If you're thinking about starting your own business and you feel franchising is the safer route, then you may be wondering what the difference is between a "professional services" franchise like Business Coaching versus a trade-type franchise where you might do lawn mowing or landscaping.
In most cases, if you're thinking of starting up a trade based business, you're going to need some sort of transport, equipment for the trade itself and more often than note, you will need to buy or lease the things you need to make this business work. This means that you're going to be leasing some equipment that may be somewhere between $50 to $250,000 depending on what you need and that will become a liability for you.
Whether you have appointments or lack of clients, you still have to make payments on your equipment. Alternatively, in the professional services field, most of the time, you are going to be working from home. You've already got the space to set up office and there aren't too many additional costs.
As a trade, you typically get paid by the hour. You go on site, you do your work. You start the clock, and when you are finished you get paid. If you have a business coaching service offering, you usually get paid on a monthly basis and it's based on a return for your customer.
If you position your customers really well, they'll know they're not paying you by the hour. They will understand that they are actually paying you for return on investment.
When you get a client, you generally work harder in the beginning. But as time goes on, you'll work a little bit less with them because they learn how you're going to coach them and how you're going to work with them.
Both business types work a little bit differently.
Another very important factor that people may overlook is the fact that most trades require a qualification – and that can take a bit of time. If you want to become a business coach, you may not require a qualification, just some on going training. Most coaches learn how to coach in their first year.
Another important difference between the two different types of businesses is re-occurring income. When you bring on a business coaching client, you will typically bring them on a monthly retainer. they'll pay you a monthly fee for continuing to work with them and help them in their business. If you have a trade business, you are typically seeking out jobs. It's generally one off. In business coaching, your clients will expect you to be there on a weekly, fortnightly or monthly basis depending on the programmes that you offer and that means you have secured your re-occurring income.
Hiring people in the two different types of business structures is also very different. If you have a trade and need more people to help you with your business, you are going to have to hire skilled tradespeople. A business coach can hire whoever they like depending on what they need (assistant, sales person, accountant etc.
Skilled people are harder to find nowadays. We are in the information age and that's why things like business coaching are such a growth industry, because people are loving working with their minds rather than with their hands and it makes it easier when it comes to recruiting.
Lastly, if you decide to become a business coach, you work out your own schedule. You don’t have to be stuck on the road for long periods of time. You can work locally, or from home. You can decide when you want to be out on the road.
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About the Author
Ben Fewtrell is a sought-after Business Coach, Keynote Speaker and trainer who has featured in Virgin’s Inflight Magazine and Entertainment Portal, SKY Business and "Secrets of Top Business Builders Exposed". He is also the host of the popular Business Brain Food Podcast where he interviews leading experts on anything and everything business.