One of the things that people strive towards when they’re thinking about their finances is the possibility that they’ll be able to achieve long term wealth, and possibly even generational wealth. And although generational wealth might seem like an unreachable dream, it can be achieved with the right strategy!

We’ll be discussing that strategy today, particularly focusing on building generational wealth if you own a coaching business. Everything will broken down step by step, and you can refer back to this guide as many times as you want or need to. If nothing else, it will serve as a reminder that generational wealth can be built from nothing with enough determination. You can do it!

Before You Even Look At The Steps To Building Generational Wealth As A Coach, Take A Look At These Statistics…

Many people just starting their coaching business don’t really realize the full potential of the industry they’re going into. There’s a misconception among some that it’s hard to obtain a large income through coaching, and although it might pay the bills, you’ll never get wealthy. And while that might have been the case once upon a time, the truth is, the coaching/online education industry just keeps growing.

In fact, the coaching/online education industry is expected to reach a revenue of about $160 billion this year! And the annual rate of growth for this industry’s revenue is an astounding 9%! Meaning that by 2027, annual revenue could be somewhere around $240 billion!

With these numbers, there’s no denying that you stand to earn a lot of money with a coaching business, both in the short and long term. So now that the numbers are out of the way, let’s find out how you can capitalize on that potential.

Step One – Start Earning Money

This might seem like a huge step, but let me explain. You don’t necessarily have to earn a lot of money before you can begin turning into more, you just need to have a starting point to work from. So this step is just about getting a fund to build off of.

You can typically do this by simply starting your coaching business in any way you see fit. The only really criteria for “finishing” this step is to create a cash flow that’s somewhat consistent, rather than a quick infusion of cash with no future ways to get income.

Step Two – Reinvest That Starting Fund

Before you can move on to alternative ways to grow your income, you need to make sure your coaching business is on steady ground since it’s a cornerstone of the entire plan. Meaning that, especially in the beginning, it’s important to keep reinvesting your original income into the business in order to grow it. Don’t overextend yourself!

Then once you feel like your core business is on stable ground and has found its footing, you can move on to the third step. Because you’ll now have the extra funds to do so.

Step Three – Invest In Assets

One of the most popular ways to build generational wealth is through assets because these things keep generating money over time, and eventually, they can lead to you amassing a lot of wealth! The trick is to be very careful what you invest in, choose assets not liabilities.

Assets are things that you own and are going to make money from, liabilities are things that cause you to owe money to others. Liabilities have very little place in building generational wealth because it could lead to you passing down debt instead of money, always choose assets. A great example of an asset is actually a coaching business!

And in today’s economy, with inflation on the rise for at least the next two years, it’s a great time to invest some assets since people are selling them for even less than usual.

Step Four – Diversify Your Income Stream Even Further

If you want your wealth to stick around for future generations then it’s best to not keep all your eggs in one basket. This means, diversify! Put some of your money into stocks, put some into high-interest savings accounts, put even more money back into your business, start a new business, etc.

Put your money into a bunch of different places, as long as they’re guaranteed (or at least expected) to be steady sources of income. And one extra tip is to stay away from investing your money into schemes that promise a fast return, remember you’re trying to build long term wealth and in that case… slow and steady really does win the race.

Step Five – Keep Repeating The Other Steps

What you’re essentially doing with this process is creating a snowball effect. You’re being smart with your money, so that it will work for you. But if you want the snowball to keep picking up speed and getting bigger and bigger, you need to proactive.

So keep repeating what’s working for you, and eventually that will turn into a large sum of money that you can pass down through the generations. Plus, if you’ve kept investing in assets then you could even pass down future sources of income such as your original coaching business!

You Just Need To Remember One Thing…

When your goal is extremely long term, such as building generational wealth, you have to be patient. That kind of legacy can’t be built overnight. So keep your goal in mind, since it will fuel you. But make sure to enjoy the ride, and be proud of each small victory along the way.