One component in building a successful coaching business it effectively identifying the factors that impede the success of small business operations. Acknowledging the common pitfalls before they become issues will assist you to securely establish your business and achieve greater outcomes...
1. Lack of Management Expertise
A successful life coaching business can not rely solely on technical coaching expertise. To operate any successful business you need to develop business acumen as well as technical competence. If you cannot set goals, organise, market, administrate, plan, budget or manage time and people you need to acquire these skills to help you cope with the demands of a small business.
2. Lack of Planning
Without a well thought out plan your business will have no direction. Having a plan written down and conveyed to all staff is vital to ensure judgements about financial decisions, marketing strategies, and related issues are consistent with your plan. If you and all your stakeholders are able to visualise your strategic goals, you are far more likely to succeed.
3. Lack of Capital
It is important to keep in mind that all new business ventures requires start up capital and working capital to keep the business afloat until it becomes self sufficient. When planning and making allowances for capital required err on the side of caution. Overstate the expected running costs and understate your expected income.
4. Partnership Problems
If you set up a life coaching business with a partner, have an agreement stating all the terms and conditions drawn up before you start investing capital into the business. Just because a partner is a spouse or good friend does not mean that things will always be pleasant. Try to keep the working relationship clear in its legal responsibilities.
5. Poor Record Keeping
Sound record keeping processes keep business operating effectively. Record keeping processes are vital for meeting legal requirements and capturing and keeping track of what has occurred in your business. Recording information, storing it and managing it will ensure that your business is running at an optimum capacity.
6. Incorrect Price Point
Establishing a value and price point on your products and services can be a difficult task. If we set it too low we could be undervaluing ourselves, if we set it too high we may dramatically reduce our market. So when setting your price point, remember that it is not just a financial concern, there is a marketing component that must always be considered. Being too expensive can be as damaging to your business as being too cheap. Do your research and ensure you are competitive.
7. Cash Flow, Bad Debt and Credit Problems
Remember a sale is not a sale until it is paid for. Create a payment system that is manageable and one that will not leave you carrying debt due to non-payment. It need not be hard to ask people for what is yours.
8. Marketing Problems
You need to have a clear marketing strategy to attract and retain customers. Some business operators think that advertising equals marketing. This is not the case. Marketing involves a lot more than just running an ad.
9. Poor Choice of Location
Some businesses will require a high profile image based on its premises; some rely on passer-by trade. Depending on the services you want to provide and the customer profile you want to attract, you need to think carefully about where you can operate your life coaching enterprise from.
10. Failure to Seek Advice
Seeking professional assistance is an investment in your business as it can prevent disasters that may occur at a later stage if you go it alone. Assistance is available from state and government agencies and advisory services so take advantage of them. Always try to access information from these sources before employing expensive professionals.
© Life Coaching Institute (Aust). If you wish to republish or reproduce this article, please include this information in the end of the article. For more information about the Institute - please visit www.lcia.com.au/lz
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