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Why You Should Start a Coaching Business (2023)

Woman wellness coach working

Professional coaching is a billion-dollar industry, and the demand for coaches continues to grow. So if you’re thinking of starting a coaching business in 2022, now is the time to start planning.

Here are five reasons why coaching is a great career choice: 

There is a growing demand for coaches.

According to a report by the International Coach Federation (ICF), the coaching industry is growing at 20% per year. As a result, more and more people seek out coaches to help them achieve their goals.

As the demand for coaches grows, so does the opportunity to start your own coaching business.

The growth of coaching business is 20% annually

A coaching business is a great way to make a difference in people’s lives.

As a coach, you have the opportunity to help people make positive changes in their lives. Whether your clients want to improve their relationships, advance their careers, or simply feel happier and more fulfilled, you can help them achieve their goals.

A coaching business is a flexible career choice.

One of the great things about coaching is that it can be done anywhere, at any time. You can coach clients in person, over the phone, or even online. You can work around your schedule and take on as many or as few clients as possible.

A coaching business is an affordable business model.

Starting a coaching business is relatively inexpensive compared to other businesses. You don’t need to rent office space or hire employees. However, you need a phone, a computer, and a quiet place to work.

71000 coaches world wide IFC 2020

You can use your professional experience to start a coaching business online.

If you’re already working in a profession that you love, you can use your experience to become a coach. In addition, many people who become coaches have extensive experience in a particular field, which they can use to help their clients achieve success.

Coaching is not only a great way to make a difference in people’s lives, but it can also be a very rewarding career. Seeing your clients achieve their goals and reach their full potential is an incredibly gratifying experience.

If you’re thinking of starting a coaching business in 2022, now is the time to start planning.

estimated global revenue $2.849 billion from coaching

The growth of the online coaching business

The coaching industry is growing rapidly. In the United States alone, the coaching industry was worth an estimated $2 billion in 2020.

Several factors, including: are driving this growth

  • The increasing popularity of coaching – coaching is becoming more popular as people increasingly recognize its benefits.
  • The growth of the self-improvement industry – the self-improvement industry is also growing as more people seek ways to improve their lives. This contributes to the growth of the coaching industry, as coaching is a way to achieve personal and professional goals.

As the coaching industry grows, more coaches are entering the market with the increasing availability of coaches. This makes coaching more accessible to people who may not have considered it before.

Who can start a coaching business?

Almost anyone can become a coach. However, some qualities will make you a successful coach. These include:

1. Passion – coaching is a passion-driven industry. To be successful, you need to be passionate about helping people achieve their goals.

2. People skills – coaching is all about relationships. To be successful, you need to be able to build strong relationships with your clients.

3. Communication skills – communication is key in coaching. To be successful, you need to communicate with your clients effectively.

4. Emotional intelligence – emotional intelligence is important in coaching. To be successful, you need to be able to understand and manage your own emotions and the emotions of your clients.

5. Organizational skills – coaching can be a lot of work. To be successful, you need to be organized and efficient.

99% report that they have completed some coach-specific training.

Certification programs for an online coaching business

There are many different certification programs for coaching. Some of the most popular programs include:

1. The International Coach Federation (ICF) – the ICF is the largest and most well-known coach training organization. They offer a variety of certification programs, ranging from entry-level to advanced.

2. The National Board for Certified Counselors (NBCC) – the NBCC is a leading provider of counseling certification programs. They offer a coaching certification program that is accredited by the ICF.

3. The Center for Credentialing and Education (CCE) – the CCE provides credentialing and educational programs. In addition, they offer a coaching certification program that is accredited by the ICF.

85% coaching clients important coach has certification

4. The International Association of Coaches (IAC) – the IAC is a professional association for coaches. They offer a variety of coach training programs, including an online coach training program and an in-person coach training program.

5. The Institute for Professional Excellence in Coaching (iPEC) – iPEC is a coach training and certification organization. They offer a variety of coach training programs, including an online coach training program and an in-person coach training program.

These are just a few of the many different coach training and certification programs available. When choosing a program, it’s important to find one accredited by the ICF. You receive the highest quality training, and you’ll be able to get your coaching business up and running quickly.

Why people start an online coaching business

People become coaches for a variety of reasons. For example, some people become coaches because they want to help others achieve their goals. Others become coaches because they’re passionate about personal and professional development. And still, others become coaches because they want to make a difference in the world.

