How can you avoid common coaching contract pitfalls?

Assessing amply any potential engagement (regardless of size) is critical and non-negotiable. There will always be leaders, clients, and organizations who "must have your help now" but don't take the bait. It's imperative for you, then, and for the ultimate success of the engagement to fully understand the scale, scope, & success measures necessary to take on an engagement. I often see coaches jump to work with a client/company because it's a big name or great for their practice. I get it but it will not go well for either party if you don't do your due diligence first. If the client isn't clear on what they want how can you be? How can you possibly put your name, brand, and practice on the line to meet an ambiguous goal? Hint: You can't.

- Get a Federal Tax ID & W-9, Get Business Liability Insurance - Create a statement of work to include the need, timing, resources & feasibility - Agreement to desired outcomes (can’t do vs don’t issues) - Background information about client & consultant - Project Objective (overview of cost, schedule & performance) - Project Score (in & out of scope), client’s history with consultants - Outline methodology - Define roles & responsibilities of all parties - Define deliverables, schedule & evaluation criteria & product ownership - Agreement of costs & potential overruns - Agreement of scope & confidentiality - Agree on fees, costs, travel - Final assessment of project success (plus/delta feedback for client & consultant)

- Get a Federal Tax ID & W-9, Get Business Liability Insurance - Create a statement of work to include the need, timing, resources & feasibility - Agreement to desired outcomes (can’t do vs don’t issues) - Background information about client & consultant - Project Objective (overview of cost, schedule & performance) - Project Score (in & out of scope), client’s history with consultants - Outline methodology - Define roles & responsibilities of all parties - Define deliverables, schedule & evaluation criteria & product ownership - Agreement of costs & potential overruns - Agreement of scope & confidentiality - Agree on fees, costs, travel - Final assessment of project success (plus/delta feedback for client & consultant)

- Get a Federal Tax ID & W-9, Get Business Liability Insurance - Create a statement of work to include the need, timing, resources & feasibility - Agreement to desired outcomes (can’t do vs don’t issues) - Background information about client & consultant - Project Objective (overview of cost, schedule & performance) - Project Score (in & out of scope), client’s history with consultants - Outline methodology - Define roles & responsibilities of all parties - Define deliverables, schedule & evaluation criteria & product ownership - Agreement of costs & potential overruns - Agreement of scope & confidentiality - Agree on fees, costs, travel - Final assessment of project success (plus/delta feedback for client & consultant)

- Get a Federal Tax ID & W-9, Get Business Liability Insurance - Create a statement of work to include the need, timing, resources & feasibility - Agreement to desired outcomes (can’t do vs don’t issues) - Background information about client & consultant - Project Objective (overview of cost, schedule & performance) - Project Score (in & out of scope), client’s history with consultants - Outline methodology - Define roles & responsibilities of all parties - Define deliverables, schedule & evaluation criteria & product ownership - Agreement of costs & potential overruns - Agreement of scope & confidentiality - Agree on fees, costs, travel - Final assessment of project success (plus/delta feedback for client & consultant)

Coaching is an emerging process and so contracting takes place at three different levels as the programme progresses: Level 1 - is at the beginning of the programme where an overall contract is agreed Level 2 - is at the beginning of each session where the coach checks with their client and contracts for what they want to work on that day. Level 3 - is all about contracting during the coaching conversation For example if the coach notices something about their client’s behaviour they can contract in the here and now to offer feedback. The power of using these different levels of contract means that what is implicit is made explicit, ensuring expectations and needs are met and creating psychological safety on an ongoing basis.

Similar to defining the project, knowing who does what is paramount. As a coach, we predicate our role on trust and confidentiality. Someone can only cultivate this if the coachees and their company and/or party understand what you the coach can and can't share with them. In addition, your client/coachee must also know what you will and won't share. Sharing high-level themes is okay and will protect the individual and the integrity of the engagement. Make sure you are sharing out items that relate to their goal and overall objectives. Whether you are sharing to an HRBP, their manager or someone else - you should relay updates to the party or stakeholder who reached out for your services in the beginning.

