3 WAYS CONSULTING A FINANCIAL PLANNER CAN HELP YOUR COACHING BUSINESS
“DON’T SKIP LEG DAY!”
When launching a new company it is very common to spend your time and energy working on the business’s “beach muscles.” Sales and marketing efforts are among the best ways to attract clients and boost revenue. However as beach muscles begin to grow, the business can become top heavy.
The foundation of your coaching business is its financial strength. As a fitness entrepreneur, you need to maximize your attention on acquiring new clients & making money. However, many make the mistake of neglecting their "business legs.”
A Financial Planner can help you strengthen your financial foundation in the following ways:
Increased Strength
Increased Stability/Reducing Risk
Increased Speed
INCREASED STRENGTH
The strength of a business is often measured by how much profit its owner takes home each year. As an online fitness coach, you likely have fairly low expenses and minimal overhead, making the taxes you pay to Uncle Sam one of your largest expenses. A financial planner can work with you (and your accountant) throughout the year to strategize ways to lower your tax bill and, in turn, increase profit. It is important to note that many financial planners are strategists when it comes to tax; meaning they will work with you and your accountant to plan for tax savings. In most cases, they do not prepare taxes. Financial planners and accountants will look at your business from different vantage points, resulting in a valuable partnership with you, the business owner.
Ex: New tax laws were recently implemented that enable an online fitness coach to qualify for a 20% tax reduction on business income if they design a plan to meet the qualifications.
INCREASED STABILITY/REDUCING RISK
As I write this article, we are just over 10 years removed from the worst financial crisis since the Great Depression. As an Online Coach, your expertise is helping clients meet or exceed their health & fitness goals. Financial planners have the expertise in helping you manage risks both inside and outside of your business. Risks ranging from the unavoidable such as sickness or injury to preparation for an economic slowdown and resulting reduction in high-ticket clients. Helping you prepare to navigate such storms creates stability and durability for your company.
Ex: The average US recession lasts 11 months. Determining ways to protect both your business and personal income with budgets, emergency funds and monitoring your projected business income can be crucial to not just surviving the next recession but thriving! Many of the companies that survived the Great Recession became much stronger because they learned to operate with reduced income and expenses…not to mention that many of their competitors got wiped out.
INCREASED SPEED
As your business grows, the best and most valuable use of your time is focusing on the aspects that maximize revenue and profit. Having a financial planner on your team, provides you a guide and ally to help filter out all the "financial noise" - allowing you to make money decisions with greater knowledge and speed.
Ex: When the business is doing well, money is flowing in…eventually you will face the challenge of what to do with your money. While that is a great problem to have, it can also be overwhelming. Here is what I mean…you have two conflicting objectives.
Save as much of your yearly profits as possible because you will need them when you retire.
Reinvest those profits into your coaching business to grow it even larger & faster. Having a financial teammate that is looking objectively at the business numbers can help you calculate how to make that decision each year so that your personal financial goals and business financial goals stay synchronized.
Many online fitness coaches are able to successfully run businesses without the help of a financial professional. However if it feels like your business is becoming "top heavy,” you may find it helpful to speak with a financial planner that has expertise working with small businesses about the value that they could provide.
(Disclaimer: this article is meant to be educational and it is not advice for your business specifically. Please consult a qualified financial professional before making any changes to your business model.)