There is a huge demand for business coaching.  In fact, Business Coaching is one of the fastest growing industries in the world.  The pandemic has created an even greater demand for business coaching services, business owners recognize they need help and are more will to engage with a business coach than ever before.  With that being the case, why is it so many business coaches struggle to make the revenue they need?  The biggest reason is they don’t have a proven framework or system to follow, they have to develop it all themselves, from the intellectual property to the marketing collateral, to the website.  All of this takes time, months, maybe even years.  During this time, they are not doing the two-thing necessary to generate revenue, acquiring clients and coaching clients. 

This is where a business coaching franchise comes in.  Statistics show that 90% of franchises succeed, compared to the 75% failure rate of startups.  If you are already a business coach or considering becoming one, investing in a franchise is a smart move.  A good business coaching franchise should give you a proven framework, tried and tested methodologies, and the support of a community that together stacks the odds of success in your favor. 

Choose carefully, not all business coaching franchises are equal. As with any franchise, the framework, intellectual property, tools, systems and level of support provided by franchisor will vary greatly. You must do your homework to avoid investing in a coaching franchise that isn’t right for you.

Choose a coaching franchise that’s right for you…

1. Do your research

As we have said, not all franchises are created equal. Research the different coaching franchises to learn about their models and values.  Do this initially without concern for the investment level, because it should not be about that, it should be about the Return On Investment (ROI) and the value proposition.   

You might find some too rigid and others to lax in their approaches. The best way to find out what a franchise is really about is to talk to people. Use your contacts, online forums and even Facebook to find out what others’ experiences have been with the coaching franchises you are considering. Understand the services they provide and make sure that these fit with the types of services you want to offer.

Brand, reputation, size and longevity in the market are crucial. You want a franchise that has been around for a while, has growth and ideally leads the industry.  You can be pretty confident a franchise has credibility in the market if the franchise has been around for over 25 years, is in over 80 countries, and has over 1000 franchisees and growing.  Having this kind of credibility will make marketing your business and attracting clients so much easier. 

A few questions to ask yourself…

• Is this something I can be passionate about?
• Do I have what it takes to succeed and am I willing to grow/learn to ensure I do?
• Will the franchise model help me achieve all of my goals, not just financial, but personal, and legacy?
• Does the culture of the franchise resonate with me and am I willing to live within the culture and hold others within the franchise accountable to live by those standards as well?

2. Investigate franchise support

Evaluate the level of support and mentorship you will receive, as well as the administrative tools you will get. When you invest in a business coaching franchise, you should expect support with marketing, sales, IT and admin in addition to the IP and coaching framework they provide.  You should get a complete business building system that addresses how to get clients, coach clients, retain clients and scale the business to become a sellable asset. 

One of the highlights of being part of a franchise is the opportunity to be part of a support community. Your franchisor and fellow franchisees should be an invaluable source of support. Choose a franchise that has community and culture willing to support you.

Becoming part of the ActionCOACH family for instance connects you to a global community of over 1000 professionally certified experts from day one.  Our point of culture of abundance means they are willing and available to help you when you need it.  In addition, you are assigned a coach that meets with you weekly during pre-training and for 3 months after the live training to help you launch your business and achieve positive revenue within the first 90 days.

Ask yourself…

• Is there a support network and how do I access it?
• Am I provided a master coach and for how long?
• What on going support and training is provided?
• What help will I get in terms of marketing and admin?
• What kind of IT platform is used and what IT support can I expect?

3. Evaluate the costs 

When evaluating the cost of a business coaching franchise, it is important to look deeper than just the cost of the franchise fee and training.  It is really about the ROI you can get and how fast you can get it.  Consider the additional startup cost required to get your business up and running.  Look at ongoing cost you pay the franchisor such as royalties and marketing fees and compare it to potential earnings and ROI.  Estimate ongoing operating costs such as office space, internet and telecommunications, utilities, etc. You may be governed by set pricing structures so go through the details of the Franchise Disclosure Document with the franchisor. You must be comfortable before you sign anything.

Be sure to understand…

• What startup capital is required to buy into the franchise?
• What are the ongoing costs to keep your license?
• What is the term of your license and what are the costs to renew?

4. Check out the systems and tools available to you

The reason why franchises are so successful is that you get everything you need to start your business day one.  The framework, systems, marketing collateral, IP, coaching tools and strategies, etc.  A great franchise will show you all of what you will be getting for your investment.  It allows you to determine the value proposition of the franchise.

Ask…

• What’s in the toolbox?
• Will these tools help me to market and facilitate my business?
• Are the tools user friendly?
• Are the systems and processes tried and tested?
• Does the franchisor continue to innovate and upgrade their systems?

5. Determine the earning potential

Carefully evaluate the earning potential of the coaching franchise against the costs of investing into it. You might be bound by rigid pricing structures that could limit your earning potential.  A good franchise will give you the tools needed to complete a preliminary three-year financial plan that when completed will outline exactly what you need to do to make the revenue you want to make.

Do the math and be realistic about what you could earn. Speak to other franchisees to find out if they are earning what they imagined they would or could it be better.  Most importantly, does the franchise have an Item 19 in their FDD.  The Item 19 is an optional Item that list the Financial Performance Representations of the franchisees.  If a franchisor chooses not to include an Item 19, you have to ask yourself why?  If they don’t have an Item 19 in their FDD, by law they cannot talk about potential earning.

Ask yourself…

• How many clients do I need to make the revenue I want?
• When can I expect to have positive cash flow, break even and income replacement?
• What is the margin in the industry?
• Is the earning scalable or will I hit a capacity limit?
• Is their an Item 19 to validate the preliminary financial plan?

6. Be clear on the training you get

As with running any business, you will have to get to know your market, understand your potential customers, be knowledgeable about the services you offer, know how to use the toolbox, and know your way around the IT systems. To be up and running as quickly as possible, you need training. The franchise should offer certification training on all  aspects of operation the business. Certification also adds to your credibility with clients

In addition to the initial training, good franchises offer on going training at regular intervals through webinars, conferences and weekly or monthly training calls so that your business is always growing and innovating. 

ActionCOACH’s training is the most comprehensive in the industry and the ongoing training and support support is unmatched in. 

Ask…

• Will training be provided?
• What aspects will be covered in training?
• How long does training take?
• What certification will I receive?
• What are the opportunities for ongoing training and support?

There are plenty of opportunities out there, particularly in the world of coaching and B2B services.  If you’d like to be a business coach, be sure to do your due diligence and ask all the right questions.  This article will point you in the right direction.

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If you want to dive deeper into owning a business coaching franchise, look at our business coaching franchise opportunity and let us guide you to see if ActionCOACH is right for you.