How do I establish what the working capital to be a business coach is?
When looking to setup your own franchise of UK Growth Coach, it’s important to consider not just the upfront franchisee license and fees, but also the working capital to be a business coach, ongoing.
For clarity, working capital is used for day-to-day trading and is calculated as your assets minus your liabilities. In the case of the working capital to be a business coach, this is mostly about accessible cash in the bank.
Working capital is necessary to cover your setup and operating costs until such time as you have a schedule of coaching clients.
It provides you with both the ability and comfort of time to establish your own franchise coaching business.
Based on our experience, we’d recommend working capital to be a business coach, up to around £30k for a new franchisee.
This should be to cover the costs of an office, business development, marketing, the running of events, networking group memberships etc for up to 12 months with minimal income generated.
We believe this is a comfortable working capital to be a business coach allowance.
A franchise can of course be setup with less working capital than this depending on their plans and circumstances (e.g. existing contacts and potential client base).
It is important to consider the working capital requirements to be a business coach, regardless of which route to becoming one you choose, so hopefully this approximate calculation from us will be of help.