It’s funny how many people think that hiring a business coach is very expensive. We think it’s expensive because we have all heard of the coaches/consultants that charge $25 – 30k a year, with results ranging from “worth every penny” to “complete waste of time and money”. In actuality, hiring a coach can range in price, and many are pleasantly surprised to find out how affordable it really can be.
How much does it cost to hire a business coach? Ok, the indirect answer is that it varies. Some charge anywhere form $500 – $30,000 annually. I’ve even met a coach that says he charges $50k annually. Some charge an initiation fee, and some don’t. Initiation fees can range $500 – $5000. I bet your thinking, “not really helpful yet, please answer the question”. I will, I just wanted to give you a picture of what you can expect.
Why the range in price?
The simple answer is that it depends on what you want, how much you need from the coach, and how much experience they have.
It’s easy to see why so many people shy away from this.
Is the fee relative to the experience, service and results I will receive?
No, as I mentioned in the beginning of this article. We have all heard of the business coach that charged $25k and didn’t help a bit, and the coach that charged $25k and helped turn the company around. On the other end of the spectrum, some coaches charge $50 – $200 per hour with the same feedback. So, don’t base your decision on the price alone.
How should I base my decision?
The easy answer to this question is to base this buying decision, the same way you would buy a car
- Why are you buying it? Are you looking for practicality, prestige, safety, price, need something?
- What do you need? The works? The basics? Something in between? Don’t care?
- How are you paying for it? Cash? Down payment and Financing? 100% financing? Can’t afford?
If you are looking for prestige, the works and you have unlimited income. You probably will want to hire the $25k – $50k coach. They will have all the bells and whistles
- Well-known brand
- A licensed platform
- Lots of tools and dashboards
- Ivy league educated advisors that spent some portion of their career as a corporate executive
- Meetings that require travel
- class A office space
- Advertises specific industry knowledge
- Have tiered offerings
- Hiring them is a badge of honor
If you are looking for Practicality, something in between, and can finance. You will probably want to hire the $150 – $700 a month coach
- Usually local, but can also work virtual
- In business for a while
- Somewhat known
- Some tools
- B or C class office space
- Advertise industry knowledge
- Follow a less formal curriculum
- Have different products to choose from
If you are looking for the basics at a limited budget. $50 – $125 per month
- Newer to the industry
- Home office
- Less structured
- Worked as an executive or middle management prior to opening a practice
Don’t have any money, but need something
- There are free programs offered through government, or colleges and universities
- SCORE is a national program
- Sometimes the D.O.L. or local job boards have programs available
- On line: Blogs, podcasts, articles, forums can also be helpful
- Purchase a Business book
But you didn’t tell me which is the best option…
At each level there are the good ones and there are the bad ones. Hopefully, you don’t spend $30k on a bad one.
- Start with identifying which level and price point you are looking for
- Interview them. Do you feel comfortable?
- Do they have a track record of results? Do they have testimonials? Are people talking about the things they have done?
- Do they speak a language you understand? You don’t need to feel stupid when you are with them.
- Do you believe or trust them?
- What is included in the fee they are asking? Let’s face it, if you buy a car, you hope it comes with brakes, a motor, seats, doors and a steering wheel.
- Do they ask for a long-term commitment? Are you comfortable with that?
- If they have a contract, and it doesn’t’ go well, can you get out of the contract?
- Do they have experience?
- Where did they get their experience?
- Do they practice what they preach?
- Can you afford it, or will it be stressful every time they draft a payment? (If you buy something you can’t afford, you won’t be able to give the relationship what it properly needs and want to rush the process.)
- What is their confidentiality policy?
- Will you work with the same person/team every time? Can you choose who you work with and who you don’t work with?
- Can you add or remove time with ease? Let’s say you initially buy weekly coaching, but want to change it to monthly coaching, can you change your mind part way through the relationship?
- What will they do for you? Some coaches will only coach. Some will come in to evaluate and give you a report. Some will help you implement on projects.
- How much time will be asked of you? If you choose to work with a coach, they will ask you to put time and effort into executing on your goals and getting the most out of the relationship. They may even suggest other activities that will help you achieve the results you are looking for. Watch out for organizations that demand attendance and time to activities that aren’t in that realm. Have the “What’s expected of me conversation”.
- Will you be held accountable?
At the Entrepreneur Circle we fall in the practicality realm. We are business owners who have been growing a business for over 20 years and understand the everyday issues of the small business owner. We have helped hundreds of small business owners solve their most pressing issues, using realistic, cost effective, practical techniques. Our fees range from $175 – $500 a month, we offer a complementary session to start, and we don’t hold anyone to a contract.