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:
- “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
- 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 Guide so that you can review your options and make an informed decision.