Have you been thinking about going into business for yourself? If you’ve always wanted to be your own boss but are nervous about starting a business from scratch, we understand. The prospect of building a business from the ground up, coupled with the statistic that 50% of small businesses fail within the first four years is enough to make any aspiring entrepreneur apprehensive. However, there is another way, and that’s investing in a franchise. Franchising is the opportunity to be in business for yourself and not by yourself. Investing in a franchise not only allows you to be your own boss, but you’re likewise supported by tried and tested systems that have been proven to work. You also again access to a network of like-minded business owners who support and contribute to the success of the overall franchise.
But are franchises really that profitable? In this article, we will gain a basic understanding of profit as well as how much you can earn by owning an ActionCOACH franchise.
How Businesses Figure Out Their Profit
Before we take a look at the profit of owning an ActionCOACH Franchise, it’s important understand how businesses work out their profit – both their gross profit and net profit. Profit is a metric businesses use to see how much their business is making. Basically, your profits (both net and gross) determine the dollar amount your business keeps after taking into account all your outgoing expenses.
Gross and Net Profits
It’s important to look at both your gross and net profit to understand the profit of your business. Your gross profit takes into consideration the expenses that are directly related to selling your product or service. Revenue less COGS (cost of goods sold) = gross revenue. This figures provides insight into how profitable your product or service is, but doesn’t take into consideration how profitable the entire business is.
When it comes to figuring out the profit of a business you need to determine your net income. You can find your net income by subtracting all of your expenses from the revenue your business generated in the same time period. This final figure is your net revenue and will tell you how profitable your business is.
Here is an example, if your business generated $100,000 in one month and your total expenses (cost of goods sold and operating costs) were $70,000 for the same month your net income is $30,000.
How Much You Can Earn Owning an ActionCOACH Franchise
So, how much can you expect to earn as an ActionCOACH franchise partner?
The flexibility of being your own boss as well as being a business coach allows you to work your own hours wherever you want too. You can choose to have very little to none overheads working from your home office or you can choose to set up an office space and occur a few overhead costs.
You will earn an income with our proven range of products and services and how much you expect to earn … well, that’s up to you and how much work you are willing to put into the business.
However, here are some basic figures to help give you an idea of how much you could earn.
Our 1-2-1 Coaching Program, which is our flagship product, will earn you on average $2,000 per month, per client. The 1-2-1 Coaching Program sees you running fortnightly or weekly sessions with each of your clients either on the phone or in person, offering them specific strategies relevant to their business’ position and goals.
We also have additional products and services available to ensure you are able to cater for any specific need or any size business.
- Alignment Consultations – from $1,200
- ActionCLUB Group Coaching – from $1,500/person
- PlanningCLUB – from $2,500 per attendee
- Executive Business Coaching – from $500 per hour
- GrowthCLUB 90 Days Planning – from $350 per attendee
- MentorCLUB – from $500 a month per member
- In-house Training – from $2,500 per day
- Books, DVDs and CDs retail – from $18 – $695
As an ActionCOACH franchise partner you have the flexibility to structure your business around your lifestyle and the ability to determine which of our products and service best suits your coaching style and market. But like any business out there, at the end of the day it is all about how much work you are willing to put into the business, that will determine how much you will earn.
Your total revenue from your income generated minus your total expenses will determine the net profit you make as an ActionCOACH franchise. Read this article to learn more about the costs associated with owning an ActionCOACH Franchise.