Another critical component. Nowadays there are a ton of free resources to review and use when compiling the terms of your contract. Be careful though, don't ChatGPT it or simply copy and paste someone else's. Make sure yours speaks to "you" and what you believe, need, stand for and will put your name and integrity toward. I have seen the best and brightest get caught up in nasty (legal) disputes with clients/companies over the terms and believe it or not, this is okay. It happens and yes, it's part of the process. That doesn't mean it will always be an MMA cage match nor should it but if you are clear on your role and self-worth, you can better articulate why you need what you are asking for.

How do I spot an amateur coach versus a real pro? Whenever I see a post that says, "Does anyone have a client contract I can borrow?" On the "Big Corp" side, I can spot a coach or consultant using one of these "borrowed" contracts a mile away. Because they have a lot of "lawyer-y" sounding phrases but don't quite do the job of protecting the coach's business. Even contracts borrowed from the same niche can leave a coach exposed. I helped I client recently negotiate out of a dispute. One from squishy contract language she "borrowed" from her mentor. She thought, "If it works for his business...." But the larger scale of his business allowed him to offer cancellation terms and a guarantee that her smaller shop could not absorb.

Important to remember a coaching agreement is not a software End User Licence Agreement, where the objective is to click Accept at the bottom as quickly as possible. Instead it reflects genuine and personal commitments, so the quality and quantity of discussion on proposed arrangements makes a difference. Niching has its advantages here. I often coach leadership systems both when they are together and when they are apart. In this context I can present a few likely scenarios with my clients, and seek mutual agreement on how to handle them. The rest tends to follow from there.

Check that the name of your business on the contract is correct. If you went to the trouble of creating the LLC, use it as your contracting party. The format will be something like, "[Company Name LLC], a [Texas] limited liability company". Or, "[Coach's Name], d/b/a [My Coaching Business]. This was actually tip number one in a training I shared recently for my clients who are coaches and consultants. The training was "5 Things to Check in Your Client Contract Right Now" because if you don't know how to better protect your business, you can't do better protecting your business.

Seeking feedback on your final contract or a contract in review is an excellent idea. It provides you an unbiased and professional point of view of someone who can look out for your assets. Make sure you use someone who is qualified and understands what you are engaging in and why. This can be a lawyer but doesn't have to be. I simply would caution from having your best friend or family member be the only person you seek advice from. This is also a great opportunity to consider seeking a mentor or better yes, if you are a professional practicing coach - go to your coach. There is no limit to the resources that are out there to support your contract negotiations.

One more piece that is critical: Make sure (as a coach) you are not coaching someone who is on a PIP or having a performance issue with work/job. Although this may sound okay it often isn't and here's why: Coaching for career and talent development for a hi-po or newly promoted leader is a great usage of a coach. Coaching someone who has a performance issue that you may not understand or is linked to a previous issue or issues that may be outside your ability to support (at 100% or near the success measure created) is a recipe for disaster. Here's what I recommend: Ask. Ask if this person has had any performance-related issues so you understand if you engagement is for career progression or life support.

I have a different opinion here Joshua. If the scope of the coaching has been defined well, and the expectations of what coaching is and is not made clear (i.e - not a fail safe option) then the data about a PIP is unnecessary. Knowing about a PIP can bias the relationship and erode the safety and trust needed for coaching to work (assuming the client also knows this has been shared). Alternatively, If I am being hired for my training as a Boss Whisperer (where we are brought in because of significant issues related to bullying), then this information is part of the discovery with the organization as they have an active role as a partner (even with all client contact being confidential)

Pro tip: Stop asking other coaches to “borrow a contract”. When I review contracts on the corporate side, I can tell when the consultant/coach/freelancer has no idea what their contract says or the effect of it. When you “borrow” a contract template, the form won’t match your business strategy, goals, or values. It’s great to work from a template if you also find a resource to help you learn how to use it. The business owner (aka the coach) will be better off when they understand what obligations they’re taking on in the contract. Understanding the terms of your own contract also make sure you know when, how, and if you’ll be paid for your work.