Coach Training does NOT prepare coaches to own and manage a business, yet most coaches launch their business fresh out of coach training before having the necessary business training. The reality is that managing a business requires a radically different mindset and skillset than does coaching.
The good news is you don’t need a MBA to be a successful business owner. In fact, managing a coaching practice can be quite simple when you understand and apply the right principles.
This 2-Part Blog Series Shares:
- Part I: What absolutely must be in place for your business to succeed
- Part II: How to avoid the most common business sabotaging mistakes coaches make and how to communicate the value of your coaching
Principle 1: Coaching is NOT a Business!
Coaching is one Key Activity you perform in your business while you’re acting in the role of service provider. Other roles in your business include CEO and Business Manager. The CEO develops the business strategy, and the Business Manager implements the business strategy on a day-to-day basis.
At this stage you get to play all three roles: CEO, Business Manager & Service Provider. Each role holds varied responsibilities that require different things from you. Even if coaching is the only service/product you provide, it’s important to understand that coaching is one activity performed by a role you play in your business.
Principle 2: Strategy is Essential
The first thing that absolutely must be in place is a Profitable Business Model. Don’t let what follows discourage you. You can create a profitable business model one step at a time and realize progressive success with an imperfect model. The goal is to continually improve the model.
A business model is a systematic plan to generate profit by establishing and maintaining a position in the marketplace. Stay with me here…
Creating a profitable business model requires cohesiveness in the following areas:
1) Customer Segments (Whom do I serve?)
2) Value Proposition (What results do I offer?)
3) Channels (How do I communicate with my customer segments?)
4) Customer Relationships (How do I establish and maintain relationships?)
5) Revenue Streams (How much and for what do my customers pay?)
6) Key Resources (What must I have to offer the value proposition?)
7) Key Activities (What must I do to offer the value proposition?)
8) Key Partners (Who helps me make it happen?)
9) Cost Structure (What are the associated costs?)
Don’t be overwhelmed by this! Getting strategic about your business is essential, but it doesn’t have to be painful. Just know that these are all areas that require your attention and must be aligned with each other.
The two things that absolutely must be in place for your business to thrive are a Business Strategy and Support from others who keep you and your business model moving forward.
Principle 3: Support is Crucial
Going out on your own and doing something radically new requires you have the proper support system in place. If there is one thing every coach can agree on, it’s that we get stuck without outside collaboration.
We each need to determine what type of support we need and from whom. Support from others helps us capitalize on our strengths and shore up our weaknesses. It opens up new perspectives and opportunities for positive change. It’s the same in business as it is with anything else in life.
I see many coaches failing to invest in business support for the following two reasons:
1) They don’t know where to invest in their business development
2) They don’t believe in themselves enough to invest in their business development
Too often it’s number two masquerading as number one. That’s okay. Work with your coach to bring this into the light. It’s amazing how the perfect resources fall in your lap when you believe you’re worth the investment.