‘Coaching business plan’ have you come across this term before? Yes of course, right?
Writing a business plan seems hell lot of work, isn’t it?
Do you want to start your own coaching business?
Are you in a fix and don’t know how to write the business plan?
Don’t worry I have been in a similar situation and can relate to you.
When I started my business, I was bogged down with too many questions-
How to start my coaching business?
What is my objective in running a coaching business?
How much is the earning potential of my business?
Who are my competitors?
How can I sell my business better than them?
Who are my prospective clients?
And the list goes on……
Are you stuck with the same questions?
Are you worried and don’t know what step to take?
Relax. I am here to guide you.
You must be wondering how I resolved all my doubts, right?
I did a lot of research before starting my coaching business. Very soon I realized the importance of coaching business plans.
I jotted down all the answers to the above questions and structured them in a business plan.
Let me start with the basics first.
What is the coaching business plan?
A coaching business plan is a whole set of documents that determines the growth of your coaching business. I term it as a business blueprint to achieve the business goals.
You need to understand your goals first so that you can market the business to your clients in an effective manner.
The coaching business plan will have answers to questions related to your coaching business.
You need to find out answers to- what is your business objective? How you are planning to achieve it? What are the resources you are going to use? If you are a start-up how will you arrange the funding?
Importance of coaching business plan to build a successful coaching business
As per my experience, coaching business plan is the key element in my business that helped me to carve my business path.
Initially, it was difficult to write one and the task made me feel tense. But my research helped me get through this phase. I went through the whole process with full zest. It was indeed a valuable process.
A coaching business plan helped me in focusing on the main areas that lead to the growth of my coaching business. This applies to any coaching business. You can examine who are your competitors and how well you have placed your business.
So here are some of the important points which tells why coaching business plan is essential.
1. Clarity about finances
It is vital to have clarity about finances related to businesses. You can make better business decisions with a coaching business plan.
I did not have an idea about how to manage finances. But when I referred the business plan things became clear.
2. Updates in the business
While updating any changes in your coaching business, a business plan is always helpful. It is a tool through which you can enter the changes which you desire.
For me adding services and reducing the number of hours in business were the redesigning decisions. I often referred to the business plan for it.
3. Marketing is vital for coaching business plan
This way you can achieve the desired results and take your business to the next level.
4. Staff management
Once you decide to grow your business, you need to hire team members and delegate their work.
You need to manage them properly and get the work done efficiently. With a coaching business plan, you can identify the key roles of every staff.
5. Improves productivity
A coaching business plan will help you in finding the areas where you can improve your pricing and productivity.
With little effort, you can get the chance to grow your business in the right direction.
6. Coaching business plan works as a blueprint
All information in my business plan is in a detailed format. A business plan works as a blueprint. How? It prevents you from making mistakes.
Do you feel confused at the initial stage of your business? A coaching business plan can help you to overcome any kind of failure you are scared of.
7. Know your game plan through coaching business plan
Wait let us not forget the essential benefit of a coaching business plan for the growth of the business.
You may have questions like- what kind of services people want? Are people interested to buy your services? How much price should you keep for your services?
What are the ways through which you can attract clients? These questions are dealt with while formatting a coaching business plan.
You need to answer all the questions in the business plan. This will help you chalk out the game plan for your business.
8. Coaching business plan act as reminders
It is not enough to start a business. I often felt keeping track of business growth is important. But how do you know that your business is moving on the right track?
The best way is to match it up with the coaching business plan. I always check my business growth with what I have planned to achieve in coaching business plan.
If there is a deviation then I check whether all the strategies are followed or not. The business plan always acts as a reminder to me whenever there is any deviation.
Steps to writing an ultimate coaching business plan
I would like to tell you that there is no specific coaching business plan template to follow. But there are some steps which you can follow to write an effective plan.
Planning is crucial and to achieve the goals all you need to do is prepare an effective plan.
Set yourself apart and involve in the overwhelming process of preparing a coaching business plan.
As per my experience, I have identified a few key points that you can consider in your coaching business plan.
Here it goes.
Step 1: Find the purpose of the business
Why do you want to start the business? What is the purpose to start the business? All these questions are important to form a business plan. You need to mention what is the vision of your business.
I got the right direction through this step. It kept me focussed.
It is like a visual image of the ideas you have built to make your business successful.
Step 2: Write the mission statement
This section is about the goals of your coaching business in a statement form.
The purpose which you have identified in the above step now becomes descriptive. It means what your business is going to do.
It deals with questions like:
Who will benefit from your coaching services?
How you plan to bring the change?
How actively you are working towards your goal?
Once, you get the answers, your mission statement is ready.
Step 3: Define your coaching niche
When you begin your coaching business you won’t provide all the coaching services.
As per my experience, decide the niche as early as possible. Of course, the one that you are passionate about.
Remember, earning is in the right kind of niche which you feel passionate about.
Your passion and interest will simplify your marketing work and overall coaching business process. Above all, it will increase your expertise. In the future, you can even revise your plan as per market changes.
List down your values. Do you believe in personal development?
What is your definition of success at a personal and professional level?
Which are the areas of conflict which can affect your success?
It is crucial to match your niche with your values. If not done you may fail. Would you choose the niche which is not aligned with your passion? Hence, choose a niche accordingly.
After you select your niche you need to identify your clients.
Step 4: Identify your ideal clients
After you define your coaching niche you need to find out who are your prospective clients.
Identifying your prospective clients is very important as it will help you to market your business well.
Client identification also helps you to improve your skills as per their requirements.
This will also help you to connect well with your clients.
Step 5: Describe your coaching business and name it
Now comes the time to define your business and choose an attractive name for it.
I would suggest you give it a unique name. But it should match with the coaching niche and programs.