Coaching is a helping profession

No matter your reason for becoming a coach, it’s important to remember that coaching is a helping profession. This means that your success as a coach will be dependent on your ability to help your clients achieve their goals.

If you’re thinking about becoming a coach, ask yourself why you want to do it? Once you know your reason, you’ll be closer to starting your coaching business.

What are the different types of online coaching?

Before you start your coaching business, it’s important to decide what type of coach you want to be. There are many different types of coaches, each with its niche market. Here are some of the most popular types of coaching:

Career coaching 

If you have experience in a particular industry or field, you may want to consider becoming a career coach. Career coaches help their clients navigate the job market, find new opportunities, and achieve their career goals.

They can help clients figure out what they want to do, make a plan to get there, and give them the tools and resources they need to succeed.

46% clients find coaches through referrals

A career coach can also help you with things like:

  • Figuring out your strengths and weaknesses
  • Choosing or changing careers
  • Setting goals
  • Creating a plan to achieve your goals
  • Building skills
  • Evaluating and improving your resume
  • Working through mock job interviews

Life coaching 

A successful life coaching business helps clients improve their overall well-being and achieve their personal and professional goals. Life coaching can encompass various topics, including relationships, finance, health, and spirituality.

86% companies report they recouped investment on coaching

Life coaching requires working with clients individually, helping them set and reach their goals. A life coach typically has a background in psychology or counseling, though this is not always the case.

Many life coaches are certified through professional organizations such as the International Coach Federation (ICF).

Business coaching 

Business coaching helps clients start and grow successful businesses. If you have experience starting or running a business, this may be the perfect type of coaching for you. A business coach will work with a client to:

  • Set business goals and objectives
  • Develop and implement strategies to achieve their goals
  • Provide feedback and support to the client
  • Identify and overcome obstacles
  • Encourage and motivate the client throughout the coaching process

Many business coaches have a background in business, marketing, or entrepreneurship. They may also have experience working as consultants or executive coaches.

80% of people with coaching report increased self-confidence

Executive coaching 

Executive coaches help their clients improve their leadership skills and achieve their professional goals. Executive coaching is often used in the corporate world to help high-level executives improve their performance. An executive coach can be helpful for executives who are:

  • Trying to improve their leadership skills
  • Leading a team through organizational change
  • Facing a challenging work situation
  • Experiencing difficulty in their personal life that is impacting their work

If you’re thinking of becoming an executive coach, it’s important to have extensive experience in the corporate world. You should also be well-trained in coaching techniques and have a solid understanding of psychology.

Health and wellness coaching 

Health and wellness coaches help their clients improve their overall health and well-being. This can include nutrition, exercise, stress management, and healthy lifestyle choices.

Aesthetic Branding Elegant Quote

If you want to become a health and wellness coach, it’s important to understand the field. Health and wellness coaching is a relatively new industry, but it’s growing rapidly.

As more people become aware of living a healthy lifestyle, they’re turning to coaches for guidance.

You can take a few different paths to become a health and wellness coach. Many coaches have a background in health and fitness, but you don’t necessarily need to be a personal trainer or nutritionist to be successful.

Many coaches come from various backgrounds, including counseling, teaching, and even business.

Personal development coaching 

Personal development coaches help their clients improve their personal and professional lives. A personal development coach can help with various topics, including goal setting, time management, and personal growth.

Personal development coaches typically work with clients individually, helping them set and reach their goals.

Benefits of Career Coaching

Relationship coaching 

Relationship coaches help their clients improve their personal and professional relationships, including communication, conflict resolution, and intimacy.

There is no one specific background that all relationship coaches share. Instead, many coaches come from various backgrounds, including counseling, psychology, and even business.

What all relationship coaches have in common is a desire to help their clients improve their relationships.

Spiritual coaching 

Spiritual coaches help clients connect with their spirituality and achieve their spiritual goals. This can include topics such as meditation, prayer, and self-awareness.

If you’re thinking of becoming a spiritual coach, it’s important to have a strong understanding of spirituality. You should also be well-trained in coaching techniques and have a solid understanding of psychology.

Tips to Start a Coaching Business

What are the steps to starting an online coaching business?

If you’re ready to start your online coaching business, there are a few things you need to do.

