Why Everything You Buy for Your Business is Practically Half Price
One thing you’ll never see me do is discount my prices.
In any business I’ve ever owned, the only thing I’ve ever offered is the occasional special offer such as try before you buy or buy now pay later —and even that’s rare.
Why? Because the moment I start discounting, I’m devaluing my business.
But here’s the thing: anything you purchase through your business, including my products and services, is classified as a business expense. And for you as a business owner, that makes it practically half price.
Let me explain.
Business Coaching: An Example
Let’s take my Off the Tools Programme, which costs £5,000 (+ VAT).
Here’s how the math breaks down (these figures are approximate and depend on tax brackets):
Corporation Tax Savings: Your business won’t pay tax on the £5,000 you spend. At a corporation tax rate of 25%, that’s a saving of £1,250.
Personal Tax Savings: If you were to take that £5,000 as personal income instead of spending it, you’d pay income tax on it. Depending on your tax bracket (20% to 45%), that could be anywhere from £1,000 to £2,000. Let’s estimate it at £1,500.
So, instead of paying £5,000, the actual cost to you as the business owner is:
£5,000 – £1,250 – £1,500 = £2,250.
Why It Matters
If you don’t spend that money on a business expense, you’ll not only pay corporation tax on it but also personal tax when you withdraw it from the business. For a £5,000 expense, that could mean paying anywhere between £1,200 and £2,500 just to take the money into your personal account.
Put simply, spending money on your business saves you money in taxes.
The Bigger Picture
This principle applies to all your business expenses: coaching, fuel, tools, office supplies, uniforms, vans—almost anything. Nearly everything your business spends money on is effectively discounted through tax savings.
When I’m faced with an opportunity like advertising, I always remind myself: “It’s half price to me.” For instance, if I invest £5,000 in advertising, the true cost to my business is around £2,250 once I factor in the tax savings.
But here’s the kicker: that £5,000 investment has the potential to generate 10 sales worth £22,500—or more.
So, the question isn’t whether my course will make you back £2,250. The real question is, why wouldn’t you invest when the return could far exceed the cost?
Let’s use one of my client as further proof that business coaching is a fantastic investment…
Steve a plumbing and heating engineer from England joined Tradecoach in 2021. He was making approx £32,000 in profits during that year and similar the previous years…
in 2023 Steve’s profits were £194,000….
For a 5k investment which cost him as a director £2,250
Steve very kindly deems all of his success down to Tradecoach and whilst I would disagree somewhat (he done the work and deserves the credit I merely showed him the way) in a way I equally somewhat agree. Steve was doing this for 12 years and making 20-25-30k each year before he joined – within 1 year he almost tripled his take home and by year 3 he is nearly £200k!
Here is the gold to end that story – Steve would have earned MORE that £200k but rightly decided to spend a good proportion of that hiring and paying staff (he has a VA and an ads manager and has replaced himself on the tools) therefore he now is not only making 8 X what he was making but also working a LOT LESS….
You do the math.
and welcome to the power of business coaching.
Check if your are eligible for my course here
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To Your Success,
Daren Henderson
