by Eric Dombach | Business Coaching Tools
Ever had this happen to you…? You’ve got someone in your pipeline who feels like a super motivated business coaching prospect. They’re in your target market. You had a quick Silver Bullet Call, diagnosed their biggest business needs, got them to enthusiastically commit to a full Complimentary Coaching Session.
You logged into Zoom for the time of the CCS, and…crickets.
Your golden prospect stood you up.
So you go back to them. You call, email, even drop a postcard in the mail. Nothing.
You’re about ready to throw in the towel and move on.
Don’t do it yet.
At least, not until you’ve tried this powerful technique.
Introducing…the Business Card Burn-Off
The Business Card Burn-Off is basically what sales professionals call a “takeaway.” It’s a technique of last resort, but if your business coaching prospect had any legitimate interest in working with you, it can often generate that elusive call-back.
A word of advice: use this technique only AFTER you’ve followed up with them several times. You want to make it clear to them that you have a relentless work ethic and will keep your word to do what you say you will do, when you say you’re going to do it—and that you expect that same kind of behavior from them.
But when all else fails, here’s a script you can use.
“Hey, this Eric Dombach, the business coach. We had an appointment scheduled and I was going to take you through our process of finding the hidden areas of profit in your business and showing you where you can find extra cash in your business, but you haven’t returned our calls and emails. I just want to let you know that my number is XYZ. This is the last call you’ll get from me, I’m going to throw away your business card now. But please feel free to call me if you would like to get together, because I really think we can do some great things in your business—but I’ll leave it up to you to call. I’ve got too many business owners that want to make an amazing impact on their business. I’ll wait to hear from you. Bye for now!”
Why it Works
There are lots of business owners who are overwhelmed, buried, and, in some cases, despairing over the state of their business. They intend to call you back, but they’re so far up to their necks in stress that they keep putting your call on the back burner.
These are business coaching prospects who really are interested in working with you, and who would gain tremendous value from the relationship, but haven’t had the swift kick in the pants they need to take a proactive step in their business.
It may be a small percentage of prospects, but this technique will usually get those folks to pick up the phone.
These are business coaching prospects who really are interested in working with you, and who would gain tremendous value from the relationship, but haven't had swift kick in the pants they need to take a proactive step in their business.
Give it a try!
And for more specific techniques and scripts like this, get a FREE 30-day trial of our comprehensive business coach system today.
by Eric Dombach | Business Coach Training
If you’ve been following me for any amount of time, you probably realize that my success in building a successful business coaching firm wasn’t anything magical. It wasn’t luck, it wasn’t skill, it wasn’t experience, and it wasn’t talent.
It was good old fashioned trial and error.
The difference between me and other business coaches who haven’t been as successful is that I worked extraordinarily hard, erred extraordinarily often…and learned extraordinarily fast as a result.
I documented everything I did. When it failed, I threw it out. When it worked, I kept going, expanding my knowledge and experience as I went.
I developed systems around the successful strategies I discovered.
Eventually, I organized this massive collection of coaching materials and protocols into the most comprehensive yet easy-to-use business coaching methodology in the world. And then I copyrighted it.
That’s because I knew that my goal was to move from a one-person show to a full-fledged business coaching firm with multiple coaches and a functioning business that brought in cash-flow I could enjoy…with or without my daily involvement.
Now that’s freedom.
A Business Coaching Firm That Runs Without You
A couple years ago, I came across an article from the Harvard Business Review that inspired the development of what I now call the Firm Profitability Dependency Chain—in which building a profitable business coaching firm is based on 7 essential “links.”
I call the links “dependencies” because the weight of each successive link hangs on the one before it. Working backward from the end…
Link 7: Fantastic Profitability
Obviously, this is our goal. It’s been fascinating to observe the incredible variety of answers I get when I ask the following question of aspiring business coaching firm builders: “What do you believe is the single most important driver in firm profitability?”
No one ever gives the right answer–which is…
Link 6: Low Client Acquisition Cost
The fact is, it’s impossible to build a wonderfully profitable firm capable of delivering completely passive income if your client acquisition costs are out of control!
