As part of running CoachNow, I speak regularly with coaches in an effort to understand their needs and help them grow their coaching businesses.
And, just this week alone, I’ve asked 5 or 6 coaches a simple question: What is your financial target for 2023?
While this may seem like an obvious question for any business owner, you’d be surprised how many coaches and trainers actually don’t have one.
So for today’s post, I want to speak to the importance of setting financial goals, as well as share some simple tactics for how to set, meet, and exceed financial targets.
Let’s get to it.
And, just this week alone, I’ve asked 5 or 6 coaches a simple question: What is your financial target for 2023?
While this may seem like an obvious question for any business owner, you’d be surprised how many coaches and trainers actually don’t have one.
So for today’s post, I want to speak to the importance of setting financial goals, as well as share some simple tactics for how to set, meet, and exceed financial targets.
Let’s get to it.
Set Your Targets, Work Backwards
Throughout my conversations, I’ve found that most coaches aren’t in the habit of proactively setting targets and tracking their numbers in real time.
What they usually do is grind day in and day out, do the best coaching they can, and then just add up the total amount made at the end of the month?
If that sounds like what you’re doing, consider this a warning: this is a recipe for burnout.
And, even worse, it will cause your business to flounder in the long run.
Here’s the truth: every successful business sets financial targets and tracks their progress against them. Then, they take that number and reverse engineer how they’re gonna hit those targets.
So… Instead of being a coach that gets on the daily grinds and adds up your finances retroactively, ask yourself these three questions today:
1. What sales targets do I have for this year?
2. How much time am I willing to spend coaching to hit that target?
3. Are there any other products or offers I could introduce to help me reach that target?
Let’s cover each step by step.
What they usually do is grind day in and day out, do the best coaching they can, and then just add up the total amount made at the end of the month?
If that sounds like what you’re doing, consider this a warning: this is a recipe for burnout.
And, even worse, it will cause your business to flounder in the long run.
Here’s the truth: every successful business sets financial targets and tracks their progress against them. Then, they take that number and reverse engineer how they’re gonna hit those targets.
So… Instead of being a coach that gets on the daily grinds and adds up your finances retroactively, ask yourself these three questions today:
1. What sales targets do I have for this year?
2. How much time am I willing to spend coaching to hit that target?
3. Are there any other products or offers I could introduce to help me reach that target?
Let’s cover each step by step.
1. What Are Your Sales Targets?
This one is the most obvious, but it’s important to start with the basics.
Set a timeline for yourself (e.g. one month, one year, etc.) and decide how much money you want to make in that time period.
And you shouldn’t have just one number in mind. Ideally, you jot down 2 numbers: your moonshot and your baseline target.
Your moonshot should be a somewhat unrealistic goal. Think of it as the absolute best case scenario. Something really high that feels possible but would require pretty much everything to go perfectly.
Think of it as aiming as high as you can. If (or when) you don’t hit it, you’ll still be in a pretty good spot.
And hey, in the event that you do hit it, it gives you a great reason to celebrate your accomplishment.
Your baseline target should be a number that shows reasonable growth based on your historical data.
Your baseline target should be broken down into how much revenue you hope to generate by signing new clients, and how much revenue you hope to generate by retaining your existing clients.
And, as I explained in a recent post, if you can increase your retention and increase the average value of your customers year over year, you’ve got a great formula for a successful coaching business.
Ideally the number you hit at the end of your predetermined timeline will fall between your baseline and moonshot. If you fall short of the baseline, be sure to dig into why you missed that target and adjust accordingly moving forward.
Set a timeline for yourself (e.g. one month, one year, etc.) and decide how much money you want to make in that time period.
And you shouldn’t have just one number in mind. Ideally, you jot down 2 numbers: your moonshot and your baseline target.
Your moonshot should be a somewhat unrealistic goal. Think of it as the absolute best case scenario. Something really high that feels possible but would require pretty much everything to go perfectly.
Think of it as aiming as high as you can. If (or when) you don’t hit it, you’ll still be in a pretty good spot.
And hey, in the event that you do hit it, it gives you a great reason to celebrate your accomplishment.
Your baseline target should be a number that shows reasonable growth based on your historical data.
Your baseline target should be broken down into how much revenue you hope to generate by signing new clients, and how much revenue you hope to generate by retaining your existing clients.
And, as I explained in a recent post, if you can increase your retention and increase the average value of your customers year over year, you’ve got a great formula for a successful coaching business.
Ideally the number you hit at the end of your predetermined timeline will fall between your baseline and moonshot. If you fall short of the baseline, be sure to dig into why you missed that target and adjust accordingly moving forward.
2. How Much Time Do You Want to Spend Coaching?
Here you should break down how much time it’ll take for you to hit each of the numbers you set in question 1.
Now, the majority of coaches seem to aim for 20-30 hours per week. And, as some of our CoachNow users have shown, can still make 6 figures doing so.
But maybe you are in a mood this year to really grind and put in 40 hours per week to hit your moonshot!
