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.