If you’re thinking about becoming a business coach or if you are one already, franchising might be the perfect business model for you. Here you’ll see why this is the case.
Franchising has become one of the most popular business models over the last few decades. According to the Franchise Council of Australia, the total annual sales revenue for the franchise sector is approximately $146 billion. In New Zealand, it’s $27.6 billion. That accounts for about 11% of the country’s entire GDP. The sector has experienced tremendous growth since it commenced in a significant way in the 1970's.
There are many well-known examples of successful franchises, most notably McDonald’s. But over recent years, business coaching franchises has exploded in demand!
What Is a Business Coaching Franchise?
At its core, franchising is the relationship between two parties: a franchisor and a franchisee.
A franchisor is an owner of an existing business that gives a franchisee the right to distribute their goods and services.
A franchisee can also market the franchisor’s product and use their brand for a certain period of time. Finally, a franchisee can make use of the franchisor’s operational intellectual property to run their day-to-day business.
In return, the franchisee usually pays a royalty fee to the franchisor.
This model is perfect for the world of business coaching. This is especially true for a new business coach. Here are 3 reasons why:
Reason #1: Brand name
First of all, you get to use a reputable brand name to market your products. This lets you skip the many steps that you’d have to go through when establishing your own brand.
Reason #2: Receive Expert Training
You’ll get expert training from an industry-leading business coaching franchise. This is a great time saver because you can shortcut your learning curve by years. A new business coach can avoid the costly “learn by experience” route and reach their goals faster.
Reason #3: Proven Systems
When you’re starting a new business, you have to work out everything from scratch - and this includes all of the systems.
A business coaching franchise lets you hit the ground running because it provides you with a framework that’s already successful. This lets you skip the stressful “trial and error” phase of becoming a business coach.
How Do I Know I’ve Found a Good Franchise?
It’s natural to have some doubt about joining a franchise. That’s why it’s important you select a good franchise. Here’s what to look out for:
Make sure the numbers stack up: Every good franchisor should include all the relevant financial information in their Franchise Disclosure Document (FDD). Make sure to check their financial statements, as well as the information about your earning potential.
Look for straight answers: A good franchisor will never give you the runaround. Instead, they’ll be fast and direct in their responses. A good franchisor also won’t dodge the difficult questions.
Great training and support: Like any new business, there’ll be lots of new things you’ll need to learn when becoming a business coach. The right franchisor should provide you with strong support. This includes direct training and assistance, which are necessary for success.
Marketing: One of the major advantages of working with a good business coaching franchise is the ability to leverage their brand and credibility. This can pay big dividends when you’re marketing your business coaching services. But it doesn’t end there. On top of the brand, a good franchise should also provide outstanding marketing support using the latest marketing trends.
Track record: See what kind of results their other franchisees are getting. Feel free to discuss this with both the franchisor and the franchisees. This way, you can see if the stories match and get a clear picture of how good the franchisor is.
How Can I Secure a Franchise?
The first thing to think about are the costs.
Most franchises will ask you to commit an initial once-off sum to acquire the franchisee rights. Business coaching franchises are amongst the most affordable franchise option. That’s because you don’t need to buy lots of stock or fit out premises! For the same reasons, it’s also one of the most cost-effective businesses to run day-to-day.
The next thing to consider is funding your purchase. Here are some of your options:
- Franchise-specific loan: The lender will ask you to present detailed personal financial information, so make sure you’re prepared. (Bonus tip: If your credit score isn’t solid it’s worth improving your score as much as possible. Begin by lowering your debts and slicing up those credit cards!). Aside from your credit score, the bank will ask for details on your proposed franchise.
- Grants: If loans aren’t your thing, how about free money? This is exactly what a grant can provide! You can apply for different grants, many of which you’ll never have to repay a single dollar for. Unfortunately, as you can expect, there’s a catch. Getting a grant isn’t easy. Nobody will give you money out of the goodness of their heart. You need to go out of your way to prove that your business will help make the entire community better. For more info in Australia go here. In New Zealand go here.
- Friends or family: If you decide to do this, here’s a word of advice: whenever there’s money involved, personal relationships are at risk. Make sure to be frank and discuss every detail before you ask for help.
- Your own personal savings.
This is only a partial list of funding options. There are many places that you can turn to if you need funding. In fact, your options are only limited by your creativity!
What Systems Does My Business Coaching Franchise Need to Make It Sustainable?
As you know by now, owning a business coaching franchise can be a lucrative opportunity. But to thrive, there are strategies and systems to put in place that will keep you on target. Here are 3 of the most important:
System #1: Numbers That Matter
When you’re acquiring a business coaching franchise, there are lots of numbers to review. Be sure to create a system to track these numbers. According to Charmian Campbell, a business coach from Brisbane, two of the most important numbers to tabulate are the number of leads and clients per month. It’s handy to track leads and new clients because it allows you to measure your actual progress clearly. After all, if you don’t have a steady stream of revenue coming in from clients then your coaching business will flounder.
