Coaching success starts with these Business Coaching Agreement must-haves
If you are a business coach who finds that sometimes you have unhappy clients, or clients that overstep your boundaries, or you find yourself having tricky conversations from time to time, this is likely because you are not covering all of your bases within your business coaching agreement (and if you don’t already have one, read why you should!)
During my twenty-two years of experience as a lawyer, I have found that it's the one percent changes you make in client and user experience that really create the biggest impact. Not just for your clients, but for yourself too!
Our Coaching Agreements include the ‘must haves’ and are ready for you to use now:
Whether you’re kick-starting your journey as a business coach, or you are already established, it is important to be aware of the often missing elements in your client contract that can go a long way in successfully managing relationships with your clients from start to finish. Below, I share with you my business coaching agreement must-haves, which will make a big impact on how you run your business. As a business coach, your clients come to you to be ‘better’, so it is important that you are embodying these same values within your own business and leading the way.
What your clients can expect - Be specific, like the pros do!
Having to remind some of your clients of your boundaries, when it comes to working with you, can be frustrating. This is why including an outline of what they should expect in your business coaching agreement is non-negotiable. As mentioned above, it is important to get the one-percent changes right, in order to have the biggest impact.
You start a coaching relationship how you wish to continue it, so it is important to ensure that you set the tone early on. Professionalism will reinforce to your client that your sessions are to be treated as professional business transactions, and this will help you to avoid clients taking advantage of your time.
Imagine you are looking for a business coach. You end up finding one who sends you a few Instagram messages before showing up late to your meeting. Then imagine a different scenario - you found another coach who lets you book online, takes payment up front, has prepared for your meeting, given you resources and a comprehensive agreement and already has some valuable tips off the bat to help you change your business.
If you are looking to progress your business, option two sounds much more enticing. It shows that you are organised and professional, which is crucial for a business coach who is helping people grow their businesses. It also gives the client some early wins with the early steps of working with you.
So, what exactly should be clear and specific in your business coaching agreement?
Is your client buying a package of ten coaching sessions to be taken over twelve months, or are they buying a once-off coaching session? Discussing how you’ll work together is one thing. Having it documented with detail in your coaching agreement, is another.
The scope of your work should also include disclaimers. A disclaimer should let your client know that there are no guaranteed outcomes as a result of working with you. The success of their business should not solely be guaranteed by attending or purchasing a session with you. Your client has to be actively implementing your teachings to see results. It’s not enough to assume your clients understand this, so having a disclaimer in your agreement addressing this issue is essential. This reduces the risk of the steps that sometimes follow, such as having to manage longer term conflict or even being taken to a small claims tribunal.
It is also crucial to document in your agreement how you will be interacting and working with your clients. . For example, will your sessions be in-person or virtual? You should also be clear about whether you need worksheets completed and business metrics provided to you before your coaching sessions. Again, explaining and documenting are the two steps to minimise having to manage these issues. You only need to refer to the terms of your client agreement that they signed and the issue can be put to rest. The alternative is a ‘he said/she said’ scenario, and that type of scenario isn’t good for anyone.
Early conversations and terms about pricing
I don’t know about you, but I don’t particularly like booking in for a call without knowing how much a service is up front. Are you frequently having to deal with clients flaking on you after they find out how much your services cost? Or do you find yourself scrambling after late payments or giving full refunds even when a client doesn't show up? As a business owner, it is frustrating to be spending time on admin tasks like chasing payments.
My advice is to be clear and transparent, as this early engagement is an indication of what it is like to work with you, and means that your time isn’t wasted by clients who are not fully committed or able to afford your sessions. Does your client know how much your sessions cost? Letting your clients know from the outset, what your prices are and how you will be paid, is important. Communicating expectations to your client about payment, payment timelines, and cancellation times in your client agreement is the simplest way to avoid confusion.
You will also need to clearly outline in your business coaching agreement whether you charge GST, or if it is included or added to your fee. Additionally, your business coaching agreement should detail your refund policy. For example, do you offer a pro rata refund for change of mind, or is your coaching partly non-refundable?
Your client agreement should also outline whether you require payment up front before each coaching session or whether payment is to be made in instalments, and what happens if a payment is not made? Do you cancel the coaching session until payment is made or end your coaching relationship? A great way to avoid issues like this getting out of hand, is to require payments for upfront bookings through a platform like Acuity or other online booking platform. That way you aren’t chasing payment and admin is much easier for you.
At the end of the day, your costs and methods of payment are entirely up to your discretion, the most important thing is that you are backing it up with specific details in your agreement so that it is reinforced to your clients early on what they are signing up for and what your expectations are.
Remember, not all agreements are equal, so grabbing generic, online terms and conditions for your coaching clients could mean you are missing out on including these specific details and can make managing your client relationships substantially more difficult, if not immediately, certainly down the track.
What if you need to sack a troublesome client?
What happens if the vibe isn't right with your coaching client? You may have had to deal with a client not keeping up their end of the commitment, there might be inappropriate behaviour, or perhaps you have come to the conclusion that a client just isn't the right fit for you, amongst other things. This is why it is important that your coaching agreement includes a mutual termination clause.
There are two types of terminations that will need to be included in your agreement:
A termination for breach (either you or the client). This is where someone has done something wrong. For you, it could be that the client has failed to show up to meetings repeatedly or has become aggressive with you. For the client, it could be that you have failed to show up to meetings or not been able to offer what you promised in some way.
A termination with reasonable notice. This is where you just aren’t vibing with each other or are not a good fit. Of course, this will be complicated if you require payment in advance and owe a refund. For this reason, you might think a pay as you go month by month arrangement works best, in order to avoid disputes.
Without a clear termination clause within your business coaching agreement, you could find yourself stuck with no way out of a client relationship that is wasting your time, money and sanity. Imagine having to continue to hold sessions with a client who is inappropriate, aggressive or just isn’t the right fit, when you could be spending time with other, more suitable coaching clients.
So, while you may have a business coaching agreement that has been working so far, could you be at risk of these other issues? Importantly, not all business coaching agreements are the same or include the specific elements that we discussed above. At the end of the day, having all necessary elements outlined in your business coaching agreement from the outset, means that you can effectively manage your clients’ expectations, avoid awkward or stressful conversations, and allow you to focus your attention where you need it to be.
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Are you looking to kick-start your journey as a business coach, or are you already established? Take a look at our business coaching agreement template. Don’t get caught out because you think that generic terms and conditions will do the trick. You are invited to book in for a chat to discuss a customised agreement with Emma or Lianne here.