![How to plan and track the budget of your online coaching business [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-5_a121df54-403d-4851-b679-2cb58ae501aa.png?v=1715856343&width=1100)
If you don’t plan and track your coaching business budget properly, you're setting yourself up for failure.
When we developed our strategy pack for online coaches, we saw a lot of coaches struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial client bookings.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your coaching business's finances around and set you on the path to success!
Get the budget tracker tailored for online coaches
Most online coaches don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for online coaches
Here is an example of a (very) detailed budget for an online coaching business, to give you some inspiration
1. Software and Tools
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Video Conferencing | Zoom or similar platform | $50 | $600 |
| Project Management | Asana, Trello, or similar tool | $30 | $360 |
| CRM Software | Client relationship management tool | $100 | $1,200 |
| Email Marketing | Mailchimp or similar service | $50 | $600 |
| Website Hosting | Hosting and domain services | $20 | $240 |
| Online Course Platform | Teachable, Thinkific, or similar | $100 | $1,200 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Head Coach | 1 | $5,000 | $5,000 | $60,000 |
| Assistant Coach | 1 | $3,000 | $3,000 | $36,000 |
| Marketing Specialist | 1 | $2,500 | $2,500 | $30,000 |
| Administrative Assistant | 1 | $2,000 | $2,000 | $24,000 |
3. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $300 | $3,600 |
| Content Creation | Blog posts, videos, graphics | $400 | $4,800 |
| SEO Services | Search engine optimization | $200 | $2,400 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Webinars & Workshops | Hosting online events | $100 | $1,200 |
4. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Office Supplies | Stationery, pens, printer ink, etc. | $50 | $600 |
| Professional Development | Courses, certifications, books | $200 | $2,400 |
| Insurance | Professional liability insurance | $100 | $1,200 |
| Contingency Fund | Emergency repairs and unexpected costs | $200 | $2,400 |
| Client Gifts | Welcome packages, thank-you gifts | $100 | $1,200 |
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What are the biggest expenses for an online coach?
Be mindful of these pitfalls. Here are five major costs every online coach needs to consider, along with some tips on how to manage them effectively.
- Software and ToolsThese can take a significant portion of your budget. You're dealing with subscriptions for video conferencing, course platforms, and other digital tools. Prices can vary based on features and user limits. To keep these costs in check, focus on essential tools, negotiate better rates, and avoid paying for features you don't need. It's easy to overspend by subscribing to multiple platforms or opting for premium features that don’t add enough value.
- Your TeamYour team is your backbone, but paying for their services, whether it's virtual assistants, marketing experts, or tech support, can be costly. This expense is always high because you need skilled professionals to provide quality service and keep your business running smoothly. You can optimize labor costs by hiring freelancers, cross-training your team, and monitoring productivity. However, be careful not to underpay or overwork your team, as this can lead to high turnover and poor service.
- Marketing and AdvertisingGetting the word out about your coaching services is crucial, but advertising can be expensive, whether it's online ads, social media campaigns, or email marketing. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Content CreationCreating high-quality content, such as videos, eBooks, and webinars, is essential but can add up quickly. To optimize these costs, invest in good but affordable equipment, use free or low-cost editing software, and repurpose content across different platforms. Overspending often happens when you go for high-end production values that don’t necessarily improve the quality of your content.
- Professional DevelopmentStaying updated with the latest coaching techniques and industry trends is crucial, but courses, certifications, and conferences can be expensive. Optimize by choosing the most relevant and high-impact learning opportunities and taking advantage of early-bird discounts or group rates. You can overspend by enrolling in too many courses or attending every conference without a clear benefit to your coaching practice.
How to spend less with your online coaching business?
Here are practical tips to help you, as an online coach, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Software Subscriptions | Bundle services where possible and take advantage of annual subscription discounts. |
| Marketing | Run social media campaigns and collaborate with influencers in your niche for organic reach. |
| Website Hosting | Choose a reliable yet cost-effective hosting service and optimize your site for performance to reduce costs. |
| Content Creation | Utilize free or low-cost tools for creating content and consider outsourcing to freelancers for specific tasks. |
| Online Course Platforms | Compare different platforms to find one that offers the best features for your needs at a reasonable price. |
| Advertising | Use targeted ads and A/B testing to maximize ROI and reduce unnecessary spending. |
| Office Supplies | Go paperless where possible and purchase necessary supplies in bulk to save costs. |
| Professional Development | Take advantage of free webinars and online courses to continue your education without breaking the bank. |
| Client Management | Use a CRM system to streamline client interactions and automate routine tasks. |
| Insurance | Regularly review your insurance policies to ensure they meet your current needs and compare rates annually. |
| Technology | Invest in multi-functional devices and software that can handle multiple tasks to reduce the need for additional tools. |
| Internet and Utilities | Choose a reliable internet service provider and consider energy-efficient devices to reduce utility costs. |
| Workspace | Consider a home office setup to save on rent or use co-working spaces as needed. |
| Client Onboarding | Automate the onboarding process with digital forms and welcome emails to save time and resources. |
| Travel | Plan virtual meetings whenever possible to reduce travel expenses. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Networking | Attend virtual networking events and join online communities to expand your reach without the travel costs. |
| Client Gifts | Opt for digital gifts or personalized e-cards to show appreciation without high costs. |
| Accounting | Use accounting software to manage finances efficiently and consider hiring a freelance accountant for periodic reviews. |
| Legal Fees | Utilize online legal services for basic needs and consult with a lawyer only for complex issues. |
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Expenses that are just useless for an online coach
Yes, some expenses for your online coaching business are just unnecessary. They don't contribute to increasing revenue or improving client experience.
| Coaching Expense | Reason It's Useless |
|---|---|
| Fancy Website Design | Overly elaborate website designs don't necessarily attract more clients and can be a drain on the budget. |
| Premium Webinar Platforms | Unless you are hosting large-scale events, most clients are satisfied with mid-range options. |
| Excessive Course Offerings | A large number of courses increases content creation costs and can overwhelm potential clients. |
| High-End Recording Equipment | Top-of-the-line recording equipment is not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your coaching business. |
| Multiple Branding Styles | Having various branding styles increases costs without adding significant value to the client experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for software or tools often go unnoticed by clients. |
| Exclusive Content Platforms | Using rare or niche platforms can inflate costs and complicate content delivery. |
| Costly Office Furniture | High-end office furniture is not always appreciated by clients and can be a significant expense. |
| Custom Printed Materials | Personalized printed materials are a minor detail that most clients overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Hosting Services | Most clients are content with reliable, mid-range hosting services, making expensive options unnecessary. |
| Extra Office Space | Maintaining a larger office than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Rebranding | Constantly updating branding can be costly and disrupt client recognition. |
| Expensive Office Decor | Elaborate office decor is often ignored by clients and adds to the cost. |
| High-End Office Supplies | Luxury office supplies are prone to damage and expensive to replace, often going unnoticed by clients. |
| Excessive Team Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Course Designs | Frequently redesigning courses is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Coaching Tools | Specialized coaching tools are often unnecessary and add to costs without a proportional benefit. |
Stop working with a tight budget for your online coaching business!
Managing a budget for your writing projects when funds are tight can feel like a nightmare. It's like being trapped in a cycle where any unexpected expense can derail your progress.
This constant pressure makes it nearly impossible to invest in your writing growth, leaving you always chasing after deadlines and expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together resources and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your writing income. More income means more breathing room and more money to invest in your craft.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your writing revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of writers just like you. Get them now!
Make your online coaching business more profitable
We have studied the strategies of the best online coaches in the world. All their tactics are explained in our pack!
