Coaching with ROI - PerfectCircle®

Coaching with ROI

If you put money in a drawer, it will lose its value. If you invest well, they can bring you a high return on investment

Depending on how well you know finances and the various investment options, PLN 100 invested well enough can bring PLN 107, PLN 200, PLN 1,000 or PLN 10,000.

People who have some knowledge of finance and investing know the possibilities of investing in real estate, shares on the stock exchange, 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 return on investment, i.e. return on investment in the coaching process. Thus, I will explain what ROI is and why investing in business coaching – with business coaches from our PerfectCircle team – brings the highest ROI coefficients and is a very popular method of investing in the USA and, increasingly, also in Poland, both by individuals and companies. 

What is ROI? How to calculate investment profits?

ROI is a profitability indicator used to measure the company’s efficiency and the effectiveness of investment activities. It is used both in business and to measure the effectiveness of investing by individuals. ROI is simply an abbreviation of the English phrase Return On Investment. ROI for the investment of an individual or enterprises are most easily calculated as follows:

ROI = ((Sales revenue – Capital expenditure) / Capital expenditure ) x 100%

We will illustrate this with a specific example. 

Suppose you invest your money in the stock market. Let’s assume you invest PLN 100, buying 10 shares of a company, PLN 10 per share. If you know this and you are lucky because you bought the shares at the right time, then when you sell all of them after the price increases to PLN 15 per share, you will receive PLN 150 back. You can say that you earned PLN 50 and your profit is PLN 50.

Let’s see what the ROI will be:

Sales revenue = PLN 150

Capital expenditure = PLN 100

ROI = (PLN 150 – PLN 100) / PLN 100) x 100% = 50%

So in this case, the ROI factor will be plus 50%. 

ROI can also be negative. Let’s see the second example

Suppose you invest your money in the stock market again. Let’s assume that you invest PLN 100 again, buying 10 shares of a company for PLN 10. However, you came at a bad time, the shares of all companies on the stock exchange fell and you see that the shares you bought are no longer worth PLN 10 per share, but only PLN 9, the next day they are PLN 8, and the next day only PLN 7. Then you decide that you no longer want to lose money and decide to sell. By selling all 10 shares for PLN 7, you receive PLN 70 back. You invested PLN 100 and received PLN 70 back, so you lost PLN 30. You have a loss of PLN 30. 

Let’s see what the ROI will be:

Sales revenue = PLN 70

Capital expenditure = PLN 100

ROI = (PLN 70 – PLN 100) / PLN 100) x 100% = – 30%

So in this case, the ROI factor will be minus 30%.

In this simple way, we can count the investment of our financial resources in various activities and check their effectiveness: marketing campaigns, investing in real estate, business decisions, actions taken, training, education and coaching.  

Investment in what activities gives the highest ROI? 

To answer this question, it is worth understanding the functioning of our psyche and ego mechanisms.

The answers to the above question may be extremely different. A person who invests in real estate and has achieved high returns on investment by investing in real estate will say that the highest ROI can be achieved by investing in real estate.

A person who earns money by investing in the stock market, gold, diamonds or cryptocurrencies will say that the best ROI can be achieved by investing in the stock market, gold, diamonds or cryptocurrencies.

People who are influencers and earn money by writing a book, participating in TV commercials or running popular blogs, fan pages or YouTube channels will say that their way is the best.

People who have invested in their own children will say that investing in children is the best.

People who have invested in their own education – studies, training or coaching will say that investing in education is the best investment.

And so on, and so on, and so on.

Our ego and cognitive errors that are related to the ego mean that we are often unable to discover the full picture of reality, opportunities and threats. This is why people argue and argue that their “mine” is “mine” than the other person’s “mine”. This is why arguments can arise within families and about the best way to invest. This is where coaching comes in as a way to achieve the highest ROI.

To avoid cognitive errors, it is worth regularly measuring the ROI from the activities we undertake and being open to new opportunities that constantly appear in the world. Investing in real estate brings good results, but it is an old method and known to many.New opportunities and new, better areas of investing are constantly emerging. One of them is investing in business coaching

Coaching – achieving successes brought to perfection

Before we get to the answer why business coaching with ROI works, it is worth understanding first that coaching is a new field of knowledge that appeared in the second half of the 20th century in the USA. Additionally, it is even less of a field of knowledge and more of a practice derived from sports, business and achieving returns on investments. Coaching is a method for regularly achieving success, setting goals and achieving them effectively.

In traditional education, few teachers, schools, universities or educational programs teach children, students or adults how to set goals and achieve them effectively. Repeated research in this area has shown that in the case of athletes, businessmen, pupils and students, some achieved success, others did not, even though they attended the same classes and were taught by the same teachers or trainers.This However, what distinguished successful entrepreneurs from ineffective ones, athletes who achieved mastery from those who did not, was the way they set goals for themselves or the fact that they did not set them at all.

For this reason, achieving success, managing goals and their effective implementation have become a separate field of knowledge, science and practice called coaching.

Due to the fact that coaching has become widely used in business and the history of its creation, I described HERE, also in countries such as the USA or Poland, has become 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:

  1. Setting ambitious goals by the coaching client and committing to the coach to achieve them;
  2. The relationship of two people – a coach and a client – to achieve success and achieve a goal together during the coaching process;
  3. Improving the client’s knowledge, competences, self-confidence, wisdom and awareness, thanks to the tools and assessments that the coach uses during the process;
  4. The belief of two people in the possibility of achieving the goal, focusing on its implementation and persistently pursuing its implementation,thanks to regular coaching sessions;
  5. Coaching tools, incl. pertinent questions that the coach asks during coaching sessions. Tools and questions lead to the discovery of new paths, possibilities and opportunities that the client has not seen before, and which often break the client’s limiting beliefs about himself and the world around him;
  6. Coach able to effectively model their clients, i.e. choosing what a given client does exceptionally effectively in a certain field and, thanks to modeling tools, helping another client to do so effectively;
  7. The coach’s knowledge, experience and practice 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 more 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. We wrote about it on our blog, m. .in. HERE.

