Writing a life coaching business plan sounds really tough, and it can be. But there are a number of things the smart coach can do to make it easier.
Okay, so you’ve finally reached that stage in the development of your coaching business to get started. You’ve done your research, you have a solid plan, and you’re ready to go except for one small detail… you need money. Whether it’s a bank loan or from investors it doesn’t matter, but you need a good dose of seed money to put all your hard work and planning into action.
Imagine pages full of this: justwhatkindofplanyouthinkgetsreadlikethis, with virtually no margins, no paragraph breaks, no breathing room. Lenders, investors, and angel investors are confronted with piles of business plans (including life coaching business plans) like that every day. Regardless of who hears your business pitch before they give you a dime, they will want to see a convincing business plan. Let’s start with the basics.
Life Coaching Business Plan – What Is It and What Does it Include?
A good way to think of a life coaching business plan is that it’s a document that provides answers to the type of questions anyone who may provide financing would like to know about your coaching business. Here are five sections every business plan must have:
Your Product or Service. Here, you must explain in the clear, concise language what you plan to produce and sell or what service you plan to provide. You will also want to include why you’ve selected this particular product or service.
Your Customers. After you’ve explained your product or service, the next step is to identify who you plan to sell your product or service to and why. You need to clearly identify your customer demographics (in terms of age, sex, language, country, state or city, income, etc.) to properly target your advertising, packaging, pricing, etc.
What Makes You Different? You need to identify the ‘unique factors’ that will make your business different from other coaching businesses you’ll be competing with. What niche are you targeting that they are not? How do you plan to fill a particular void in the market that you’ve identified?
Your Expenses. Your start-up expenses include any equipment that you need before you can get up and running, for example, a computer and a website, while your operating expenses are staff costs and utility bills.
Financial Projections. You should include a breakdown of both projected profit and loss per month (in graph form) for the first three years in business. Your business plan should show your business making enough of a profit each month to be sustainable. If it doesn’t, your business may not be considered feasible. If you are applying for a business loan, show one-time and day-to-day expenses versus projected profit to indicate how you will pay off your loan.
(NOTE: If you’ve been waiting to start your coaching business, or were wondering if you can do it profitably, then you need to watch this video. In the video, I’ll explain how to How to Build a Profitable Coaching Business in 30 Days. Click HERE now to watch the video.)
The Business Planning Process
Understanding the business planning process is important for creating a business plan that works. Writing a business plan is much easier with a clear, step-by-step outline. Here’s what you need to know:
Step 1: Organize your table of contents. This will help you outline each area of your coaching business to include your mission statement, products and services, number of employees, and any basic market research information.
Step 2: Collect attachments and appendix materials. These are especially important if your business plan will be reviewed by potential investors or business partners, and can also help with your business planning strategy.
Step 3: Create a list of key sections. Not only will this create a cohesive document, but you’ll also be able to jumpstart your business planning process with a clear map or outline of your strategies. This list is helpful if you’re not sure where to begin, since you can just put each idea down on paper and organize them according to the sections.
Step 4: Check for grammar, spelling, and even factual errors. Making sure your plan and notes are free of errors is especially important if you’ll be presenting it to others. Doing a quick check can help you discover any pieces of critical information you’ve missed out and fine tune the final draft.
Step 5: Write an executive summary for your coaching business. This is an important step that can help you pull together the entire plan in a few short pages. Many business owners turn to this summary when they need an overall view of their business.
Step 6: Get an outsider’s perspective. While you need to keep your business planning strategy and ideas as confidential as possible, sharing your plan with a trustworthy person can help you refine the plan. Get an objective view of your plan so you have everything well-organized and presented in a logical way.
Writing a life coaching business plan doesn’t have to be difficult, but many are intimidated by the process. Take the time to organize the critical areas of your coaching business and put them in a logical order. The time and effort you put into creating a solid business plan will pay off in the long run, and help you launch your coaching business with success.
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Writer, Coaches Training Blog community