Your Essential Coaching Business Plan

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Your EssentialCoaching BusinessPlan

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Copyright © 2004-2020 CoachPreneur Academy & Feroshia Knight | www.coachpreneuracademy.com

Your Essential Coaching Business Plan Traditionally, a business plan was an essential element for those seeking to procure financing. As a coach, it’s more likely you will use your plan as a “living” document to help you to define and clarify your business. Over time, you’ll sculpt and finesse your business plan as you use it. This guide will help you drive success on your terms! For many, the process of creating a business plan can be daunting. Feelings of frustration and overwhelm are not uncommon. My goal is to help you to think strategically through these essential elements in an inspiring and, dare I say, fun way! I want you to have a firm idea of where you are going and ways to track your success and learn from any setbacks. That being said, I’d like to offer a few helpful tips…

• If you identify as more of a right-brain person, then honor that part of you. As you go along in the exercises, take advantage of the right-brain alternative strategies to accomplish the tasks.

• If you feel overwhelmed, take a break. Writing a business plan can feel like mental heavy-lifting. You might be making some educated guesses at first. This is a living document that will grow and change with your business. Its job is to keep you focused on and paying attention to what you want, and to ensure you are on the right track to getting there. It’s not about having the perfect document or even all the correct answers.

• If you don’t understand a section, ask for help! I’ve done my best to replace the business jargon with common words and descriptions to get you into the right frame of mind, and I hope that your needs are met! So, ask!

Let’s get Started!

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Step 1: Design Your Dream Business Let’s begin with the big picture.

• What does your ideal business look like once launched? • What do want to be known for? • How are you impacting your client’s lives and/or businesses?

Use the box provided to write in your responses. Alternatively, you might create a mind-map on a flip chart or use a software program to organize your ideas. We’ll deepen into these questions throughout the process, so for right now… get started!

This page was certainly not big enough for your dreams. Let’s step into writing your vision statement!

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Step 2: Craft Your Vision Statement A vision statement speaks to where you want your business to be in the future. Your vision statement defines where you are going and acts as your North Star. A vision statement is often written as the big picture of where you are going. Here are a few examples:

• “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” – Patagonia

• “To become the world’s most loved, most flown, and most profitable airline.” – Southwest Air

• “Our vision is to create a better everyday life for many people.” – IKEA

• “To be the fastest growing, most rewarding and most transformative leadership community.” – Mandala Leaders

• “Our vision is to make the world a better place for all living kind, through the power of holistic coaching and a global community.” – Coach Training World

Using the dream business questions from above for reference, write down your vision statement. Alternatively, you can always create a vision board for your business. And from that process, craft your vision statement.

Knowing and being able to share your Vision statement is highly motivating for both you and your prospective clients. Next up: you’ll create your Mission Statement!

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Step 3: Mission Statement

A mission statement is a brief description of your company's purpose. It answers the question, "Why does our business exist?" It focuses on the here and now, where a vision statement focuses on the future.

• “Our mission is to assist changemakers and luminaries to evoke change their way, and to bring their unique light into the world.”

• “To offer world-class support for healthcare professionals so that they may find work-life balance.”

• “Our mission is to alleviate the fear that comes with life’s unexpected transitions.”

Begin by answering: What is your “why” for the business?

Next, reflect on what you wrote, and write out your mission statement below:

Check in with yourself. How are you feeling? More clear? Confident? Excited? If you are struggling to get to a place of “Yes, this is what’s true for me…” consider partnering with a business buddy. Now let’s move onto some business basics.

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Step 4: Business Name & Legal Structure Choose your business name If you’re still trying to figure this out, I highly recommend using your name and then branding your coaching services, programs, and products underneath your name. When the perfect business name comes up, you can always change it.

My business name is:

Decide on the legal structure of your business. (Corporation, Limited Liability Company, Sole Proprietorship, etc.) If you’ve yet to decide this, I highly encourage you to speak with a CPA and/or attorney as to what is best for you. Your legal structure can provide a level of protection, although there are particular ways to do this that require the help of a trusted professional. Also, how you are taxed is based on your business structure. Get help to make the right decisions for you. The legal business structure of my company is:

Who are your business partners? (If any) Be sure to talk through any partnership details including how you’ll deal with money invested in to and paid out from the company in advance. It’s never a bad idea to talk about an exit strategy should one or more of you want to leave the company. My business partner(s) are:

Now that you’ve got that taken care of (and registered!) … let’s talk about money!