  1. Choose a niche. If you are a professional changing careers, the focus will be on your experience and background. For example, if you are a dietitian, you might focus on weight loss or helping people with special dietary needs.
  2. Create a coaching program. Your coaching program should include everything your clients need to achieve their goals. Clients will have individual needs, but the framework of working towards a goal is the focus of your program. This is what separates you from your competition.
  3. Set up your business. This includes creating a business plan, choosing a business structure, and obtaining the necessary licenses and permits.

Setting up your online coaching business.

You need to take several steps when setting up a profitable coaching business.

Banking, bookkeeping, and financials of your small business

In any small business, bookkeeping is essential to maintaining a clear understanding of where the company’s money is going. Accurate bookkeeping can:

  • provide valuable insights into which areas of the business are performing well and which could use improvement
  • in the event of an audit, having complete and accurate books can save a small business a lot of time and headaches
  • establish business credit for future investments
  • manage payroll and employee expenses

Online services such as Intuit provide online bookkeeping with Quickbooks and starts at just $12.50/month. Others, like Xendoo, focus primarily on small businesses and can grow with you as your needs change.

Corporate Coaching Business Plan

Keep separate business accounts and business credit cards for your coaching business. It will help with bookkeeping come tax time.

The business credit card is excellent for business expenses that you may not have the cash on hand to cover, such as travel or office supplies. You can also rack up points (so fantastic!) which you can use for future business expenses.

Keeping track of your business deductions is essential at tax time. Having separate business accounts and business credit cards makes it easier to track these deductions and get the most back from tax season.

Budgeting for coaching business expenses

To start a successful nutrition business, you will need to consider the expenses associated with funding your practice. If you will be providing remote counseling, a separate space in your home with an attractive and professional background is essential.

Online Coaching Budgeting Tips Instagram Post

Other items may include:

  • a website and design
  • billing software
  • a newer model computer
  • professional insurance

Legal entities for coaching businesses

If you’re thinking about starting a coaching business, you’ll need to decide what type of business entity or business structure to establish.

The most common options are sole proprietorships and LLCsSole proprietorships are relatively simple and easy to set up, but they offer limited liability protection.

LLCs provide greater protection from personal liability, but they can be more complex and expensive to establish and maintain. There are also several other business entities available:

  • Sole proprietorships
  • LLCs
  • C Corporations
  • S Corporations
  • Nonprofits

Each type of business entity has its advantages and disadvantages, so it’s essential to choose the right one for you. You should also consult with an attorney or accountant to get an expert.

In 2022, resources such as LegalZoom and ZenBusiness will make it easy to establish and file your business entity.

Business coaching business plan

Write a business plan for coaching services.

A business plan is a document that outlines your business goals, strategies, and tactics. It’s important to have a business plan because it will help you map out your path to success. There are a few key parts of a business plan:

  1. Executive Summary: This is a brief overview of your business plan. It should include your company name, mission statement, and an overview of your products or services.
  2. Company Description: This section should include more detailed information about your company, such as your history, ownership structure, and unique selling points.
  3. Products and Services: In this section, you’ll need to describe your products or services. Be sure to include pricing information and any unique features or benefits.
  4. Market Analysis: In this section, you’ll need to research your target market and competition. This will help you determine your target market’s needs and how to best position your product or service.
  5. Sales and Marketing: In this section, you’ll need to detail your sales and marketing strategies. This will include information on your advertising and promotion plans and your sales goals and targets.
  6. Financial Plan: In this section, you’ll need to include your financial projections for three to five years. This will include information on your revenue, expenses, and profits.
  7. Appendix: The appendix is a catch-all for any additional information that doesn’t fit into the other sections of your business plan. This could include your resumes, licenses and permits, financial statements, etc.

Social Media Marketing Tips for Business and life coaching

Marketing your coaching business.

You need to let people know about your coaching business. The best way to do this is to create a marketing plan. This should include a mix of online and offline marketing strategies.

Some of the most effective marketing strategies for coaching businesses include:

Creating a website conducive to coaching sessions.

Your website should be designed to attract your ideal clients. It should include information about your coaching business and the services you offer.

Include a call to action on your website, such as a “Schedule a Free Consultation” button. Then, your website will be your business. Companies like WixSquarespace, and Shopify make it easy to build a beautiful website with no previous experience.

