If Money Talks, Let’s Talk ABOUT Money
Money—it’s the topic coaches avoid, yet it’s essential for every coach’s success. How do you navigate finances in your coaching business without losing focus on your passion? Let’s dive into key strategies that can help you master financial savvy and grow a successful coaching business.
1. Put Profit First: Prioritize Your Needs
One of the most important principles in financial management is ensuring you take care of yourself first. Sheri points out, “It’s important that we make sure that we feed ourselves first before we take care of the business.” This concept is akin to securing your own oxygen mask on an airplane before helping others. By setting aside a portion of your income as profit, you establish a safety net, ensuring that you’re financially secure while running your coaching practice.
Application Tip: Set up a system where a percentage of your income is automatically allocated to savings or investments. Start small if you have to, but make it a consistent habit. Consider reading the book Profit First as part of your financial education.
2. Align Spending with Your Values
Daniel emphasizes the importance of aligning your spending with your values. “Allocate your money according to values,” he advises. It’s helpful to ensure that every dollar reflects what truly matters to you. This intentional financial approach prevents your money from being wasted on things that don’t align with your priorities and helps you create a more purpose-driven financial strategy.
Application Tip: Regularly review your spending habits and adjust them to better reflect your core values. This might mean cutting back on unnecessary expenses and focusing more on what brings you true satisfaction.
3. Invest in Your Growth and Business
Investing in yourself is a surefire way to ensure your business thrives. Sheri notes, “Leveling me up levels up the business.” This means not only enhancing your coaching skills but also investing in tools, systems, and communities like CMC that support your business growth. By continuously improving both personally and professionally, you stay ahead in the coaching industry.
Application Tip: Dedicate a portion of your budget each month to personal development, whether it’s attending workshops, buying books, or joining professional groups. (It’s important not to over-index into this, so remember to keep the main focus on creating coaching conversations.)
4. Master Pricing Balance
Pricing your services can be a tricky balancing act. Sheri observes that many new coaches tend to undercharge, not realizing what the market will bear. It’s important to find a price point that reflects the value you provide and what clients are willing to pay. As you gain experience and confidence, don’t shy away from adjusting your rates.
Application Tip: Research industry standards and periodically reassess your pricing strategy. Consider clients’ feedback and market demand to ensure your prices are competitive yet fair.
Commit to Financial Mastery
Understanding and managing your finances is crucial to building a successful coaching business. By prioritizing profit, aligning spending with values, investing in growth, and mastering pricing balance, you can create a financially successful coaching business that supports your life goals.
How do you ensure your money choices support your coaching goals? Reply with a comment or question to share your thoughts.
Share this article with fellow coaches and engage with us in the free CMC Coaching community. For a deeper dive into these concepts, listen to our podcast episode #174.
Join the Conversation!
Reply with your thoughts on this article. And like/share/subscribe to our YouTube channel or our Podcast (Apple or Spotify) for in-depth explorations specifically for coaches like you.
Keep Coaching,
Daniel & Faisal
Co-Hosts of The Coaches Journey Podcast