How Much Does a Business Coach Cost?

The first question people ask when they are thinking about buying something is to ask - how much does it cost? They are usually thinking - cash out of pocket. And that is a normal concern.

However, in the case of business coaching ... it should produce profit within a few months. So, another approach to that question can be; How much profit can I make from working with a business coach?

Since there are so many people asking that 1st question, it seems helpful to clarify all that is required for and included in business coaching because it is critical to understand what is required to make coaching profitable.  In addition, we will explore what drives different business coaching investments.  Here is a look at what is behind the curtain.   

What is Your Intent for Business Coaching? 

For a coach to be worth the money at ANY price:

>  The you have to want to be coached.

> The you have to be willing to go outside your comfort zone. If you have ever been involved with sports, you understand what that means.

>  The getting your desired results must be more important than feelings or ego. 

If a business owner believes that doing things the same way they have always done them is more important than getting better results—there is no reason to pursue business coaching at all.  Working with a business coach is probably not going to improve anything. Results will stay the same.

Trust is vital.  If you don’t trust that the coach is dedicated to working for your best interest and helping you achieve exceptional results through their systems, knowledge, and expertise, then you have chosen to work with the wrong business coach.  It’s critical that you share all information openly in a forum of trust so that your coach can help you effectively. 

The factors for pricing of a business coach’s services begin with why you want a coach, what you want from a coach, and how you want your coaching to be provided:

Why Are You Looking for a Coach?

>  Many people have been told by others that they need a coach.  They are fulfilling a check-the-box item.  For them, any price is too high as they view coaching as an expense rather than an investment in a more successful, fulfilling, and profitable future. 

>  In other cases, people have seen somebody else get amazing financial results in a relatively short period of time.  They learned to see the price of a coach as an investment for greater profit.  For them, the value is what they will gain from the experience of having a coach.  They will measure value in terms of potential ROI. 

Coaches who work with Fortune 500 executives generally command higher investments than coaches who typically work with very small businesses with $100K of sales, and they help with different kinds of issues.  Executive coaches serving that upper market segment might charge $10K+ per month.  Small business coaches charge much less.

Another factor is the specific strengths a coach brings to the table:

>  Some business coaches focus on what is already inside you.  They may or may not have formal business training.  They focus on your existing skills and help you leverage those the best they can.

>  Others have significant years of business experience.  They share their knowledge as they uncover what you need and then guide you through the processes they learned along their journey. 

>  Other business coaches have been trained through a menu of proven strategies and processes.  Many of these types of coaches are franchises.  They have proven tools, processes, and systems that can be applied, in a customized way, to your specific situation and your unique goals.

>  Finally, there are the coaches who bring their past experience combined and complemented with formal franchise training to serve you.    

Generally, the investments for these coaches tend to increase as you go down that list.  The prices at the lowest level might be in the hundreds of dollars per month—while at the upper level the investment is likely thousands of dollars each month. 

How Do You Decide Which Type of Coach You Need?

Consider the components below to ensure you select the type of business coach who is best suited to you and your goals and objectives:

>  If you already have all of what you ever wanted from your business, already have all the skills you will ever need, and you have met all the goals you could ever want, then a lower-priced coach will be sufficient, if you want a coach at all.    

>  If you have not yet achieved what you wanted when you started, you don’t know what you don’t know, and you want to follow a tested and proven roadmap to growth and success—then the more qualified and higher-priced coach is probably your best coaching investment. That said, they often have different programs at different price levels that let you step in affordably.

What Level of Focus and Time Commitment Can You Expect?

The coach’s level of focus and time commitment with the individual client is important to consider and evaluate.  Delivery processes can involve on-line videos, books, group programs of various kinds, and 1-to-1 programs.  Each of these requires different levels of the coach’s commitment of their time and energy.  That level translates directly into their pricing structure.     

