advice, and inquire about their fees. You can always adjust your fees to meet the market demand as your coaching schedule fills you will be able to increase the fees you charge. When your schedule is seventy five to eighty percent full then it is time to increase your fees for incoming clients. Never charge a per session fee and be sure to use a merchant account for recurring billing to bill your clients automatically each month. I don't want my clients to feel the pain of paying each session or each month and I am a terrible accountant so recurring credit card billing is fantastic!

If you liked this article then you will want to read "5 Secrets that Can Kill Your Coaching Business".

Related posts:

1. Plan for Coaching Business Success
2. Secrets to Successfully Market Your Coaching Business
3. Plan and Set Goals for Your Coaching Business Success
4. Plan for Your Coaching Business Success
5. Coaching Business Plan for Success

Filed under: Basic business decisions

Tags: coaching business, get coaching clients, life coaching business, suzan schmitt the coach marketer