Making money as a firm-owner is all about driving down your marketing and sales costs. The most common (though not necessarily the easiest) ways to do this are as follows: getting the majority of your clients through referrals and strategic alliances, servicing ever-higher quality (read: better-paying!) clients, and keeping these clients longer and longer. So, what does it take to achieve this?
Link 5: Raving Fans
Over the last decade of business coaching firm-building, I’ve found that until you develop a robust reputation in your community or market niche as a genuinely great coach, who delivers substantially more value to your clients than your services cost, you’ll never be rewarded by your market with an abundance of revenue that you invest almost no cash to produce.
Obviously, in the early stages of developing your business, you’ll have to invest tons of money in higher-cost marketing strategies, but this must be reduced over time if you hope to make great margins!
So how do you develop an army of raving fans? You’ve got to deliver…
Link 4: Effective Coaching
Most business owners will give you about three months to prove the value of coaching. By then, they better have a fatter bank account or it’s game over.
So how do you deliver effective coaching?
Link 3: High-Quality Coaches
No mystery here.
It takes a great coach to deliver great value to produce an army of Raving Fans.
When you’re building a firm, you don’t have the time and cash flow to hire mediocre coaches and wait a couple years for them to become the kind of leaders they need to be to keep great clients. Every respected authority on building great companies agrees that the ability to attract and retain high quality human capital is THE competitive edge in the increasingly knowledge-based economy of the 21st century.
Do you really believe our industry is exempt from this universally accepted business axiom? Not a chance. So, given that, what’s the single most important requirement for on-boarding and retaining such top-shelf talent? Easy.
Link 2: Massive Cash Flow
Trying to recruit a top-gun business coach won’t be easy without cash. You need great cash-flow so you can afford to pay your coaches a compensation package comparable to what they’ll be leaving.
AND, just as importantly, there needs to be a big upside. That’s why we’re big believers in revenue percentage splits as a compensation model. It’s the only model that’s ever worked in building coaching firms around the world. Great coaches never have to leave a firm if they can grow their income and eventually buy into the firm they helped build–or even multiply it over and over.
Great coaches never have to leave a firm if they can grow their income and eventually buy into the firm they helped build--or even multiply it over and over.
But, how do you create this wonderful cash flow to build an amazing team?
Well, again, it’s pretty simple, though not easy.
Link 1: Personal Coaching Success
I don’t believe you’ve really mastered this business to the level required to build a great firm until you’ve hit six figures and stayed there for a year or more. What must you do to be a six-figure coach? You must consistently deliver high-value coaching services in your market until your market is willing to reward you with ever more clients, who pay ever more money, for ever less effort on your part.
And when this starts to happen, it’s magic!
For more great insights on how to build a business coaching firm that runs with out, download our FREE ebook, Secrets of a Business Coaching Rock Star.
by Eric Dombach | How to Become a Business Coach
Over the last decade, as we’ve coached and trained thousands of business coaches from around the world, we’ve discovered three keys that fast-track success in business coaching.
These “keys” are really mindsets you can adopt, habits you can develop, and principles you can use as filters for decision-making as you embark on this amazing journey called business coaching.
So, whether you’re a beginning business coach just starting out, or an experienced veteran who needs a refresher, buckle up!
Timeless vs. Trendy
I see huge differences in success from business coaches who focus on the latest trendy fads in the business coaching industry, rather than those who master the timeless fundamentals of business coaching.
Don’t be tempted to look around for quick, just-add-water methods for getting clients and cash flow in a hurry. Our experience has been that almost all of these “instant cures” are ignoring or not disclosing something important.
The simple truth is that nothing worth doing can be done instantly. If it sounds quick and easy, run from it like a disease, because quick and easy just doesn’t work. You’ve got to be ready to put in the time and effort.
Earning vs. Learning
The journey you’re about to embark on as a business coach will demand that you do a lot of learning over the next few years. But don’t become so fixated on everything you’re learning that you never get on with actually earning by applying what you’ve learned to win and serve clients.
