That might seem obvious, but it means you need to be prepared to work through a longer sales cycle than one-off, low-touch products and services.
However, just because the sales cycle is longer doesn’t mean you can’t execute it effectively and efficiently. And one of the best ways to do so is to be sure you qualify business coaching leads before investing significant time chasing them to close.
Fortunately, you can do that in 15 minutes or less!
Here’s now.
A Typical Business Coaching Sales Cycle
A typical sales cycle for business coaching looks something like this:
You generate a lead through one of our recommended lead generation strategies: digital marketing, referrals, networking, direct mail, telemarketing (including outsourced cold calls), and strategic partners.
You have an initial conversation, in which you qualify your business coaching leads and, if appropriate, get buy-in for a longer, complete complimentary coaching session.
You complete the complimentary coaching session.
You close the sale.
It can take between 1-6 weeks to get through the full cycle. Today, I’d like to focus on step two: what to do and say to vet and qualify your business coaching leads.
When you have your initial conversation with a prospect, follow these simple steps.
First, set expectations that the call will really be just 15 minutes.
After greeting the lead and confirming your appointment, say something like:
“We have 15 minutes and I have another call straight after, so we’ll need to keep to our time, is that okay?”
Second, set the parameters for the conversation.
Be clear with the lead what today’s call will accomplish–and what it won’t.
“My job today is really simple. I’m going to ask you a bunch of questions to see if and how I can help you. If I feel like I can’t help you, I’ll let you know and do my best to point you in the right direction. If I feel like I can, we’ll book another time to talk about how. Is that okay?”
Third, do some fact-finding.
This is about more than just finding out what their problems are — it’s also about getting to the heart of how motivated they are to address them. Here are some questions to ask:
Why now? What’s going on to make this a “now” conversation?
Why did you take my call? What do you know about coaching? Are you open to it?
What’s the gap between your reality and the result you want?
What’s broken, missing, or not working?
What do you want help with?
Is this a later thing or a sooner thing?
How do you think this is impacting you, your family, your team, your customers, your business?
What do you think that’s costing you?
Why is it important to you?
Fourth, summarize what you’ve heard.
Center in on the top three problems you heard:
You want result but obstacle.
You have problem and it’s costing your impact.
You don’t have desired thing and it’s hurting you because reason.
Fifth, define next steps.
Here’s where you want to either let them go or book a full complimentary coaching session.
Imprtant note: sometimes you’re not going to be a good fit, and that’s okay.
It’s better to let a lead go than to continue to chase what will ultimately be a problem client. Problem clients drain more resources and energy than they’re worth, especially if you’re going to be constantly chasing them for payment or dealing with hostility or unreasonable expectations.
It's better to let a lead go than to continue to chase what will ultimately be a problem client
Be willing to say no if they’re not a good fit in terms of revenue, motivation, or personality. Here’s a script to politely move on:
“At the beginning of our call I said I’d ask you a bunch of questions to work out if or how I could help you, and based on what you said, I don’t think I’m the right coach for you.”
On the other hand, most business owners really can use your help! So close your now-qualified lead into the complimentary coaching session by saying something like this:
“Based on our conversation, I feel like we should go ahead and book a longer time. What do you need to know before you can make a decision about that?”
Once they agree, set expectations for the next call.
“Great! In the next session I want to build a roadmap for you. We’ll go deeper into the results you want, what your current reality is, and how to move past what’s getting in your way.”
This simple, but often-overlooked step, can set you up for more effective complimentary coaching sessions — AND save you heartache and stress with tire-kickers or problem clients.
By the way, this script comes out of our complete members-only business coaching system — and there’s more where that came from! Check it out with a FREE 30-day trial and gain access to everything you need to master the art of marketing, sales, and coaching clients to success.
Today I want to answer a frequently asked question we get from business coaches around the world: how much money does it take to invest in a business coaching franchise?
Of course, this varies from franchise to franchise, but the typical investment is $25,000 to $50,000 for the actual franchise license and then an additional $10,000 to $20,000 for the training, which is usually a week to ten days.
In addition, royalty fees begin almost immediately in most cases. This could be a fixed amount or a percentage of your revenue, and is usually paid monthly. These fees are typically $1000 to $1800, which is a lot like having a second mortgage. If it’s a percentage-based system, it could be anywhere from 10%-20%.
If you are going to go with a franchise, we would suggest a franchise that takes a percentage instead of a flat royalty because this way, the franchisors are more invested in your success. If a franchisor is willing to generate their own income based on your results, they’ll do more to ensure you have adequate support (though even then, that’s not always the case). So as part of your due diligence, find a franchise that takes a percentage instead of charging you a flat fee.
