All coaches and consultants know that running successful coaching or consulting business is no easy feat. There are many factors to take into consideration, such as the types of clients you want to work with, your rates, the way you market yourself, how much time you can realistically dedicate to your business each day, and more.
One of the most important aspects that often gets overlooked is keeping up with marketing trends. It’s not enough just to have a website anymore!
In this blog post, I’ll be discussing 11 reasons why people in these industries go broke (number 7 will surprise you!)
Poor business model
The first step in establishing a strong business is constructing an effective business plan, and many coaches are not aware of what it takes to run a successful company.
It is not their fault that they do not know about this. It does not happen in school, and they may have for a company before. They might have only learned one thing about business- but it is still important to know.
A business owner needs to know about many different jobs. They need to do much more than one job. They become the boss and also handle all the jobs.
If they can’t get enough momentum to start, they won’t be able to do anything and will eventually have to go away or find a real job.
Too Much Delivery
Many failed coaches and consultants fall into the trap of feeling they must be all-knowing. We don’t care how clever you are, and we don’t care how many followers you have or if your website is popular – we care if you can solve our problems. And to do so, the expert doesn’t need to be an expert; they just need to be committed.
Not enough focus on marketing and sales
You need to make money to cover your expenses. To do that, you need to sell more than other people. But it is hard, and there are a lot of people who want the same thing.
In these times, people need leaders. You can be that person. But you must get over your fear of marketing and sales because they are the key to success for entrepreneurs.
You won’t have any paying clients if you don’t work!
It is a simple equation that people lie about. This is not the way to do it! Invest in learning how to turn strangers into happy paying clients. It isn’t hard, but there are some things that you need to do right.
A good person to help you run a business is one who has had success, integrity, and values that are aligned with yours. If you have money in the business, then this can fix most of your problems. If you don’t have money, then this will cause most of your problems!
Dabbling instead of mastery
It is important to know what you are good at when starting a business. Marketing, sales, team building, leadership, and other skills make up the foundation of an effective owner.
In the beginning, there is a lot to do. It can be hard to stay in “momentum” and work with all the noise. But if you don’t get ahead of things, you will quickly go out of business.
Not having systems
We have learned that to be successful in the future, we need to reduce our workload. That means making sure we don’t waste time on things that can be automated or delegated.
Some businesses have a moment when they need to start using systems. If you have a business, make simple systems and try them out. When they’re working, then do less work.
Hustle vs. building an evergreen engine
Too many people focus on doing a lot of work instead of making their business evergreen. This means that it will always be profitable, and they don’t have to do anything special except maintain it.
Make sure that your business grows on autopilot, so you can focus on building evergreen engines instead of constantly creating new content.
Riding the Income Rollercoaster
This usually correlates to the last problem, where you take your foot off the gas on marketing and sales because you’re too busy fulfilling what you’ve already sold.
Instead of gaining steady, predictable income with a mastermind or other leveraged business model, you have to start from scratch every month. When your bills are due every month regardless of the quality of your previous months, that’s stressful. If you get sick: if you burn out, if you take a vacation for any reason at all: your income will be gone.
If you want to survive and enjoy success as a coach or consultant, getting off the rollercoaster is critical.
Lack of focus
If you offer something for everyone, it’s just for nobody. Imagine having to spend too much time and money sifting through options that lead nowhere – wasting both your time and someone else’s. Get ready with a niche-specialized service or product instead!
As a consultant or coach, your offer is the lifeblood of your business. If you have an offer that makes it easy to get clients and you are competitive with pricing, then 80% of the work will be enjoyable and rewarding. With a low-priced product or service, however, there is no margin for error in terms; if one client doesn’t work out, you have to start all over again.
If your clients are constantly canceling or trying out for a while, then stopping means something is wrong with the offer, and it needs reconsideration. Consultant coaches who do this usually get stuck in a bad cycle of “busy” (meaning they’re not really creating new business) and then feeling guilty when they’re not making any money.
A poor offer can also lead to your clients being less satisfied, as the initial excitement of getting something new wears off quickly without enough value-add to keep them around for a healthy relationship with you or your business.
Not having a team
Once you’ve eliminated and automated what you can, learned how to market and sell, and found your niche, it’s time to start building your team.
If you want to grow, it is essential that you have a team in place. You also need people who can help with things like customer service and tech work, so they don’t become your responsibility.
Not having a mentor.
Of course, it’s easy to say that the first six are true for myself and my peers. They’re not stretching our imaginations or venturing out onto thin ice; they’re just truths about what we do every day.
Those who have a mentor or invest in their business financially, even if it’s just buying an ebook or attending webinars for ongoing education instead of doing nothing.
In good times as well as bad, being around people with experience is invaluable, but only if you can get into the room.
This blog post is meant to offer some insight into the top 11 reasons why coaches and consultants go broke. A lot of these are common sense, but they’re often overlooked by new entrepreneurs or forgotten when life gets in the way. It’s best not to let that happen!
If you have any doubts or need help, do let us know in the comment, and we will reach out to you and help you out from going broke to becoming a success story.