Many prospective business coaches conduct due diligence for months before entering our industry. In the process they can fall into the old “paralysis of analysis” where they spend so much time studying various, and often conflicting approaches to the business that they never actually get out of research mode and into the game.
Many prospective business coaches conduct due diligence for months before entering our industry. In the process they can fall into the old “paralysis of analysis” where they spend so much time studying various, and often conflicting approaches to the business that they never actually get out of research mode and into the game.
You’re always going to have critics and pundits. Don’t allow yourself to be paralyzed by the opinions of people who have never built a business coaching firm or a quality business of their own. There comes a point where you need to choose a mentor or expert to teach you this business over the long haul. Once you make a selection, do your learning and then get on with the earning.
Execution vs. Overwhelm
The volume of material to study and learn as a new business coach can feel like drinking from a firehose. The third key to fast-tracking your success is to avoid the tendency to become overwhelmed by the process in front of you and focus instead on the step-by-step execution of your mission.
I’m going to tell you a fact that’s scary but true. Research has demonstrated that only a very small percentage of business coaching franchisees survive longer than a couple of years. One of the main reasons for ongoing horrific failure rates in business coaching franchises is the complete overwhelm experienced by most coaches, even when using a supposedly well-organized “system” for getting started.
Mark my words: it’s easy to get so overwhelmed as a new coach that you totally fail to execute. Why? Because you have to become very strong, very quickly in a lot of disciplines that affect the operations of small to midsize businesses. If you don’t have a concise and clear roadmap for generating leads, landing clients, and then coaching clients you’ll fail at an execution level.
Overwhelm is so dangerous because it’s the point where you throw your hands up and become totally untethered in the vast ocean of information you’re immersed in.
Fortunately, there’s a way through these minefields. Our ebook, How to Become a Business Coach, helps you set yourself up for fast-track success in this industry. Download it today!
by Eric Dombach | Business Coaching Tools
Are you trying to build a business coaching firm? I mean more than just a practice— I mean a real enterprise, where you bring in associate coaches and run a firm analogous to a large law office.
This is where generational wealth is built in business coaching, and I strongly recommend that all successful coaches consider it.
A decade ago, I sold my first business coaching firm for $1 Million, and now, with the Coaches’ Coach, we’re continuing to build a high-powered firm with multiple associate Coaches’ Coaches from around the world.
Over my years of coaching clients in a position to begin firm building—and yes, through my own personal experience of trial-and-error—I’ve discovered the seven biggest mistakes coaches make when building a firm.
Here’s what the are, and how to avoid them.
- Not having a clear decision-maker in the firm. Even though building a firm means, by definition, that you’re working with other accomplished coaches, it’s important to have a leader or a couple of people in clear partnership, rather than decision-by-committee. Otherwise, accountability gets lost, communication breaks down, and progress stagnates.
- Jumping too prematurely into a big office. Take your time to build your cash flow, internal processes, and client list before taking on excessive overhead.
- No marketing machine. Sometimes coaches try to bring on associate coaches before they’ve developed a predictable, reliable flow of new leads coming into the business. Nothing will kill your firm faster.
- Dependence on lower leverage marketing. This means elbow-grease, pound-the-pavement kind of marketing, such as cold calling, networking events, and knocking doors. Your marketing needs to bringing in warm leads, reliably, before you can expand; don’t expect your associates to do this for you.
- No coaching system. Your firm should be established around a process and a curriculum. Don’t let your coaches wing it. Have a systematic approach so that clients have a comparable experience and get comparable results.
- Commissions that are too high. We recommend that you share 35% to no more than 45% of the revenue with your associate coaches. The percentage can grow as the coach becomes more successful and proficient. Once you get beyond about 45% there’s not enough gross profit left to keep the firm profitable and make it all worthwhile for you, the owner of the firm.
- No career path to keep coaches from leaving. Be sure to provide plenty of opportunities for growth in your firm. Otherwise, you’ll experience excessive turnover as your best coaches explore greener pastures.