How to increase website traffic business and life coaching

Social media marketing to attract clients.

Social media is a great way to connect with potential clients and build relationships. Be sure to post regular updates about your coaching business and helpful articles and tips.

Start with one social media platform, such as Instagram, TikTok, Facebook, or YouTUbe. Focus on building an audience on one platform before growing another.

Developing an SEO strategy is essential for a successful online business.

Search engine optimization (SEO) is the process of optimizing your website to rank higher in search engine results pages (SERPs). This will help people find your business when searching for keywords related to your business.

LinkedIn is a great place to find qualified SEO specialists to meet your needs and an effective marketing platform.

Creating blog content to attract clients.

A blog is a great way to attract attention to your website and improve your SEO. Write articles relevant to your target audience and include links to your website.

Working with your SEO specialist will help to maximize exposure and traffic with good content.

4200% ROI on email for business and life coaching

Developing an email list for group coaching, private coaching, or coaching sessions.

Email marketing is a great way to stay with potential and current clients. Collect email addresses and send out monthly newsletters or special offers. Your email list is your list of VIPs.

They are the most connected and committed to your content and should be treated accordingly. Flash sales, free consultations, and first notice of new programs are examples of the best utilization of email lists.

Creating a video marketing strategy.

Videos are a great way to connect with potential clients and promote your business. Create engaging videos that show off your personality and expertise.

By implementing these marketing strategies, you’ll be able to reach more people and promote your coaching business effectively.

Pricing for online coaching businesses

When setting your prices, it’s important to consider your target market and the value you provide. You don’t want to price yourself out of the market, but you also don’t want to undervalue your services.

A good rule is to price your services at 10-20x your hourly rate. So, for example, if you charge $100 per hour, your prices for packages and programs should start at $1000.

Don't undervalue your coaching services

This may seem like a lot, but remember that your clients pay for results, not just your time.

The average hourly rate for coaching in the United States is $106.50. However, rates can vary depending on your experience, location, and the type of coaching you offer.

For example, executive coaches who work with CEOs and other high-level executives can charge $500-$1000 per hour. On the other hand, certified life coaches who work with clients on various issues can charge $75-$200 per hour.

Take a look at competitors’ websites and evaluate their rates and offerings. By comparing apples to apples, you should have a good idea of what you should charge.

Some factors to consider when setting your prices include:

  • Your target market
  • The value you provide
  • Your experience and credentials
  • Your location
  • The type of coaching you offer

By pricing your services correctly, you’ll be able to attract the right clients and generate more revenue for your coaching business.

Referrals for coaching business

How do I find my first client?

The best way to find your first coaching clients is through word-of-mouth referrals.

Start by reaching out to your personal and professional network and let them know that you’re starting a coaching business. Then, ask if they know anyone who could benefit from your services.

Another great way to find your first clients is through online marketplaces like Fiverr and Upwork. These websites allow people to search for coaches by location, specialty, and other criteria.

Resources for coaches who want to start their own business

If you’re thinking about starting your own coaching business, there are a few resources you should know about.

First, the International Coach Federation (ICF) is the largest professional organization for coaches. They offer coaches resources, information, and support at all stages of their careers.

Second, the Small Business Administration (SBA) offers counseling, training, and financing programs to help small businesses succeed.

Finally, Score is a nonprofit association that provides free mentoring and coaching services to small businesses.

By taking advantage of these resources, you’ll be on your way to starting a successful coaching business.

Conclusion

You have the skills and experience to help people in a very real way. Coaching can be an incredibly rewarding career, both personally and professionally. And we believe you have what it takes to make a difference in other people’s lives. 

If you are looking for a new career that is both fulfilling and profitable, consider starting your own coaching business. Then, with the right amount of planning and effort, you can use your years of experience and knowledge to help others achieve their goals.

We hope this article has helped get you excited about this exciting opportunity.

Are you ready to take the plunge?

This blog may contain affiliate links. If you click on a link and make a purchase, we may receive a commission at no extra cost to you. This does not influence our opinion of the product or service in any way. We only recommend products and services that we believe will benefit our readers.

This blog is for informational purposes only and does not constitute medical advice. The information contained herein should not be used to diagnose or treat any health condition or disease without consulting with a qualified healthcare provider.

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