Health Coaching Business – Smarter Revenue

by | Aug 24, 2021 | 1 Business | 0 comments

Should I Charge Less?

I’ve written a great (humbly stated) article on Health Coach Rates.  In addition to that article, it’s important that you have a realistic idea of what your earnings can be; especially in a one-on-one hourly service model. 

You can’t just spend 40 hours a week with clients and no time running your business. Your time is at best, 40% spent with clients and 60% spent on marketing, administration, and service.

And that’s only if your business is run well.

To start out, your efficiency is probably more like 10-20%. That means if you spend 10 hours a week with clients, you’re making $7.50 – $15 an hour if you charge $75. Then, you have to pay costs of doing business on top of that.  With that type of business plan, you may end up paying to work.

Other Options

There are other options.  

  1. Hire health coaches and work with more people.
  2. Create a Wellness Membership and charge monthly for educational materials and group support.
  3. Run wellness programs for large groups.
  4. Sell products for commissions or affiliate fees.
  5. Manufacture and sell your own products.
  6. Sell information.
  7. Provide information and advertise for others.
  8. Any combination of the above.

Many health coaches fail to make a business plan, project earnings, and then, market and sell.

Make a Plan

 Project your earnings and see if it fulfills the revenue goals that you’ve set for yourself.  If you project and plan, you can self-correct and plan to run a fiscally responsible business.

Your forecast numbers will come from studying the market (the Rate article can help with that).  You’ll look at:

  • your ideal client
  • the size of that market
  • growth potential 
  • needs of your market
  • your product or services
  • does your business fill a need?
  • competition
  • how is your market impacted by the current economy and events

We start everything with pinpointing your ideal client.  The clearer you are on your client, the clearer and more authentic your message can be.  It will save you time, money on marketing, and it will help to guide all of your decisions.

Market research can be local, national, or international.  Be sure to research according to your reach.

Places to look:

  • The Encyclopedia of Associations/ Gale Research, Inc.
  • Directory of Business Information Resources
  • The Franchise Annual
  • The Internet – business.gov, SBA, specific businesses exclusive to your ideal client, shared interest businesses
  • Chamber of Commerce
  • Social Media
  • SCORE (I was mentored by the founder of Omaha Steaks through my local SCORE!)
  • Local newsletters, papers, and magazines
  • Attorneys, Accountants, and other professionals
  • Consumer Organizations
  • Local, National, and International Industry Organizations, like the Dept of Ed, Dept of Health and Human Services, 
  • Local, National, and International Non Profit Foundations, like Celiac, Liver, Heart, etc.
  • Suppliers, like vitamins and supplements, equipment, labs, etc.

There are many factors to take into consideration when projecting cash.  

  1. Start-up costs
  2. Sales forecast
  3. Seasonal adjustment
  4. Growth
  5. Cost of collecting money (cash vs credit, e-commerce software)
  6. Cost of goods sold
  7. Standard expenses
  8. Payroll
  9. Taxes
  10. Financing costs

learn more

Cathy Sykora

I’m behind The Health Coach Group, and I’m behind you… and in front of you, figuring out what will make your business run smoother, make you look more professional, and bring you more business, then developing it, making it look beautiful, and delivering it to you.

I can do this because I’m a Health Coach and know what you are and will be going through in your business. My team is made up of Health Coaches…

You are important to me.

Building Abundance, the Business Plan for Health Coaches is free with your Inner Circle Membership.  Plan your business in a linear, step-by-step format and have a guide for all of your financing, decision making, and revenue that is created by you for your own business.  Learn more.

“The Inner Circle is THCG’s hidden treasure.”

 

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