Selecting a business coach or coaching program has the potential to be among the more valuable decisions you make in your business. For many business owners, it is also a decision that they have never had to make before and have only limited insight into what the right solution is for them and what that solution should cost.
In this article, we’ll take you through the factors that affect the cost of coaching programs. There isn’t a single program that is suitable for all businesses and business owners. However, by the end of this article, you should have a good understanding of some of the key factors to think through in choosing the right solution for you, and you should also have a good sense of what that solution is likely to cost.
What does business coaching cost?
Like a marketing program, new product development, or the recruitment of a new Sales Person, business coaching is an investment in your business. Engaging with a coach or a coaching program will obviously have a price tag but, like any other smart investment, it should always well and truly pay for itself – with a significant positive Return on Investment both in terms of dollars and in terms of the Business Owner’s time, confidence and enjoyment. The scale of that return will depend on the state and size of your business, as well as on the particular coaching program you choose.
So lets look at the factors that will drive that choice and that will determine the cost of the program. We’ll discuss the four most significant factors:
- The stage of your business and what it needs;
- The levels of 1:1 coaching and group activity involved with the program;
- The degree of intensity of the program; and
- The track record of the program;
The stage of your business and what it needs.
The size of your business, and the level of its development, have an impact on both what it requires next and what it is capable of taking on next. For example, a Sole-trader in the first couple of years of business is unlikely to have the capacity to take on the full intensity of 1:1 coaching. That style of coaching usually implies implementing a range of strategies at any point in time and, as a consequence, being able to invest considerable time in working on your business – time that few Sole-traders have. In addition, the cost of just the lower levels of 1:1 coaching are typically around $1,500 o $2,000 per month; also challenging for Sole-traders.
As a result, for Sole-traders, a program that is group-based is almost certainly the most practical; with such programs requiring less time commitment and investment of just a few hundred dollars each month.
Aligning with this is the fact that such businesses also have a narrower focus on what they require. At that stage of business, the primary requirement is almost always growth. Finding new customers and building revenue, profit and cash flow is the highest priority. So a coaching program that focusses on Sales & Marketing is typically the most appropriate; not requiring investment of money, time and effort in systematising the business and building the team.
An example of this type of program is our Profit Club program, which focuses entirely on business growth and involves an investment of just over $300 each month.
The cost of BGB’s business coaching program
For a more established business, with a few staff, growth is still important, but the development of systems and teams are also required. At this stage, the business also has the capacity to work on more things and can handle a slightly more intensive program, as well as a higher level of investment. These businesses are still working on putting in place the foundational steps of a successful business and will often benefit from working with a coach and with other businesses travelling the same journey. Such a combined program will typically cost in the range of $1,000 to $1,500 per month. Our Elite Membership Program is an example; covering all aspects of building a sustainable and successful business, supported by coaches and a community of fellow entrepreneurs, and involving an investment of $295 per week.
For the largest companies, with big teams and a focus on the likes of strategy and synergistic growth, with considerable time and financial capacity, a dedicated 1:1 business coaching or executive coaching program may be appropriate. Such programs typically start at three or four thousand dollars per month and often extend to more involved engagements costing tens of thousands of dollars each month.
The respective levels of 1:1 coaching and group activity involved.
Perhaps the simplest comparison of coaching programs is that between 1:1 coaching and programs involving various levels of group engagement.
At one end of the spectrum are pure 1:1 coaching engagements, in which a business engages a coach to work directly with them. This offers the benefits of absolute focus on that business, considerable flexibility with the entire program being tailored to them and the ability to address any and all challenges and opportunities that arise in the business.
These programs, however, offer the insights and support of just one person (the coach), they offer none of the networking and business generation benefits of a community and they tend to be more expensive. Pure 1:1 coaching programs typically start at the lowest level at about $1,500 per month, are more often in the range of $3,000 to $4,000 per month and quite often extend into the tens of thousands of dollars each month for the most involved business coaching or executive coaching engagements.
Group-based programs (like Mastermind groups)offer a much lower price point and also provide benefits such as a community of other business owners with whom you can network, share ideas, do business and have fun! These programs typically start at just a few hundred dollars per month. A simple group-based program such as our Profit Club for Solopreneurs requires an investment of some $325 per month.
In the middle are programs which combine the benefits of a community, with the support of professional coaches, and are priced in the range of $1,000 to $1,500 per month. Our Elite Membership Program is just such a program and is priced at $295 per week.
The degree of intensity of the program
We’ve already touched on the different needs of businesses at different sizes and different stages of development. Different degrees of scaling will also impact the exact requirements a business has; from the fastest scale-ups looking to reach unicorn status at one end of the spectrum, to an established business just looking to maintain 10% growth to ensure its sustainability. The former will clearly want to take on a high level of activity, implementing often many different developments at the same time. The latter, on the other hand, will likely take a more measured approach; largely consolidating their existing operations while just making a small number of improvements at any time.
