Scaling your Coaching business
So, you have taken the risk, started a business as a coach and you are profitable.
- You have developed the right systems and processes to deliver consistent and reliable results to your customers.
- You have survived the first years after countless hours of doing everything from accounting to IT to customer service and operations.
- You are exhausted, but you love what you have built and dream of expanding it to reach more people. You plan to scale, yet there are not possibly enough hours in the day for you to run your business yourself at multiple locations.
- You may be working 80, 90 + hours a week and simply don't have time for more.
Don’t worry, you are not alone, this is common for entrepreneurs looking to scale. And more importantly, there are ways to survive or even thrive through your business growth.
Risks to growing your coaching business
It is likely that no one will perfectly fit the mold of where you are now and where you want to go from day one, yet they may have the potential to be a perfect fit. That is where coaching comes in!
There are several risks to scaling a business: having the right capital reserves to effectively scale as well as hiring and training the right team. As a business coach, I have witnessed failures in both areas.
Business owners who had a very successful model yet did not anticipate the costs of doing business in a new area, during different economic times, who struggled to gain a firm footing and, in many cases, lost control of their entire enterprise. Also, all too common at the scaling stage, is hiring and training a team that does not understand or share your entrepreneurial values or vision.
Having even the most talented team in place is not a recipe for success, if they do not go in the same direction as the rest of your enterprise. Quite the opposite... it is chaos. At this point, you also risk diluting your brand image if you hire an ineffective team, which will stop your business growth dead in its tracks.
Besides selecting a team that shares your vision, make sure they are coachable.
It is likely that no one will perfectly fit the mold of where you are now and where you want to go from day one, yet they may have the potential to be a perfect fit. That is where coaching comes in!
Strategy 1. Find the right people for your coaching business
As you know, recruiting is more than hiring the most experienced individual. You need someone, especially at management levels, who understands and embraces your brand.
The process of building your brand starts long before the scaling to multiple locations stage. You must communicate a consistent and compelling message from day 1 that tells your story and resonates with consumers.
When your company values, culture and mission are established, it is more manageable to hire the right person who gets it.
Ideally, your brand image is so strong in the community, that potential hires are attracted to you because of your IMAGE not just for a job.
Strategy 2. AnalyzE your overall process
Also, examine your systems and processes. They worked great to get you where you are now. Yet will your processes and systems effectively scale or even work at a new location? Examine everything from technology to accounting/finances and especially customer service and operations.
Additionally, remember to create appropriate incentives for hires. Management hires who have performance based financial incentives often are most effective. However, be careful on what you set as an incentive. You get what you reward often in unexpected ways.
For instance, short term sales incentives may look great, yet do they lead to tactics that burn your reputation in the long run? Make sure your performance metrics link to your company mission and values.
As a small business coach, I have witnessed far too many times executives that are puzzled by why employees do not share their company mission and values and in many cases are unaware of them all together. Besides posting your mission statement in the break room bulletin board, live it, embrace it, and incentivize it!
Be careful on what you set as an incentive. You get what you reward often in unexpected ways.
Strategy 3. Embrace the growth
Scaling a business is an exciting and nerve-wracking pursuit. Yet with a properly selected team that embraces your mission and is incentivized properly; anything is possible. Remember to recognize, reward and Coach your team. Coaching is important, not just for you as the leader, yet for your employees.
Do you use a coaching approach when you talk with your employees, or do you skip right to the problem-solving? Employees are full of ideas and potential and the right management/leadership style really brings the best out in them. The key is to bring out the best in your employees in a way that it may be applied to your organization and broader mission!
Strategy 4: Examine your work-life balance
Finally, yet not by any means least important, look at your quality of life and work-life balance.
- Where do you hope to be personally?
- Do you get enjoyment out of your business or is it constant stress, worry and chaos?
More than likely, it is a combination of both. Yet, it may be a good idea to examine the tradeoffs.
- What level can your business scale to is not the only question I ask?
- What level should your business scale to for your own personal achievement and well-being?
Also, look at your legacy. There are tradeoffs to consider between current hustle and bustle, future retirement and what you may leave for your family. As a business coach, it is not my job to give you the answers, yet instead to ask the right questions to help you discover what is right for you...
You have made it this far with your coaching business. You are capable of achieving even more! There is no limit.
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