So you want to become a coach or consultant …
Photo by The Coach Space from Pexels
Great for you! There are a lot of benefits to being your own boss, and there is also a lot of work to become sustainable as a business. This post is a summary of my advice for anyone who wants to take the “leap” from employment to entrepreneurship.
Here are some things to clarify ASAP.
Mission -
What’s the problem you solve?
Keep in mind that people tend to buy “painkillers” rather than vitamins. So make sure the problem you solve is something that people can really feel.
What’s the most expensive version of that problem you could solve?
For whom will you solve the problem?
Demographics - age, gender, industry, income, geography
Psychographics - motivations, driving forces, core values, pain points
Method -
Assessments?
Project management?
A step by step process they can follow on their own?
Message -
What’s the “why” behind what you do?
How will you connect with the people who need your work so they can know about what you do?
Direct Outreach?
Email campaigns?
Once you are clear on those four questions, go into more detail about your product or service.
How much will it cost you to deliver the product or service?
Consider costs of supplies, marketing, time …
How much will you charge for the product or service?
I suggest a minimum rate at 3x of your cost, unless this is a “loss leader” to help you sell additional products.
If you don’t know where to start on this, determine an hourly rate for your services. Eventually, you will want to turn that into a “package rate.”
How many units will you need to sell in order to meet your monthly income goals (or, how much do you need to charge per unit)?
This question can take some of the emotion out of what you charge for your product.
Also, consider:
What do you need in order to pay your bills each month?
Add up your monthly fixed expenses.
How long can you go without income?
Building a business takes time. Give yourself three years to become both profitable and sustainable. That doesn’t mean you will go without income for three years. But, it may take that long to see the kind of income you want.
How does your spouse/partner feel about you becoming a consultant?
They may not be an “official” business partner, but they are still impacted by your business.