Ep 21 - Signs you should start a coaching business
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[00:00:00] Welcome to the business of executive coaching. I'm Ellie Scarf, an ex lawyer turned executive coach. Over the last 17 years, I've coached in house, I've been an associate coach, and I've run executive coaching businesses with teams of coaches around the world. My clients have ranged from global brand names to boutiques, startups, and more.
and organizations doing good in the world. I now run the Impact Coach Collective, a community of executive coaches who want to level up their business skills and take action in a community of like minded peers. I'm a traveler, a reader, a mum, wife and dog parent, and I know firsthand that our stories have a huge impact on our businesses.
The executive coaching business is tough. And I've learnt all the lessons through plenty of mistakes and also with some great mentors. This podcast is all about growing a thriving executive coaching business. [00:01:00] You can build a coaching business that is profitable, sustainable, and that supports your personal goals, whatever they are.
I'll be sharing tips and ideas translated for your context, as well as stories from the field with brilliant coaches and mentors. If you want to level up your executive coaching business skills, Then this is the place for you.
Hi everyone. Today I wanna talk about what are the signs that you should or shouldn't start an executive coaching business. So if you've already started one, this is probably not for you. Although there there might be some things that are signs that you shouldn't start a coaching business that you still need to work on.
So maybe stick around, have a listen and let me know what you think. Before I start, I want to give a disclaimer. So maybe this makes me sound like a bit of a fence sitter, but what I want to say is that these [00:02:00] points that I'm sharing are just guides. There is nothing absolute in what I'm sharing today.
And so there are people who don't fit into these That should absolutely start their business. And there are people that do fit into these categories who absolutely shouldn't. This is intended to be a thought starter for you, not a decision making yes or no. Absolute guide. So with that basis in mind today, I just want to share.
When are the times when you should think more seriously about executive coaching as a business that you may want to get into? And I also have some reasons why you may choose not to go down that path. So firstly, who should start an executive coaching business? I say do it if you have Some of the following attributes.
The first one is you have a sense of purpose. And what do I mean by a sense of purpose? Most people who go [00:03:00] into coaching go into it for the reasons that they want to make an impact. They want to make an impact on a particular community, want to make an impact in general, want to help people, want to make a difference, right?
And I think that that's really important. I think we need to be connected to that bigger picture, that sense of why am I doing this? Because we need to anchor on that sometimes to do the things we don't enjoy so much. So of course your sense of purpose is going to have your flavor, but I think it's really important to have one, right?
To have that bigger picture you know, guide that is, is saying this is something that you want to do. Yeah. So, I mean, I guess along alongside that is don't do it if you don't have that, right? Cause if you don't know why you're doing it, it's going to be hard to maintain. Okay. The other, another reason why you should absolutely set up an executive coaching business is if you want to take back a bit of [00:04:00] control over how and what you do in your professional life.
And this is associated with things like wanting more autonomy. So maybe you have a corporate role where you have very little autonomy, where you are micromanaged, where you can't control your If you have a sense of wanting more autonomy of enjoying taking ownership of things yourself and being very self directed and wanting more opportunity to do that, then that is a good sign that starting your executive coaching business could, could be good for you.
You should also start an executive coaching business. If you want to work more flexibly. And a lot of people that I work with in, in my group coaching program have gotten to this point because they're really sick of missing things. You know, they want to be able to have more of a family life. They want to be able to set their schedule how they want.
You know, it could be that you [00:05:00] have family commitments or it could be that you have, you know, like a sporting endeavor or a hobby, or maybe you just want to spend more time with your sitting on the couch and reading books that you love and all of those things are equally valid, right? So if you want your work to be more flexible, then, you know, working for yourself is, is a good a good thing to do.
Now, if all you want is to do less work, then that is a little bit different. And I'll talk about that in, when shouldn't you start a business, but if you want to be flexible. If you want to work, you know, more suitable hours, if you want to be able to build your work life around your personal life, then setting up a business is a great idea.
You should also you know, I think you're well suited to business. If you're a person who is willing to try new things and to experiment. And this is important because there is no one size fits all in business. You need to be willing to experiment. You need to be willing to learn and you need to be willing to adapt.
