Coaching with ROI
If you put money in a drawer, it will lose value. If you invest well, it can bring you a high return on investment. Depending on how well you are familiar with finances and you know various investment options, well invested PLN 100 can bring you PLN 107, PLN 200, PLN 1,000 or PLN 10,000. People who know a lot about finance and investing know the possibilities of investing in real estate, stocks on the stock market, in their own business or in savings deposits in a bank account. In today’s article, I will introduce you to one of the ways of investing with the highest ROI, i.e. the return on investment in the coaching process. Thus, I will explain you what ROI is and why investing in business coaching – with business coaches from our ecoCoach team – brings the highest ROI and is a very popular method of investing in the USA by both individuals and companies.
What is ROI? How to calculate investment returns?
ROI is a profitability index used to measure the effectiveness of a company and the effectiveness of investment activities. It is used both in business and to measure the effectiveness of investing in individuals. ROI is simply an acronym for Return On Investment, meaning Return on Investment. The ROI for an investment by an individual or enterprise is most easily calculated as follows:
ROI = ((Sales revenue – Capital expenditures) / Capital expenditures) x 100%
We will present it with a specific example.
Suppose you invest your money in the stock market. Suppose you are investing PLN 100 by buying 10 shares of a company for PLN 10 per share. If you know it and are lucky, because you bought the shares at the right moment, then when you sell them after the shares have risen to PLN 15 per share, you will get back PLN 150 when you sell the shares. You can say that you have earned PLN 50 and your profit is PLN 50.
Let’s see what the ROI will be like:
Sales revenue = 150 PLN
Investment outlays = PLN 100
ROI = (PLN 150 – PLN 100) / PLN 100) x 100% = 50%
So in this case the ROI will be plus 50%.
ROI can also be negative. Let’s see a second example.
Suppose you are investing your money in the stock market again. Suppose you invest PLN 100 again by buying 10 shares of a company for PLN 10. But you’ve come to the wrong time, the shares of all companies on the stock exchange have fallen and you can see that the shares you bought no longer have a value of PLN 10 per share, only PLN 9, the next day PLN 8, and the next day PLN 7 again. Then you decide that you don’t want to waste any more money and decide to sell. If you sell all 10 shares for PLN 7, you get PLN 70 back. So you invested PLN 100 and received back PLN 70, i.e. you lost PLN 30. You have a loss of PLN 30.
Let’s see what the ROI will be like:
Sales revenue = 70 PLN
Investment outlays = PLN 100
ROI = (PLN 70 – PLN 100) / PLN 100) x 100% = – 30%
So in this case the ROI will be minus 30%.
In such a simple way we can count on investing our financial resources in various activities and check their effectiveness: marketing campaigns, investing in real estate, business decisions, actions taken, training, education and coaching.
Investing in what activities gives the highest ROI?
To answer this question, you need to understand how our psyche works and how our ego works.
The answers to the above question can be extremely different. A person who invests in real estate and has achieved high returns by investing in real estate will say that the highest ROI can be achieved by investing in real estate.
A person who makes money by investing in stocks, gold or diamonds will say that the best ROI can be achieved by investing in the stock market, in gold or in diamonds.
People who are influencers and make money by being popular, writing a book, being in TV commercials, or hosting popular blogs, fanpages or YouTube channels will say their way is the best.
People who have invested in their own children will say that an investment in children is the best.
People who have invested in their own education – studies, training or coaching will say that an investment in education is the best investment.
And so on and so on and so on.
Our ego and the cognitive biases that are related to the ego prevent people from seeing the full picture of reality and the world. This is why people often argue and convince themselves that their “mine” is “mine” than the other person’s “mine”. This is why we have quarrels in families and about party, politics and the best way to invest. This is where coaching comes in as a way not only to achieve the highest ROI, but also intensively learn during this process, discover your own cognitive errors and learn to manage your own ego.
In addition, it is worth measuring the ROI from the activities we undertake regularly and be open to new opportunities that constantly appear. Real estate investment is almost as old as humanity. New opportunities and new, better areas of investing that bring high return on investment faster and more effectively are constantly emerging. One of them may be investing in cryptocurrencies or investing in business coaching.
Coaching – goal management perfected
Before we go over why business coaching with ROI works, it is worth understanding that coaching is a new field of knowledge that appeared in the second half of the 20th century in the USA. In addition, it is even less a field of knowledge and more of a practice derived from sports, business and psychology. This field is related to the goals and self-management in the effective achievement of goals
In traditional education, hardly any teacher, school, college, or educational program teaches children, students, or adults to set goals and achieve them effectively. Repeated studies of this area have shown that both athletes, businessmen, students or students, some achieved success, others did not, despite the fact that they attended the same classes, were taught by such teachers or trainers. However, what distinguished successful entrepreneurs from ineffective ones, athletes who achieved the championship, from those who did not achieve this championship, was the way they set goals for themselves or not at all.
For this reason, goal management and their effective implementation has become a separate field of knowledge, learning and practice called coaching.
Due to the fact that coaching has widely found its way into business and the history of its creation, also in countries such as the USA or Poland, it became popular in various areas, not only in business. In the USA, for example, there are diet coaches, life coaches, relationship coaches, spiritual coaches, financial coaches, business coaches, and so on.
7 Reasons Why Coaching Works
Coaching works thanks to:
- Setting ambitious goals by the coaching client and a commitment before the coach to achieve it
- Relationships of two people – the coach and the client – to achieve a goal together effectively during the coaching process
- Increasing the knowledge, competence, self-confidence, wisdom and awareness of the client thanks to the tools and assessments that the coach uses during the process
- I believe two people in the possibility of achieving the goal, focusing on its implementation and persistent pursuit of its implementation thanks to regular coaching sessions
- Coaching tools, incl. relevant questions that the coach asks during coaching sessions. Tools and questions reveal new ways, opportunities and opportunities that the client has not seen so far, and they often break the client’s limiting beliefs about himself and the world around him.