Decide on the 3 key numbers that underpin your activity… For me they are 10 leads x 4 Diagnostics x 2 Clients Per Month. I knew that if I kept to these numbers then the rest would fall into place and all my targets would be achieved. Charmian Campbell
System #2: Buying Power
One of the wonderful advantages of being a business coach is the low overhead required. You can kick your business off for an investment as low as $44,500 plus training. But, of course, there’s still running expense. Be sure to leverage the collective buying power of the group. One of the main advantages of franchising is negotiating much better prices with suppliers. Your franchisor has built a system with suppliers that save you money. So be sure you use it.
System #3: Systematic Growth Plan
Lastly, you’ll want to develop a systematic growth plan for your coaching business. Amongst others, this growth plan should answer questions such as:
“How can I differentiate myself as a business coach?”
How can I ensure I will steadily win new clients?
“How much do I need to invest in my ongoing education?”
“Which clients am I uniquely qualified to help?”
And so on…
And here’s a bonus tip…
Think long term. You’re building something for the future. So give deep, serious thought into what builds your business over the next 3-5 years.
Of course, with 25 years in the market - and over 1 000 business coaches - you’ll also get hands on help from your ActionCOACH franchisor. Our systems are proven to work time and time again!
How Can I Build a Brand For My Franchise?
Branding is important for any business… and that includes a coaching practice. The right branding strategies can help a business coach succeed to undreamed of levels.
But what’s the best way to build your brand? Here are brand building tips from some of the world’s leading business coaches:
- Jules Radich, a prominent business coach of 11 years with ActionCOACH, suggests putting yourself out there. According to Radich, hopping on a stage is one of the best ways to reach more people. Just make sure people see you consistently. This is how you become easily recognisable to your target audience. Remember to always adapt and innovate.
“People get sick of the same old, same old. Constant learning and development is critical to keep me ahead of the game and always able to stimulate the clients. My learning also drives their learning.” Jules Radich
- ActionCOACH business coach Andrew Johnston’s advice centres on mindset. His view is mindset and beliefs are everything. He advises his clients to work on their beliefs otherwise they’ll fail to achieve what their conscious brain think it wants. Or, alternatively, you’ll repeat cycles of success and failure. A character himself, he suggests “being yourself”. So go ahead and share your story!
- ActionCOACH Ali Minbashian recommends keeping things simple. His advice is to find what you’re good at and focus your efforts on those areas. As for the other things, outsource them so that you have more energy to play to your strengths.
“They will sign up for the content and system we have, but stay long-term because of your charisma and personality. It’s ok to wear jeans and a tee or ride a Ducati to a diagnostic.” Andrew Johnston.
“Understand what you are good at and focus on mastering this space. Outsource the rest. As I like to say, I’m crap at 99.9% of things but I know what my 0.1% ... play to your strengths.” Ali Minbashian
One of the easiest (and free!) ways to ramp up your numbers is with a Facebook Private Group. This is an excellent way to build your own community as a new business coach.
One highly successful business coaching group is run by Russ Ruffino of Clients On Demand. This group has 31,312 members and this financial year Ruffino’s business coaching enterprise will reach $10 million in sales.
Conclusion: Facebook Groups work!
What Are the Benefits of Buying a Franchise?
There are numerous benefits to buying into a successful business coaching franchise. Over the next page or so we’ll explore the 3 most important:
Benefit #1: No business coaching experience necessary
One of the biggest advantages is the training you’ll receive as a new franchisee. This means you can start without any prior business coach training or experience. If you were to start a business on your own, you’d be 100% responsible for your own training. With franchising, you can build the necessary skills as you go. Better yet, you do this while enjoying the same level of independence other business owners get when going it alone. So you get the best of worlds. You own your own company, while being part of a network that provides the support you need.
"My journey through employment was always punctuated by an underlying sense of dissatisfaction and a never-ending search for my vocational calling. However, in the middle of last year, after a Jiu-jitsu class, a chance discussion with my coach got me on to ActionCOACH... the rest, as they say, is history." Marcus Shaw, ActionCOACH
Benefit #2: Belong to a community
You never have to go it alone. And you never have to find your own solutions. That’s the power of community. With 1 000 plus coaches across the world it means you have immediate access to a deep well of knowledge and wisdom. With so many successful coaches to tap into, you’ll never feel like you’re going it alone. Being a part of such a network also gives you a fresh well of new ideas, which can skyrocket your business coaching career.
"... what really cemented my decision to join, was spending time chatting to the current New Zealand coaches and meeting more coaches at the 2018 BEFA in the Gold Coast and realising how strong the community and level of support is. I was blown away! Isaac Ludlow, ActionCOACH
Benefit #3: Instant Credibility
When you’re starting out all alone, nobody knows who you are. Nobody know what you’ve done. But with a business coaching franchise, you instantly leverage the brand name credibility of the franchise - people know who you are the moment you walk in the door!
"Whilst searching for a new business I was offered a position as CEO for a rival business coaching company. However, on thorough investigation this business did not stack up, but I liked the model. Further investigation of a range of similar businesses led me to ActionCOACH. ActionCOACH stood out for its strong history, culture, systems and progressive leadership." Milton Collins, ActionCOACH
As you can see, starting a business coaching franchise can be a step in the right direction. There are numerous benefits that you can expect, including the support that can ensure the success of your business.
By becoming an ActionCOACH franchisee, you’ll gain access to a large network of successful business coaches. We can offer you all the tools you need to start a successful coaching business and be your own boss.
If you want to know more about everything we can offer you, feel free to contact us for more details.