And I think this is really. [00:06:00] And this is something that I struggle with when it comes to marketing my program in the impact coach collective, because essentially what we do is we apply some theories and some principles, but we apply it to you. We apply it to your business, your niche, your, your professional background.
All of it is very customized. Whereas the sorts of people who are offering similar services to mine, generally not as tailored to executive coaches, but, but, you know, sometimes pitching to them, even though they don't have that experience they are. Suggesting that there is one method to success. And if as coaches, there's anything we've learned through our coach training, especially our evidence based coach training, it is that there is no such thing as a single answer or a single route.
And you know, I think you need to be willing to say, I'm going to keep trying. I'm going to apply new ideas. I'm going to experiment and I'm going to learn and adapt. And if you're a [00:07:00] person who enjoys doing that and is open to doing that, then I think that running your own business in executive coaching could be for you.
The other Sign that you should start your own business is that you are willing to prioritize courage over confidence. So I would say that 99 percent of people who consider setting up a coaching business and actually go through with it. Start with a lot of self doubt and of course you feel self doubt you've never done this before.
So I don't think this is an example of imposter syndrome when you start a business and you'd feel doubt. I think this is very normal. And I think in fact, it's a sign that you actually don't have the experience to know whether you can do it. But what I want to say is that you don't need to feel confident in order to start your business.
It is not a prerequisite, but the thing that is a prerequisite is being willing to leverage courage instead. So you don't need [00:08:00] to be confident, but you do need to be brave and you do need to be willing to do things that feel uncomfortable. And I'll talk a little bit more about that as well. You also need to want to be a business owner as well as a coach.
So I talk about this quite a lot. You've heard this. You probably heard me say it before that being a coach and identifying as a coach is not enough of a reason to start your business. It's not enough of, it's not a. It's a, a necessary, but not sufficient condition for starting an executive coaching business.
You also need to be willing to embrace your inner CEO. So you need to, even if you don't necessarily want to be a business owner, you need to be willing to, to embrace that identity. And not only is that going to make you more likely to be successful as a coaching business owner, it's more likely that you're going to enjoy it as well.
Also you need to have identified what your [00:09:00] runway looks like. So in order to be a you know, set up a coaching business, I think you need to be clear what your runway is, and that might be your financial runway. It might be your, your work runway, whatever that is. You need a runway and you need a plan B and that is knowing how much buffer financially you need to feel comfortable to make the leap.
And also. Knowing the signs that would tell you that it's time to look for another source of income because it's not working. Now, this is probably quite confronting because no one starting a business wants to think about how it might fail. But I think in order to make the leap successfully, you need to have that plan B in place.
Ideally our plan A, right, which is our, our financial buffer and runway combined with your, The work that we do to generate our business. Hopefully that's all we need, but having a plan B in place is a really important. I think it's probably a sign of maturity that you can handle the ups and downs of [00:10:00] business.
And so you need to know the signs that would tell you to find another source of income, and this will help you feel comfortable about that. And you know, what is going to make you feel comfortable might for you be. A slow transition with part time income, or you might be the sort of person who has six months of expenses saved, and then you'll be all in right.
The key is that you need to have a plan and having a plan is a vital prerequisite to starting a coaching business. Another sign that you should become an executive coaching business owner is if you have examples of it working well. So you have a role model, you have a mentor, or you have someone that you have seen do it successfully.
And that is, this is often what people in my group coaching program, the impact coach collective really love is that I can share with them what it looks like from the inside having done this successfully. So it's important to, you know, I wasn't, What's that? What's the phrase? If you can't see it, you can't be it.
I think [00:11:00] I've butchered that, but you get what I'm saying, but make sure you have someone that you've spoken to, or who is a role model or a mentor to you where you've seen it working well. And then another, this is, this is a bit more on the woo woo spectrum Another sign that you should start a business is that.
Is it an idea that has been tapping at your shoulder that you can't seem to move past? So many of the people that I work with have been thinking about starting their business for a long time. And maybe you tell yourself that you couldn't or you shouldn't do it. But no matter what you do, it keeps coming back.
