111: Smart and Not So Smart Coaching Business Expenses

This episode is inspired by a smart question from one of my VIP clients.So I’m going to reveal where expenses go for my coaching business. And while I’m at it, I’ll share common expense pitfalls for coaches and finance savvy mindset tips.I know this might seem boring but earning well is not boring. Losing profit after all you work feels like a tragedy. Don’t go there.Reading the show notes for this episode will be especially helpful because I’ll list the sources of my expenses but I’m not going to bore you by listing them out verbally. Find those complete show notes at prosperouscoach.com/111.Bright Shiny Apps & Services Steal Your Coaching ProfitsFirst let’s talk about not-so-smart uses of your money for your coaching business.There are multitudes of ads for bright shiny apps and services coming at you in your inbox and on social media. And in a moment of scarcity thinking you might be tempted to buy one, and another, and then another.You know, you might think something like “maybe THIS will make the difference in my business”. That can be a dangerous thought. Those seemingly little $10/month and $20/month expenses quickly add up to thousands of dollars annually that your earnings might not cover. So think smart and choose wisely.It’s so tempting as a new coach to get services for online client portals, social media time saving apps, virtual assistants, bookkeepers and all sorts of extras that in the long run probably won’t add enough value to help you earn more.Keep Your Business Low Labor and Low OverheadDesign your business to run lean. That doesn’t mean being cheap with your business. The old penny wise pound foolish adage applies.Smart expenses are those that save you significant time so you can serve clients more efficiently and earn more. But it takes some trial and error to learn how to invest money only where it really counts.Be strategic with this rule: Only invest in what you need right now not what you think you might need someday.Regularly dump apps and services that aren’t helping you earn more. If you have a low-income month or year, it could partially be that you’re spending too freely.Think twice about the fancy, expensive coaches portal or top of line email campaign service. You don’t need those.Here’s a tip … if you’re 100% sure you like an app or service and it’s truly helping your bottom line then opt for annual payments for as many expenses as you can instead of monthly because you’ll save a lot.Startup Expenses Are HigherInvesting in your business is not only necessary, but it’s a privilege. Think of expenses for useful services as a blessing that helps you thrive. Pay for them with gratitude.For example, significant investment goes into coach training (the vocational skills side of your business) and for hiring a business mentor like me to help you get everything set up right the first time (which is the strategic side of your business).Also I think it’s wise to invest in a good web designer who is also a coder to create a WordPress website for you. Doing your own site on Wix or Squarespace may come back to bite you now or later.It is not unusual to spend $25,000 out of pocket before you earn much as a coach. So don’t let anyone make you feel bad about start up expenses. It’s normal for ALL businesses and entrepreneurs. But do choose wisely.Read about expenses that aren't worth your while for your coaching business.