- Coach who often works with various clients, should be able to effectively model his clients , that is, choose what a given client does exceptionally effectively in some field, and help to implement equally effectively to another of his clients
- The knowledge, experience and practice of a coach in the field of coaching, motivation, goal setting, NLP, modeling, management, sports, anthropology, positive psychology, behavioral psychology, knowledge about changing habits (getting rid of old, limiting habits and developing new ones)
In addition, there are several dozen points that make coaching work, and coaches are taught in advanced educational programs how to conduct effective coaching processes and help accelerate the development of their clients.
Business coaching with ROI guarantee from ecoCoach and the creation of a school and ecoCoach Community
From the above points regarding coaching, an important aspect emerges that must be considered in order to ensure a high return on investment in coaching?
BE AWARE: not every coach is the same.
BE CAREFUL: not all coaching schools are the same.
There are many coaching schools where trainers, coaches conducting classes and releasing new coaches into the world do not even have basic knowledge about finance, do not know how to run a business, never did, they don’t know what ROI or ROI is.
As I entered this profession from 2015, I noticed this aspect of the coaching market. Often the coaches who taught me coaching had an amazing background and knowledge in the field of psychology, but had no knowledge or experience in the field of business, marketing, sales, finance or management.
It is for this reason that, after establishing ecoCoach, researching the market, cooperating with the best business coaches and executive coaches from the United States, I, together with our team from ecoCoach, specialized in business coaching and executive coaching. Our clients and other coaches say about us that we are the first company in Poland specializing in business coaching and executive coaching. To protect more people from my long path of successfully entering the profession of an executive coach, i.e. 5 years of developing a proven process that brings return on investment to clients, we have created our own educational program and the first in Poland EcoCoach Community Business Coaching and Executive Coaching Adademia . We educate and prepare professionally for the profession of a business coach and executive coach and build a harmonious and helping community of business coaches, entrepreneurs and mentors.
Many coaches completing this program also join our team, and soon we are starting our global development by offering franchise cooperation. In the ecoCoach Community business coaching school, we teach business coaching, i.e. both coaching and business development, sales, marketing, building your own PR and finance. Students in this program will learn what needs to be done to achieve high ROI for our clients and for themselves, and complete their classes with a business coach certification.
Often, participants of the ecoCoach Community, business coaches, after graduating from school and after the first months of working as a business coach, achieve a high return on investment from participation in the ecoCoach Community. Case Study and an interview with Grzegorz Marek, a business coach who participated in group 3, you can find HERE . Two months after receiving a business coach certificate, Grzegorz obtained two contracts with clients for business coaching, and the investment in the ecoCoach Community school returned to him many times after two months, his ROI is 4.525%, and we have many more such cases. In addition, the reasons why the participants choose our coaching school are well explained by the interview with Piotr Cieszkowski, participant of the 4th ecoCoach Community OPEN group and business coach, you will find this interview HERE .
To 7 reasons why coaching works, we have added the latest business knowledge in the field of modern marketing, sales, management, finance, Lean StartUp methods, Design Thinking, building sales funnels, Lean Management, self-management, turquoise organizations, Social Selling, Employee Advocacy , branding and influencer marketing.
Thanks to the above, we can guarantee our clients even a 2-fold return on investment, i.e. 100% ROI.
How to verify a business coach to achieve a high return on investment?
If you want to achieve a high return on investment thanks to coaching, first of all you should choose the right business coach.
Check first if he knows what ROI is. Ask him a simple question, what ROI is most often achieved by his clients with whom he has worked so far.
After that question, check how easy it is to answer this question. If he does not respond specifically and preferably with specific examples of his clients, thank him for the meeting, because he is probably not a business coach, but a coach working with other areas of human development.
Additionally, you can request references to one of his previous clients.
Despite the education we conduct on the market and our own educational programs, webinars and meetups, the coaching market still consists of many coaches who call themselves coaches, and occasionally and rarely work with clients, often without any success, without business experience. Avoid these and verify beforehand.
How is the investment in coaching for companies returning?
The average return on investment achieved by our business clients cooperating with ecoCoach is 5 times the return on investment. On the other hand, many of my clients achieve up to 10 or 100 times return on investment. Many studies conducted in terms of the effectiveness of business coaching (including studies conducted by Association Resource Center Inc) confirm that about 90% of organizations that experienced the coaching process achieved a positive return on investment, and about 20% achieved a ROI of 5000% and the middle value is a ROI of 700% . Such a median shows what effect a company deciding on business coaching can expect.
There is a lot to gain from coaching. When we decide to use it, we get really powerful tools that allow us to take the company to a higher level.
By choosing coaching, personal, 1: 1 or team coaching, people in the company start to work much more efficiently, get along better in teams, develop faster, achieve their set goals (not only at work, but also In private life). They overcome their own weaknesses, break limitations. Who wouldn’t like to have such employees in their company?
After training, after which employees often do not remember 98% of what the trainer said during the training, coaching is impetuously entering many organizations that consciously want to help employees build self-confidence, develop competences, generate a specific return on investment that translates into the business of the entire organization and better financial conditions of employees.
The areas that are influenced by coaching and bring a high level of ROI include the financial benefits achieved by the organization, improved communication within the team, strengthening the leadership skills and management skills of the leader.