5 Steps to a 6 & 7-Figure Coaching Business

Building a 6 or 7 figure coaching business is only for the top 10% that learn and apply what it takes to succeed. Although you may be an amazing coach, running a business is not for everyone.

According to ICF Study in 2020, Life Coaching is the 2nd fastest growing industry in the world with an average yearly growth of 6.7%.  In 2022, they said, the average life coach only makes $50-$75k per year with only some making $100k or more.

According to the International Coaching Federation Global Coaching Study: Executive Summary 2020, coaching business is the 2nd fastest-growing business industry in the world with an average yearly growth of 6.7%. Globally, it is estimated that there were approximately 71,000 coach practitioners in 2019, an increase of 33% on the 2015 estimate!

As per IBISWORLD market research report on Life Coaching Industry, coaching business in the US Industry Market Size is well over 1 Billion US dollars! 

I remember when my husband left corporate America and decided to work with me. I’d call in the middle of the day to see how things were going and he’d be roaming the internet or lost on social media. I asked, “Did you do that when you were consulting?” he’d answer, “Yes”. I’d say, “Well there you got paid anyway, here we don’t get paid if we don’t get clients.”

It offers many benefits that a regular job cannot, and if you run it alongside your regular job, you can enjoy the best of both worlds. 

The most difficult aspect of running your own business is not the business itself. Most people have difficulty deciding what type of business to start! 

However, there are still important aspects of any business that must be effectively addressed in order for your business to be successful. 

Take care of the following to create the coaching business success you desire: 

1. Enjoy what you do.

   Find out what you don’t enjoy about your work and either fix it, abandon it, change it, or delegate it to someone else. 

   • If you don’t enjoy what you do, quitting is only a matter of time. 
   • This is not like a typical job where you are told what to do and how to do it. When you run your own business, ALL the decisions are yours to make. Choose a new approach, make a decision, take action, and proceed. 

2. Keep your overhead costs low.

   Working from home offers the lowest overhead costs of any alternative. No rent, no commuting, and no staff either. The lower your overhead, the faster you will achieve profitability. 

3. Charge the maximum amount the market will accept.

   When you’re doing well is the ideal time to raise your rates or prices. To retain loyal customers, provide them with a modest annual increase. Every enterprise does it. Taxes go up. Food costs rise. As the price of gasoline rises, so should your prices. 

   • Implement the increase at the same time annually. Inform them beforehand to expect it. 
   • Always charge NEW clients/customers a premium from the outset. Charge as much as possible. If you provide exceptional service, nobody will object to paying for it. 

4. Be efficient with your time.

   Always seek to improve your productivity. If you can improve your productivity, your profits will rise. When running a home-based business, time IS money, as it is easy to waste time when working from home. How much? 

   • To calculate your hourly rate, divide your weekly income by the number of hours worked. If your weekly profits are $250 and you served 10 clients, your hourly rate is $25. 
   • Alternatively, if your average fee per client is $25 and it takes you an hour to service each client, your hourly rate is $25. 
   • If a client keeps you talking for 30 minutes after your appointment has ended, the cost of that conversation is approximately $12.50. You would not be worse off if you charged half price and left promptly. 

5. Be both persistent and consistent.

   Be consistent and persistent in everything that you do. 

   • For instance, if you typically call clients ahead of time to ensure they are prepared, you should always do so. 
   • If you take 30 minutes between appointments for a quick lunch, take 30 minutes every time. 
   • If you inform clients that bookings are valid from Wednesday to Saturday, you must always book on those days. Be consistent. Do not permit clients to invade your free time. 
   • ALWAYS be persistent. Be PERSISTENT when following up with anyone, including a bank, clients, suppliers, IRS office, or anyone else. Continue until the issue is resolved to your satisfaction. Do not let matters slide. They have a tendency to accumulate. 

Conclusion

The more efficiently you run your business, the better service you will provide, the more satisfied customers you will attract, the more profit you will earn, and the more fun you will have and free time you will have. Plus, you’ll enjoy more satisfaction and fulfilment. 

In order to ensure that your business doesn’t interfere with your regular job and vice versa, you must establish and adhere to a routine if you’re running your business in addition to your day job. 

It is not necessary for the business to be enormous for it to be meaningful. If you could earn a modest profit of $250 per week while working part-time from home, that would add $1,000 to the family budget each month. What difference would that make for you and your family? Of course! 

Usually, but not always, you can grow a small home-based business to the point where you can leave your full-time job. If this is something that may be of interest to you in the future, it will be to your advantage to start with the end in mind. 

It is less important to get everything right than it is to get started. You can adjust and adapt as you progress, but the most important thing is to GET STARTED. You’ll be glad you did! 

Kindly contact us if you require assistance. We help coaches get clients and give the best possible solutions that will create raving fan customers. If you are looking to grow your coaching practice let us help you now.