A very common challenge when running a health or life coaching business is creating a sustainable cashflow and establishing recurring income.
When you don’t have this in place, it can make running your business especially stressful. It’s not enjoyable starting every month at zero and being stuck in a ‘feast or famine’ cycle.
A couple of years ago my business was in this place, I’d often start a month with zero or very little income. As someone who really values financial safety, this was extremely hard to manage so I spent several months working on establishing a solid cashflow and it has changed everything in my business. Here’s how I did it.
Listen to this episode on The Wholehearted Business Show Podcast: Listen on Apple Podcasts / Listen on Spotify
Reviewed my business model
The first thing I did was completely review my business model – and by that I mean looking at the offers I was selling and how they were structured as well as the amount of time I was spending on marketing and delivering each one.
At the time I was running a low cost membership and I decided to close this as although it meant I wasn’t starting months at zero, I was only gaining about £250 a month from it and it wasn’t worth the effort.
I also had a 6 month evergreen group program, lots of courses and programs, my 1:1 mentoring offer and a brand and web design service.
I increased my 1:1 mentoring prices, and have since recently increased this again. At the time I stopped offering brand and website design, and while I’ve recently brought that back, I strictly limit how much of this work I do, and have vastly increased my prices on it. I also no longer market it at all.
I also changed my 1:1 mentoring offer to have two options both including long payment plans. These payment plan options support my ongoing cashflow.
I made a much bigger shift to my group program…
Check out my free Profitable Business Model Training Here.
Changed my group program from evergreen to launch
Unlike most stories you hear about recurring income and group programs, I actually bucked the trend and changed from an evergreen and always available option, and instead went to a launch model. I also made some other significant changes to my signature group program Wholehearted Business – more on this in next week’s episode!
These changes created a huge shift in my cashflow and recurring income base.
Created a consistent effective marketing strategy
Another shift that has helped me create a better cash flow has been regarding my marketing. I used to blog on a fairly consistent basis, as well as posting on social media. But when I created my weekly show format everything changed.
Using this method has helped me consistently grow my list, connect with potential clients and effectively demonstrate my authority and knowledge in this area. It has pretty much single handedly led to my 1:1 Mentoring Program being consistently fully booked and now most clients who work with me share that they’ve found me via Google or YouTube and then have deepened their relationship with me via regularly listening to the podcast.
Managing my money and pricing
I’ve really upleveled the way I approach managing my money, and pricing my services.
Firstly I use my cashflow spreadsheet religiously to keep track of every bit of income and expenses as well as taxes. I work with my accountant who takes more of a birds eye view of things, but using my simple Google Sheets Cashflow has been a total game changer for being able to stay on top of things.
Alongside this, and the next point I’m about to get to, being much more intentional about how I price things I sell has helped – as well as not being afraid to nudge up my prices over time.
Did the money mindset work
Finally I did a tonne of money mindset work! I finally got to the bottom of some of my behaviours and beliefs around money, and let go of some bitterness I had been holding on to. But most of all, it was taking radical self responsibility for my own financial situation that probably made the most difference. When I fully stepped up, and stopped waiting for other people or situations to change and made it a priority then so many things shifted.
I also recognised that my feelings of financial safety are not just connected to my business. Trusting in my ability to create income, looking for financial safety outside of my business too – mainly learning about personal finance and budgeting has also been a big help.
Next steps
A couple of years ago I was often in danger of dropping into my business overdraft or struggling to pay my tax bill, it was genuinely stressful as someone who is financially responsible for a household and two kids. But these changes and shifts have resulted in me now having well over 12 months of cashflow in my business. That basically means I could go 12 months and not sign a single client and still be able to pay myself and my bills. It really is a significant shift.
Is this something you’d like to work on in your coaching business? If so check out my 1:1 Mentoring Packages where I can support you to create your own cashflow shift so you can enjoy more financial safety in your business.
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