Your firm should be established around a process and a curriculum. Don't let your coaches wing it. Have a systematic approach so that clients have a comparable experience and get comparable results.
Building a business coaching firm is one of the best ways to leverage your experience as a business coach—and now you’ll know how to avoid these pitfalls along the way!
For a comprehensive business coaching system that will walk you through all the phases of building a firm, get a FREE 30-day trial of the Coaches’ Coach membership.
by Eric Dombach | Business Coaching Franchise
Like anything in business, your goal is to buy low and sell high. But there are literally thousands of people who have foolishly paid top dollar for business coaching franchises they now regret owning. This represents a huge opportunity for you. If you’re interested in a franchise system, all you need to do is find a coach who wants out and buy their business coaching franchise license for pennies on the dollar, or less. You’ll actually be doing them a big favor by relieving them of their monthly royalty payments.
As soon as you receive the Franchise Disclosure Document in your due diligence process, start with the list of franchisees who are currently involved in litigation. They will be the most motivated sellers. Begin calling every single franchisee in the list and leave a message if you don’t get an answer.
Here’s a script to get them calling you back:
“Hi, my name is _____ and I’m currently exploring the franchise opportunity with _____. I’m interested in the possibility of paying cash up-front for your franchise license and relieving you of your monthly royalty payments immediately. Please, call me back ASAP at _______ because I’m moving quickly on this. Thanks!”
When they call you back, don’t elaborate. Just tell the franchisee that you want to buy their license. In many cases, the franchisee will basically GIVE it to you — as long as you’re willing to assume the liabilities they’re trying to get out of.
If they won’t, walk away and find another franchisee. There is NO compelling reason for you to pay much for the license, because the business has no assets. Otherwise, it wouldn’t be up for sale! If there are any client relationships, DON’T pay for them, because they probably won’t survive the transfer of ownership from the existing coach to you, trust me.
When you share this tactic with your sales rep, be prepared for a little hand-wringing and hullabaloo. Ultimately, though, it will blow over, because it’s actually in the franchisor’s best interest for you to buy up used licenses, too!
Why the Franchisor Benefits from You Buying a Business Coaching License from a Franchisee
Every time a franchisee fails, the franchisor has a couple options: they can resell it or just de-activate the license.
Re-selling is always preferable because of a pesky little requirement by the FTC that franchisors hate. The FTC requires all failed franchisees to be reported in the FDD to protect you. The FTC wants you to see how many franchisees are really failing!
BUT – how it’s reported is the key. If the franchisor can sell the failed franchise license for even $1, they can show it on the FDD as a “sold/transferred” license. This makes it impossible for you to know the condition of the sale.
The franchisor wants you to believe that these franchisees made a fortune and decided to sell their businesses for big bucks and ride off into the sunset — as I did. But this is a VERY rare accomplishment in the industry. So showing the license as “sold/transferred” is usually a way of concealing failure from unsuspecting consumers.
Showing the [business coaching] license as “sold/transferred” is usually a way of concealing failure from unsuspecting consumers.
Of course, even when you get a franchisee to practically give you his license, the franchisor will still
try to make you pay for training, usually $10,000 to $25,000. They might also try to make you pay
a “transfer fee” — which really just amounts to another line of business for franchisors. (In fact, the
larger franchisors have people in their legal departments who focus on transferring licenses and, in
some cases, get paid bonuses for how much they collect in “transfer fees.” Amazing!)
But don’t give in so easily. Everything is negotiable in business. You can negotiate the training and
transfer fees just like anything else. Do you want to see the franchisor become suddenly very willing
to negotiate? Tell him that you WILL be buying a franchise license. It’s just a matter of who you buy
it from. Tell him the names of the other franchisors you’re talking to. Make him accept your offer.
If there’s one thing I hope this chapter has driven home for you, it’s YOU ARE IN CONTROL.
There are so many opportunities available that you NEVER have to pay full price for a franchise —
unless, of course, you enjoy giving your money away. 🙂
For more due diligience strategies as you consider purchasing a business coaching franchise license, check out our FREE ebook, The Business Coaching Franchise Buyer’s Guide.
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