Writing the Financial Part of Life Coach Business Plans

Writing the Financial Part of Life Coach Business Plans

While many components of life coach business plans can easily be crafted, the financial section can be quite burdensome, as it requires some financial know-how. In this article, we explore how you can write the financial section of a life coach business plan.

Writing the Financial Part of Life Coach Business Plans

Life Coach Business Plans: How to Write the Financial Section 

The financial part is a key point of any business plan. Therefore, it must be written with a lot of attention. This makes it possible to convince investors who will be reading the business plan.

Thus, it is important to take note of certain points before starting the financial part. You must keep a clear objective in mind, which is to convince investors to fund your life coaching startup.

1. The four main financial sections

Normally, a good life coach business plan should include four sections that will highlight the finances of the company. Investors may be reluctant to commit to a project that lacks one of these sections. Specifically, the following will need to be considered:

The projected income statement: The coaching company’s projected profit and loss will be shown in this statement. This concerns the income as well as the expenses that the company will incur to function properly. When writing this section, you’re not providing actual data, but a financial forecast about the financial stats of the future.

Cash flow statement: This statement summarizes the net cash flow of the business for each month. In other words, your business’s cash inflows and outflows. A cash flow statement shows your company’s ability to meet monetary commitments on a timely basis.

The balance sheet: This statement is a snapshot of what your business owns (assets) and owes (liabilities), as well as the amount invested by shareholders. A balance sheet indicates the capital needs of a business and helps identify the allocation of resources and how much financing is needed.

The projected financing plan: A comparison between the existing financial resources and the extra funding needed will be highlighted in this table. In this section, stress the profitability of the business and why your business needs financing.

2. Meeting the expectations of the readers

The second step towards writing the financial section of a life coach business plan is ensuring that each section mentioned earlier meets the expectations and requirements of the readers. Different readers, for example, an angel investor, a venture capitalist or a banking institution, may have different requirements. So, find out what they need before crafting your financial plan.

3. Write honestly while remaining realistic 

Many business owners writing their business plans tend to think that inflating the numbers in the financial part will help them get a lot of financing. It is important to know that this can create an unfavorable situation for you and your company. Consequently, investors will not take the risk of validating the file or supporting the business since they will have difficulty trusting the figures.

Finally, always use “What-if” scenarios when projecting your financials and coming up with future plans. This would increase transparency and help the investor to understand the best, expected, and worst sides of your coaching business.

Special Bonus – Learn 32 ‘Guru’ Transformation Techniques when you click on the image at the top right. You’ll learn how to become a life coach in 30 days.

Jeannie Cotter
Editor/Writer
Writer, Coaches Training Blog community

Top 10 Steps to Developing a Coaching Business Plan

Top 10 Steps to Developing a Coaching Business Plan

Being a coach can be one of the most rewarding career choices, but one of the first things that you will need to take care of when starting your business is developing a coaching business plan. The process of writing a business plan can be tedious and annoying, especially when you don’t know where to start. As such, in this article, we will be guiding you on how you can easily develop a coaching business plan.

Top 10 Steps to Developing a Coaching Business Plan

Why Develop a Coaching Business Plan?

A business plan will mainly allow you to have an idea of the viability of your coaching business, solicit investors and obtain a loan from a bank. Concretely, the plan is made of two parts: 

  • Your project: Who, What, Where, How, Why
  • The financial part: Your income and your estimated expenses

By developing a coaching business plan, you will be able to assess your needs and resources as well as devise strategies that’ll help you achieve your business goals.

10 Key Steps to Developing a Coaching Business Plan

There are several key steps to writing a business plan. The steps may vary depending on the type of coaching business you intend to launch. Following these ‘10 Key Steps to Developing a Business Plan’ will give you a general idea and help the process run smoothly.

Step. 1: Products and services

Your first step towards developing a coaching business plan is to describe your various services, to whom you offer them, why and what benefits they will derive. To do this, it is recommended to draw a table, as it will be more convenient especially if you have several offers.

Step 2: The target market 

Once you have determined the product and services you plan to offer, write down a detailed description of the market you want to target.

Step 3: Competition 

It is a well-known fact that you will always encounter competition in business. As such, it is essential for you to look for and list your competitors. In general, your competitors can be divided into two categories:

Direct – Those who offer the same service as you 

Indirect – Those who offer a service that your clients consider identical to yours. 

For example, you can compete directly with a coaching firm and indirectly with an author who has written a book on your subject. 

Make a list of your top 5 competitors and study the following:

  • Their type of business proposal 
  • How much they charge 
  • How they charge 
  • Their strengths and weaknesses 
  • The type of marketing they use 

Then, think of at least 5 things that differentiate you and would allow you to attract more clients.

