What’s Return On Investment?

Class is in session. 😊 Here’s your Biz 101 lesson for today.

ROI is a common business measurement, it means Return on Investment. If you’re a coach or wellness practitioner you are a business person too and you’re building your coaching business from scratch. So, it’s important for you to think about your business as a real business and not a hobby.

When you spend some money, maybe buy some equipment or enrol in a training program you want to know if it was worth it. Right? ROI is the measure used to show you how much will you get back from the money you spent.  Will you lose money, will it pay for itself or will you gain from the purchase?

These are all good questions. I’ve often heard of coaches who invest heavily in the latest glossy training program but don’t want to upgrade their smartphone or computer which they rely on and use every single day to build and run their business.

It’s easy to spend money on things that are fun or look pretty, but each time you’re ready to pull out your credit card ask yourself. Will this money be well spent? Will spending this cost me or make me more money? If you love to spend because of SOS (Shiny Object Syndrome) it’s good to know beforehand if you’re spending the money like a sensible business owner or if you’re doing it because it looks like fun. Either way, it’s your money to spend, but don’t fool yourself, know in advance your reasons. 

There’s another important way you can look at ROI too, and it’s not as commonly discussed.

You and your coaching business have more than one type of currency.

Yes, beyond a doubt, money is important, and no one wants to throw it away. But there are other currencies you’ve got that are equally as important. The first is your time and second your energy.

A couple of days ago, I wrote about the 4 Quadrants and how to manage your time effectively. Let’s imagine what would happen if you spent more energy and time in the Quality Time Quadrant. This is the proactive area where you invest your time and energy for a larger payback, this quadrant will yield you a much greater ROI on the time and energy you spend there.

For example, you could spend time finding a stellar Virtual Assistant, then show them step by step exactly what you need them to do to support you with your social media campaign or weekly newsletter. The effort you put in this one time will give you a far-reaching benefit. You will now have more time to coach clients and get paid instead of doing admin work like formatting your blog post.

Another example, if you spend time genuinely nurturing key relationships you will probably benefit from doing more sample sessions or getting more frequent opportunities to be a speaker at an event or guest on a podcast. All of which will net you more clients and more income.

Now that you understand about ROI and are aware you’ve got three currencies at your disposal money, time and energy you can make better choices from an empowered and well-informed place.

I know there are sooooo many things to learn and think about as you build a successful business. It’s one of the reasons I write these blog posts, they are little bite-sized reads to help you as you reach for your dreams.

So now it’s your turn.  What other questions do you have about being a successful coach? Send me an email at info@candymotzek.com  I’d love to hear from you, I personally read every single email I get, and maybe I’ll answer your question in one of my blogs