School of Coaching Mastery

Coaching Blog

Under-Capitalized

Posted by Julia Stewart

This is a problem that can be so painful, that coaches don't like to talk about it.

Under-capitalization.

Fancy term for, "You don't have enough money to make it."

What it looks like is a slow-motion train wreck, at least if you have enough experience to recognize it. That is, if you don't have a big blind spot in the area of money.

I see this all the time in new coaches. I even see it in big coaching organizations. I've gotten good at recognizing it.

Sometimes our dreams are so big, that we shoot for the moon when we don't have enough money to make it across town. 

Of course, a big dream can move you forward, right? Right and wrong. Right, if you're open to how it's going to show up. Wrong if you're so attached to it that you make poor choices.

Poor choices happen to coaches who are short on operating funds, often because they are struggling to make money this month just to cover expenses. When you're scrambling to make ends meet, that's when you make dumb choices. 

To have a successful business, you need to make long-range plans. Not just a fantasy or even a vision, but step by step plans. The plan will change, of course, because the horizon will change and hopefully you're keeping an eye on that, but if your plan is just to raise enough money to get you through until success miraculously finds you, then it'll never find you, because what you're really focused on is just getting by. Know any coaches like that?

We create what we focus on. Make sure you have enough money that you don't need to worry about it, while you're building your business. Keep the focus on the abundance that you're creating, not the scarcity of living hand to mouth. This requires a certain comfort with risk, by the way. If you don't have that, then building your own business may not be the right game for you.

If you don't have a couple hundred thousand dollars to fall back on during the first few years of building your coaching business, then don't quit your day job. Or else, get a part-time job that will help you. Or borrow the money. Don't try to make it on a shoe string. That's just asking for stuckness.

The first year of my coaching business, I spent about $10,000 on coach training, conferences, mentoring, and upgrading my office. Some of it was out-of-pocket. Some went on credit cards. I earned less than $2,000 by coaching that year. I supported myself with another business that didn't require all my time. My first financial goal was to be earning as much per month by coaching as I was spending on coaching. It took over a year to get there.

Then my goal became earning enough to "pay back" everything I had spent on coaching, up to that point. It took a couple of years to do that.

Now my goal is to easily pay all my expenses while saving and investing at least 25% of what I make each year from coaching.

If I hadn't had a good income and available credit, I couldn't have become a coach. It's that simple. Miracles do happen, but as my pastor says, "We are the answer to our own prayers." If you're not willing to make a substantial financial investment in your own coaching success, then maybe you don't really believe in it.

When you have true faith, you don't try to control. You can afford to let success show up how it wants to. Having enough money, as well as other resources, like time, is why you can afford to have faith. That's when miracles find you.

When I hear coaches complain about how expensive coach training and mentoring is, I know they're trying to control. I also know that they probably won't make it, unless they learn to allow the world to just show up as it is and find a way to fit with that. That's when you're ready to "leverage everything" and that's when miracles happen.

Copyright, Julia Stewart, 2005 http://www.yourlifepart2.com

Topics: coaching business, Coaching, money, coach training, successful business, new coaches, mentoring

    Subscribe for FREE: Learn About Coaching

    Follow Us

    The Coaching Blog

    If you're a professional Business or Life Coach or you're interested in becoming one, the SCM Coaching Blog covers topics you may want to know about: How to Become a Business or Life Coach, Grow a Successful Coaching Business, Get Coach Training and/or Business and Life Coach Certification, Become a Coaching Master and Evolve Your Life and Business. 

    Subscribe above and/or explore by tag, month or article popularity, below.

    Latest Posts

    Most Popular Posts

    Browse by Tag

    Top Career-Jobs Sites Living-Well blog