Step 4: SWOT analysis 

The SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a strategic analysis tool that concerns a particular area of activity. For example, if you want to create a consulting, training & coaching company, you will have to do this analysis for each of the areas: advice, training, and finally coaching.

You’re going to have to think about:

  • Internal strengths of your future coaching activity 
  • Internal weaknesses in this area 
  • External opportunities available to you 
  • External threats that exist 

Step 5: Positioning 

With the information you have gathered on competition and SWOT analysis, you will now determine your positioning by answering the following questions: 

  • How will you take advantage of the weaknesses of your competitors? 
  • What are the 5 reasons why someone would want to become your client instead of one of your competitors?
  • Why are you the best person for this job? 
  • What skills, abilities, and experiences are you offering your clients that they cannot find elsewhere? 
  • How can you focus on the value you bring?

Step 6: The marketing strategy 

Explain and develop the ways you will use to find, convince and win your clients. You probably won’t have a completely clear idea right from the start, so put in place a framework that will allow you to establish a fruitful marketing strategy.

Step 7: The financial plan 

Developing a coaching plan also means that you will have to estimate your expenses and revenues per year over the next 3 years. 

Step 8: The emergency plan 

While it is always a good idea to be positive, anticipating certain setbacks can be helpful when the time comes. List what could happen and what solutions you could put in place to solve the problem. 

Step 9: Your biography 

A short biography of you and your work will go a long way in ensuring the credibility of your coaching business plan.

Step 10: The summary 

The last step of developing a coaching business plan is to be able to draw a summary of the 9 previous steps, which will provide you with the ability to determine: 

  • Why your company should exist
  • The products and services offered
  • Your target market
  • Your business goals and objectives and how you plan to achieve them

This part, once written, will serve as an introduction to your business plan.

Would you like an endless stream of new coaching clients? Simply click the image to the right and email and I’ll send you free videos with step-by-step blueprints for generating a massive income from high paying coaching clients.

Jeannie Cotter
Editor/Writer
Writer, Coaches Training Blog community

How to Start a Small Business Coaching Business Plans

How to Start a Small Business Coaching Business Plans

Are you looking for How to Start a Small Business Coaching business plans? In this article we will go through the important elements of a How to Start a Small Business Coaching business plan. But first, let’s define what a business plan is. Simply put, a business plan is a written document that contains the […]

Continue reading...

Creating a Step by Step Coaching Plan

Creating a Step by Step Coaching Plan

Before effective coaching can take place, a step by step coaching plan must be established. Rather than you writing a plan, both you and the person you’re coaching need to jointly identify a set of goals and activities. This ensures that both parties will be invested in the plan’s success and move you away from […]

Continue reading...

Coaching Institute Business Planning Tips for Success

Coaching Institute Business Planning Tips for Success

If you are planning to start a coaching institute, proper coaching institute business planning can not only save you from a lot of headaches in the beginning but can also mean the difference between a successful coaching institute versus a monetary disaster waiting to happen. Top 10 Tips for Coaching Institute Business Planning Here are […]

Continue reading...

How to Write a Simple Coaching Business Plan

How to Write a Simple Coaching Business Plan

Think you have a great idea for a business and need to draft a simple coaching business plan? You’ve probably come across simple coaching business plans on the Internet but you may not have the time to read them all. The coaching business plan template presented here will get you started. It outlines five most […]

Continue reading...

A Sample Business Plan for Life Coaching

A Sample Business Plan for Life Coaching

Business plans guide you along the rocky journey of growing a coaching company and referencing a sample business plan for life coaching throughout your voyage will keep you on the path toward success. There are plenty of sample business plans for life coaches on the Internet but how do you actually write a viable and […]

Continue reading...

What is Not an Indicator of a Successful Business?

What is Not an Indicator of a Successful Business?

Many new entrepreneurs who start their own business fail to ask themselves these two pertinent questions: What is not an indicator of a successful business and what are some of most common mistakes new business owners make? They do not realize how much work and time will be involved and as a result they become […]

Continue reading...

Coaching Class Business Plan for Business Success

Coaching Class Business Plan for Business Success

If you’re planning to start a coaching training center,one of the first things you need to do is to work on a coaching class business plan. Coaching class business plans are different from the normal business plan in the sense that they help you achieve the things you want to achieve specifically through your coaching […]

Continue reading...

Using a Business Plan for Coaching Institute Framework

Using a Business Plan for Coaching Institute Framework

When it comes to writing a business plan, it can be difficult to know where to start and for that reason, a framework of some common and useful business plan for coaching institute sections can make the process of writing a business plan easier.  The following framework is a recommended structure of the business plan […]

Continue reading...