In this 3-part video series, I break down the business of coaching for anyone interested in learning how to start a successful coaching business in 2020.
This video, Part #1, is all about how to plan and structure your coaching business by 1) answering the 2 most important questions every coach must ask of him/herself before getting started, and 2) showing how to structure your practice around what is commonly known as your “coaching menu”.
I also reveal what the standard rates per session are for most coaches and how to price your packages according to the 3 main drivers.
FULL TRANSCRIPT 👇🏻
Hello everyone, David Fernandez here. I’m the founder of The Coach Your Way School and the author of The #1 Factor that Determines Your Success in Business, which by the way you can get for free once you join our Facebook group. I’ll add a link to the description so you can do so a little later.
Welcome to Part One of How to Start a Successful Coaching Business
These are three part video series where I’ll be breaking down the business of coaching for you. In part one, today’s video, I’m going to be talking about the structure of the business.
1. How to figure out the problems that you and only you can solve for people.
2. How to define your ideal clients based on the problems that you can solve for them.
3. How to structure your packages, your pricing and your offer.
I’m even going to be sharing what some of the standard rates are for beginner coaches, so you have a ballpark idea of how much you want to charge at the beginning. In part number two of the series, I’m going to be talking about the sales process and the two things that must happen consistently in order for you to have a thriving practice. In part three I’m going to be talking about the marketing process, and how to consistently get qualified prospects that are ready to buy and eager to work with you. So if you are ready to learn more about how to start a successful coaching business, stick around because this video is for you.
Like I mentioned at the beginning, this video is going to be all about how to structure your business. In order to do that, the first thing that we need to do is figure out what are the problems that we can help people solve. What are those things that we have expertise on or that are natural in us, that we can turn around and teach others so they can have success in those areas too?
The first step is to list your assets.
The best way to do this is by doing a simple exercise that I like to do with my clients, which is called: Listing Out Your Assets. So what are your assets? I want you to think about your assets as pretty much everything that you know or have expertise on. Or things that you have done in the past and you don’t necessarily have to be an expert on, but you have been through a certain process and acquired a certain amount of knowledge about the topic, whatever that is. I want you to list that out on a piece of paper. Also some personal traits such as; I’m great at organizing, I’m great at planning, I’m great at eating healthy, exercising, saving money, sticking to a budget. Just do a personal inventory and list everything so you have a list of these things and something to work with.
The second step would be to figure out who your ideal client is.
This would be as simple as just listing out a few traits that a person would need in order to be an ideal client for you.
Ask yourself the following questions elaborating a bit and using your logic:
- They have to be looking for a solution, right?
- So is it a person that needs help getting organized?
- What is this person going through and why would they be searching for this type of service?
- What’s going on in their lives? What type of life do they have?
- Are they married? Are they not married? Do they have pets? Do they have kids?.
Maybe they don’t have a lot of time. Your ideal client has to be looking for what you are offering. In this case, your organizational skills. Just to stick with that same example. What other traits would be ideal for your ideal client to have? Well, first of all, they have to have money. If they don’t have money to pay for your services, then they’re not an ideal client, right? So that’s key. You may want someone who has a positive attitude, you may want someone who is somewhat of an action taker, even if it’s in a different area.
Keep listing out all the things that come to mind that you would like your ideal client to have. We already listed out the top two things regardless of the service that you offer an ideal client would have to have. They have the problem that you can solve, right? And they’re looking for a solution for it. They have money to hire somebody to solve that problem for them. Now that you have figured out the problem or number of problems that you can help people solve in step number one and in step number two, you have created an ideal client profile with the people that you want and can help. It is always your choice, never forget that You choose who you want to work with.
Now it’s time to create an offer or a number of offers for your prospects to choose from when the time is right.
