E25: Building a $40M Coaching Enterprise: Babs Smith on Finding Your Unique Ability

On this episode of In the Champions Corner, we sit down with Babs Smith, co-founder of Strategic Coach, a $40 million coaching enterprise. Babs shares her colorful entrepreneurial journey from crafting in the mountains of Tennessee to building a mega-business alongside Dan Sullivan. Listen in as Babs discusses key milestones that shaped her pioneering spirit and how together with Dan, they developed coaching tools and systems that have transformed thousands of entrepreneurs worldwide.

Here are some power takeaways from today’s conversation:

00:00

02:17 - Babs’ introduction

04:07 - Babs' early days growing up in Detroit and lessons in cashflow from her parents

11:33 - Venturing off from university to craft and live communally in the Appalachian mountains

21:35 - Meeting Dan Sullivan and taking the first Strategic Coach program

26:57 - Using the strategy circle to overcome financial struggles

27:44 - The birth of Strategic Coach out of Dan's bankruptcy and a group coaching program

36:41 - The importance of having competent people on your team

46:12 - What Strategic Coach does today

49:25 - Securing financial stability through cash value life insurance 

 

Episode Highlights:

[27:44] The Birth of Strategic Coach

After facing bankruptcy twice, Dan Sullivan was searching for a way to rebuild his business and make a sustainable income. He started taking friends and past clients through his innovative Strategy Circle thinking tool, charging for his time upfront. Meanwhile, Babs encouraged Dan to find others who could take work off his plate so he could focus fully on his unique ability of coaching and strategy development. They brought on an assistant who was better suited for sales. Around the same time, they received a large tax bill and realized they needed to grow the business quickly. Babs and Dan developed the idea for a group coaching program where Dan could work with multiple entrepreneurs at once. Their first workshop had six participants. This marked the beginning of Strategic Coach, which grew out of Dan's bankruptcy and their realization that a scaled group model would allow Dan to focus on his strengths and accelerate their revenue.

[46:12] Strategic Coach Today

Strategic Coach has grown tremendously in the decades since those early days. Babs shares that it is now a $40 million business with 17-18 coaches on staff in addition to Dan Sullivan. At the core of their model are quarterly multi-day workshops that entrepreneurs commit to for a three-year period. Within this structured program, participants gain new insights and understandings from Dan's unique thinking tools and processes each quarter. Their learnings compound over the three years as they incorporate new strategies and tools while being supported by their peer group. Babs notes many clients have now been with Strategic Coach for over 10 years, benefiting from this long-term coaching approach. The program has transformed thousands of entrepreneurs globally by providing the ongoing development, accountability and community needed to accelerate business growth over an extended period.

[49:25] Securing Financial Stability: The Power of Cash Value Life Insurance

Babs often quotes Keith Cunningham's advice to "keep your powder dry," and for a good reason. Babs has weathered numerous financial downturns, and the best defense against these unpredictable storms was investing in cash value life insurance. Using the insurance's cash value as collateral, Babs secured a line of credit with a bank. Despite the ups and downs of market rates, she enjoys a favorable rate, thanks to the prime minus something arrangement. This strategy has proven to be a lifesaver for Babs on three separate occasions. Growing up, Babs’ mother always warned, "Don't rely on banks for money as they only lend it when you don't need it." This wisdom has echoed throughout Babs' experiences, reinforcing the value of cash value life insurance.

Resources Mentioned:

Strategic Coach

Who Not How by Dan Sullivan