And the idea is one that you just can't get past. Now, I don't think that your gut is the only thing that you should consider when you decide, you know, whether to start your coaching business, but I do think it is an important part. And that if there is that sense that there is something out there for you then it means that you're more likely to be [00:12:00] motivated to do what you need in order to, to make it happen.
And I think, you know, if that is the main driver, you need to be very cautious to make sure you scaffold yourself with a good runway, good strategy and advice to help you make the leap. But I think it's a really nice it's a really good indicator that this is something that you should consider seriously.
Okay. So there are a few reasons why you might want to start a coaching business, but I also have some, you know, signs when you should not start an executive coaching business. So I say don't do it. If firstly, you aren't willing to get out of your comfort zone and feel uncomfortable. Because there are many things that you're going to need to do as a business owner that are going to feel uncomfortable.
And what those are is different for everyone, but it could be direct selling. It could be putting in place good business systems. It could be hiring people. It could be the visibility that's required for marketing. There is always going to be something that makes you feel uncomfortable and you [00:13:00] will need to make a decision that you are okay Being uncomfortable and taking action anyway.
And if you aren't willing to do that then either you need to say, okay, I'm going to work with a coach in order to get comfortable with these things, get comfortable with discomfort really, or don't do it. And there's no judgment attached to not doing it. I don't think, I think, I think I need to be really clear that being in business is not for everyone and it's not always great.
It's not like, I don't see it as. The be all and end all and, you know, having, having been employed as a coach and running coaching businesses, I can see the benefits of both. So, you know, please, please know that I'm, I'm not judging you if you decide that being a coach in business is not for you. I think that that is the right decision in many cases.
You also shouldn't start a coaching business if you aren't willing to do things differently, and this is slightly different to not being willing to get out of your comfort zone, you need to be willing to try new [00:14:00] things. And I think that there is a really interesting tension between doing things your way.
And doing things that feel authentic to you and also knowing that this is a new venture. And so you're going to need to learn new ways of doing things. You're going to need to learn from experts and you're going to need to add different approaches to, to the way you go about work in business. And so if you're not willing to try new things being in business is going to be quite frustrating because the only constant is change.
In terms of the way we work, the approaches we need, the tools that we have you will constantly be on a learning curve. And so you need to be willing to, to embrace that. You also should not start a coaching business. If you are somebody who really needs the security of a consistent income.
Now, I say this as a general principle, because [00:15:00] generally coaches are going to experience a lot of up and down that can be feast and famine in terms of the income that you receive. But you can structure your finances to provide a consistent income if this is very important to you, but know that this is going to take, you know, potentially a long time.
And if you want a consistent income rather than the ups and downs, then you have to accept that it will be lower in the start while you build up the buffer that will allow that to smooth out to a more substantial sort of a salary. So you can work on that, but. You should think about it very carefully if a consistent secure income is important to you.
You know, I think obviously that building a coaching business can be very lucrative and I think we should have really, you know, lofty financial goals and ambitions. That's important. But consistency may not be there. And so related to that, if you aren't willing to, you know, [00:16:00] ride the roller coaster at least a little bit, then you might want to rethink whether being in business is for you because the roller coaster is real.
And, you know, one of the things I always do with my community members is normalize. that everything is normal. The highs are normal. The lows are normal. You will go through all of it. And it might be the high of winning a gig, right? Of winning a coaching engagement. It might be the low of having a coaching engagement that you thought you'd won, but then you get ghosted by the client.
It might be the high of, You know, converting multiple people on your, on your prospect list. And then it might be the low of receiving some negative feedback from a client. So there will be huge ups and downs and you need to be able to accept that. Now, this is something I think is made a lot easier when you're in community of people in a similar position.
So I think this is when you can. You can get past, but you need to be aware that it [00:17:00] can happen and make the decision to go into business. Knowing that you also shouldn't start an executive coaching business. If you don't want to take advice from anyone. And so you may be that person, or you may know people like that, people who will ask for advice, but won't take any of it.
