When you become a business owner, you quickly realize that there’s a LOTTT of things you have to figure out.
Sure, you might have your product or service idea, but then comes the questions like:
How should you sell it?
What are the best ways to market it?
What social platforms should you show up on?
Is there a specific business strategy you should be using?
Could your idea be even better with a few tweaks?
And oftentimes if you’re a solopreneur, you don’t have the luxury of talking through all of these things with a team of people like you do in a corporate setting.
And while your spouse, mom, or best friend might be more than willing to listen to you talk about your business idea, there usually comes a time when you need some SERIOUS help in making your idea come to life!
INSERT: a business coach.
Hiring a coach is one of the most common investments that business owners make because they’re seeking direction, advice, and accountability.
I’ve personally experienced this and can honestly say that hiring a business coach is SO worth it! But I don’t just want you to hire any business coach…
I want you to hire a coach that understands the importance of a proper coaching contract.
So, if you’re a business owner looking to hire a coach OR you are the business coach, make sure the following 6 key things are clearly defined in the contract before anyone ever signs on a dotted line.
What To Include In Your Business Coaching Contract
An outline of the services you're providing
First and foremost, the foundation of any business coaching contract is a clear outline of the services being provided. This section should detail the specific areas of focus, whether it’s leadership development, strategic planning, or improving operational efficiency.
Clearly defined services help manage expectations and ensure both parties are on the same page from the very beginning
In this section, there will ideally be a list of deliverables that the coach will provide. This could be in the form of reports, action plans, or specific milestones to be achieved during the coaching period.
By specifying these, the client will know exactly what to expect and the coach has a clear framework to guide the sessions.
When & where you'll meet
Next up, you’ll want to ensure that the scheduling and frequency of your coaching meetings are clearly defined as well.
Specifically, you’ll want to include whether sessions will be weekly, bi-weekly, or monthly, and the length of each session. This helps in planning and ensures that both parties allocate the necessary time for productive engagement.
Additionally, detail where the meetings will take place. Will they be in-person, over the phone, or via Zoom or another similar video platform? Specifying this up front can help avoid confusion and ensure logistical compatibility!
Lastly, in this section you’ll want to include a policy on rescheduling and cancellations. Outline the notice period required for canceling a session without penalty and what happens if a session is missed. This helps maintain a professional relationship and ensures accountability.
Coach and Client responsibilities
Next, it’s important that both the coach AND the client responsibilities are clearly outlined.
For the coach, this might include preparing for sessions, providing resources, and maintaining confidentiality. For the client, responsibilities could involve active participation, completing assignments, and being open to feedback.
In any type of coaching relationship, commitment to the process from both sides is a must as coaching is a collaborative process and its success depends on the dedication and effort of both the coach and the client. This expectation should be clearly stated in order to foster a productive working relationship from the start!
In this section, it’s also important to outline how feedback will be provided and received. As a coach, you’ll likely be giving advice and offering feedback in various ways, so it’s important for your client to understand this part of the process.
A coaching code of ethics
When entering a business coaching relationship, clients will often have some potential concerns about things like confidentiality, conflicts of interest, integrity, etc.
They want to know that they can fully trust you as their coach and that the information about their business is fully protected and safe in your hands.
With that in mind, it’s important to include a coaching code of ethics in your coaching contracts to provide your clients with peace of mind so that they feel confident and comfortable working with you!
Protection for your intellectual property (handouts, guides, etc.)
As a coach, if you provide handouts, guides, or other materials as part of your coaching, it’s crucial to protect your intellectual property and this can be done through an IP clause in your contracts.
In this clause, specify that all materials provided remain the property of you as the coach and are for the client’s personal use only. Additionally, make sure that you copyright any of your material to further protect against any potential misuse of your work.
(Grab a free copy and paste Copyright Notice for Digital Products HERE!)
Protection for non-payment and chargebacks
Lastly, your coaching contract should clearly outline the payment terms, including fees, payment schedule, and accepted payment methods. This clarity helps prevent misunderstandings and ensures that both parties are aware of their financial commitments.
In addition to the general payment terms, also include a policy on late payments and associated penalties.
Along those same lines, it's also encouraged that you address the issue of chargebacks explicitly.
If you aren't familiar, a chargeback is a process where a consumer disputes a transaction made with their credit or debit card and requests a return of their from the card issuer or their bank.
The ability to request a chargeback can be a great thing in the instance of fraudulent charges, but the sad part is that people abuse chargebacks and misuse them and that’s where business owners see the brunt of it.
In your coaching contract, make sure you state that chargebacks are not acceptable and outline the steps you will take if a chargeback is initiated, so that the client is fully aware.
(For a deeper dive into how to protect your business from chargebacks, click here!)
Plug and Play Contract Templates For Business Coaches
Overall, a well-crafted business coaching contract is essential for setting clear expectations, protecting both parties, and fostering a professional and productive relationship.
By including these six key elements, you can ensure that your coaching engagements are well-structured and legally sound.
Don’t want to DIY your business coaching contracts? You don’t have to!
Meet The Boutique Lawyer’s easy peasy plug and play contract templates for your specific coaching needs:
⭐️ 1:1 Coaching Terms and Conditions
⭐️ Group Coaching Terms and Conditions
Each of these templates are customizable so you can plug and play the information that is specific to your business!
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If we haven’t had the chance to *virtually* meet yet, hey I’m Amber – not a regular lawyer, but a cool lawyer that helps online business owners sell without getting sued.
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