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3 Shocking Mistakes Why Businesses Fail for Coaches That are Fixable

Nov 18, 2020

Have you ever wondered why businesses fail inside the coaching industry? If you are a mom, have a job and also try to build a six figure business, you know how hard it can be. 

You don't want to spend time with your loved ones and give them the best care possible. But you also want to achieve your own coaching goals. "How is that even possible", you probably thought once. 

Burnt out coaches get tired from gurus that tell them to just work harder or longer hours. They tend to go into their business days and then do exactly that though. Or they might go back to their current corporate careers because it seems impossible to build a sustainable coaching business. 

But have you also thought about how things can look like ten years down the road with your thriving coaching business? Take a step back and compare that to where you are right now? 

Is it more important for you to keep doing what you have been doing or pursue your passion for coaching? What could you win and lose when you weigh those two things up with each other?

Thriving coaches know themselves how it felt when they couldn't know any better. They know that there are many things to consider. But it's what they needed to know to get where they are now.

What if I told you though that these things can be implemented relatively easily. You can avoid some things by learning from your mistakes. That can be a tough road though because it's hard to figure out what you don't know.

But I will share some of my mistakes and experiences here because it is good to learn from the ones of others. Look how far the aviation industry has come with learning from mistakes. The good thing is that you can do the same for your coaching business too!

 

A Lack of Demand Might Indicate a Weak Marketing Strategy

 

Imagine if you have taken much time to prepare and organize a valuable coaching program. You are ready to rock and change people’s lives with it. But then no one buys from you? 

“How is that even possible”, you might ask. The answer can lie in the following question: Have you ever thought about if there is demand for the program in the first place?

Burnt out coaches think they can get away with selling any program they create. In their eyes, any kind of program will be bought at some point in time. That's one of the reasons why 45% of small businesses fail, though.

But consider this: If no one needs a car, because most people use a train to get to work, why should they buy a car? The same goes for the coaching industry. 

Successful entrepreneurs know that with some things, they can't jump steps. One of these first steps is that things sell when people have a need/want to do it. Then they will figure out how to validate their program.

One of our clients is working three days a week and making multiple six figures. She is a teacher and when she was faced with the same problem she didn't think: "I'm a teacher and that's not going to apply in my niche."

She instead asked questions like: How can she apply her teaching skills inside the coaching industry? How can she apply things that other coaches are doing to her activities? She is doing that in order to find out if there is a need in the market. Then she went on to create services she can sell.
If this is something you want for your business, book a discovery call with us.

 

When it’s About Cash Flow; What do Small Business Owners Worry About? 

 

Many burnt out coaches are guilty of this. They need a month or so to create a group program that lasts for a couple of weeks.

Some good sales come in. But then get nothing for the next couple of months until the next program is out.

Do you think you can keep this up for decades? Have you ever seen successful coaches that have these kinds of ups and downs in their income stream? Is it more important to get a bit more money now but then get nothing for an unknown amount of time?

Thriving coaches know that it would be impossible to grow their business and constantly make sure they can make ends meet like that. That's why they keep track of their money management and cash flow.

In this case, they would find out how frequently they are launching their group program; How many customers they are bringing in; How many first time customers come back for more.

These coaches try to have consistent income. They also want to rely on more than one source of income. That way money is still coming in when one source fails. 

To keep track of all this, you want to have a strategy in place. Or else things get unclear when you have lots of content for example that branch into many opt ins.

With a discovery call, we can consult you and figure out what your business needs to succeed.

 

Why Having No Team is a  Thing That Stops You From Achieving Your Goals

 

Think through the following situation: There is a successful coaching business doing its thing with its team.

Now all of them disappear because an asteroid out of nowhere has wiped out this team and no one else. The whole team is gone, but you want to keep the business running.

But if you add up the work of 12 full time people together, do you know what might happen next?

You will realize: " I can't do everything alone. I only have 24 hours in the day! I wish I had 70 hours in a day for that!"

Burnt out coaches think they need to do everything on their own, even though the whole world is filled with networks, business and organizations. All of those groups are filled with teams, ranging from a couple of people to the tens of thousands.

Successful coaches are aware of this. That's why they build up a reliable and trustworthy team over time. Having a team also allows them to grow their business faster.

Having a good team also needs a well organized recruitment structure. Imagine if your sales VA rocks the house and brings in $250,000 every quarter. 

I had one like that at one point in my career. But then, out of no apparent reason, she left the business. The worst thing is that I didn't have another VA that could replace her rather quickly.

It took me about six months to find a replacement. Would you be okay, if you left $500,000 on the table like that? 

Think about all the dangers that come with it. Can you replace such team members quick enough or make them stay? 

It's also a key hire to get someone that does the HR for you. In a team, you want to have people doing work that they are the best at. You don't want people doing mediocre work, even though they are more qualified for the other position, do you?

 

In Summary:

  • Find out if there is a demand in the first place. You can analyze this by asking how your skills can be used for your niche, for example.
  • Make sure you don't neglect money management and how important cash flows are for a long term coaching business.
  • If you want or need to grow further down the road, a reliable and trustworthy team becomes the next essential pillar of your business.

 

If you want to start building a multiple 6 figure business working 3 days a week, now it’s the time! You can find more about what mistakes you want to be aware of for SMEs and much more. For that, book a discovery call with us.

 

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