In order to make your business coaching activity known to your clientele, it will be necessary to incur some expenses. As far as marketing is concerned, we have, among other things: directory listing, Facebook Ads and Google Ads campaigns, partnership costs, a press budget, the creation of posters, the management of social networks, or good SEO optimization of your website.
OTHER EXPENSES
There will probably be a small budget to allocate to miscellaneous supplies. Also, cash to put aside for your business coaching activity: enough to finance 6 months of operation without turnover, the time to land the first consulting assignments. Finally, don’t forget to include your monthly loan payments, in case you take out a loan to finance your business coaching activity.
HOW LONG DOES IT TAKE TO MAKE A BUSINESS COACH PROFITABLE?
To get an idea of the profitability of your business coaching activity, you must first estimate 3 indicators: the provisional budget to start up, the turnover of your activity and finally the net profit margin. Let’s use a fictitious example and check business coach in midwest, where we take this assumption: the start-up budget for your business coaching activity reaches approximately 8,000 euros.
Also, we say that your business coaching activity manages to generate no less than 65,000 euros in income, every year. Finally, the net margin remains at 64% of the income generated (it is a service provision activity, the margin rates are quite high). A first formula tells us that your business coaching activity will collect 64% x 65,000 = 41,600 euros in annual profit.
In other words, your business coaching activity will represent a profitable operation after 3 months of activity.
STARTING A BUSINESS COACHING ACTIVITY POSSIBLE WITHOUT MONEY?
It is possible, as we have just seen.
We specify however that, if you have to make significant investments (rental of physical offices, hiring of other coaches, recruitment of administrative staff, significant budget for prospecting, etc.) a contribution of capital will considerably increase your chances of obtain funding for your business coaching activity. When external financing is requested, the amount of the personal contribution is around 20% of the total estimated budget. It should also be noted that a personal contribution is perceived by banks and other institutions as a guarantee of seriousness and commitment by financial institutions.
To collect this contribution, several options are available to you, such as money from relatives, the search for investors or even crowdfunding. Once this amount has been obtained, it is possible to solicit banks to finance its business coaching activity.
HOW MUCH TO START A BUSINESS COACHING ACTIVITY?
Without taking into account the extreme cases, we can consider that the estimated budget for starting a business coaching activity is between 0 and 15,000 euros. Indeed, and unsurprisingly, the initial investment is low. It is quite possible to start without spending a single euro. All you need is a good computer: all you have to do is register on freelancing platforms to canvass your first clients. It goes without saying that for each business coaching activity, the amount to be invested will not be the same.
Here are some criteria that have a considerable influence on the amount of the initial investment: whether you need (or not) to buy computer equipment, the budget allocated to prospecting when starting the activity, whether you surround (or not) with administrative assistants, the industry in which you specialize your professional coaching or even if you choose (or not) to develop online training. If you want to accurately estimate your projected budget, modify the pre-filled assumptions of our financial forecast for a business coach or entrepreneur coach in iowa.