In addition, most franchisors also charge what we call a brand-building fee or a marketing fee. Typically, that’s another 2%-5% of your revenue.
Should I Invest in a Business Coaching Franchise?
This is a question only you can answer for yourself. But remember…
You’ve got the $25,000 to $50,000 for the license;
$10,000 to $25,000 for training;
The monthly royalty of $1000 to $1800 a month or a percentage;
And your brand-building fee, which is another 2-5% of your revenue.
When you add all that up, it’s common for a first-year franchisee to spend more than $100,000 to get their business set up–and you are going to typically go through another $50,000 to $100,000 in working capital while you try to learn the business and get revenue coming in.
It’s common for a first-year franchisee to spend more than $100,000 to get their business set up--and you are going to typically go through another $50,000 to $100,000 in working capital while you try to learn the business and get revenue coming in.
We always tell business coaches who are deciding whether or not to invest in a business coaching franchise that they should count on at least $200,000 in working capital.
Of course, this is just a general idea–for a more detailed breakdown, you need to read the specific franchise disclosure documents that come with your due diligence process as you’re looking for what to pick as a franchise. And for another great due diligence resource, download a copy of our free ebook, The Business Coaching Franchise Buyer’s Guide.
If you’re actively researching how to become a business coach, you may be exploring whether or not buying a business coaching franchise is right for you. But what business coaching franchise alternatives exist?
After all, the claims are compelling: business coaching franchisors will tell you that their franchise is an out-of-the-box business coaching system that decreases risk and increases your chances for success.
“Just bring your motivation, personality — and money,” they say in so many words. “And you’ll get our name recognition and a proven business coaching system.”
While it might sound good, buyer beware. As with anything else in life, there are good business coaching franchises, so-so franchises, and downright dishonest franchisors.
You need to make sure you don’t get taken to the cleaners.
How Much Do I Really Need to Invest to Get My Business Coaching Franchise Underway?
The idea behind business coaching franchises is that you get a proven “business coaching system.” That means you should expect a model that generates a solid return for a reasonable amount of effort.
But it’s up to you to do enough checking to ensure that the franchise you’re looking at can really deliver. In my experience, many business coaching franchises simply don’t deliver the goods.
Not only that, buying a business coaching franchise requires a huge investment of capital, energy, and resources! When you begin talking to the franchisor, chances are you’ll find that you’re required to spend $50,000 to $75,000 just to own the business coaching franchise. But don’t forget the long-term costs. Monthly royalty payments (whether or not you’re making any money), marketing fees paid directly to the franchisor to “grow the brand” (generally about 5%), and the cash flow you need to generate leads and close sales. In the end, expect as much as $100,000 to $200,000! That’s a lot of money, so don’t rush in.
The Pros and Cons of Business Coaching Franchises
Here are some of the general pros and cons of working with business coaching franchises:
PROS:
“Business-in-a-box” system for acquiring clients and coaching them
Support from the franchisor and community of coaches
Help with marketing
Brand recognition (as long as the franchise actually has a good reputation)
Ongoing training and support
CONS:
Huge cost to get going ($100,000 to $200,000)
Not allowed to do things the way you want — you’ve got to follow their system (it can be a double-edged sword)
Generally expect a slow start and small revenues
Huge monthly royalties and franchise fees, usually due whether or not you’re making any money
Online marketing restrictions and red-tape
It can be very difficult to leave if you decide it’s not for you
What Business Coaching Franchise Alternatives Exist?
If you know you want to become a business coach, but you’re not sure you want to pursue a business coaching franchise, there are other ways of going about it.
Here are some suggestions…
1. Get Your Own Coach. Find a great coaches’ coach — someone who’s made money in this business and can show you how to duplicate their efforts. You can often make incredible progress with your own coach without the financial constraints of a franchise.
2. Learn Everything You Can About Sales & Marketing. Take some time to read everything you can by great sales and marketing masters: Jay Abraham, Dan Kennedy, Neil Rackham, Tom Hopkins, Seth Godin. Like any business, business coaching depends on closing the sales. This is a skill you simply must master.
3. Consider a Membership Service. Check out a program like The Coaches’ Coach System for a monthly membership which has all the benefits of a franchise (proven system, ongoing support, marketing help, training, etc.) — but at a fraction of the cost. Regardless of whether you decide to buy a business coaching franchise or build your own firm from scratch, having a proven business coaching system is crucial to generating the lifestyle and income you want and deserve — fast!
