A common question we get from our business clients is what is the difference between a business coach and wealth coach, and do I actually need both?
The short answer is yes.
In this article, I will explain what a good business coach and wealth coach should be able to deliver to you and in turn, how they can support you collectively to smash your goals in both business and life.
What is a business coach?
A good business coach should be able to support you in creating a profitable business by focusing on the four key areas of a great business; marketing, sales, delivery and growth.
Not all business coaches cover all of these four areas and some of the best coaches typically specialise in one or two areas (a jack of all trades is a master of none!).
Their aim is simple; work with you as the business owner to push your business forward and as a result, help you achieve your personal goals.
This often works by following this process;
- Identify your business goals and what you’re working towards
- Set KPIs and metrics to measure your performance
- Identify the key areas of your business that need the most attention
- Implement strategies and tactics to improve these areas
- Measure the outcomes of these projects and improve and optimize them
As a result of these actions, the outcome should be improved revenue and profit.
However, this isn’t always the case.
Not because of any fault of the business coach. Typically, it is due to the inadequate financial systems their clients have both personally and in business.
The fact is, most business coaches aren’t financial and wealth experts.
In our experience, a great business without the right structures in place is like pouring your favourite drink into a leaky bucket and watching it go down the drain.
Sure, you might be better off than having no drink at all, however, it’s not as good as it could be.
So, what does a wealth coach do exactly?
A good wealth coach should be able to help you unpack what financial freedom really means, support you to reverse engineer it into an action plan, implement the right strategies and tactics to get there and work out the income, surplus, investments and debt allocations required to achieve your goals.
In particular, as a business owner, you need a wealth coach who intimately understands how to turn your business profits into personal wealth. This is because your business is often your best investment and understanding how to improve your business value and cash-flow is critical to your ability to achieve financial freedom.
The aim of a wealth coach is simple; work with you as an individual to work your goals backwards into your business and help you link your business activity into how you manufacture financial freedom.
This often works by following this process;
- Map out all of your goals, dreams and aspirations over 20 years into the future for lifestyle and financial
- Set KPIs and metrics to measure your performance financially
- Identify the key areas of your finances that need the most attention
- Implement strategies and tactics to improve these areas
- Measure the outcomes of these projects and improve and optimize them
As you can see, there are some similarities between business coaches and wealth coaches, however, the outcomes are different, yet complimentary.
A wealth coach isn’t privy to all of the latest strategies and tactics to scale your business, increase your leads, improve your sales and hire great staff. However, we can help you understand the financial impacts of these strategies and ensure we can measure the ROI across all initiatives you implement into your business.
Similarly, a business coach is often unable to help you understand the financial impact of the decisions you make in your business, when you can afford to hire, how to hit your income target, how to build wealth and ensure your business is a vehicle that fuels your personal goals.
So, who do I need on my team?
We believe that you need both.
As your dream team, both your business coach and wealth coach should collaborate with you and your accountant to ensure that you have a holistic approach to business and personal mastery.
In our experience, we see most clients getting at least a 4x ROI from their investment in their coaches. For example, if you spend $50,000 a year on coaching, it is safe to say that you should get at least $200,000 in value as a result.
This could be from increased profits and cash-flow, additional wealth built, debts paid off or restructured, goals achieved and lifelong skills mastered which can be used for the rest of your business and working life.
