The International Coaching Federation says the global coaching profession has seen unprecedented growth in recent years. Between 2019 and 2022, the industry grew by an eye-popping 54% and is expected to more than double by 2032. But more opportunity means more competition, which means coaches need to stand out from the crowd through their skills, niche, and credentials, among other qualities.
Starting a coaching business can be a smart move — if you know how to do it. At Co-Active Training Institute, we’ve graduated more than 150,000 coaches from our program over the past 30 years, so we know exactly what it takes to launch and grow a successful coaching business. Read this article to learn the details of how to start a coaching business.
Why Coaching Businesses Are Thriving Today?
The demand for professional coaching is skyrocketing across a variety of fields for several reasons:
- Increased focus on personal and professional development. More and more people are investing in their personal growth and looking for support to help them achieve their goals.
- The rise of remote work. The shift towards remote work has increased the need for coaching to address professional challenges related to communication, motivation, and work-life balance.
- A focus on employee well-being. Organizations are increasingly prioritizing the health and happiness of their workers. They view coaching as an effective way to boost staff engagement and productivity.
- Growing awareness of the benefits of coaching. More individuals and companies are understanding the advantages that professional coaching offers, including improved performance, greater self-awareness, and achieving goals.
Step-by-Step Guide to Starting Your Coaching Business
Starting any business can feel overwhelming to newcomers, but we’ve laid out the essential steps to make the journey as straightforward as possible.
1. Identify Your Coaching Niche
Defining your niche is an important first step when it comes to attracting your ideal clients and building a successful coaching practice. Here’s how to identify the niche for your coaching business:
- Assess your strengths and passions. What do you spend most of your time thinking about? What kinds of problems do you like to solve? What are your unique skills and experiences?
- Conduct market research. Do some internet research to identify areas of high demand and low competition.
- Analyze potential target audiences. Who are your ideal clients? What are their needs and challenges? Write a detailed profile of your target audience members.
- Consider trending niches. Explore emerging areas of high demand, such as executive coaching, life coaching for entrepreneurs, health and wellness coaching, or niche coaching for specific industries (such as technology or healthcare).
Read Our Blog Post: “Best Coaching Niches”
2. Get Professional Certification
Official industry certification builds credibility, establishes your expertise, and demonstrates your commitment to professional standards. Here’s what you need to know about certification for your coaching business:
- Certification from reputable organizations like the International Coach Federation and Co-Active Training Institute is highly valued by clients and can significantly enhance your marketability.
- ICF Certification Levels
- Associate Certified Coach: Requires 60 hours of coach-specific training, 100 hours of coaching experience, and passing the ICF’s coach knowledge and skills assessment.
- Professional Certified Coach: Requires 125 hours of coach-specific training, 500 hours of coaching experience, and passing the assessment.
- Master Certified Coach: Requires 200 hours of coach-specific training, 2,500 hours of coaching experience, and passing the assessment.
- Co-Active Training Institute offers the Certified Professional Co-Active Coach (CPCC) certification, one of the most highly respected and sought-after certifications in the coaching industry. Can be completed virtually over a six-month period.
Register for Co-Active’s Coaching Program
3. Develop Your Coaching Program
Every coaching business is different. You’ll find a wide mix of coaching methods, styles, formats, timeframes, and costs. Here are a few tips for developing your own business coaching program:
Design Your Coaching Methodology
- Define your coaching philosophy and approach.
- Select a coaching framework or model that resonates with you (for example, the Co-Active Model, GROW model, etc.).
- Develop progress-tracking methods (such as goal setting, action plans, and client assessments).
- Choose appropriate assessment tools, like personality assessments, and values assessments.
Design Your Session Structures
- Create clear and structured session formats, such as the GROW model (Goals, Reality, Options, Will) or the Appreciative Inquiry model. Your clients will want to know exactly what to expect from your sessions when they hire you.
- Determine the duration and frequency of coaching sessions.
Define Your Core Coaching Packages
Offer different packages to cater to various client needs and budgets (for instance, individual coaching, team coaching, or executive coaching).
- Create coaching materials. Develop worksheets, handouts, and other resources to support client learning and progress.
- Set program durations and formats. Determine the duration of each coaching package (e.g., 3 months, 6 months, 12 months). Consider offering different formats, such as in-person, online, or hybrid coaching.
Set Your Pricing
- Research competitor pricing and adjust your rates accordingly.
- Factor in your experience, credentials, and expertise when setting your pricing.
- Consider your ideal client’s budget and adjust your pricing accordingly.
- Explore different pricing models, such as hourly rates, monthly retainers, package deals, or value-based pricing.
Read Our Blog Post: “How to Set Your Coaching Fees”
4. Structure a Coaching Business Plan
A well-defined coaching business plan is foundational for the success of your coaching business. Below are some general guidelines for how you might structure your practice:
Creating a Business Structure
- Register your business entity. Determine the appropriate legal structure for your business (e.g., sole proprietorship, LLC).
- Obtain necessary licenses and permits. Ensure you comply with all relevant legal and regulatory requirements, including federal, state, and local levels — or other countries if you seek a more international clientele.
- Develop coaching contracts and agreements. Create professional contracts that outline the scope of services, client responsibilities, and payment terms.
- Financial considerations. Develop a budget that includes income projections, expenses (marketing, rent, software, etc.), and financial goals. Explore funding options if necessary (such as loans or investors).
Setting Up the Structure/Plan
- Set up your accounting systems. Implement an accounting software system for tracking income and expenses. Unless your specialty is accounting, we recommend investing in a user-friendly program.