Still doing your due diligence? For a comprehensive breakdown of all the pros and cons of buying a business coaching franchise, check out our ebook, The Business Coaching Franchise Buyer’s Guideso that you can review your options and make an informed decision.
Are you a business leader who has been laid off or furloughed due to COVID-19?
Maybe it’s time to consider becoming a business coach.
No, really!
In any recession, brilliant executives take their hard-won expertise to the streets in droves and plunge into the world of business coaching.
It only makes sense.
According to Entrepreneur.com, “Business coaching is a lucrative business that can tap into the massive market of entrepreneurs and business owners trying to find their way in the world of commerce. If you’re an expert in business or have a deep understanding of the market forces of what drive purchases, then becoming a business coach could mean financial freedom.”
If YOU are a laid-off or furloughed executive, then this is a once-in-a-decade opportunity for you!
Why Business Coaching Is Counter-Cyclical
Business coaching is a counter-cyclical industry: when things get tough, that’s when business owners need us most.
My experience working as a business coach through several recessions, including the Great Recession of 2008-09, is that business coaching inquiries and sales go up in difficult economic times.
My experience working as a business coach through several recessions, including the Great Recession of 2008-09, is that business coaching inquiries and sales go up in difficult economic times.
That’s because business owners realize they have to get REALLY SERIOUS about marketing and sales.
And about managing their cash.
And about really listening to and serving their customers.
And about turning their lazy team members into top-performers or top-grading them right off their payroll.
It’s amazing how many sloppy businesses thrive until the fires of recession rage through the land!
Then, all bets are off. Only the fittest survive!
And that’s where you come in.
You can help many of these businesses live to see another day.
You can take your business expertise and put it right back into your community or industry.
So if you’ve been laid off or furloughed and you’re not sure what your next move should be, might I suggest you consider business coaching?
I even have a comprehensive system that will shave years off your learning curve and give you ready-made sales and marketing systems you can plug and play.
Give it a FREE 30-day trial. You could be well on your way to a meaningful, lucrative next chapter in your career.
Over the years, I’ve talked to dozens of potential business coaches who want to dive into the business, but are saddled with fears that might be holding them back.
Well, recently, I chatted with Andy Jacob of Dot Com Magazine about precisely this problem.
Here’s the thing: anyone embarking on a new venture will feel some level of fear. The question is whether you allow those fears to keep you from building something great, or learn to confront and overcome them—so that you can create the life and business you want.
In my conversation with Andy, we tackle the top five:
Headtrash
This is when you allow your insecurities and perceived liabilities dictate how you feel about yourself and your business. The solution? A simple but powerful mental reframe that transforms your so-called liabilities into assets in your own mind.
No System or Curriculum
Many potential business coaches have hard-won business acumen but aren’t sure how to translate that into teaching their clients can master, or worry about marketing well enough to close new sales. The solution? Find a system! There are plenty out there, from business coaching franchises to license programs to white-label systems. (Shameless plug: we like the way ours stacks up to the competition, but invite you to see for yourself!)
Will My Business Expertise Translate to Other Industries?
Maybe you have experience in one market vertical and are worried about whether or not your expertise will translate to other industries. A couple of points to consider to put your mind at ease: First, many business coaches find traction faster when they specialize in a particular market niche—so this isn’t necessarily a liability (the Coaches’ Coach, anyone?). Second, basic business principles that deal with the core challenges SMBs are facing—namely time, team, and money—tend to be universal, regardless of industry. Your expertise can translate.
I Don’t Have Enough Money to Start
When I got started in the business, you realistically needed six figures to launch a successful business coaching practice. We’ve come a long way since then. Now, with the proliferation of digital technology, business coaching is a high-margin, low-cost business model that can be deployed part-time—at least initially!
Now, with the proliferation of digital technology, business coaching is a high-margin, low-cost business model that can be deployed part-time
I’m not going to lie to you: marketing is at the heart of success in business coaching. However, you don’t have to start from scratch. At the Coaches’ Coach we’ve spent the last 15-20 years developing and refining proven, predictable, effective marketing strategies that you can take and deploy in your chosen market. It’s not a cakewalk—you have to actually implement the strategies consistently and carefully—but it’s not as intimidating as you might think.
More Resources
Like what you’ve read so far? Here are some more resources to get you going:
Andy Jacob at Dot Com Magazine is always looking for entrepreneurs to interview—you could get a video like this to jumpstart your business coaching career.
We literally wrote the book on this—and it’s free! Download How to Become a Business Coach and get more wisdom for prospective business coaches.