You know, you can still be in business if you are that person. But know that it will take you longer and it will be more painful than it needs to be. So it's easier to start a business. If you're willing to take advice from people who've done it before you, and that will make it quicker, it'll make it easier and it'll make it more enjoyable.
Not to say we need to blindly take advice. I don't want to imply that we should take advice and then we should put it through our own filter. But if you're never going to take advice from someone, then, then that's something to query. Whether you should put yourself into that position. And then my final, my final sign that maybe it's not for you to go into business.
If you think that sales and marketing is the devil's work now. Obviously I'm [00:18:00] joking about that reference, but if you aren't willing to work on your mindset and think about sales and marketing in a positive way, you are going to have a very tough journey because a good proportion of your work life, particularly in the early days, is going to be thinking about and executing sales and marketing tasks.
They're so important. And if we aren't willing to Work on our mindset about that, you know, it's going to be very challenging. So I would consider that very strongly before you set up a business that relies on you being a salesperson in order to survive. So whatever your reflections were about those signs that you should or shouldn't start a business, Anyone can do it.
And if you decide to do it, I think for everyone, it is key to get some help. And I think that there are a few ways that you can get some help and you might choose to get help simply for the practical elements of setting up a business, or you might choose to. [00:19:00] Get some help for the mindset hurdles. You may choose to get some help in order to have a community of people in the same boat, or you might choose to get help with all of the above.
One way you can do that is through getting your own coach, right? And that doesn't necessarily have to be a business coach. It could be a business coach like me, or it could be someone who is more of a purist coach. And so you, you know, that's, if you think you probably can come up with a lot of the.
The way forward yourself, but you struggle with accountability or you struggle with mindset, then that's a really good option. Another way is to join a group program. And obviously, you know, that is what I, I run for new executive coaches is a group coaching program. But that's not the only option, right?
So there are plenty of other training programs out there. The way mine works, my group coaching program currently called the impact coach collective is a program that is specifically for executive coaches between the, I always say the minus one and three years roughly. [00:20:00] In their executive coaching business and for people who want to set up foundational practices and systems that are going to help their business to thrive, help it to be sustainable and help it to be profitable in a way that is in line with your personal goals.
And so, you know, my aim for all of my members is to get you up and running as quickly as possible and doing things in ways that feel good for you to do it in community and to do it with my eyes on the specifics of your business. If you want to have a look at more, want to see more about that, you can have a look at my website at ellyscarf.
com forward slash ICC. So that's one way. So you could, you could get your own coach. Whether it's me or someone else, you could join a group coaching program. Mine is specifically tailored to executive coaches or a third way is that you could find a mentor, right? So you might find someone who has walked this path and who has the bandwidth to take you under their wing and really show you how it [00:21:00] works.
Now I've seen people do sort of. Internships with coaching companies, but they learn a lot as well. I think this is quite rare, but if you know someone who is an executive coach and who is willing to really show you the nuts and bolts, then that is a great option as well. And, you know, it was in fact doing, doing that for a range of people that made me realize that I was really passionate about doing this work with coaches and coach businesses.
So those are a few of my thoughts about who should and who should not start an executive coaching business. Thank you so much for listening in today. Please drop me a line, send me a note. If you have any thoughts about this. And if you are questioning whether starting an executive coaching business is for you.
In the show notes, I'm going to put a link to book a call with me. So I would be really happy to talk this through with anyone. If you've been thinking about it, so, so book in a time and let's have a chat. Have a great week. [00:22:00] Thanks for listening to this episode of the business of executive coaching. If you found it helpful, please share it with a colleague or friend on LinkedIn. And don't forget to tag me so I can say thanks. I would be tremendously grateful also if you would leave a review on Apple podcasts. More reviews means more people can find us.
This episode was brought to you by the Impact Coach Collective, where executive coaches grow their businesses in a community of peers with business education, mentoring, deal clinics, and more. If you'd like to contact me or work with me further, all my free resources, courses, and more info on the Impact Coach Collective can be found at elliescarf.com. Have a brilliant week, and I look forward to talking to you again soon.