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Step 5: Financial Plan & Goals Starting a business requires money to make money. How much depends on many factors, but there will always be some hard costs associated with starting any business. The good news is, as you onboard clients, you’ll be bringing in money – a lot more than what you’re spending on the business! Let’s first explore your expenses and then move into income! Sound good? There are three types of expenses: start-up costs, monthly costs, and yearly/periodic costs. Planning for all three can alleviate the stress and that “surprised” feeling that can leave you distressed and fearful about being a business owner. Below you’ll find three tables related to potential expenses associated with your business. They are designed to get you thinking about what you’ll need to plan. Some of the items you may already have in place. If so, just put a “0” in the last column. There may be items not on the list that you feel you need or want. Add them into your budget. If you are uncertain about a number, then do a little research. For example, if you don’t know how much a headset might be, go onto Amazon.com and do a quick search. Remember there are more ways than one to acquire equipment. As a 19-year old new business owner with no job, I couldn’t get a loan. My first computer came from my younger brother through an 11-month payment plan he offered me. It’s not uncommon to find others who have things they’ve upgraded, leaving their “old ones” sitting around. I scored a fantastic phone system that way! Lastly, and I can’t emphasize enough, money invested in growing your business is going to bring you the most bang for your buck. Note, I said: GROW your BUSINESS. Buying the latest coaching session, organizational tools, and hottest computer aren’t going to bring in more clients. You can certainly have all the bells and whistles later. I can’t tell you how many coaches get caught in sales pitches buying things like webinar software or lead pages way before they need these tools. Hundreds if not thousands of dollars later, they still don’t have clients or the money to invest in getting them. (Said with experience.) Ask yourself, will this purchase meet my goals of bringing more money into the company? It’s getting serious! Use the next few forms to start creating your budget. Be sure to make it accurate to your needs and wants! Remember we are projecting expenses. A good roadmap begins by estimating and updating as you go.

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Start Up Expenses

CATEGORY EXPENSE YOUR BUDGET

Equipment Computer / iPad or similar Printer Phone Headset Professional Services Graphic Artist / Web Designer

Attorney CPA Marketing Collateral Business Cards Office Furniture Desk Chair(s) Decorations Coffee/Hot Water Dispenser Licensing & Fees Business Name Registration/License

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Monthly Expenses


Internet Services Internet Service Provider Website/Email Hosting Email Marketing Service (eventually) Phone/Utilities Phone Service Utilities (if you have an office) Insurance Business Insurance Professional Services Outsourcing as needed Advertising Facebook Ads, Google Ads

(Potentially)

Other/Misc.

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Yearly Expenses


Professional Services CPA Taxes Local/National Internet Software Services

Webinar Platforms (once you’re established)

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Step 6: Money Coming Your Way As a coach, you have a myriad of ways to generate income in your business. The most obvious is one-on-one coaching. Coaching can generate a substantial income especially if you are charging what you’re worth. Remember, your time is your most precious asset! You have the option to work with one to millions, which is why you might consider adding into your mix:

• Group Coaching • Retreats • Mastermind Events • Online Digital Programs • Online Digital Products • Books • Speaking • Affiliate Marketing (Commissions your receive for referrals you make) • Sponsorships • Grants • And more!

Take a few minutes here to write down how you’d like to bring income into your company:

From here, let’s organize these various income streams into a business model.

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Spiral Business Matrix

Type of Offer Delivery Method Duration Coaching 1:1 Group Coaching Online Coaching Program In-Person Workshop Retreat Coaching Product Other….

Live

• In-Person • Online • Phone

Recorded/Distributed

• Audio • Video • Written • Other

# Times (e.g. 10x over 3 months, 1x for 4 hours)

Introductory Offers (Low investment time/money) The goal of these “opportunities” is for your potential clients to have a felt sense of the value you have to offer. During this offer, you’ll authentically invite them to invest more in your services, programs or products.

Type of Offer Delivery Method Duration Introductory Webinar

Live Online

60-Minutes

Main Offer (Signature Solution) This is the service, program or product you are selling to your ideal client. Inside your introductory offer, you are helping them to see the value of investing in this offer.

