Business Coaching Agreement essentials
Business coaches, how are you navigating these tougher economic times? Between the pandemic and now the economy getting tighter, it seems continuous. As I write this, another interest rate has hit and this sort of financial climate can certainly lead to a feeling of uncertainty about what impact that will have on your coaching business.
If your clients are struggling in their own business or with their own personal financial situation, this can impact your business (and your stress levels). Right now you might find yourself more alert to issues such as late payment or clients wanting to end coaching with you. Maybe you are starting to feel concerned about your clients cutting costs and that your business coaching will be a part of those cuts. A Business Coaching Agreement can provide the protection and certainty you need.
Below we have outlined inclusions for consideration in the onboarding of any new clients. It’s not too late to include these ideas in your Business Coaching Agreement with current clients either, especially as contract renewals roll around.
You may have some of the elements in place we cover below but there will also be some that you don’t have. Let’s take a look at the Business Coaching Agreement essentials.
Quantifiable and deliverable promises
As a business coach, you want what’s best for your clients. You want to make them successful and that is why you do what you do. You may also be concerned about keeping your own coaching business thriving. It can be tempting to make big promises, maybe based on the success of past clients or on what other coaches are promising.
Offering grand promises (think of the 7 figure business promises) will likely get you some new clients, but promising something you can’t deliver will only cause you and your brand damage in the long run.
What may be obvious to you as the coach, is that results your clients get from their coaching sessions will vary greatly, depending on a wide range of factors. This is not always obvious to the client, so making them aware of this upfront is important.
Some considerations that will influence the success of your clients’ businesses include:
The maturity of their business and how well established it is (e.g. starting out or well established);
How much revenue and profitability the business currently generates;
The number of employees already in place;
The industry the business is operating within; and
The client’s willingness and commitment to follow through and do the work to implement your coaching strategies.
You will know that plenty of coaching clients come to you wanting to achieve a certain amount of growth, increase in profitability or some other goal. While these are likely possible goals for many business owners, they are not promises business coaches should offer.
Just because a previous client grew their profit by a 30% margin (as an example), does not mean that they will achieve the same results, even when working with the same business coach. Being up front with your clients about the limit to the promises you are able to make is really the kindest thing you can do. For them and for you.
Having a Business Coaching Agreement in place from the beginning of your client relationship is one way to do this. One element of this agreement should include details that ensure you are being upfront about what you can or cannot promise your clients. Having this clearly stated prevents confusion and disappointment in the long run. It can also allow you the chance, right from the start, to keep your client open to and aware of the current climate they are operating within, as well as highlight any other limitations that may exist.
If your clients feel they are successful, you know they will be more likely to see the value of their investment in your coaching. Setting realistic expectations up front and putting barriers in place to give your clients the best chance of feeling successful can be done with your Business Coaching Agreement. Here are a few mechanisms to include from the beginning.
Establish KPIs
Having KPIs (Key Performance Indicators) set as early as possible not only gives your sessions a framework and direction, but also keeps expectations realistic. You can see from the get-go what it is that your clients want to achieve and work to steer them in the direction of realistic goals. If goals and KPIs aren’t made explicit, this can derail the coaching progress and inevitably lead to dissatisfaction for both yourself and your coaching client.
Establish timeframes for review and revision
Once KPIs are agreed upon, having a time frame for review of the coaching relationship will allow you to check back in with potentially unrealistic KPIs or set new KPIs. More than this, a scheduled period for revision will let you and your client check if actions agreed upon are being taken. The client can see that they are or are not taking the necessary steps to achieve what they set out to achieve at the beginning of the coaching agreement. Having regular check-ins (e.g. monthly or quarterly) can also give you specific points in time to identify if your client is not a good fit, and if best, you can make the decision to terminate the coaching relationship. Regular check-ins also help you and your client adjust your goals and keep the coaching relationship agile.
Establish what is (and isn’t) in your control as a coach
As a business coach, you are not in control of the financial climate. You also don’t control search engines like Google or potential competitors or third party platforms. These are external factors you must read and operate within and, as obvious as this may be, it is important to be explicit about this with clients in your discussions and your agreement. Once you point it out, they will likely also see that it’s obvious, but it is an important caveat in the success of their business goals. It also helps you manage client expectations.
A disclaimer should also include timeliness. Advice being given is always within a context. Terms and conditions of third parties change. Google algorithms change and trends come and go, amongst countless other factors considered in your business advice.
Be financially transparent
I don’t know about you but I like to know up front what I’m going to get and what financial commitment is required, before I agree to anything.
While you will let your client know what they will get with their sessions in your discussions. You also need this clearly detailed in your Business Coaching Agreement. In addition to the elements discussed above, you must also clearly detail the payment requirements.
Your Business Coaching Agreement should detail:
How much you charge per session;
How many coaching sessions are included;
How often they will take place (e.g. fortnightly, monthly etc)
Any extras you offer (including details of any additional charges those extras may incur)
When payment is to be made; and
What will occur in the event they do not make payment.
Financial transparency is about disclosing inclusions and making clear your right to terminate the coaching agreement, should payment not be made.
It is not uncommon for coaches to be generous and flexible with their time and payment agreements, particularly when you know clients are financially struggling.
Perhaps you need more clients yourself and feel that being flexible or generous will get clients through the door. You are not doing yourself or your client a favour by allowing the coaching relationship to begin or continue if they are unable to pay or will struggle to pay you. Protect your valuable time and resources. You will be better off finding a client who can afford to engage your service, than someone who chews up your time and energy in unhelpful ways and may not even pay you.
Having a termination clause that allows you to end the coaching agreement due to late or non-payment is a must. Requesting payment upfront, before the coaching sessions begin is a good way to avoid issues like these and ensure you protect yourself and your business.
Explicit confidentiality
In the words of Billy Joel, “it’s all about trust”.
Like any other relationship, confidentiality and trust must be the foundation of your business coaching relationship. As you know, clients often reveal significant confidential and sensitive information in sessions. You will likely also provide information and intellectual property that is intended for their use only.
In order for your coaching clients to feel comfortable to share details such as their business financials, there must be trust. While you can build this up throughout your sessions, you must also have a confidentiality clause in your Business Coaching Agreement. By including this in your contract, it establishes the degree of confidence. You get the information you need to be truly helpful and because you are both bound by this clause, everyone is protected and feels safe.
Clarity is kindness in a Business Coaching Agreement
A clear Business Coaching Agreement is not a substitute for excellent coaching skills and good relationships with clients. What it does provide though, is clarity for you and your clients as to how things will unfold and a place to turn to if someone has an issue. It can keep your big picture goals and individual sessions on track, keep the client accountable, help ensure you get paid and generally help you avoid a number of issues that business coaches face regularly. A business coaching agreement, when inclusive of the most important elements, offers certainty in the most uncertain of times.
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Want to ensure you’re on the front foot in your business coaching relationships? Take a look at our Business Coaching Agreement Template. If you are looking for something similar. We also have the following coaching templates available:
Group Coaching Terms & Conditions
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