Business coaching with ROI guarantee from PerfectCircle and the creation of PerfectCircle Academy and the #PerfectCircleCommunity

From the above points regarding coaching, an important aspect emerges that must be taken into account to ensure a high return on investment in coaching.

BE CAREFUL: not every coach is the same.

BE CAREFUL: not every coaching school is the same.

I wrote about it in my article on LinkedIn: HERE

There are many coaching schools where trainers, coaches conducting classes and releasing new coaches into the world, do not even have basic knowledge of finances, do not know how to run business, they have never done it, they don’t know what ROI or return on investment is

When I entered this profession in 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 they had no knowledge or experience in the field of business, marketing, sales, finance and management. 

It is for this reason that after founding PerfectCircle, researching the market, working with the best business coaches and executive coaches from the United States, I, together with our team from PerfectCircle, have specialized in business coaching and executive coaching.  Our clients and other coaches say that we are the first company in Poland specializing in business coaching and executive coaching. In order to protect other people from my long journey of successfully entering the profession of an executive coach, which means spending 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 Academy of Business Coaching and Executive Coaching PerfectCircle Community.  strong>We teach and prepare professionally for the profession of a business coach and executive coach, and thus build a close-knit and supportive community of business coaches, entrepreneurs and mentors#PerfectCircleCommunity.

Many coaches completing this program also join our team, and soon we will start our global development by offering cooperation on a franchise basis. At the PerfectCircle Community business coaching school, we teach business coaching, i.e. both coaching, as well as business development, sales, marketing, building your own PR and finances. Students in this program learn what it takes to achieve high ROI for our clients and themselves and complete the classes with a business coach certification.

Often, participants of the PerfectCircle Academy and the Business Coaching OPEN program, new business coaches, after graduating from school and after the first months of work as a business coach, obtain a high return on investment from participating in the community # PerfectCircleCommunity. Case Study and an interview with Grzegorz Marek, a business coach who was a participant of group 3, can be found HERE. 2 months after receiving the business coach certificate, Grzegorz obtained two contracts with clients for business coaching and the investment in the PerfectCircle Community school paid off for him many times over, in his case the ROI was 4,525%, and we have such cases much more. Additionally, the reasons why participants choose our coaching school are well explained by an interview with Piotr Cieszkowski, participant of the #PerfectCircleCommunity group and the Business Coaching OPEN program from the PerfectCircle Academy, which you can find HERE.

To the 7 reasons why coaching works, we have added the latest business knowledge that business coaches from PerfectCircle have in the field of modern marketing, sales, management, finance, Lean Startup methods, Design Thinking, building sales funnels, Lean Management, Samozar

management, turquoise organizations, Social Selling, Employee Advocacy, branding and influencer marketing.

Thanks to the above, we can guarantee our clients an up to 2-fold return on investment, i.e. ROI of 100%.

How to verify a business coach to achieve a high-return-on-investment? 

If you want to achieve a high return on investment through coaching, first of all you should choose the right business coach.

First check if they even know what ROI is. Ask him a simple question about the ROI most often achieved by his clients with whom he has worked so far.

After this question, see how easily he answers 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 ask for references to one of his previous clients.

Despite the education we provide on the market and our own educational programs, webinars and meetups, the coaching market still consists of many coaches who call themselves coaches and work with clients sporadically, often without any success, without business experience. Avoid these and verify them in advance.

How does the investment in coaching for companies return?

The average ROI that our business clients achieve when working with PerfectCircle is 5x ROI. Many of my clients achieve even a 10-fold or 100-fold return on investment. Many studies conducted on the effectiveness of business coaching (including research conducted by the Association Resource Center Inc.) confirm that 90% of organizations that experienced the coaching process achieved a positive return on investment, 20% achieved an ROI of 5000%, and the middle value was an ROI of 700%. This median shows what effect a company deciding on business coaching can expect.

With coaching, you can gain a lot. By choosing it, we receive powerful tools that allow us to take our company to a higher level.

By choosing personal, 1:1 or team coaching, people in the company begin to work much more efficiently, get along better in teams, develop faster, and achieve their set goals (not only at work, but also in private life). They overcome their own weaknesses and break their limitations. Who wouldn’t want to have such employees in their company?

After training, after 2 weeks of which employees often no longer remember 98% of what the trainer said, coaching is gaining momentum in many organizations that consciously want to help employees build self-confidence, develop competences and generate a specific return on investment, which translates into the business of the entire organization and better financial conditions of employees.

Areas that are influenced by coaching and bring a high level of ROI include the financial benefits that the organization achieves, improving communication in the team, strengthening the leadership skills and management skills of the leader. 

Invite a business coach from PerfectCircle to a meeting and we will show you in greater detail how to implement coaching with ROI. 

Author: Marek Wzorek  – CEO and founder of PerfectCicrle and founder of the PerfectCicrle Academy and the Business Coaching program  OPEN, the first Academy of Business Coaching and Executive Coaching in Poland, executive coach, author of the book “From hierarchy to turquoise, or how to manage in the 21st century”