Why you should have a unique name? This is because you will not face trademark issues from your competitors.
Also, keep the name short and simple. Imagine a long name before .com in your website URL. Will anybody remember it? No. Hence, use easy to read the business name.
Define the service programs, example some of the clients are interested in only getting advice. On the other hand, many are there who want to participate in your complete coaching session. Hence, you need to segregate your sessions in a similar fashion. This way you can attract more people.
Step 6: Coaching business incorporation
After finalizing the business name, you should move towards incorporating your business. I was not an expert in such an area. Hence, I had to consult my legal advisors for the same.
Partnership, sole proprietorship, C-corporation, and many other structures are there to choose from. Identify what kind of structure is feasible for your coaching business under your lawyer.
Step 7: Plan your financial setup
You need to have a proper business banking account. How will people pay? Which payment options are available for them? Is there an option for electronic payments?
Also, you need to work on which credit cards you can accept. But check the service fees too.
There are credit unions, online banks and institutional banks that you can approach. I preferred online payments too as they are faster and easy.
Next, you also have to form a financial model which includes:
Start-up cost- We will discuss it at the next point.
Financial projections- How to create your projected profit and loss statement?
Funding through investors- Will you apply for a start-up loan?
Also, how much can your audience pay?
Consider it once you know who is your target audience. How much they can pay?
Step 8: Identify business expenses for coaching business plan
What all things you need to start your coaching business? Which expenses are important?
I do not know how financially strong you are but knowing the expenses beforehand works.
List down the ones which are your immediate need. Others you can eliminate for time being. But, consult the accountant so that you do not deduct any important expense.
Your start-up expenses include things like:
Cost of equipment which includes computers, printers, telephones, and other resources.
Stationery items or business supplies like paper, white-boards, files and folders and more.
Premise expense- You can opt for work from home or rented place.
Insurance expense is also important as they cover claims in case of uncertain situations.
Website creation is also another expense. Keep the website simple. Clients look for how you can serve them best. Hence, I made it easy to read and. For authenticity, added testimonials and reviews.
Take the help of a web designer. I only had a social media page before but it wasn’t helpful in the long run. Have a secure domain name too.
Other fees are license and permit fees.
Services that you have taken from professionals such as an accountant or legal advisors also come under this.
Step 9: Marketing plan is an important step for coaching business plan
This is an important part of a coaching business plan.
Which marketing strategies are useful? How to attract more people? How will you promote your services?
What kind of marketing strategy you should choose?
Your marketing plan should have all the answers to the above questions.
I will tell you how to do it.
Look for your target market. Once you know who your target clients are, create marketing strategies for them. Your plan should revolve around their needs. It should include offline as well as online strategies.
How do you want to attract clients through offline mode?
When I started my business, I used brochures. It had all the information which could create noise in the market. It means I was making people aware of my coaching services.
I even opted for free coaching sessions of 20 minutes. Thanks to my networks I got my first few clients.
With time, I started organizing events. It was important to build a connection. Networking is the best offline marketing technique. A lot of guest interactions were done. It gave growth to my business.
Exhibitions and seminars helped in bringing my business into the limelight. I have found my various business partners through it.
Now coming to online mode. As I said earlier, the social media platform was the one with which I began my coaching business online. When I started my website, search engine optimization was the tool I used. It was to improve the ranking of my website and people could find about my work easily online.
You should know which mode would work when.
For example, many clients were not interested in a long webinar. Thus, for them, I had created small videos of 30 minutes.
In case you want more marketing tips then check out 30 secrets to building a thriving coaching practice.
Step 10: Build your team
You may need the support of like-minded teammates. You cannot grow business without a team. When I started my business, I used to wear different hats of manager, salesperson, and Hr executive. But I could not do anything.
It affects you mentally. You may even lose certain opportunities as you focus on the irrelevant task. Thus, build an organization structure that defines the roles of employees in your team. But it is not necessary to have employees for each task. You can have freelancers too.
Also, define the priority of the task and assign it to your team members. For example, I used to do high priority task whereas low priority ones were given to freelancers such as logo designing.
When my client list started growing, I hired various other coaches.
Find answers to the questions below-
How many people do you want to hire as freelancers?
Do you want to have any other partner?
What fee are you going to pay to assistant coaches?
These things are important for a coaching business. You will know when to appoint the right kind of people.
Step 11: Find competitors of your coaching business
In any business, you have to identify competitors. This helps you to innovate and compete in the industry.
You have to find out-
What are your competitors offering in the market? How can you differentiate your business from theirs?
What are their strengths and weaknesses? How you can compete with them?
I always keep this practice to identify what are the services which I can provide better than others. List down your unique selling points. Find out how meaningful your coaching programs are.
Step 12: Technology and other resources
Find out the technology and resources required for your business.
There are many options available to decide on a technology. It saves time and makes your work simple.
There are free Customer Relationship Management systems to track prospective clients. I have found it an amazing tool. It provides all the information and lets me organize all my clients.
Get the social media posts published automatically using tools like ‘buffer’. I found it in my budget.
For audio or video conferencing tools, Webinar is my most important marketing tool. I have always used Zoom and never found anything as good as that.
Is certification required to write a coaching business plan?
You don’t need a certification to write your coaching business plan. If you find it difficult to write one then hire a mentor. You can hire a business coach to build your venture.
Various coaching institutes provide knowledge on preparing a coaching business plan. Thus, you can apply for such programs and get the certification. This way you can save your time and at the same time get proper training too.
The best part is you will know which points are important in a business plan and which are not.
Now I am sure you have proper guidelines to write your coaching business plan. Are you fully convinced of the importance of a business plan? If yes go ahead and create a plan to improve the growth of your business.
Prepare a plan, examine your business proposition and grow your business efficiently.