The Value of a Business Coach, Part 1
Prior to starting a real estate business, I have experienced coaching in other positions I have held in sales and corporate banking. In both instances, I was in a much better place at the conclusion of the coaching engagement than I was at the beginning.
Hiring the right coach can be exactly what is needed to take a business to the next level. In our real estate investing business, we are part of three coaching programs. Yes, THREE! Each coaching program serves a very specific purpose.
This is the first post covering the value a coach can bring to a business. We will discuss the first coaching program we joined and how it has added value to our real estate investing business.
Coaching Shortens the Learning Curve
The first eight months after reading “Rich Dad, Poor Dad” our business was going nowhere fast. Yes, we were educating ourselves by reading numerous books and listening to podcasts. We were making offers on properties listed on the MLS. That is all well and good, but we were not doing deals. You can only learn so much by reading books and listening to podcasts. The best way to learn is by doing.
We joined the Appleton REIA Coaching program in late-August 2018. What we liked about their coaching program was they were local, had over a decade of experience, and included three coaches, Jacci and Brett Konkle and Dan Ahlborn, with different skillsets.
One of the first things we did in the coaching program was to create a game plan on how to find real estate deals. Jacci and Dan reviewed the different marketing tactics typically used by real estate investors in the area. They had us pick two tactics to start out our business. We chose direct mail marketing and bandit signs.
Dan or Jacci had weekly coaching calls with us to keep us on track with our marketing, coach us through any leads we have received, and answer any questions we had. They got us to start taking action, learn by doing and evaluate what went right and wrong when talking to leads.
Coaches Can Prevent Mistakes
Perhaps the biggest value a coach can bring is to prevent or limit the mistakes that can occur when running a business. Coaches should have a wealth of knowledge and experience which means they have made mistakes. As a coaches they should be sharing their mistakes and lessons learned with their students so they do not make the same mistakes. Dan, Jacci and Brett shared numerous stories with us that helped us learn from their mistakes.
For new real estate investors one of the biggest mistakes is overpaying for a property. We were able to prevent this by leaning on our coaches at each step of the house buying process. We would talk with Jacci or Dan to coach us through qualifying the opportunity. If the opportunity was qualified, Brett would walk through the property with us pointing out all the issues with the house, helping us put together rehab numbers, and calculating the offer. The coaches would even give us tips on presenting the offer to the home sellers.
Confidence is Gained from Coaching
Most entrepreneurs struggle with confidence when they first start their business. They are not sure they are spending time on the right things or doing tasks correctly. This sometimes leads to analysis paralysis. Utilizing a coach should provide the confidence needed to take the appropriate action in your business and get it moving in the right direction.
As a real estate investor, the biggest thing we were nervous about was calculating repair costs correctly on a house. Luckily for us one of our coaches, Brett, is a licensed contractor. Having Brett in our corner to walk through properties and show us how to calculate repair costs gave us the confidence we needed when talking with home sellers and making offers. To this day we still leverage Dan, Jacci, and Brett as coaches to our real estate business. Nowadays we utilize them to check our work and confirm our thought processes and conclusions are solid. They also provide us feedback on our business goals and strategy pushing us to think bigger. There is no doubt that our investment in coaching through the Appleton REIA Coaching program has been a worthwhile investment.
Stay tuned for Part 2 of this blog series discussing coaching.