Are you thinking about becoming a financial coach? The good news is that money is a hot topic for people.
People are struggling financially. They don’t earn enough to keep up with the cost of living increases. They also don’t have anything saved up for emergency expenses, let alone retirement.
The bottom line is that people need more help than ever if they’re to reach their financial goals. That’s where you can help them as a financial coach.
Do you want to know how to start a financial coaching business?
Keep reading to find out.
1. Choose Your Niche
The first thing that you want to do is choose your niche. In other words, what problem do you want to help people with?
You might be tempted to say that you want to work with everyone who has money issues. While that’s a noble cause, you’re not going t get very far. People will have a hard time fully understanding what you do.
On the other hand, if you say, “I help people get rid of debt and start saving,” or “I help people manage wealth in retirement,” people can see how you can help them.
These are very specific things that people can relate to. The more they can relate to you and your work, the more likely they are to hire you.
2. Plan Your Business
Even though you’re a coach and you work by yourself, you should write out a business plan. It’s a good exercise that gets you to think about
The downside to working by yourself is that you may not fully treat your work like your business. That’s a huge mistake that you can’t afford to make.
You want to make sure that you have a profitable business, which is why a business plan is so important. You need to document the competition, the overall market size, the marketing plan, and financial projections for the business.
3. Focus on Providing Solutions
Novice entrepreneurs love to talk about the work that they do. It’s ME! Marketing. They’re screaming, “Look at me! Buy from me!”
It comes across as desperate and not very genuine. You want to focus your marketing on the problems that you solve. Focus on how you provide those solutions.
4. Price What You’re Worth
The problem with being a financial coach is that many people are in financial trouble. They may not be able to afford your services.
That shouldn’t deter you from setting higher prices. You need to be able to charge what you’re worth. You also need to be able to pay your own bills and build a profitable business.
This is where you practice what you preach as a coach. You’re likely going to have to coach your clients that they deserve more money. You should live what you coach.
5. Choose Your Marketing Mix
Marketing your business is probably the most difficult things to figure out when you’re learning how to start a financial coaching business.
You have to let people know about you in a way that they can relate to. Your marketing mix is comprised of the different marketing channels that you use. It can be SEO, networking, blogging, social media, or a combination of them.
You don’t have to be an expert in marketing. You can just work with a financial marketing agency that understands the needs of your clients and can communicate that across different channels.
Your marketing is dependent on how well you know your target market. The more you know and understand what their fears are around money, the more you can show empathy. You show empathy and you’ll get clients.
6. Show Results
When you’re starting out as a financial coach, you want to be able to get a couple of success stories right away. When you’re able to show results for your work, it will be easier to justify your prices.
It will also show that you’re not going to just waste someone’s time and money.
How can you get results when you’re first starting out? One way is to work with 2-3 people at a reduced rate. These are called “beta clients,” where you get to test your systems and coaching methods.
You sharpen your skills as a coach and collect success stories, they get coaching and help with their finances. It’s a win-win situation for people just starting out.
You don’t want to take on too many of these clients because it can devalue your work and you’ll only find yourself in financial limbo. Since you’re not making a lot of money from these clients, it will be hard to make your ends meet.
7. Have Confidence in Your Work
One of the most common issues for entrepreneurs is the imposter syndrome. This is where business owners feel that they’re not qualified to do the work that they do. They also don’t have the confidence to help their clients get results.
This is the biggest dream killer. You have to keep the mindset that you’re always learning and growing in your work. Your confidence will only grow the more you practice your work as a coach and help your clients live their financial dreams.
How to Start a Financial Coaching Business
Starting any kind of business is hard. You want to make sure that your financial coaching business is set up for success right out of the gate.
When you’re figuring out how to start a financial coaching business, you can get lost in the details. Your way to success is to always focus on who you’re serving and serve them well. When you do that and get results, you will gain a lot of momentum in your business and it will grow.
Do you want more business tips? Come back to this blog often for more amazing articles for entrepreneurs.