Type of Offer Delivery Method Duration Blissfully Married Workshop

Live Online

2 days

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Spiral Business Matrix Continued

Complimentary Offer (Signature Solution Expanded) After your client has gone through your main offer, this is the service, program or product they’ll want from you as a “next” step. The idea is for you to continue the relationship. It is far easier to convert a client who has already worked with you into a new product than it is to convince someone new.

Type of Offering Delivery Method Duration

Couples Communication Retreat

In-Person Retreat

3 days

High-End Offer (Signature Solution Exclusivity) When you have enough clients, these offers are the high-touch offers where they get a lot of your time and attention. Note: these offers can be 1:1 coaching, masterminds or similar.


One-on-One Coaching

Online

2x a month for 60 minutes

But what if I’m not ready to offer different programs or products along with my coaching services? Here are a couple of examples: Example:

• Main Offer – 1.5 Day workshop [$$] • Complimentary Offer – eBook [$] • Exclusive Offer – 10 weeks of 1:1 coaching [$$$]

Later you’ll re-market to your 1:1 coaches more programs and products.

The key is to plan and start where you are. One of the biggest mistakes business owners make is trying to generate new clients when they have a raving fan base upon which to draw upon!

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Spiral Business Matrix Continued

Use the form below to build up your spiral business matrix. Remember these are the items you’ll sell, up-sell, and/or cross-sell. In just a few more pages, we’ll be getting into marketing strategies which will include things such as introductory webinars and freebies!


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Step 7: Pricing Strategies & Payment Options One of the hardest questions for coaches to answer is, “How much should I charge?” That’s followed by “Should I look at what other people are charging?” There is no easy answer, but there are some hard and fast rules. The first rule is to charge what you are worth. Don’t compare yourself to other people, focus on creating transformations and learning how to market your real value. The employer always determines an employee’s wages. Sure, there are some market standards, but in the end, the employer decides how much they are willing to pay the employee. You, in this case, are the “employer” or “your boss” so you are the one who gets to decide what you are worth. The second rule is: Marketing is King. Those who know how to market themselves effectively make more money -- those who don’t remain invisible and overlooked by those who need them the most. The third rule is: Credibility counts. ICF-credentialed coaches earn more money. It may be the confidence the coach has from the credentials, or maybe it’s the extra hours of mentoring. The last rule is to start with a financial baseline and go up from there. How much money do you need to cover your expenses and still be able to save some money each month? For example, let’s say your living expenses are $3100 a month. That includes everything from those yummy restaurants to weekend trips to the coast. Plus, you want to put away $500 a month toward retirement. That’s a total of $3600 a month you want to bring home or “net.” Before I go on, this is an example to get you thinking about your needs and financial plan. My math may not work for you. It’s a concept vs. a hard-fast formula. Your next step is to take into consideration how much of your income will go to taxes and business expenses. Let’s assume 1/3 of your income will go to taxes, and because you’ve got a budget in mind, you can do the math. So, if you plan to make $6000 a month, your expenses are $500 for that month (based on your budget), and you’re being taxed at 33%, that would be $6000 (Gross Income) - $500

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(Expenses) = $5550 x .67 = $3685 (Net Income). My intention here is for you to look at the baseline of getting your needs met as your first metric. But don’t let your base needs define what you are worth. OK? So how do you figure out what you want to charge? If you Google this question, you’ll see it ranges from $75 to $1000 to $$$$ per month based on an average of 3-4 sessions a month. So, how is this helpful? Listen in. Those who are charging the bigger $ are better at their marketing. They’ve earned credibility in some way, and they are creating transformational results. So, how much will you charge? Initially, I hope it’s enough to sustain you as you build up your confidence in both coaching and marketing. Put down a dollar amount that you’d like to make every month. I’m going to say $10,000.00 for our purposes. The number you write down is really up to you! Remember this is a goal, not actual reality…yet! ------------------------------------- Example #1 Monthly goal $10,000.00 Coaching fee $500/90-minute session = 20 hours a month at this above rate = 5-8 clients (depending on their scheduling frequency) Your monthly goal: __________________ Your coaching fee: __________________ # of clients needed: __________________ ------------------------------------- This is your baseline strategy for 1:1 services. By no means does this number need to be your goal. This is what you need to break even, and often a good place to build your budgeting goal. This next example walks you through a more diverse business model. -------------------------------------

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Example #2 Monthly goal $_________________ 1:1 Coaching fee $500/90-minute session # Clients _______________ 3-Day Workshop $495 # Attendees ___________ Digital Program $99 # Sold _________________ -------------------------------------

Monthly Goal: $

INCOME STREAMS PRICE VOLUME TOTAL $

1:1 Coaching

Grand Total:

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Step 8: Ideal Client Avatar Use the form below to enter into your business plan your work from the Ideal Client Avatar and INFUSE: Live Your Brilliance coursework.

