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Coaching Business
If you can provide practical advice and guidance to help people change their perspective or their business practices, you could have the makings of a great coach. Whether you decide to go into life coaching or executive and business coaching, there are plenty of excellent opportunities in this growing industry.
The value of life and business coaches is supported by the statistics. If you know what makes people or organizations tick, you could turn that into pragmatic steps and help people reach their potential. It’s important to set up your life or business coaching company in the right way.
We want to help you get your business off the ground.
Since 2004, we’ve helped over 1,000,000 people start exciting businesses and bring their ideas to life. We’ll give you the support, guidance and advice you need to create a woman-owned business and make it into a success.
Coaching Business formation guide
From validating your business and doing the research to filing your paperwork and running your business, this guide will help you out. Read on for some insight into creating your own life or business coaching company and becoming an entrepreneur who helps people make the best of themselves. In this guide we will cover:
- Statistics on why you should start a life or executive coaching business
- How to find out if life or business coaching is right for you
- Groups, forums and support for life or business coaching entrepreneurs
- Useful online tools for life or business coaching individuals
- How to start your life or business coaching venture with information on equipment, employees, location, permits, finance, taxes and more
- How to choose whether your coaching business should be an LLC or corporation
- Different types of life or business coaching ideas
- How to validate your coaching business idea
- Business plans for coaching companies
Why This Industry?
Why You Should Start a New Life Coaching Business
Life coaching is about helping people deal with what’s going on in their lives and assisting them in creating a better present and future. It involves a mix of psychology, counseling, interpersonal skills and understanding how you can help a client realize their potential.
Here are some statistics on the power of life coaching businesses:
$10B
Generated annual revenue in the U.S., Self-improvement as a whole is a very successful sector.
$1B
Generated revenue of life coaching in the U.S. each year, and this is expected to grow to around $1.3 billion in 2022.
$62K
Average yearly income for life coaches a year, and some coaches can earn over $100,000 a year.
The main areas that life coaches help with are personal improvement, family and relationships and weight loss and fitness.
Many customers for life coaching businesses are located on the East or West Coast of the U.S.
The number of coaches in the world increased from 47,500 in 2011 to 53,300 in 2018
There are currently around 18,300 life coaches in the U.S.
Life coaches normally have multiple clients and typically charge between $200 and $500 a month for services
Why You Should Start a Business and Executive Coaching Practice
Business and executive coaching is very different from life coaching. When you’re working with senior management, you need to have an excellent understanding of business, strategy, financials, organization, culture and the unique pressures that face executives when making major decisions.
Business and executive coaching is very different from life coaching. When you’re working with senior management, you need to have an excellent understanding of business, strategy, financials, organization, culture and the unique pressures that face executives when making major decisions.
$12B
Generated revenue of Business Coaching in the U.S. a year.
55K
Number of business coaching organizations in the U.S. employing over 100,000 people
The main areas that business coaches help with are executive development and financial management
Studies show that there is between a 500% and 700% return on investment for money spent on business and executive coaching services
Business coaching helps executives increase their productivity by over 80 percent
Executive coaching delivers improvements to areas like productivity, work quality, organizational strength, customer service, working relationships, cost reductions and profitability
This is why life or business coaching ventures are so exciting — how can you be part of that success? We're here to help you figure that out.This is why life or business coaching ventures are so exciting — how can you be part of that success? We're here to help you figure that out.
Is This Business For You?
Is Professional Coaching Right for You?
Although it can be exciting to become a life or business coach, there will be significant demands on you. Here are some of the things you can expect.Although it can be exciting to become a life or business coach, there will be significant demands on you. Here are some of the things you can expect.
A Day in the Life of a Life or Business Coach
Here are some of the typical tasks you’ll be performing on a daily basis:
Marketing for new clients
Dealing with inquiries from potential clients
Reading the latest research and studies in your field
Traveling to meet with clients or having them come to you
Holding coaching sessions
Writing up coaching sessions
Dealing with financials and administration
Life coaches: Ongoing training in psychology, counseling and related fields
Life coaches: Researching specific questions or problems your clients may have
Business coaches: Learning about the business you’re providing coaching for, including strategy, financials and the executive team
Business coaches: Research into the sector or industry of the business you’re providing coaching for
Skills Needed by a Life or Business Coach
The following skills will be very useful in your role as a life or business coach:The following skills will be very useful in your role as a life or business coach:
Excellent interpersonal and influencing skills to talk with and listen to clients
Powerful analysis and investigative skills to get to the root of an issue
Good marketing skills to promote your coaching business
Strong administration skills so you can stay on top of your schedule and finances
Strong research skills so you can understand the history and context of the individuals and businesses you’re helping
What Your Coaching Clients Are Looking For
Ultimately, people come to a coach because they want to improve their life or business.
