Are you satisfied with the amount of time you spend on your coaching practice and the amount of revenue it generates? The International Coach Federation (ICF) estimates that coaches earn an average annual income ranging from $27,100 to $73,100. That’s quite a spread! Though one-on-one coaching is incredibly rewarding it can also be time intensive. If you find your coaching business isn’t generating the amount of revenue you want and need, or you want to reassess the amount of time you commit to it, it may be time to consider scaling your business.
Scaling a business means increasing its size and capacity to handle more customers, revenue, and workload. It involves growing the business in a sustainable and efficient way while maintaining or improving profitability. Scaling may typically involve expanding the customer base, increasing the number of products or services offered, entering new markets, or improving operational efficiency.
Scaling your business can be achieved through a variety of strategies, including increased marketing efforts, investment in new technology, expanding product or service offerings, and entering new markets. The aim of scaling a business is to achieve sustainable growth and long-term success while adhering to your desired level of personal investment. Knowing the amount of time and money you want to invest in your business and the level of revenue and lifestyle you want to generate is foundational to every decision you will make as you grow your business.
If you are just starting out as a coach, it may seem premature to talk about scaling your business but being clear about the intended scope of your business from the outset will save you headaches down the road. If you have been in business for a while you may be at the point where you want your revenue to grow but the thought of longer hours or having to raise your fees to a level that is uncomfortable for you fills you with dread.
Deciding on the breadth and scope of your business is foundational to every decision you will make regarding your business including the level of resources you need to commit. Not just the financials but your personal level of investment given time spent IN the business and ON the business. Michael Gerber, the author of The EMyth Revisited, a must-have for entrepreneurs, describes working ON the business as the time you spend on everything but delivering your product. When you are working IN the business you are coaching. As coaches we love to coach, that is where our passion and skills lie and what gets us excited about starting each new workday.
And let’s not overlook the 500lb gorilla in the room: working ON your business. Managing finances, marketing, sales, administration…. everything that has to do with running and managing the business. If you can’t afford to outsource all this functionality then you have no choice but to do it yourself, even though these responsibilities may require skill sets you don’t possess, thus requiring an even greater commitment of time and energy.
Read the following three questions as you develop or review your business plan and take the time to answer each one. Be reflective, follow your heart, and be realistic. This will result in a baseline for making decisions every time you need to allocate resources to your business.
- What impact do you want to make in the world? Think about your coaching expertise, its uniqueness, and the people who would most benefit from it.
- On what scale do you want to make this impact? Will you be content to bring your gift to those who can benefit from its impact in your local community or is your vision one that encompasses your target audience on a larger scale, perhaps even worldwide? Also, consider what it will take in terms of resources to achieve this goal.
- What is your level of commitment to making it happen? What will it take to make your dream a reality? In the beginning, you may be tempted to feel that with your knowledge, expertise, and passion you can accomplish anything.
Once you’ve taken a good hard look at your business and the impact you want to make, it’s time to ask yourself whether scaling your business makes sense. One-on-one coaching is incredibly rewarding. It is also expensive and time-consuming. Running your business and conducting coaching sessions can consume 40-50 hours a week.
Decide how much you need to earn as a coach and what hourly rate you feel you can comfortably charge (be a little aggressive here, your coaching skills are likely worth more than you think). Estimate the number of clients you need and the hours you plan to spend coaching to reach that revenue goal. According to coaching-online.org, the average hourly rate for a life coach is $75 to $200/hr. If you need to earn $50,000 to $100,000 annually and you coach one-on-one you need to average $150/hr., and coach 15 hours/week to make 6 figures annually.
This does not include the hours you have to spend on building your business every week. Between building your business and delivering your coaching you’ll be working a boatload of hours! That may be just what you want. Or you may want more balance and flexibility in your life and 40 hours a week just doesn’t cut it for you. Here are some additional factors that may motivate you to consider scaling your practice:
Increased demand: As you gain more experience and establish a reputation, you may find that more clients are seeking your services. This increased demand could create a need to scale your practice to accommodate more clients.
Financial goals: If you want to earn more money, you may look to scale your practice to take on more clients and increase your revenue. This may also allow you to charge higher rates and work with more high-end clients.
Personal fulfillment: If you are passionate about helping others, you may want to scale your practice to reach more people and make a greater impact on their clients\’ lives.
Work-life balance: Perhaps you want to have more flexibility in your schedule or reduce your workload in this case, you may consider scaling your practice by hiring other coaches, delegating some of your responsibilities to staff, or hiring a virtual assistant.
Running a successful business can be challenging, so it\’s important to prioritize your own well-being and prevent burnout. Here are some tips to help you take good care of yourself while building your business:
Set boundaries: Create a schedule and stick to it. Set specific times for work and personal time, and make sure to disconnect from work during your personal time. Communicate your boundaries with clients and employees and family to avoid overworking yourself.
Delegate tasks: Whenever possible Identify tasks that can be delegated to others and hire employees or freelancers to help you with those tasks. This will give you more time to focus on high-priority tasks and prevent burnout.
Take breaks: It\’s important to take regular breaks throughout the day to recharge and prevent burnout. This can include taking a walk, practicing mindfulness, or engaging in a hobby.
Prioritize self-care: Make time for self-care activities such as exercise, healthy eating, and getting enough sleep. These activities will help you feel energized and prevent burnout.
Learn to say no: Don\’t take on more than you can handle. Learn to say no to projects or tasks that don\’t align with your goals or that would overwhelm you.
Stay organized: Use tools such as calendars, project management software, automated coaching programs, and to-do lists to stay organized and manage your time effectively.
Overall, the decision to scale your coaching practice will depend on your goals, values, priorities, and the answers to the three questions we asked earlier in this article.
- What impact do you want to make in the world?
- On what scale do you want to make this impact?
- What is your level of commitment to making it happen?
Watch for more articles from us this month as we focus on group coaching and automating your coaching process as two ways of scaling your business.
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