Strategic Audience: _________________________________

Avatar’s name: _________________________________ Age: ____________________

Gender?

Income Level?

Career/Business?

Income Level?

Family/Relationship Status?

Education Level?

Preferences/Hobbies Interests

Geographic/Location

What else is important to know about them?

What do they believe is their biggest problem?

What do they deeply desire more than anything?

What do they believe about their goal or dream?

What’s their story about their situation?

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Step 9: Business Landscape (AKA competition) Where does your business fit into the marketplace? How does it stand out above others? What competitors are also going after your ideal clients? What trends could affect your business?

A word to the wise: we’re about to look at your competition. This won’t be in a negative way, but as a way to see where you fit into the mix. Perhaps you are a relationship coach focused on helping women recreate their lives after challenging divorces. Your next step is to find others doing something similar to what you’re doing. As you learn about these people, the goal is to learn from them. What are they and are they not doing? Is there a gap in their services? Is there something no one is addressing? The challenge is to look at other people offering similar services without falling into the trap of comparing yourself to them. Yes, they are already out there, but that’s not why we’re here. We’re here to explore the territory so we can differentiate and stand out. Your next step is to spend time looking for people who are offering similar services to a similar client base. Read that again: similar services for a similar client base. If you are solving the problem of recreating life for women after divorce, then your competition isn’t likely the male coach working with men, but you still might learn from this person. Keep in mind your competitor might not be another coach. It might be a therapist or an expert. Heck, I compete with Tony Robbins all the time. The good news is my ideal client wants his kind of expertise and support (which I’ve got) but not his personality. See where I'm going? Take the time you need to write down 5-10 websites belonging to people who are likely marketing to similar clients:

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Step 10: Competitive Analysis Your next step is to pick the top three people who are closest to what you offer your clients. Then use the following questions to help identify opportunities for you to stand out.

1.) Your Strengths – This is what you do well that contributes to your Signature Solution: For example, I offer a coaching program called “Digital Fame.” I have three decades of experience as a global marketing expert and online experience related to serving public figures and celebrities. These strengths give me the edge over others who haven’t had these experiences. But it’s also my unique way of focusing on my client’s barriers to success, especially those from childhood that make me a trusted coach for people wanting to break through image barriers in their public persona. My Strengths Include:

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Your Unique Selling Proposition (USP) – is what differentiates your services from your competitors, such as the lowest cost, the highest quality or the first-ever time something has been offered. A USP could be thought of as “what you have that competitors don't.” This is what makes you the go-to coach for those who need you the most. Notice I didn’t say all the people. What is unique about you, your services… Your way of doing what you do? What makes you different from other coaches working with the same client base? For example, as a relationship coach, you might use a “positive psychology” approach in how you work with your clients. Your process focuses solely on bringing out the best in others. While your main competitors base their services on a different model. Or as a marketing coach, you offer a highly customizable approach to helping business owners get clients based on their strengths. You focus on helping your clients identify what a natural fit for their marketing styles and then market themselves with tools that leverage their strengths. My Unique Selling Position:

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2.) Your Customer’s Needs – These are the problems and needs you address for your clients. Think about what might be top-of-mind for your clients. What keeps them up at night? What do they think about or talk about the most? My Ideal Client’s Needs & Problems Include:

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3.) Your Competitors’ Strengths – Knowing where your competition excels can help you see missed opportunities or ways to improve on your services. Inside the box below, carefully review your top three likely competitors and write down what you see as their strengths. My Competitors’ Strengths Include:

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4.) Your Competitors’ Differences – This requires looking at their marketing messages, their taglines, their benefits, and their sales copy. See if you can identify what it is they are telling the world is their difference. What do they say and do that makes them unique? My Competitors’ Unique Selling Proposition Include:

Congratulations! You’ve just mapped out your business. Take a break! Celebrate. This document will grow with your business!

Your Essential Coaching Business Plan

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