- Jeremy Greenbaum
- Aug 14, 2024
- 11 min read
Updated: Sep 16, 2024
Get started by: Creating a website → | Getting a domain →
How often has your guidance helped people achieve specific goals? If frequently, starting your own coaching business could be the perfect decision.
The coaching industry provides endless opportunities to make money. According to the International Coaching Federation (ICF), there were 109,200 certified coaches in 2022—a whopping 54,000 increase from 2019. If you want to stand out among them and build a successful business from scratch, you must follow a winning strategy.
In this guide, we’ll explore how profitable coaching is, highlight different types of coaching and lay out a step-by-step strategy on how to start a coaching business.
What is a coaching business?
A coaching business is a service-based business where an expert provides guidance to individuals seeking to develop a skill, improve their lives or reach certain milestones.
You can provide coaching services in several fields, including sports, business, etiquette and even parenting. Regardless of the niche, a coaching business aims to help individuals reach their full potential.
Why start a coaching business?
The coaching industry is growing at a fast pace, with millions of people—from students to business owners—seeking specialized guidance. It’s valued at $6.25 billion in 2024, with a compound annual growth rate (CAGR) of 15.43%.
Certain categories, like personal and business coaching, have seen tremendous growth in recent years. So, if you’re passionate about guiding others, you can make money as a coach.
You should also consider coaching if you love sharing knowledge or you’ve always wanted to start a service business.
How to start a coaching business in 13 steps
01. Establish your target audience and niche
Establishing your niche early on helps you gain credibility in the coaching industry. To narrow down your niche selection, choose a subject area that you like and also have experience in. Think about researching your ideal clients when choosing your ideal services and field.
Once you’ve chosen your niche, define your target audience. Consider the age, income and other demographic characteristics of the people you want to target.
Say you run a career coaching business. Your target market can be individuals aged eighteen to twenty-five who’ve just graduated from high school or college and need help with career planning.
Similarly, you can start a life coaching business targeting busy professionals who need help maintaining a healthy work-life balance.
Ultimately, your target customers are people who need guidance in your area of expertise and are willing to pay for it.
02. Create a business plan
A business plan is a living document that outlines your goals, niche and ideal client profile. It should also include your marketing strategies and financial projections, as well as data from market research and competitive analysis.
Creating a business plan helps you to set a definite course for your coaching business and also identifies any potential hiccups early on.
03. Set up your business structure or model
There are several business structure options to choose from when starting your coaching business. These include a limited liability company (LLC), corporation, partnership and sole proprietorship.
Learn more: How to start an LLC in Massachusetts
Each business structure has its perks in terms of legalities and taxes. Carefully study each option and choose the one that’s most suitable for your business operations.
04. Create a website and brand your business
A coaching business website serves as a single-point information center for all your clients. Use a website builder like Wix to create a coaching website. Remember to include the business name, details of the services you provide, messaging channels and pricing plans.
Check out these coaching websites for inspiration.
Choose from one of the several coaching templates by Wix for quick and easy website design.
05. Obtain financing or capital
Before starting your coaching business, you need to decide how to secure funds for all business operations. Financing options include applying for loans, reaching out to investors and involving more partners.
Calculate the business costs before looking for financing sources. Include marketing, website creation, business registration and equipment costs when estimating the budget.
You can also bootstrap the business by investing personal savings or funds from family and friends.
Learn more:
06. Set up accounting and bookkeeping systems
Keep track of all business expenditures, revenue and profits, as this helps you evaluate your profitability. While you can streamline financial tracking with reliable bookkeeping systems and accounting software, you can hire accountants to ease the load.
07. Outline pricing and service packages
While you want to set competitive prices, you also want to charge enough to cover the cost of running your business. The price of coaching services varies based on your niche, audience, experience and the number of sessions you offer. You might need to build first your coaching framework in order to understand the full range of services you plan to offer. It should also detail your processes and coaching philosophy.
For instance, a business coach in the U.S. charges $40 per hour on average. However, a life coach charges less than half of that, at an average of $18 per hour.
You can charge per session, per course or per month depending on your business goals and customer needs. Research your coaching niche to understand how much your prospects are willing to pay for your services.
08. Choose an appropriate location
You can conduct coaching programs both in person and online. For in-person coaching, choose a location that’s easily accessible to you and your clients. Make sure the location has a peaceful and positive ambience that’s suitable for coaching sessions.
If you’re starting an online coaching business, you can choose to host recorded sessions, webinars and podcasts on your business website. Use tools like Zoom and Google Meet to provide one-on-one coaching to clients.
Even with an online coaching business, opt for locations where you can peacefully record the classes or conduct live sessions with clients.
09. Source equipment and costs
Sourcing high-quality equipment within your budget is a crucial part of starting a small business. For online sessions, you’ll need cameras, microphones, computers and editing software.
In-person coaching requires comfortable chairs, tables and other office supplies. You’ll also need to invest in the right coaching software and high-speed internet. Consider these expenses and research multiple vendors to get the best equipment at affordable prices.
10. Get proper registration and licenses
Business registration laws and regulations vary based on location. Check with the local authorities to understand how to start a coaching business in your city.
Register your business name and obtain the necessary licenses from the right departments to make your coaching business a legal entity. Also, make sure your venture is compliant with relevant laws.
Learn more:
11. Create a marketing strategy for your business
You’ll need to create awareness about your coaching business before its official launch. Email marketing and paid advertising are some of the most effective strategies to consider. You can also invest in content marketing, using search engine optimization (SEO) to boost your organic reach.
Social media marketing is another strategy that can help you improve your reach. This involves promoting your brand on Instagram, LinkedIn and other social media platforms to attract new clients.