In line with this, the type of coaching program that will be most effective for those businesses will vary. Not only do some businesses simply not have the time, nor financial, capacity to take on the most intensive programs, but some also don’t have the growth and development aspirations to require those programs.
For the fastest unicorn scale-ups, the most intensive 1:1 coaching programs may be appropriate and the investment of several thousand dollars each month is appropriate. For a business looking at more measured growth, a program offering appropriately systematic support, at a lower level of intensity, will be sufficient, and likely only require investment in the range of a couple of thousand dollars per month. For the smallest Solopreneurs, just starting the journey of developing their business, a group based program, which requires less of their time and the investment of just a few hundred dollars each month, will likely be the most sensible choice.
The track record of the coach and/or the program
Business Coaching is an industry with very little barrier to entry. Unlike, say, lawyers or accountants, there is no required formal certification or similar. As a consequence, there is an incredibly wide range apparent in the experience and track record of coaches and their programs. This is often reflected in the pricing of those programs.
Worth considering here are both the track record of the coach and of the program they operate.
In the case of coaches, there are business coaches recently having come out of a job in a company, who have decided to ‘hang up their shingle’ and become business coaches. They have very little track record as a coach and may not have much more of a track record in business. As a consequence, they can only demand lower fees for their coaching; perhaps not even $1,000 per month for 1:1 coaching.
At the other end of the spectrum are those coaches who had great success in business first, themselves building significant companies prior to becoming a coach, and considerable success in coaching. Typically this coaching success is evidenced by the success of their clients and recognition from the coaching industry over a number of years. These coaches are typically quite highly sought after and can charge many thousands of dollars each month for 1:1 coaching.
Naturally, there are plenty of coaches who fall somewhere between these two extremes but clearly a coach’s demonstrated success in business AND in coaching should have an impact on the fees that they charge.
How comprehensive and systematic the program is will also influence its price. At the lower end are programs with just a rudimentary collection of simple models that can be used for limited range of business activities. At the top end are comprehensive systems and processes, supported by a full range of tools and templates, that have been built out and proven over dozens of years. The latter supports the reliability of the program and is likely to provide better and faster results to most businesses. It will also justify a higher level of investment.
Cost and choice: what’s right for you?
Business coaching and coaching programs differ considerably, based on the stage of your business and what it needs, the relative levels of 1:1 coaching and group activity in the program, the degree of intensity of the program and the track record of the coach and/or program.
When considering how much a business coach costs, it’s important to keep in mind that the cost will depend on the size of your business, the stage of development, and what you hope to achieve. Hiring a business coach is an investment in your business, and good business coaching should always pay for itself in the long run. Expect to pay anywhere from a few hundred dollars a month for group-based coaching programs, to several thousand dollars a month for intensive 1:1 coaching.
We’ve explained how these factors impact on the cost of coaching but, in the end, you must decide which combination of factors is most likely to provide you with the highest return on your investment.
The best way to do that is to sit with a member of our team, and analyse the current state of your business, your aspirations for it and, through that, the most important needs it has. We are confident that we can help you to find the right program – the program that will deliver the greatest return on investment to you and your business. If you own a business in Sydney, contact us to schedule that diagnostic session.
FAQs on Business Coaching Costs
1. How do business coaching rates for group sessions compare to 1:1 coaching?
Group coaching typically offers a more cost-effective alternative to 1:1 coaching, with rates varying depending on the group size, session frequency, and program duration. While 1:1 coaching provides personalised attention, group coaching incorporates collaborative learning and networking opportunities, which can be invaluable for business owners at similar stages of growth.
2. What factors influence the hourly rates and overall cost of business coaching sessions?
Several factors can affect coaching costs, including the coach’s experience level, the intensity and duration of the program, and whether the sessions are individual or group-based. Experienced coaches with a proven track record may charge higher rates due to their expertise and the value they offer.
3. Can business coaching services vary depending on the type of coaching session (group vs. individual)?
Yes, coaching services can significantly vary between group and individual sessions. Group sessions often focus on general strategies and shared challenges, providing a community support aspect. In contrast, individual sessions are tailored specifically to your business’s unique needs and goals, business coaches offering deep dives into personalised strategies.
4. What is the average cost of business coaching, and how does it reflect the session’s value?
The average cost of business coaching can range from a few hundred dollars for group coaching sessions to several thousand for intensive 1:1 coaching. The value of these sessions is reflected in the tailored advice, strategies, and accountability support you receive, aiming for long-term business growth and success.
5. How do long-term commitments to business coaching programs affect the cost and benefits received?
Committing to a long-term coaching program as opposed to hourly session often involves a significant investment but also comes with the advantage of sustained support, continuous learning, and progressively building upon growth strategies. This commitment can lead to more substantial, long-term improvements in your business operations, market positioning, and financial success.
P.S. Whenever you are ready…
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- Apply to become a member of BGB: If you would like to be considered for membership and go from working in your business to working on your business… send us a message and put ‘membership’ in the subject line… tell us a little about your business and what you’d like to work on together, and we’ll get you all the details.
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