Life Coach Business Plan: 5 Reasons Why You Need One

When you’re starting a coaching business, do you really need a life coach business plan to do it? Let’s face it: You’re excited about getting your business started and the last thing you want to do is spend weeks or months crafting a business plan.

Life Coach Business Plan: 5 Reasons Why You Need One

As the world of business has gotten less formal and the pace at which new businesses are opening has sped up, many entrepreneurs have begun to wonder whether a business plan is necessary anymore or as outmoded as the floppy disk.

Why You Need a Life Coach Business Plan

You may think you’re making it easier on yourself and saving time by skipping the business plan. In reality, taking the time to do the hard work now and crafting a business plan will make your life much easier and save you tons of time later on. Here are a few good reasons why every coach needs a life coach business plan.

1. You Need a Management Tool
A business plan is an important ingredient to the success of any business. It will help you improve your chances for success and avoid making serious mistakes. The following are some of the pertinent questions you need to ask yourself when drafting your business plan:

  • What does it take to succeed in life coaching business?
  • Do you have the necessary skills, talents and experience?
  • Can you afford to take the risk and what’s your risk tolerance level for failure?
  • Is there a market for your products or services, and if so, what’s your target market?
  • What is the revenue potential for the business? Can they meet your financial expectations and requirements?

2. You Want to Jump Start Your Coaching Business

Whether you’re a life coach, a business coach, or a health coach trying to break into coaching, a business plan acts as a guide to success. Developing your business plan helps determine your objectives and allows you to focus on the strategies and action plans necessary to accomplish those objectives.

If you’re looking to boost your coaching business, it’s time to answer a few questions in your business plan.

  • What are your goals for each month’s sales?
  • What are your resources, time available, equipment and advertising and promotional budget?
  • What barriers or challenges do you face?

3. You Want to Improve Your Company’s Operations

A business plan is a time and task-oriented plan that can be used to improve your company’s operations. It recommends actions that need to be taken and assigns responsibility. Some questions that need to be answered are:

  • How does our coaching company compare to leaders in its industry?
  • What are our management weaknesses and how can we make improvements?
  • How can we increase sales, serve the customer better, improve manufacturing efficiency, and increase the gross margin?

4. You Are Seeking A Bank Loan

A business plan can also be used to inspire confidence in your banker and convince her/him that your business is a good credit risk. It needs to be written very logically, with an emphasis on the financial projections and presentation of historical financial results.

A banker is looking for safety and a demonstration that your company can generate sufficient cash flow to pay the interest and the principal. A life coach business plan will need answers to these questions:

  • Will your company’s cash flow be stable enough to make the payments on the loan?
  • Are the long-term prospects of your business favorable?
  • Does your company have a reasonably good track record?

5. You Need an Investor/Partner

Your business plan must demonstrate considerable upside potential for the business. If the banker was content to get his money back plus, say 10% interest, the investor may want a return of 20% to 30% or more.

A coach’s business plan is competing with all the other plans submitted to the investor hence it must be written in an interesting manner to keep the reader’s attention. To attract a potential investor, you need to address the following questions:

  • Can your company grow rapidly?
  • Are the margins attractive?
  • Have you succeeded in other business ventures?
  • Is your market an emerging market, with a large and bright future?
  • How much are you willing to give up, both in equity and management control?

SPECIAL BONUSIf you would like step-by-step blueprints for generating a massive income from high paying coaching clients, I invite you to claim your FREE ACCESS to the “Life Coach Salary Secrets” video toolkit.  Go HERE to get it FREE.

Jeannie Cotter
Editor/Writer
Writer, Coaches Training Blog community

The Most Important Item on a Coach Business Plan

Writing a coach business plan? If you have a coaching business or are planning to start one, then you should be writing one. If you’ve had a coaching business for a few years and have achieved some measure of success without having a business plan, then power to you! But, you should still write one!

Coach Business Plan

Coach Business Plan – piksel © 123RF.com

Why You Need a Business Plan

Whether you are starting a coaching business or a grave digging company, you need a business plan. Whether you are opening a one-person shop or a company with many employees, you need to create a business plan. Whether you plan to raise money or just take the starting funds out of your pocket, you still need a comprehensive and concise business plan.

