If you’re considering becoming a business coach, chances are you’ve already done your homework and know that business coaching can be a highly profitable career. In case you didn’t know just how huge the business coaching market is, here’s a fun fact: the total annual revenue from coaching in Oceania in 2016 was around $180 million AUD. Safe to say, there’s a massive market out there just waiting for you and your skills.
If you’re serious about becoming a business coach, the next question you’ll probably ask yourself is the most important: do you start your own business or do you buy into a franchise? While some people do choose to start their own business coaching business, the reality is it’s highly risky. When you choose to invest in a franchise, you’re choosing to invest in yourself and your success. Why? Because when you buy a franchise, you’re buying proven business models and frameworks you know will work and will maximise your chances of succeeding.
In this article, we’re going to look at how profitable a business coaching franchise really is, as well as the benefits of investing into a business coaching franchise. Unfortunately, so many people are scared off of buying into a franchise due to the initial upfront costs. Yet the truth is the potential income and return on investment you can receive from a successful business coaching franchise far outweighs the initial costs – it just takes some time and patience. Before we get into how profitable a business coaching franchise is, we want to take a minute to look at the advantages and benefits of buying a business coaching franchise.
Advantages and benefits of buying a business coaching franchise
1. The franchise is already a success
Perhaps one of the greatest advantages of buying a business coaching franchise is that whatever franchise you’re buying into is already a success and produces results. How do we know this? We know this because if they weren’t producing results and they weren’t already a success, they wouldn’t be offering people the chance to buy-in. Also, if you want clarification or more information about their methods of success and to verify their results, you’ll get to do that during the due diligence phase – BEFORE you buy.
2. It’s a recognised brand
The thing with starting your own business coaching business is that you’re starting from the ground up. And, it can take a long time before your business and brand is a recognised, reputable and trusted name. That’s why one of the biggest benefits of buying a business coaching franchise is that your potential clients are likely to already be familiar with and trust the brand. Furthermore, a brand with a regionally or nationally recognised name (like ActionCOACH) is going to be valued by customers across a large geographic area.
3. You receive all the training and support you need
Though you may have years of experience in sales, marketing, business or finance, do you know how to run your own business coaching business? The best business coaching franchise companies will offer you a training program that will teach you the most successful and effective methods to run all aspects of your business coaching business.
4. You then receive even more support!
It doesn’t just stop after the initial training. A good business coaching franchise will not only offer you comprehensive training at the start, but they’ll also provide you with ongoing support. The best business coaching franchises have staff that are specifically there to provide you with that ongoing support. This means if you ever hit some hard times or just need someone to talk to and get advice from, you’ll have an experienced and supportive team helping you make your business coaching business the best it can be.
So … how profitable is a business coaching franchise really?
OK so now we know all the fantastic advantages and benefits that come with buying a business coaching franchise. Now we’re going to talk numbers!
Average Revenue for Year One = $100,000, *net margin = 61.0%
Average Revenue for Year Two = $210,000, *net margin = 75.7%
Average annual revenue, lifetime = $258,000, *net margin = 75%
*Net Margin is after Standard Loan repayments and Franchise support payments.
What are the hourly rates?
Programs are via a monthly retainer rather than an hourly rate, however, if we break it down rates can be calculated at between $275 and $550 per hour.
