It’s time to talk about those pesky tax and money habits that kill profits in a 7 or 8-figure coaching business in any coaching niche.
One of the things I’m committed to in my own coaching business in 2023 is shining a brighter light on the various money habits that kill profits, as well as several tools and tips and strategies to support you and your business thrive.
And since it’s currently tax time here in the US, I hope some of these will support your 2023 tax strategies too.
I’ve spent the last 30 years doing this Money and Profitability work. (I personally can’t believe it’s already been 30 years).
I’ve done bookkeeping and accounting and tax review & preparation services for women entrepreneurs and women-owned companies since 1993, and CPA services for women-based companies (including coaches and consultants) since 2003.
And the strategic part of my business coaching work includes my commitment to supporting you and all the other fabulous businesswomen in my community with my skills, training and experience to co-create your most simple, profitable, joyful and impactful boutique high-ticket coaching business ever.
Emphasis on simplicity, profits and joy.
It’s time to say goodbye to Money Habits that Kill Profits. (I’ll dive into 3, and you can watch the YouTube Video below for additional habits not discussed in this blog post).
I’ll start with a story that breaks my heart every time I go under the hood of a seemingly successful coach, whether it’s a 6, 7 or even 8-figure coach who’s doing great things in the world with her work and in her community.
Money Habits that Kill Profits # 1 – Overpayment of Quarterly Tax Estimates
As business owners, we all know we need to pay taxes (at least here in the US), and the more money we make the more taxes we pay. This is great. But how does this affect profitability?
One of the BIG money habits I’ve come across both as a business coach, as an accountant reviewing the numbers and as a CPA co-creating tax strategies with a number of these so-called coaching gurus is,
Sending Up to 4x the quarterly amount estimated.
Yes, you read that correctly. Up to 4x the amount that could be owed. Because these coaches were still caught up in the employee mindset of, ‘I’m getting a big refund from the IRS’.
No, beautiful! You’re not. Lovingly hear this for a moment. No businesswoman needs to be getting any refund from the IRS that isn’t based on credits and allowances. Overpayment of taxes kills profits (and moral, inspiration and impact).
You’re sending the IRS 4 times the amount you may owe, and you’re giving away your profits to the IRS on an interest free basis for a whole year.
You’re not an employee in corporate. You’re a legitimate business owner making a lot of money and keeping none of it. You’re sucking the life out of your net worth.
And then in the Q1 of the next year, the IRS sends you a refund check or deposits the $40K overpayment AKA interest-free loan you gave them back to you.
Consider this habit for a moment. How does this benefit any business? If this was your situation, what could you have done with this money instead?
Invest back into your business?
Invest in a real transformational business coach who could have supported the WHOLE YOU to NEVER make that mistake?
Invest in savings, charity, investments, a resourceful team?
Invest in support?
Invest in a new home, travel, something you desire for your family?
So many options.
So many 6, 7, and 8-figure coaches are gross number coaches only. Meaning they make that amount in sales, but have ZERO profits, and sometimes end up with more expenses than they need to.
And this money habit is ONE reason why their profits are dead. My invitation to you today is to look at your own tax situation and see where you’re throwing money away, leaving profits on the table, or giving interest free loans to the IRS.
Dig deep into the details of your numbers, or talk to your accountant, bookkeeper or CPA to co-create better tax planning strategies that grow your business and your profit and impact.
Girl, get your profits off the table!
Money Habit that Kills Profits #2 – Undercharging for High-Ticket Coaching Offers
If you’ve been part of The Prosperous Womb email community for more than a minute, then you’ve seen so much about habit #2, you could write a book and make a movie about it.
But hey, I’m still going to remind you.
Because I see you and you matter.
And because your high-ticket coaching offer is the portal of transformation for your clients.
The most sacred gift for their transformation.
So, why are you still undervaluing your work and undercharging for your high-ticket coaching offer??
Look, I get it, sometimes it’s really tempting to undercharge to attract more clients.
But this non-strategy can end up hurting your business within 3 weeks because while you have cash coming in, there’s sales, but no profit.
In fact, you’re at a deficit with your bank account and repelling high-ticket clients who actually want what you have to offer.
