In business, there are concrete sales and earnings; but then there’s the potential of future sales and earnings. And, especially in the beginning of running a business, this earning potential is extremely important.

If you have high earning potential then it’s a great sign for the future of your business, but if you have low earning potential then it could signal that something is wrong with your business plan.

So today I want to talk about three steps, that if they’re employed, could help you take full control of that earning potential and really turn your numbers around.

Step One – Build A Strong Financial Foundation

It’s great to want to aim for increased income in the future and to have big goals for how much money you want to make. But before any of that, you’ll need to set yourself up for success by having a strong financial foundation to start with.

A strong financial foundation basically means that you have a steady enough income with your business that you’re not in danger of going under. You have a good base to build the rest of your success off of. And in this section, we’ll be exploring a few of the ways you can build a financial foundation with a coaching business.

• Have A Loyal Customer Base – One foundational aspect of a coaching business is to ensure that you’ll have a certain amount of business at any given time. You can have that security if you have a loyal customer base, even if it isn’t that large. In order to do this though, you’ll have to focus on high levels of client satisfaction.
• Know Your Numbers – Another important part of this is that you know what a strong foundation for your business looks like. Because everyone has different goals, and even financial needs, that they need to meet in order to feel safe in their numbers. So you’ll need to figure out how much money your business needs to keep running, how much you need to live off of, etc. Know these numbers, and make sure you’re reaching them.
• Have Something To Fall Back On – Savings aren’t just for personal finances, you can put back some money for your business as well. Therefore, if you have a little extra money from your business, then consider putting it somewhere safe in case your company needs to fall back on it if the going gets rough.

These are obviously just a few of the ways that you can start building a strong financial foundation for your business. But you need to make sure that the foundation is in place before you think about other ways to expand.

Step Two – Choose The Right Business Model

Now, it’s time to think about how you can increase your earning potential and expand on that foundation you just built in the last step. And you can do that by either reevaluating your business model (for established coaching businesses) or choosing the right one (for new businesses).

Allow me to explain…

If you want to increase your earning potential, then there are certain business models that will help you reach that goal and ones that will hold you back from it. Especially in the coaching business industry.

For instance, many coaches choose to do one-on-one coaching sessions with clients. And while this model might have some benefits, it’s going to severely limit your earning potential because you’re essentially trading time for money. And we all have a limited amount of time.

But other business models, like forms of online coaching, might allow you to drastically increase your earning potential. A coach that creates an online course, as an example, really doesn’t have a limit as to how much money they could make.

So to conclude, you need to assess the earning potential of your current business model. And if there’s no room for growth then you may want to take a look at other options.

Step Three – Market Your Business The Right Way

Now there’s only one more step to unlock your targeted earning potential, and that’s to expand your reach as far as you possibly can. And what’s the most efficient way to do that? It’s simple, through a great marketing strategy.

And it just so happens, that I’m going to teach you some marketing tips in this section! But first, let’s briefly discuss why this is so important if you want to increase your cash flow.

Essentially, it all comes back to the fact that you don’t want limits in your earning potential. And if there’s one thing that limits cash flow, it’s a limited amount of customers. So one of the easiest ways to increase your earning potential is to build your customer base.

But now onto the marketing tips you can use to achieve this…

• Make Sure To Use Social Media – Social media is today’s most effective form of advertising, and as an added bonus, it’s usually completely free unless you want to pay for more exposure (which is a totally valid strategy by the way). So make sure to harness its power.
• Know Your Ideal Client – Everyone needs to be convinced of things a bit differently right? So how are you supposed to convince your clients to purchase your services or products if you don’t what they need to get onboard. This is where an ideal client profile comes into things. Because if you know what you’re looking for then you can build a marketing strategy that is optimized to find and sway that kind of client.
• Always Give A Little Teaser – It’s not enough to simply reach a large audience, you also need to convince them to actually buy something from you. And one of the most efficient ways to do this is to add some sort of a teaser to your marketing strategy. For instance, give some helpful tips on your feed, have a way for people to unlock free samples, etc. Show them a bit of what they’d get if they invested in you, so that they’ll want more.

Conclusion

If you follow these three steps then you’ll definitely start to see some results in your coaching business, and with any luck, you’ll also begin to see your earning potential grow accordingly.