Profitability is not a bad word.
As coaches, we often want to stop ourselves from getting into a ‘businessman’ frame of mind when thinking about our practice.
Sure, we don’t become coaches simply for the money, but profitability and scalability in your practice is an important part of being a great coach. It’s what will allow you to live out your purpose and serve your clients more deeply and with more impact while having the freedom we so desire.
So where do you begin?
We’re constantly being bombarded with so much information about what to do and what not to do, that we get lost and we never really know what to focus on when thinking about growing our business.
I know what that feels like.
But I also truly believe that every coach can – and should – turn their practice into a profitable venture. So here are the few key things all coaches need to keep in mind to move towards profitability.
Stay focused on impact
Here’s the biggest irony of all – the best way to create profitability and scale your business as a coach, is by focusing on serving your clients.
Use impact as a measure of success. It can transform the way you craft your packages. It can transform the way you run your practice.
When impact and transformation become most important – the question stops being about locking in clients for one or two sessions. The questions are bigger. More encompassing.
So how do you ensure that your coaching model is impact focused?
- Craft packages:
This is something most coaches tend to overlook. Think about what you really want to achieve with your client. Now think about what sort of timeframe you think that will take.
Now think about how you sell yourself to your clients.
Here’s the problem – once we become focused on trying to sign on clients for single (or even multiple) sessions we’re already steering our mind away from impact.
Remember that real transformation does not occur in a single session. So get out of that headspace.
Instead, craft a package that locks clients in for results, not sessions.
Work with your client to build a package that is suited to their needs and can bring them high value and impact. Don’t worry about how many sessions that takes, stay focused on how you will deliver those results.
Maybe it takes 3 months, maybe it takes 6 months, maybe it takes a year. It’s okay. Because it means that you’ve now moved from a model of transactional coaching to deep, transformational coaching.
And this is the sweet spot where profitability occurs.
Now, instead of a client paying $1000 for a single session, they’re paying $6000 for a package. So you’ve immediately multiplied your income by 6 fold, while delivering higher value and impact to your client.
It’s a win-win situation.
- Start a partner program:
Now let’s say you’re a life coach, coaching a client through some personal issues. Perhaps you think that they will benefit deeply from some daily meditation. But here’s the thing – you’re a life coach, not a meditation teacher
So now what do you do? This is where a partner program comes in.
Partnering with related service providers – in this instance a meditation teacher – will help to elevate the results for your client while helping you scale your business for profitability.
If you know what your client needs, then you’re in the best position to recommend a service provider to your client to help them get the results they want.
Think about what your clients really need, that you aren’t able to provide. Then find a provider to partner with who offers those services.
Creating a partner program benefits you in two key ways:
1. It up-scales your business:
Set up a commission based model with your partner. This means that for every client who enrolls into a partner program through your referral, you get paid a certain percentage of his or her income.
This is a great way to keep a passive stream of revenue coming into the business
2. It brings in more clients:
Referrals work both ways. If you’re referring a partner to your client, chances are they are referring you to theirs. This creates a huge avenue for you to enroll new clients without having to invest any of your time, energy or money. And we all know how important a positive referral or testimonial in the coaching world is.
Less is more
We live in a world that tells us more, more, more. We think profitability means more clients. It means working more hours.
Nothing could be further from the truth. I know this sounds counter-intuitive, but bear with me.
See coaching is not a competition about who has the most clients or who works the longest hours. Coaching is simply about how you can serve people deeply, with purpose and impact.
So what does a “less is more” approach really mean for your practice?
- It increases the value of your clients
When this shift happens, you begin to focus your energy on serving less clients, but serving them more deeply.
Think about the value per client.
If your goal is to make $20,000 in a given year, you can either do it by enrolling 20 clients for $1000 each, or by signing on 4 clients at $5,000 each.
In the first model, your focus is on increasing your client base, and what happens is you end up serving each client less deeply. In the second model, your focus is shifted to fewer clients, but with an aim to serve them way more powerfully for a longer period of time.
So instead of increasing your number of clients, shift your focus to increasing your value per client.
- It increases your profitability
Time and money are limited resources. And the truth is that soliciting new clients requires a massive investment of your limited resources.
Think of it this way, you could either spend your time, money and energy trying to find new clients, or spend that same time, money and energy actually transforming the lives of others through your coaching.
Which one sounds more appealing?
A less is more approach increases the profitability of your business because now you need to invest less money marketing, less time networking and less energy trying to find new clients.
With a few high value clients, your costs go down, your energy is channeled in the right places, your revenue continues to grow and you stay focused on doing what you do best.
This immediately increases the overall profitability of your practice.
Make your marketing work
This is a big one. Look we’re coaches, we’re not marketing ninjas. So don’t beat yourself up for not being one.
Many coaches aren’t able to reach profitability because they are on a constant uphill battle when it comes to marketing themselves and their practice.
Don’t worry we’ve all been there. But there’s an easy way out. All you need to know are the three C’s to make your marketing work for you.
- Find your channel
You can’t be everywhere, so don’t try to be.
Do some brainstorming and figure out where your clients are. Once you’ve done that, you will be able to find the one marketing channel that works for you.
Maybe it’s Facebook if you’re a life coach. Maybe it’s Instagram if you’re a fitness coach. Maybe it’s LinkedIn if you’re a business coach.
Once you’ve found your channel, stick to it.
The biggest mistake coaches make is adopting a marketing channel and then abandoning it because it doesn’t give them the immediate results they want.
Remember, this is not an instant gratification process.
If your marketing is consistent on a particular channel, over time it will snowball. 100 fans become 500 fans become 1000 fans become 10,000 fans. So focus on one thing and do it really well.
The hockey stick model for growth comes from consistency.
- Consistency and continuity
Once you’ve found your channel, it’s really important that you keep your marketing consistent and continuous.
Be religious about the marketing routine you follow.
Maybe it means a new blog post every Monday or an Instagram post a day or one YouTube video a week – whatever it is, create a cadence you will be able to follow through, and then follow it through.
Because once you start developing followers, they will begin expecting and anticipating your content – and that’s a huge part of creating loyalty with potential clients in the online space.
When you don’t have constant interaction as promised, you start alienating your audience. If they don’t know where to follow you and what to expect from you, you’ve already lost them – and this makes it more expensive to enroll a client.
So with these small changes, it’s possible to turn your coaching practice into a profitable and thriving business.Like this article? You will love our free webinar on creating a profitable coaching business