So let’s start with a call structure. This is just pretty much you figuring out how many times you are going to want to talk to your clients once they buy in. Is it going to be once a week? Once every other week? Once a month? What type of structure would actually fit your lifestyle and the way you want to structure your business. So I’ll tell you right from the get go, a standard practice is once a week. You meet for 60 minutes once a week. That is four calls a month or four hours a month. That is actually a great place to start and pretty much all coaches offer that as a standard package. Then what they do is offer variations of that package based on different pricing, different timings for the calls or different frequency for the calls depending on the client’s needs.
All these variations to the standard package are what is usually called or referred to as The Coaching Menu.
Just think of it as going to a restaurant and being handed a menu. You have all these different meal options with different prices, right? So there is something for everyone. Based on that your standard package would be one 60 minute call a week. So that is four calls a month. That would be your standard package. And then you can package number one in three months of that. So it would be 12 calls altogether for each month. 12 calls of that is this price. Then you have variation number one, which would still be three months of coaching, but instead of once a week, it will be once every other week.
So that’s half the number of calls. That would be six calls and that is a different price. You can have a 45 minute call or you can have a 90 minute call. You can have six months, you can have a whole year, but standard is your three month package. You have your six months package and depending on what you’re doing, you’ll have a whole year. And by the way, if you’re confused about any of this stuff, I created a free handout that you can download. Again it is free. I have a link in the description. Just go ahead and get it downloaded so you can see all the notes for this training. I attached a sample coaching manual for you to use freely. There’s no copyrights or anything on that handout. You can use whatever is in that handout in your practice. So that way you have a visual of what the coaching manual would look like. You can just recreate that and attach it to an email when the time is right.
The next step of structuring your coaching menu is the pricing.
A lot of people ask online how much a coach makes and how much a coaching session is. So I am going to spill the beans here and I’m sure a lot of people are going to be mad at me for divulging all of this information. The standard rate for a coach is about $250 a session. That would be $1,000 a month for four sessions. So if you start with that, a thousand dollars a month for four sessions, then you can create different variations depending on your offers. Not everybody is going to be able to afford something like that. So then you have to create variations. For example, instead of four calls, you do the two calls, once every other week for half the price. So for $500, somebody can get monthly training from you or coaching only less time.
Another thing that I like to do instead of doing 60 minute calls is to do a 90 minute call for those other packages that are shorter. Because 60 minutes sometimes is not enough. It just allows you a little bit of leeway and freedom on the timing. You don’t have to be looking at your watch every 60 minutes. So that is something that you can do for the variations of your standard package. You just play with time, frequency and money. So there is something for everyone, just like a restaurant menu. You don’t want to be the coach that charges $10,000 a month but has no clients. I learned that the hard way, believe me.
When I first started doing this, I was charging way too much for most people and I wasn’t flexible enough.Then I learned that I needed to be creative. I invite you to be creative with your manual. Once you see the handout menu that I’m providing for free, again, the link is down in the description, just download it, look at it, and then you’ll see what I mean. You can get creative
with that. You can do whatever you want, it’s your practice. Use the stuff in the handout as a guideline. Nothing is set in stone. Be flexible, you know, adapt. A lot of people are going to want to work with you. Believe it or not. People that are looking for solutions actively will want to work with you. If they feel like you are the right person for them. A lot of people will have the barrier of money. So you don’t want to work with them. If they really want to work with you, then you’ll have to give them options.
Something to keep in mind, I think is a tip that I wish somebody had given me at the beginning: Just be flexible.
If you are completely new to coaching, I suggest you watch another video I made called, What is a Life Coach, What Does a Life Coach Do and What is Coaching All About? I have a link up here for you after you finish watching this video.
In my next video, which is part two of this three part video series, I’m going to be talking about the sales process and the two things that must happen consistently in order for you to first have a business and second to be able to grow it. So if you haven’t yet, Please Subscribe and hit the notification bell, so you’re notified when that video is available. And please don’t forget to check out the video that I mentioned to you earlier, and also this one, which I know you’ll love, on How to Become a Life Coach.
Until next time, I wish you all the best. Let’s get out there and start changing lives. One session at a time, see you!