How Successful Are Business Coaching Franchise Owners?
If you’re considering buying a business coaching franchise, you’ll probably have a hard time getting your franchisor’s sales reps to answer your most pressing question: how successful are business coaching franchise owners…really?
So let me tell you a little story…
I bought my first business coaching franchise from what has since become a large business coaching franchise brand. I did all they asked, including their 10-day training in Las Vegas. There were exactly 14 of us on the first day of training. We were all pumped and ready to take over the world!
However, six months later, I found out that out of the 14, there were only two of us left who were making any money. By the time our first anniversary came around, just ONE YEAR later, I was the only one still in the business!
That’s a 92% failure rate.
Is My Experience Common?
I hate to say it, but this sort of thing is much more common than you might think. Globally, many business coaching franchise owners are struggling to make ends meet. And that’s unfortunate, because business coaching is one of the fastest-growing industries in the world.
So why, when demand is increasing, are business coaching franchisees failing?
I believe it’s because growing a successful business coaching practice takes working capital–yet most business coaching franchisors charge ridiculously high upfront fees that often strip their coaches of the financial “war chests” they need to outlast the learning curve that comes with any new business.
Growing a successful business coaching practice takes working capital--yet most business coaching franchisors charge ridiculously high upfront fees that often strip their coaches of the financial "war chests" they need to outlast the learning curve that comes with any new business.
Don’t get me wrong: that doesn’t mean there aren’t good business coaching franchises out there. You just need to be careful. For example, in 2008 and 2009, I successfully re-engineered and re-launched a failing business coaching brand in partnership with a well-known multi-brand franchisor–and reduced the overall franchise failure rate from 57% to a much more tolerable 4%. It is possible to succeed with a business coaching franchise…but remember the old adage: buyer beware!
If you are only a few steps away from deciding to buy a business coaching franchise, take a deep breath and take a step back. Pull out your pencil and really examine the numbers. If you find that franchise’s failure rates are uncomfortably high, it’s time to consider alternative ways of getting into the business coaching industry.
To learn more about the specific business coaching franchise brand you may be considering and all the information you need before you take the plunge, check out The Business Coaching Franchise Buyer’s Guide. It will walk you step-by-step through the due diligence process of buying a business coaching franchise…and good be the difference between success and disaster in this business.