Hear are a few reasons to have a business plan:

  • Depicts the organizational structure and type of business. Even if the business is one person, decisions need to be made on type of business (corporation, LLC, sole proprietorship, etc.)
  • Sets your values and goals down on paper. This is especially important for coaches as they must work within the framework of a set of values and run their business the same way.
  • Clarifies present direction and details a future vision. A coach business plan will describe your niche, marketing methods, target market, and action plans to reach your goals, while also providing a glimpse of the impact your business should have and where you see it in three, five, or ten years.
  • A comprehensive coaching business plan serves as a handy reference guide. As your business grows, it is easy to lose your way, forget your values, and stray from your goals. A visit to the business plan, can remind you of who you are as a coach and a business person.

The Most Important Section of a Coach Business Plan

A good business plans has many sections. These include:

  • Administrative
  • Mission Statement
  • Vision Statement
  • Values
  • Marketing and Promotion
  • Target Market
  • Niche

Every section in a business plan is important, but it can be argued that the vision statement is the most crucial to success. If you look up business plan samples and templates, most will suggest that a vision statement should be a sentence or two. I disagree.

A vision statement should be more detailed than just a sentence or two. It should clearly state where the business should be at several intervals. The coach business plan is all about measuring success, and if there are detailed “visions” for one year, three years, five years, and one, the business plan will be more valuable.

There should be alternate goals. You might list different directions – stay a one-person shop, expand with the addition of other coaches, or expand into multiple niches. You might also list alternate streams of income – books, DVDs, seminars, online coaching, etc. – and create basic plans which may or may not be followed, depending on the current market.

All Coaching Visions Matter

A coach business plan should be replete with various visions. It doesn’t mean, all visions have to come true – it merely means that a business plan should have a healthy does of reality, realistic motivation, and big dreams! Every possible vision matters – include it in the business plan and it may come true!

SPECIAL BONUS — If you would like step-by-step blueprints for generating a massive income from high paying coaching clients, I invite you to claim your FREE ACCESS to the “Life Coach Salary Secrets” video toolkit.  Go HERE to get it FREE.

Fred Philips
Business Coach
Writing Team, Coaches Training Blog Community

5 Reasons Why You Need a Coach Business Plan

Do you need a coach business plan? Most of the experts will say that all businesses need a business plan, but does that include coaching practices? Does that include someone who just wants to hang out a shingle calling themselves a coach? You bet it does!

Coach Business Plan

Coach Business Plan – MICHAIL PANAGIOTIDIS © 123RF.com

Why Don’t All Entrepreneurs Have a Business Plan?

Research has shown that many entrepreneurs fail to create a business plan. This research also shows that a business plans greatly improves the odds for a business to succeed. It helps to develop a successful new product, organize a company, obtain capital and funding for their company, and helps to generate sales over the years.

But, is it important for a small, one-person coaching practice to create a coaching plan before stating?
Even though most coaches won’t need to raise capital or funding, or develop a product (at least, initially), or organize a large company with many employees, a coach business plan will still help you reach success and prosperity.

Don’t skip the important step of writing a business plan when starting your business!

5 Reasons Why You Need a Coach Business Plan

Here are the reasons a business plan is needed for all coaching practices, large and small:

Define and Review

Writing a plan forces you to define and review your business concept, organization, and goals all at once. You can include the vision and mission statements, and a list of values by which you will run your business. These serves as reminders for as long as you coach about the reasons you are a coach, the way you will conduct yourself as a coach, and the manner in which you will run your coaching business.

Define and Analyze Your Target Market

Many coaches fail to define their target market. They just become a coach with no thought as to who they will be coaching. Writing down your thoughts on a target market and making a quick analysis of that market (is it large enough, is it defined, can they afford your services, do you have the outcomes they are seeking?) is crucial to your success.

Think About Marketing

Most coaches ignore marketing, but if you want to succeed, you must make marketing a priority. Writing a marketing section in your coach business plan forces you to detail marketing strategies and think about how best to market your services. This section should also include ways to assess and measure marketing strategies.

Monitoring Progress

Since your business plan contains your goals, both sort-term and long-term, you can easily monitor progress by looking back to your coaching business plan. You’ll instantly know where you stand compared to your predictions or goals. It’s a great assessment tool!

Reference Guide

A business plan serves as a handy reference guide. It’s like an instructional manual for your coaching practice. Whenever you need to assess or reassess something in your business, you can look at your coach business plan for motivation, inspiration, satisfaction, or a plain old kick in the butt!

By the way… you’re invited to claim your FREE step-by-step “Life Coaching Business Blueprint” video toolkit. Just go HERE now to get your life coaching business blueprint videos.

Fred Philips
Business Coach
Writing Team, Coaches Training Blog Community