You may recognize Simon Sinek from his Ted.com presentations. Especially the one about the golden circle and the “Why?” And he is the author of the classic “Start With Why”. Here’s a favorite quote from him:
Have you put yourself first? It’s so sad when we hear some coaches say that they may need to get a J.O.B. It sounds like these coaches may not have seen professional coaching as a “real job”. Could this oversight be why coaches who think this way haven’t been able to make their living as a coach?
I agree that it’s time for reality checks for coaches. My sense is that coaches have underestimated what it takes to be a successful solo coach. Part of this stems from the state of our educational systems.
College and most advanced training still teach us to be employees, and that’s 1 of the reasons you may struggle to make a living as a self-employed coach. The 2nd reason is that your heart centered bias may not be interested in the “business” as being responsible for charging enough to pay yourselves a salary, plus business expenses and taxes. Your coaching fees are NOT your salary. A 3rd reason is we go directly to marketing, before we do the basics. Coaches many times put this proverbial cart before the horse.
When you see your coaching as a real job, you’ll start with these basics:
- Decide what you need to pay yourself as a salary.
- Figure your business cost.
- Don’t forget to add your taxes.
- Add your profit to your number so far.
- Do the simple math to see what your hourly fees need to be. Use this number for courses and programs too.
- Double check your niche and coaching offerings to be sure you’re offering enough value. Revise as necessary.
Generally, 40% of your income from coaching will go to expenses and taxes. Only the remaining 60% will be available as your salary. (Depending on the country you live in.)
Then, after you do the basics, you can start to market successfully. If you use this process, the threat of having to get a J.O.B. will be much less. That’s because you’ve taken action by realizing that you are also your own employer and responsible for yourself and other things you weren’t as an employee. You have a job! Right now it’s to find and implement the missing pieces so you can go out and help people.
At Business Skills for Coaches we also include how the way you spend your time affects your fees. Plus, you’ll learn the Value Based method for fee setting in addition to the Cost Plus method mentioned above. Like many things in life, your new responsibility is much easier to master with the right tools, information and the right business coach. ;-)
Remember what Simon said: “Putting yourself first is not selfish. Quite the opposite. You must put your happiness and health first before you can be of help to anyone else.”