Why is Business Coaching So Expensive?
In today’s video, I’m addressing the critical question: is investing in business coaching worth it? We’ll explore the value versus the cost using real-life examples. By the end of this video, you’ll understand the potential financial benefits of business coaching and see how it can transform your business growth and personal development.
Transcription:
Hello, I’m Parag Prasad. Today we’re demystifying the question, is investing in business coaching worth it? What’s the value versus the cost? Illustrated with some real-life examples. So first, let’s consider a scenario.
Imagine you’re running a business with an annual turnover of £400k, profit margin of 15%, equating to £60,000 in profits. Now let’s introduce business coaching with the aim of a 30% annual growth rate, provided you’re committed to attending, to learning, and to taking action on that practical homework task that we give you to help you improve your results.
Under this 30% scenario, coaching helps increase turnover to £520k and profits to £78k. So that’s a profit increase of £18k. Now our group coaching programme, where most businesses start coaching with us, has fees of £7200 per annum.
So, the £18k profit increase has been driven by £7200 investment in our coaching. In other words, for every £1 taken out your profit to invest in coaching your profits increased by £2.50.
The question then is, would you see that as a worthwhile investment? Our average client revenue growth rate has historically been 34%, but let’s model an even more pessimistic estimate of say only 15% growth that would result in £9000 profit increase. So, the return on investment in that scenario still remains positive.
This simple illustration prompts us to reconsider the notion of coaching as being expensive. It really depends on the return on your investment. For example, we have clients including concierge and events company in Ibiza and an estate agent who have been with us since 2012 and 2013 so well over a decade.
Why is that? Because their results far outweigh the cost of coaching. The estate agents goal set at the start of his programme was to grow his personal income to £4000 a month after his first year of coaching. Now he was delighted to achieve that and then eight years later into the coaching, his personal income had actually soared to £25,000 a month.
The question of whether coaching is expensive then becomes irrelevant when you see results like these. So, as you consider business coaching the critical question isn’t just about the cost, it’s about the evidence of tangible results.
Has the coach delivered improvements to help with those commercial results? Lead generation? Conversion rates? Revenue, profits. Cash flow? Are these results measured and documented or is the coach merely sharing just insights and knowledge?
So, investing in our business coaching isn’t just about spending money, it’s about making an investment in your business’s growth and your own personal growth and development.
The real value lies in the results and the return on investment. Now, if you’re intrigued and want to explore how our business coaching can help you accelerate your growth, I invite you to book an introductory coaching session with us.
We’ve run hundreds of these each year for our business community. It’s a real coaching session where you’ll discuss actions and strategies to implement in your business straight away.
All we need is some information beforehand about your situation so we can properly prepare for that session and best help you. So, whether you choose to explore our coaching after that session or not, you have nothing to lose by taking advantage of that offer.
Key Takeaways:
- Business coaching can lead to significant profit increases, illustrated by a scenario showing a £18k profit boost from a £7200 investment.
- Our group coaching programme can yield a return of £2.50 for every £1 invested.
- Even with conservative growth estimates, coaching still offers positive returns.
- Long-term clients have experienced substantial income growth, demonstrating the sustained value of coaching.
- The true value of coaching lies in measurable results like improved lead generation, conversion rates, and cash flow, not just shared insights.