What Life Coaching Clients Want
Dealing with particular issues in their past that are stopping them moving forward
Helping them come to terms with their existing life circumstances and challenges
Preparing them for the future and giving them useful tools and techniques
Reassuring them about how you’ve helped previous clients
Practical help for what they specifically need assistance with (family relationships, nutrition, lifestyle or other areas)
What Business Coaching Clients Want
Proven return on investment for business coaching services
Demonstrated understanding of their business and sector
Strong expertise in dealing with specific needs (e.g., productivity, management styles, culture or organizational change)
Detailed statistics on improvements as a result of business coaching
What Type of Professional Coaching Business Should You Start?
There are several different types of life or business coaches. Here are some of the more popular options:
Family and Relationship Coaching
Life Potential Coaching
Fitness and Lifestyle Coaching
Executive Productivity Coaching
Business Financial Coaching
Executive Relationship and Culture Coaching
Validating Your Professional Coaching Business Idea
Remember, the ideas above are just a starting point. You can define and tweak exactly what type of life or business coach you want to be through conducting your own research.
Identify your coaching business’ unique selling points (USPs)
Understand your market
Look at who your competitors are in the space
Talk to clients
Your Life or Business Coaching Business Needs a Plan
You need to define how you’re going to run your coaching business, market yourself, get sales, make a profit and grow. This can only come about through creating a watertight business plan. It will help you get your thinking in order and show your commitment to your life or business coaching company.
You will need to look at financial projections for your coaching business. What are your expected sales and revenues? What is your profitability? How much money will you keep in the business to grow it? How much will you pay yourself and others?
We’ve got the perfect guide to writing your business plan.
Business plans do vary slightly, but they should all cover the following areas:
An executive summary with the most important points from your business plan
Your goals and what you hope to achieve with your coaching business
A description of your life or business coaching niche, background information and context
A market analysis and likely demand
An overview of how your life or business coaching organization is structured
Your business model
How you will market and sell your offerings
Financial projections, revenue and profitability
Appendices
Right Business Structure
Setting up Your Life or Business Coaching Operations
Once you've legally created your coaching business, you’ll need to get some other things in place.
Location of Your Coaching Business
Marketing Your Coaching Business
Fitness and Lifestyle Coaching
Equipment for Your Coaching Business
Software and Processes
Life or Business Coach Qualification, Certification and Training
The Complete "Start Your Business" Checklist
A Clear and Comprehensive Guide to Starting Your Business the Right Way
Rules, Regulations and Taxes for Your Coaching Business
You will need to explore local, state and federal licenses and permits, and we can also help out with researching your business licensing needs.
Taxes for Professional Coaches
Taxes are a fact of life if you’re in business, and there are various ways you will need to file and pay them. This can include self-employment tax, state income tax and federal income tax. Depending on where and how you’re selling products and services, you may also be liable for sales and use tax.
As a rule of thumb, we recommend holding back around a third of your earnings to pay your taxes. We can also prepare and file your tax returns for you.
Maintaining Your Professional Coaching Organization
There are certain forms and legalities you need to follow to keep your life or business coaching business in good standing.
File an Annual Report
Depending on the state you’re located in, you will probably have to file a report every year. This report tells the state about any major changes to your business, and we can file your Annual Report on your behalf.
Pay estimated taxes
Renew Business Permits and Licenses
File your taxes
Pay payroll and sales taxes
Prepare Your Taxes
Insurance for Your Professional Coaching Organization
Most life or business coaching organizations should have comprehensive business insurance. There are various types.
Workers Compensation Insurance
Home and Auto Insurance
General Liability Insurance
Useful Online Tools for Professional Coaches
Here are some really great online tools for managing your life or business coaching business. They will reduce the time you spend on administration, help you to collaborate with others and free up your time to grow and manage your new venture.
Project Management
Collaboration
Social Media Management
Communication
Email Marketing
Advertising
Customer Relationship Management (CRM)
Human Resources
Website Development
Analytics
Hiring
Conclusion
Helping other people make positive changes in their life or business is an amazing service. If you can find a great niche, understand your competitors and put together a solid business plan, you will have every chance for success.