• 1-to-1 coaching programs are usually the first option.  They are personalized and require an higher level of investment.  My 1-1 coaching programs include proven, results-focused systems and tools that I customize to fit the specific client’s needs, goals, and objectives based on my own 20 years of experience lading business units.  These programs can be implemented immediately.  They incorporate education and accountability infused with humanity.  Depending on intensity and speed you want, I would charge from $1300 to $2500 per month for this kind of program.
• Group programs comprise a lower investment.  These are leveraged from the coach’s perspective.  He/she is delivering to numerous individuals at once making this a time-saving channel for coaches.  Group programs come in many forms including webinars, conference calls, live-meetings, etc.  They can be educational based, or simulate 1-to-1 coaching with multiple individuals.  These kinds of programs can make sense for a person just starting a business, or a more established business with an annual sales volume of less than $500K per year.  Personally, I provide several group programs.  Profiles of some group program options available are provided below: 
• Small group programs that simulate 1-to-1 coaching for up to a limited number of participants are another option.  These allow some personalized customization in addition to group learning.  Small group coaching programs make sense for businesses with an annual sales volume of between $300K and $500K.  I provide this type of program for an investment of $700 per month. 
• Another approach is an educational-based program.   I offer 12-week programs with accountability sessions included.  The investment for my educational-based programs are $1200. 
• Workshop programs are often available too.  These bring many businesses together for specialized training.  For example, I offer workshop quarterly to do strategic planning for the next quarter.  Normally, I include this for all of my coaching clients as part of their program.  I also offer it virtually to non-clients for $350 per event.
• Some coaches offer Mastermind Groups.  Generally, these programs provide less personalized accountability, but they can be helpful.  There are programs for all levels of business at a variety of price points. 
• Online video programs are starting to become increasingly available.  These programs deliver content in a programmed way.  In other words, information flows mostly in one direction.  There may be additional features that enable asking questions, but this approach is much less personalized.  These online video programs can be very inexpensive, often around $100 per month.  They tend to be more academic than provide actual coaching.  In many cases, they are less effective at helping a person learn how to implement new information and approaches.  And they do not include accountability - to keep you actually doing the recommended steps.

A good point to remember is that learning is important. But doing is what gets results.

Method of Presentation is a Price Differentiator

One of the components that drives price differentiation is how the specific coaching is presented.  Some coaches require an hourly investment.  Similar to an attorney, this may lead to clock-watching and minimums.  Others structure their fees on a monthly basis which may provide more flexibility in terms of the time provided and how the guidance is delivered. 

Whichever coaching program you select should be done with the intent of making it a profitable experience.  In other words – over time it should produce a profit for you.  It will take a few months to make the necessary adjustments in what you are doing and how you are doing it – but the experience should enable the owner to produce a positive ROI. 

That said – how ROI is measured depends on your goals.  For example, some owners might choose reducing their workload from 60 hours a week to 40 hours (or less)  instead of hard cash.  (If you could have a business that works without you having to be there – what would that be worth to you?)

Important factors to consider:

• You and your coach focus on YOUR desired outcome, and choose a program that will get you there.
• You commit yourself to doing those strategies – enthusiastically – because you will get something for it – in spite of the strategies seeming uncomfortable or different from what you have done in the past.  Holding back delays the outcome you said you want.
• You select a program suitable for your current stage.  Not too big – but not too small either.  You can always upgrade later to get into a more aggressive (meaning faster) program.  Or downgrade to maintain accountability.
• You stay with the program.  It is a marathon – not a sprint.

I challenge you to consider these questions for yourself;

• What if I don't do anything different from what I am doing now?
• What is the cost of continuing my current ways as compared to the opportunity if I take on coaching? What have I done to investigate what that opportunity is?
• Can I afford NOT to buy coaching?

Best of success to you! If you want more ideas that can help you get more from your business, check out the articles in the Blog ( https://stevechiama.actioncoach.com/blog/ ) or other articles in the Learning Hub (https://stevechiama.actioncoach.com/learning-hub/ ).

I hope this article helped clarify business coaching investments and requirements and helps you define which type of coaching may be best for your journey to growth and success. 

Let’s discuss what you want to achieve with your business.  Please connect with me at SteveChiama@ActionCOACH.com or call 703.543.8002.

Want to know your key focus area to help grow your business? Try our 3 min Assessment Quiz at https://stevechiama.nextlevelassessment.com/?source=LI_Event - 6Steps