Where Can You Find a Financial Projection for a Startup Life Coach Business?

Where Can You Find a Financial Projection for a Startup Life Coach Business?

Financial projections are a vital part of managing any business; the question is, where can you find a financial projection for a startup life coach business? What are financial projections?

Where Can You Find a Financial Projection for a Startup Life Coach Business?

In recent times, the life coaching profession has been on a steady rise because of the need to help people put their lives into a proper perspective to achieve their full potential. Financial projections provide a way to forecast your business’ future revenue and expenses and attract prospective investors. 

What are financial projections?

Financial projections forecast a business’s future cash inflows, income, and balance sheet. They help you estimate your fixed and variable costs and put them together with your expected income to project your profits. 

They show potential investors and bankers what you intend to do with your money and how you will grow it. If you want to get loan funding, financial projections help show potential lenders how you will repay the loans. They also help you identify your financial needs, find the right investors for your business, optimize your pricing, and monitor cash flow. 

The three statements required for any financial projections include:

  • Income statement: This part contains the income and expenses that your life coaching business will likely incur to function well.
  • Cash flow statement: This summarizes the business cash inflows and outflows and indicates your company’s ability to meet its financial obligations on time.
  • Balance sheet: This presents a snapshot of your business assets and abilities, and the amount of shareholders’ funds. The balance sheet indicates the capital needs of a business. It helps you to identify the allocation of resources and how much financing is needed.

Where can you find a financial projection for a startup life coach business?

To launch a successful life coaching business, you need a solid business plan. It is one of the building blocks of any new company. Also, it provides a road map to help you figure out the services to offer, your target market, and financial resources requirements, among others. One of the main components of a business plan is financial projections for the first 2-3 years.

In short, you can find a financial projection for a startup life coach business in its business plan.

The next question is: How do you create a financial projection for your startup? Here are some tips to help you get started:

Project your expenses and sales: Determine the primary expenditures you will need to get your business up and running and the subsequent operational costs. Also, create a sales forecast to help you determine your monthly revenue. 

Create financial projections: Use Excel spreadsheets, free online templates, accounting software, and other tools available to you to create forecasts. Include your projected expenses and revenues to generate a cash flow projection, annual projected incomes statements, and balance sheet projections.

Use accounting software: While templates can seem like the most straightforward way, accounting software plays a vital role in creating accurate financial projections. They can help you analyze a financial projection for your startup life coach business at a click of a button, hence increasing accuracy and eliminating manual errors in calculation. These are a necessity if you’re looking for investors or additional financing for your business. You can also consider getting the help of a professional.

Final thoughts

Financial projections give a clear picture of how a company will perform and help in making strategic decisions on business operations and growth. They help establish realistic targets, setting SMART goals and establish early warning signs related to business performance. Banks and investors may also use financial projections to base their investment decisions. These are, therefore, a must-have for any startup life coach business.

By the way… you’re invited to claim your FREE step-by-step “Life Coach Salary Secrets” video toolkit. Just go HERE now to get your Life Coach Salary Secrets.

Jeannie Cotter
Editor/Writer
Writer, Coaches Training Blog community

Transforming Lives LLC: A Sample Coaching Business Plan

Are you looking for a sample coaching business plan? Then you have come to the right place because we are going to share with you an example of a coaching business plan to enable you to craft your own business plan. This sample business plan is going to save a lot of your valuable time and money. Remember, there are also a lot of sample coaching business plans available on the Internet that you can refer to. 

The following sample coaching business plan for the fictional firm, “Transforming Lives LLC” is an example of what a coaching business plan might look like.

Let’s get started.

A Sample Coaching Business Plan

Transforming Lives LLC’s business plan consists of the following key components:

1. Executive Summary

Objectives

  • To acquire a personal premise for our business by October 2021.
  • To hire two certified life coaches by October 2021.
  • To acquire at least 100 clients by the end of December 2021.

Mission Statement

To provide life coaching, counseling, and guidance services to a diverse client base and transform their lives.

2. About Us

Transforming Lives LLC will operate in Las Vegas, Nevada, starting on June 01, 2021. Our business intends to provide the most effective solutions to the personal and professional problems of our clients. 

Transforming Lives LLC is a privately held C corporation owned in majority by its founder, Philip Cross. There are two other partners, including one public relation consultant, Jack Thompson and one attorney, Paul Schulman. Neither owns more than 20%, but both are active participants in management decisions.

3. Operating Location

We have one location—a 5,000 square-foot brick and mortar facility located in a suburban shopping center conveniently close to the downtown area. It includes a training and sales area, service department, and offices.

4. Services and Pricing

Transforming Lives LLC will provide life, career, and business coaching services. Clients will be charged on a per session or monthly basis. The price per session will be $100/hr whereas the company will charge $500 monthly if a client chooses a monthly pricing plan.

5. Target Market

The company will target individuals all across Las Vegas who need life, career, and business coaching services.

6. Competition

The company’s main competitors are:

Life Coaching Company – This company is an established coaching firm that has been operating for the past 10 years. It has a huge client base and is known for offering unique coaching facilities and affordable prices. 

Coaching for All Company – This company is well-reputed among the upper-class strata of the city and mainly targets businesspersons, professionals, and celebrities.

7. SWOT Analysis

Here’s an overview of our SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis:

Strengths

  • Affordable prices
  • Dynamic, innovative, and modern coaching techniques and strategies

Weaknesses

  • New to the Las Vegas’s coaching market
  • No clientele

Opportunities

  • Ever-increasing need for life coaches
  • Affordable and easy marketing strategies

Threats

  • Established coaching companies in the market with established clientele
  • Clients prefer experienced and established coaching companies

8. Marketing Plan & Strategy

We strive to build long-term relationships with clients, not single-transaction deals with customers. Our goal is to become their go-to coaching firm and make them understand the value of the relationship.

Our marketing plan consists of two phases. The first phase will be creating accounts on social media platforms that the target market most commonly uses. The second phase will be starting promotional campaigns such as rolling out promotional materials via our website, YouTube channel and email newsletters.

9. Financial Plan

Transforming Lives LLC will incur the following start-up costs:

  • Desk, chair and file cabinet
  • Fax machine, copier, telephone line
  • Computer with printer and Internet connection
  • Legal fees for business formation

Our total start-up cost is $23,000.

Projected Profit and Loss

Year 2021 – $3500

Year 2022 – $60,000

Year 2023 – $95,000

 

Projected Balance Sheet

Year 2021

Total Assets – $24,000

Total Liabilities – $20,000

Year 2022

Total Assets – $40,000

Total Liabilities –$26,000

Year 2023

Total Assets – $29,000

Total Liabilities – $15,000

Projected Cash Flow

Year 2021 – $22,000

Year 2022 – $39,000

Year 2023 – $30,000

To learn more about how to generate an endless wave of high paying coaching clients, get your 

FREE Instant Access to our “Life Coaching Business Blueprint” video toolkit when you go HERE.

Jeannie Cotter
Editor/Writer
Writer, Coaches Training Blog community

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