Whatever you decide, the important thing here is to document document how much time put in really equates to increased success in your business.
As with many things in life, time spent can often have diminishing returns. So be conscious of maintaining a healthy work life balance while also pushing yourself to reach your targets.
Now, the majority of coaches seem to aim for 20-30 hours per week. And, as some of our CoachNow users have shown, can still make 6 figures doing so.
But maybe you are in a mood this year to really grind and put in 40 hours per week to hit your moonshot!
Whatever you decide, the important thing here is to document document how much time put in really equates to increased success in your business.
As with many things in life, time spent can often have diminishing returns. So be conscious of maintaining a healthy work life balance while also pushing yourself to reach your targets.
3. What Products or Services Can You Introduce To Your Coaching?
Here you should think about how you can increase the value of your service while also reducing the amount of time you spend coaching in person.
I talk all the time about the importance of moving away from selling your time for money. Just check out this website to see many posts on the topic.
For today, I want to go over an example from a recent conversation I had, where a coach was able to effectively make extra money supervising practice.
This can work for both adults and juniors, especially if you specialize in individual sports such as golf, tennis, or softball and baseball.
With supervised practice, you can set up a couple of practice days each week where your clients can attend and participate in drill stations, games, and competitions. You can provide feedback in a group dynamic, but without all the trappings of traditional group coaching or clinics.
You should also set up the model to have your clients pay you monthly, in advance for access to the program. That way, you still ensure consistent income even in the event that conflicts come up or people have to cancel.
Another idea to consider is creating a paid community online, which can be a great way to leverage your expertise and time.
This community can be hosted in a CoachNow group where you drop in content weekly or a couple of times a week and answer questions and do some analysis.
By doing this, you're providing value in a “public” space asynchronously, and they're paying you (e.g.) $19.95 a month for access to your expertise.
Ultimately, whatever offer you introduce will depend on your unique coaching style and business model. Whatever you decide, be sure you have the right automation and systems in place to scale the offerings effectively.
And be sure to read our content about crafting and selling your coaching offers:
How to Make $100,000+/ Year Coaching Less Than 30 Hours a Week (Yes, Really)
I talk all the time about the importance of moving away from selling your time for money. Just check out this website to see many posts on the topic.
For today, I want to go over an example from a recent conversation I had, where a coach was able to effectively make extra money supervising practice.
This can work for both adults and juniors, especially if you specialize in individual sports such as golf, tennis, or softball and baseball.
With supervised practice, you can set up a couple of practice days each week where your clients can attend and participate in drill stations, games, and competitions. You can provide feedback in a group dynamic, but without all the trappings of traditional group coaching or clinics.
You should also set up the model to have your clients pay you monthly, in advance for access to the program. That way, you still ensure consistent income even in the event that conflicts come up or people have to cancel.
Another idea to consider is creating a paid community online, which can be a great way to leverage your expertise and time.
This community can be hosted in a CoachNow group where you drop in content weekly or a couple of times a week and answer questions and do some analysis.
By doing this, you're providing value in a “public” space asynchronously, and they're paying you (e.g.) $19.95 a month for access to your expertise.
Ultimately, whatever offer you introduce will depend on your unique coaching style and business model. Whatever you decide, be sure you have the right automation and systems in place to scale the offerings effectively.
And be sure to read our content about crafting and selling your coaching offers:
How to Make $100,000+/ Year Coaching Less Than 30 Hours a Week (Yes, Really)
Action Items
If you take anything away from this post, let it be that you need to set your targets proactively. This alone can make or break the success of your business.
So for your action items this week I want you to
If you can implement what you've learned here in this video and post, your business and lifestyle will thank you.
Here at CoachNow, our main focus is not only to help you become the best coach and have the best business, but also to help you find fulfillment in what you do.
Often coaches get burnt out doing what they love. I know I did. I don’t want that for you.
This is just the first step to preventing that burnout and keeping you at your best. As always, you can find all kinds of great content over at The ConnectedCoach Academy. And be sure to reach out if you ever need anything at all.
Good luck with putting these action items into play. We'll see you next time!
So for your action items this week I want you to
- Set your Moonshot and Baseline Targets on a predetermined timeline.
- Set aside one day per quarter to audit those targets and your plan. This will help you readjust as necessary.
- I want you to allocate just four hours per week to start creating and iterating on new products and services you could launch this year. This will help you get off the treadmill of exchanging your time without leverage.
If you can implement what you've learned here in this video and post, your business and lifestyle will thank you.
Here at CoachNow, our main focus is not only to help you become the best coach and have the best business, but also to help you find fulfillment in what you do.
Often coaches get burnt out doing what they love. I know I did. I don’t want that for you.
This is just the first step to preventing that burnout and keeping you at your best. As always, you can find all kinds of great content over at The ConnectedCoach Academy. And be sure to reach out if you ever need anything at all.
Good luck with putting these action items into play. We'll see you next time!