Plus, undercharging can lead to several other issues like undervaluing your expertise, minimizing your worth, and frustration from overdelivering and underearning.
This leads to broken marriages, depressed children, ulcers, heartburn, chronic stress, fatigue, expanding waistlines, overeating and a whole host of deadly diseases. I see this in both my business coaching business and my health coaching business. (Not cool).
When you undervalue your services, you not only risk underearing or failing to make the income you need to sustain your business, but you also send a message to potential clients that you don’t value your own skills and knowledge.
This makes it difficult to attract the right clients who are willing to invest in themselves and in their coaching journey. (Just stop now…. seriously).
Stop killing your profits (and yourself) and charge the value of your work.
Your high-ticket clients deserve it.
Your profits have been calling you for two weeks. Pick up the phone!
Money Habit that Kills Profits # 3 – Dumping Cash Down the Facebook Ads Hole
Landing the #3 spot in our money Habits that kill profits conversation is rushing to invest in Facebook Ads. I’ve seen so many women who hit 6 figures and immediately rush to buy ads. Same thing for many 7 and 8-figure coaches who have absolutely no need for ads yet.
So, here’s the thing.
Would you rather create and enjoy healthy glowing skin or master wearing makeup to cover bad skin?
It is imperative, important, best to know how to market your potent body of work organically. To know how to share what you do and actually have a system or structure that brings in your soul-aligned people. Maybe it’s social media, maybe emails, maybe blogging, but you’ve got to know how to market and call in your people. Period.
Organic marketing is like taking care of your insides so that you maintain healthy glowing skin. A Radiant, fresh youthful glow.
Facebook ads work great. I have nothing against them. But many women are using them like mastering how to wear makeup to cover bad skin. Why would you prefer to master how to wear makeup to cover bad skin instead of enjoying healthy skin?
Take care of your marketing so that you don’t need to master how to wear the makeup. It’s throwing profits in the gutter.
Many women who invest in Facebook ads haven’t learned or hired the right team to implement those ads correctly. Many marketing agencies charge upwards of $5Ok for this, with less than 1% return on investment. It’s terrible.
Facebook is the gasoline that blows the fire uppppp. So, create the fire by starting with organic marketing systems that work.
Pouring gasoline on nothing yields nothing. You can’t turn up the heat on zero.
In 2022, I’ve heard many 7 and 8-figure coaches return home to organic marketing. Back to the basics because Facebooks ads have been a financial drain. One coach (a colleague) lost $225K last year alone on Facebook ads. This year, she’s doubling down on her email list and podcasting.
I invite you to look at where your first impulse is to throw money down the Facebook toilet. People find your work on YouTube and google ten years later. It’s free.
How can you grow strong organic marketing systems that actually bring in $100K sales in Q2?
Next Steps to Stop Killing Profits in Your Coaching Business.
I’ve created several High-Ticket Profit Explosion Workshops to support spiritual women coaches, Christian women coaches, all women coaches, and women in business to get their profits off the table and enjoy more wealth and impact.
Go deeper with “PROFIT EXPLOSION” – A High-Ticket Profit Explosion Workshop for Women Coaches Who Choose to Consistently Enjoy Higher Profits, Impact and Wealth.
In PROFIT EXPLOSION, you’ll discover the Money and Tax Habits that Kill Profits, Joy and Impact, and Hold Your Net Worth Hostage.
If you’re ready to stop killing profits and sucking the life out of your net worth, then run, don’t walk to Get PROFIT EXPLOSION here.
Or visit www.highticketprofitexplosion.com to see all available High-Ticket Profit Explosion Workshops.
Want More? Join The Prosperous Womb Email List Here.
What is ONE Insight you’re taking away from this “Tax and Money Habits that Kill Profits in a Coaching Business” Post, and how will you apply it to your coaching business today?
Please share this Post with other Spiritual Women Coaches and Christian Women Coaches creating and enjoying successful 7, 8 or 9-figure coaching business on their terms without sacrificing their time, energy, faith or joy.
Cheers, MiMi Dabo, Business & Profits Midwife at The Prosperous Womb.