12. Expand your network to acquire clients for sales
Word of mouth is a strong source of new clients in every industry. Many coaches gain new clients through recommendations from previous clients or other coaches in the industry, which requires a strong professional network.
You can expand your network by connecting with other coaches on social media, attending networking events and creating a referral program. Starting a successful coaching business means you'll need also to commit to growing and learning as a stronger coach and business owner. Development of both roles will need to grow together.
13. Invest in personal growth and business development
Even as a coach, you need to invest in personal growth to fully meet customers’ needs. The best way to do this is by enrolling in professional courses and attending industry events, where you learn from successful coaches.
In addition to this, you can also offer trial coaching sessions. Request feedback from attendees after each session—this lets you measure your performance.
Once you know what you’re doing right and where you need to improve, you can further refine your coaching skills, setting up your business for long-term success.
Types of coaching businesses
Almost every activity provides an opportunity to start a coaching business. Here are some popular options to choose from:
Life coaching: Helping individuals find fulfillment in their careers, relationships, physical and emotional well-being and other life aspects.
Business coaching: Guiding entrepreneurs to develop better strategies, achieve business goals and enhance productivity.
Sales coaching: Making sales reps more skilled in customer acquisition and retention and improving their overall performance.
Relationship coaching: Fostering healthy relationships by helping couples build trust and improve communication.
Parenting coaching: Helping clients navigate the various stages of parenthood and build healthy relationships with their children.
Transformational coaching: Guiding individuals to make major life changes related to behaviors, beliefs, habits and personal growth.
Health coaching: Guiding clients to manage health challenges and make lifestyle changes that improve their overall wellness.
Mindfulness coaching: Teaching techniques for emotional regulation to relieve stress and improve emotional well-being.
Grief coaching: Guiding individuals to cope with tragic events, such as a job loss, a terminal illness or the death of a loved one.
Legacy coaching: Helping clients explore their life purposes, values and goals to leave a lasting positive influence on future generations.
Regardless of your niche, you can choose between in-person, online and hybrid coaching. Consider hosting one-on-one sessions if your clients need more privacy. Group coaching sessions are ideal for people who are working towards the same goal.
Tips for operating a coaching business
The above strategies are helpful for learning how to start a coaching business. However, managing the venture requires some time-tested best practices.
Offer diverse options: Create multiple coaching packages to meet the needs of different clients. For example, you can provide a 20-session package for high-end clients and a three-session trial package for people who are looking for cost-effective services.
Provide exceptional customer experiences: Each client has their own goals and might define success differently. Find out what they hope to achieve, then tailor the program to their needs.
Tips for promoting your coaching business
Besides implementing the most effective marketing strategies, there are other things you’ll need to do to acquire new clients.
Ask for testimonials: Collect testimonials from satisfied clients. Display these reviews on your website and promote them on social networks to attract new clients.
Keep your branding consistent: Use Wix’s logo maker and business name generator to create branding elements for your coaching business. Always use the same logo, brand colors and fonts across all sales and marketing channels.
Attend industry events: Attending industry events helps you connect with experts, meet potential clients and expand your clientele through referrals.
Successful coaching businesses on Wix
Student Coach
Student Coach is an Illinois-based life coaching business founded by Tre Moore. The coach provides life coaching services dedicated to students who want to identify their passions and accomplish goals through faith-based strategies.
Denise Murray
Denise Murray is a health and wellness coach based in Texas. Her website displays a detailed description of her services, a contact form, location details and links to her social media accounts.
Courageous Careers
Courageous Careers is a New York-based product marketing career coaching business owned by Yi Lin Pei. The website offers transformative programs, showcases client testimonials and provides a subscription link to a free career growth newsletter.
Check out more service business examples to get inspiration for your coaching business website.
Benefits of starting a coaching business
Starting a coaching business can be a rewarding experience if you love guiding others or have always wanted to be your own boss.
A coaching business offers these benefits:
Flexibility: You have the freedom to set your own hours and work at your preferred location. With online coaching, you can even work from home.
Self-fulfillment: By coaching others, you’re essentially using your knowledge and experience to make a difference in their lives. When you witness the success of your clients, it creates a fulfilling experience.
Personal development: A coaching business also allows you to unlock new levels of personal development as you teach clients and learn from industry experts.
Supplemental income: Even if you have a full-time job, you can start a coaching business as a side hustle to earn additional income.
Challenges of operating a coaching business
Like any other startup, running a successful coaching business also involves certain challenges.
Major roadblocks include finding clients and building a reputation in the already competitive industry. You’ll also need to secure initial funding, which requires convincing third parties to invest in your new business.
In addition to these, you’ll need to acknowledge your work capacity. While you adjust to your new business, it’s best to set realistic working hours and take up a fixed number of clients, based on your capacity. You can raise your limits as you get used to running a coaching business.
How profitable is a coaching business?
The profitability of a coaching business depends on its location, niche and target market. For example, a business coach in the U.S. makes around $184,000 per year, while a parenting coach earns an average of $105,000 yearly.
Before starting a coaching business, conduct thorough market research to know which niche is profitable in your location.
How to start a coaching business FAQ
How much does it cost to start a coaching business?
The cost of starting a life coaching business can vary depending on the location and niche.
You can estimate the average startup cost by summing up the expenses that apply to you:
Office rent and utilities
Software subscription fees and licenses
Tables, chairs and other furniture
Computers, microphones, cameras and other recording equipment
Website creation and marketing
Salaries of staff members
Is a coaching business profitable?
Is starting a coaching business worth it?
How do you get paid for coaching?
Is it easy to get coaching clients?
What type of coaching makes the most money?
What are some popular coaching niches?
How to start a coaching business in a specific state
The basics of starting a coaching business are the same everywhere. However, the legalities may differ from state to state. Here are a few handy resources that’ll guide you on how to start a coaching business in specific states:
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