Can you afford a business coach?

"I would love to hire a coach but I am concerned it is too expensive. -- Leila, Md."

That's the concern one advisor shared with Horsesmouth after reading Ed Klink's case study, A Time Management System That Works, in which a veteran FA joined a coaching program to break through her business plateau. Responding to a case study by Miriam Lawrence, How Coaching Helped a Rookie Double His Production, another advisor wrote:

"I have been contemplating getting a coach for quite some time ... I just have not pulled the trigger yet. It's the money." -- Kevin S., Florida

In both instances, these advisors -- like many others in the same boat -- recognize they need help to get to the next level of success but are reluctant to spend the cash or feel they don't have the resources to invest.

Budgeting suggestions for hiring a coach

So how can you secure the help you need to progress toward your goals? Take out your business plan. Under the section titled business goals write: "I will spend at least 5% of a my net revenue each year on professional development." (Why 5%? It's a common benchmark used by top producers). Now, figure out how much 5% represents. Say your 5% figure is $6,000. Divide that by 12 to arrive at a monthly amount: $500.

That's your professional development minimum monthly budget.

Now, for the psychological part: List the things in your life that cost at least $500 a month, and for which you purchase despite not wanting to part with the cash. This may include taxes, insurance, childcare, or even tuition for private school.

Then consider the bills that cost several hundred dollars a month for which you gladly write out the check: investments, cleaning service, lawn care, gym or club dues, vacation reservations, or charitible donations.

Your assignment is to mentally put "coaching" in that latter category. See yourself happily writing out the coaching check each month. You will have to work out the specific budgeting issues, and you may well have to make sacrifices (not out of your marketing plan budget, however). But first you have to see coaching as something that you really want and are ready to sacrifice for.

To help in that regard, consider the following examples:

-- The first case study advisor invested more than $10,000 on a coach her first year in the program but was able to double her assets in six months.
-- The second case study advisor spent about $500 a month, and increased his production and assets by 175% in two years.

The article, How to Make Coaching Work for You features an advisor in Austin, Texas who increased his assets from $27 million under management to $45 million one year after writing a $17,000 check to a coach. "We also had a 50% increase in revenue, an extra $85,000, so that investment paid off five fold," he explained.

You may be thinking that these advisors just got lucky, but here's why advisors who hire coaches frequently make giant leaps:

-- Their marketing becomes more strategic
-- They get help with business planning
-- They get ideas for systematization and time management
-- They are held accountability

Oh, and the advisor who hadn't pulled the trigger on coaching yet? He finally did. Kevin S., an independent advisor in Florida, made the leap, bringing on a coach for $475 a month: "It's worth every penny," he attests. "At some point in your career, you just have to budget for a coach. I needed someone to hold my feet to the fire in a gentle way. I went from a $200,000 producer to a $310,000 producer the year I hired the coach."

For specific suggestions on the process of hiring a coach, here are two articles:

Choosing the Right Coach -- A Checklist

Are You Ready for a Coach