How Much Does a Business Coach Cost?
I once heard someone say “Business Coaches are a dime a dozen”, and in some way that’s true. In fact, it’s the same as referring to a mechanic. They are pretty much everywhere and offer the same service more or less, so what’s the difference? I believe that in most cases, you’ll find that the ‘game-changing’ coaches are worth their weight in GOLD!.
There’s an old story used in the coaching world that describes how a ‘specialist’ can afford to charge the money that they do:
The Navy had a new submarine, and for some reason, the engine wasn’t working quite right. Now, I don’t know about you, but if I’m about to drop several thousand feet below the ocean’s surface, I’m going to want to make sure that the engine is in good working order.
This problem existed for a while and nobody could find the issue. The engineers had looked at it with no luck. The mechanics had looked at it but no luck. Even the Captain looked at it, but still no luck. So they called the only engineer of sorts in town – who was actually a licensed plumber.
He came aboard the submarine and looked, listened, asked a few questions and then stood still for a moment. Then he reached into his toolbox, pulled out a hammer, walked down the engine line a few metres, then stopped, lifted the hammer and gave the engine an almighty BANG!
All of a sudden, the submarine’s engine kicked into gear and hummed like never before. With a look of amazement, the engineers & crew thanked the licensed plumber for his help.
“No problem,” he said, “I’ll send you the bill”. Not long after the Captain received the bill. It was made out for $10,000. Overwhelmed the Captain called the mechanic, asking for a breakdown as he thought the price was astronomical.
“Well,” said the plumber, “it was $10 for the hit with the hammer and $9,990 for the expertise and knowledge in knowing exactly WHERE to hit”.
This story illustrates what sort of knowledge, expertise and understanding a great business coach can bring to your business. But how do you know how much a business coach should charge, should they have the expertise to help your business lift to another level?
Business coaching is generally delivered in two ways:
- Group style business coaching
- One on One business coaching
Many business coaches and coaching companies will have their own style of business coaching packages and they will vary, based on their chosen business owners needs and requirements.
Group style coaching is where the client (you) are added to an existing group of business owners and have access to business-building resources, tools, communication platforms, videos and meet occasionally with the other members and the coaches.
One on One business coaching is a far more customised version of business coaching, where the coach works directly with the client to achieve results much faster. In addition to accessing a wide range of proven resources and tools, the emphasis of ongoing support and accountability makes one on one coaching a much more desirable coaching method.
Ultimately the difference between the two forms is shown by the results their clients achieve.
One on One clients usually achieve results much faster as they are held closely accountable and by meeting with the coach more frequently, are kept motivated and inspired more often, hence experiencing quicker results.
So how much should a business coach cost?
Generally speaking, the more ‘generalised’ the coaching the lower the cost. Many business coaches will offer different business coaching packages, usually in a tiered pricing model, with one on one coaching being the greater form of investment.
In my experience, I have seen business coaching pricing generally range anywhere from as little as $49 a week in a group style model up to $1500 a week for fully customised one on one business growth coaching.
But before you jump into business coaching or a business coaching package, you need to consider the following:
- Return on Coaching Investment
Before you question how much a business coach costs, you need to consider what sort of VALUE a great business coach can provide for your business. The right coach knows what-to-do and what-not-to-do and can help you get to your outcome without the hassle and frustration.
You also need to look at what form of return you will receive from hiring a business coach. For example, let’s say you pay the business coach $35,000 annually, and they help you to add another $350,000 to your sales annually, with a 10% net margin. Is that a good return on your investment? Of course! Not only have you increased your sales by $350,000, but the margin alone has paid for the coach outright! Be sure to weigh up what sort of return and what sort of impact the right business coach could provide for your business.
- Client Success Stories
Before you select a business coach to work with, ask them for some of their client success stories. Real-life case studies of past clients will help you get a feel for some of the results the coach has created for clients in the past.
This will also help you decide what sort of coaching will be right for you and your business. Whether its group style or one on one for faster results, the coaches previous clients will be able to share their experience to help you make an informed decision.
Any good coach should come with a guarantee. This not only protects you before you commit to coaching but also shows you how much the coach will stand behind their “Promise”.
Look for either group coaching or a one-on-one coaching guarantee, as this will help to provide you with peace of mind and safeguard your coaching investment.
You need to think of business coaching like hiring a personal trainer. You can pay a personal trainer for group style sessions or for more intensive one on one sessions. Now, dependant on whether you show up, put in half the effort or do exactly as they say, this will determine what sort of result you achieve.
Business coaching is the same. The level of effort you put in and the more intensive the coaching, the greater the results. So when deciding on how much you should pay for a business coach, consider where you want to take your business, how fast you want to get there and how much that result will be worth to you.
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