- Select coaching management software. Choose proven software that helps you schedule appointments, manage client records, and track progress.
- Establish client documentation systems. Create a system for storing client files, notes, and other relevant documents securely and efficiently.
Choose a Business Name
- Choose a name that reflects your brand, distinguishes you from the competition, and appeals to your target audience. Your personal name can function as your business name, too.
- Ensure the name is available and easy to remember.
- Consider registering your business name and domain name.
5. Market Your Coaching Business
Marketing can feel like a full-time job sometimes. In today’s complex, media-rich economy, promoting your coaching business involves many moving parts and requires a catchy yet clear-headed strategy. Here’s what you need to know to get started:
Build Your Brand With a Clear Value Proposition
- What makes your coaching services different and valuable?
- Define your unique selling proposition (USP) and communicate it clearly to your target audience.
- What are the unique benefits that clients can expect to receive?
- What is your elevator pitch? (How would you describe your services to someone in just a sentence or two?)
Create a Professional Website
- Design a user-friendly website that showcases your expertise, services, and client testimonials. Many free or inexpensive options are available.
- Include a clear call to action, such as “Schedule a Free Consultation.”
Establish Your Social Media Presence
Build a strong presence on social media platforms, such as LinkedIn (highly recommended), Instagram, or Facebook, to connect with potential clients and share valuable content.
Design Marketing Materials
- Create professional marketing materials, such as brochures, flyers, and email newsletters.
- Develop compelling case studies to showcase your success stories.
Present Your Unique Coaching Story
- Share your own coaching journey and how you can help others achieve their goals.
- Build trust and credibility by authentically connecting with your audience.
6. Build Your Client Base
Starting your coaching business from scratch may sound daunting, but tens of thousands of coaches started exactly where you are. Building your client base takes time and effort, but it is very doable if you follow these steps:
Define your ideal client profile
- Create detailed profiles of your ideal clients, including their demographics, needs, and challenges.
- This will help you target your marketing efforts more effectively.
Offer Free Resources and Discounted Services
- Attract potential clients by offering free resources, such as ebooks, webinars, or free coaching sessions.
- Consider offering discounted packages for new clients.
- Remember, any “free” offers should be part of a strategy to get paying clients.
Marketing and Paid Advertising
Use a variety of marketing channels, such as social media advertising, online advertising, content marketing, and networking events.
Structured Discovery Call Process
Implement a structured process for conducting discovery calls with potential clients to assess their needs and determine if you are a good fit. You’ll get better at refining this process the more you do it, identifying what works and what doesn’t as you go.
Clear Onboarding System
Create a smooth and welcoming onboarding experience for new clients, including clear communication, welcome packages, and a clear plan for the coaching process.
7. Start and Grow Your Coaching Business
Once you’ve established your coaching business, it’s time to jump in and get the work done. One thing you’ll need to do for certain: practice, practice, practice. Follow these tips to build your experience and win new clients:
Coach to Gain Experience
- Offer free or discounted coaching sessions to gain practical experience and build your client base.
- Consider volunteering your coaching services to gain experience and build your portfolio.
- Join a coaching group where you can practice role-play coaching with your colleagues.
Transition to Group Coaching
Explore offering group coaching programs to reach a wider audience and increase your revenue streams.
Leverage Online Coaching Services
Take advantage of online platforms to offer virtual coaching sessions, expanding your reach and flexibility. Online coaching is one area in the industry that’s growing particularly fast.
Measure Progress and Adjust Strategies
- Track your progress, analyze your results, and make adjustments to your marketing and coaching strategies as needed.
- Regularly review your business plan and make necessary adjustments to adapt to changing market conditions and client needs.
Common Challenges of Growing a New Coaching Business
Like any new business, growth can be quite a challenge. Below are a few key tips for some of the most common hurdles you’ll likely face with your in-person or online coaching business:
Building Credibility
Solution: Focus on building trust and credibility through client testimonials, professional certifications (like ICF and Co-Active), and showcasing your expertise through high-quality content (blog posts, articles, social media).
Attracting Clients
Solution: Implement a consistent marketing strategy, leverage networking opportunities, offer free consultations or introductory sessions, and build relationships within your target community.
Managing Finances
Solution: Create a detailed budget, track income and expenses carefully, minimize unnecessary costs, and set realistic financial goals.
Standing Out in a Crowded Market
Solution: Define your unique niche, develop a strong personal brand, and consistently deliver exceptional results to your clients.
Maintaining Consistency
Solution: Use scheduling tools, automate tasks where possible, prioritize self-care, and establish a consistent routine to maintain momentum and avoid burnout.
Co-Active Can Help You Grow Your Coaching Business
Co-Active Training Institute is a global leader in coaching business training, with a proven track record of empowering individuals to build successful and fulfilling coaching careers. Our ICF-accredited programs provide you with:
- Comprehensive training. Develop the core competencies and ethical frameworks essential for successful coaching.
- A strong foundation in the Co-Active Model. Learn a powerful and transformative approach to coaching that focuses on partnership, presence, power, and possibility.
- A supportive community. Connect with a network of fellow coaches, mentors, and industry professionals.
- Ongoing support. Access to resources and ongoing support to help you build your coaching practice.
Whether you want to learn how to start a coaching business from scratch or how to grow your existing practice, we’re ready to help. By choosing Co-Active, you’re investing in your future as a coach and can enjoy a return on your investment for years to come.
Visit our website to learn more about our programs and take the first step toward building a thriving in-person or online coaching business.