There has been a recent transition in the workforce as many workers turn away from the corporate world to lead a life as a coach. The life coaching business isn’t new, however, and it has seen a recent spike in the industry. Someone looking to make this transition for more freedom in their life might consider how to start a coaching business.
Not only does becoming a coach give you the freedom from working a typical 9-5 job, but it also has many other rewards and benefits to it as well. Find your area of passion and expertise, and start your coaching plans on how you can get paid to help others through a transformation. Think of how many lives you can change by offering your coaching services.
Life coaches can coach on nearly any topic, but the key is to find an area you are knowledgeable in. There is no one-coach-fits-all solution. Each coach has a unique perspective, strategy, and personal touch. Don’t hold yourself back from learning how to become a coach.
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What is a Life Coach?
A life coach is someone who can help a client get the results they are looking for. This could be monetary results or a transformation of sorts. The coach’s responsibility is to work with their clients to get them where they want to be through various methods such as live coaching sessions, 1:1 coaching, group coaching, guided courses, and much more.
As a life coach, your job is to connect with your client to understand where they are currently and where they want to be in the next few months to a year. You establish a plan with the client and work together to get your client to that end goal. While much of the work is on you to coach your client, your client also has to put in the time and dedicate themselves to this plan in order to be successful.
A coach guides clients in various fields such as finance, spiritual, parenting, business, cooking, and so many more areas.
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Does a Coach Require a License?
The coaching industry is not a regulated industry, meaning you can become a life coach without certification or licensing. Truthfully, you could stop what you’re doing today, decide “I want to become a life coach,” and then go out and do it. You really could become a life coach overnight.
While there are no regulations with coaching, there are resources available to become a certified life coach. These courses are helpful to understand how to best serve your clients and they give you additional credibility. However, they are not required.
Other Coach Requirements and Qualifications
A life coach requires time, dedication, and passion. To become a coach means you are reliable, detail-oriented, and honest. You can’t get clients to their desired outcome by lying to them about their progress or not showing up to the sessions they paid for. You also will not be a good coach if you do not practice what you preach.
If you want to know how to start a coaching business, an understanding of business basics will be helpful as well as knowing how to properly manage your time.
Coach Salary or Pay Expectations
There is a wide range of salary expectations in the coaching industry. This is because each coach can charge whatever he/she wants. In addition, each market in coaching varies greatly in pay.
The U.S. Bureau of Labor Statistics does not collect data on life coaches specifically, but it categorizes them with professionals who work in the fields of rehabilitation counselors, educational, guidance, school and vocational counselors, and personal care and service workers. These fields include annual salaries as low as $34,000 and as high as $96,000.
It is difficult to say how much you can expect to make as a coach with limited data, but try to set a rate that falls somewhere between the extremes.
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How to Become a Life Coach and Get Paid to Support Others
The steps in this guide will show you how to become a life coach for free, but it is up to you to understand what it takes to maintain the business with determination and a consistent client flow.
1. Make a Business Plan
Before you do anything, no matter what kind of business you open, always start with a business plan. This includes having set goals for how much income you need to bring in each month, paying any fees for services you will be using to streamline your business, and knowing how much money you need to put aside for taxes if you are self-employed.
Additionally, it is wise to open up a separate bank account for your business so that you don’t mix your personal and business expenses. If you open a business account, you will need to apply for a free EIN with the IRS.
2. Determine Your Passion
This is a critical step in learning how to start a coaching business. You have to be passionate about the subject you are coaching on and you have to have that desire every day. This will be beneficial to your clients and get them the results they need. Without that passion, you can quickly burn out and lose your energy, clients, and income.
This passion is also known as your niche or market. If you have a passion for helping others become debt-free, then speak on that and attract clients who are looking for your solution. You might have a passion for helping others start their own business from home, and that can be a monetary journey you take them on for a few months to a year.
Whatever it is that you are passionate about, make sure it is strong enough to keep you going even in the hard times of having a coaching business.
3. Partner With a Mentor
If you haven’t started a business before, let alone a coaching business, consider finding someone who can help you learn the ins and outs of starting your service. This could be a friend or maybe a coach you hire for yourself. It’s not easy to become a coach if you don’t know where to start.
Learn from others and take their lessons into consideration so that you don’t make the same mistakes they made. Your mentor might have some secrets to share about becoming successful more quickly than you think.
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4. Offer Services
Start offering your services right away as a coach once you’ve found your passion. This might be discounted or even free sessions at first as you get your feet wet in the industry.
Additionally, if you are coaching clients through a program or course, consider running at least one beta round so that you can get live feedback on your services before taking on more clients.
You can even become a life coach online and meet with your clients virtually. This opens up a whole new reach that you wouldn’t have as a local coach.
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5. Collect Testimonials
No matter how many clients you have, whether it’s one or 20, collect testimonials from each of them about the service you provided. Ask the client to share where they were before they started working with you and where they are now as a result. The goal of the testimonials is to show the transformation you take clients through and that you are a trustworthy coach who has been proven to help others.
6. Set Your Prices and Packages
Determine the cost of what others will pay to use your coaching services. This is often the hardest part of learning how to start a coaching business. However, don’t let it halt your business plans.
If you are working with clients 1:1, consider how many hours per week you will have available and how many clients you can take in that amount of time. Then, determine your worth and stick to it. If you are new to coaching, this might be a challenge. At a minimum, start with how much you need to maintain your lifestyle and raise your prices once you gain traction in the field.
Group coaching can be more profitable, but it also has its challenges. You can coach several individuals during your one-hour session with group coaching and make more money. However, those clients in the group won’t have the same successes and challenges. It’s on you to be more aware of them so they don’t get lost in the group setting.
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Questions New Coaches are Asking
It can be scary to try something new, especially when it comes to changing careers. Consider these questions new coaches are asking beforehand.
Do life coaches make money?
In short, yes. Life coaches do make money. However, their salary is determined by their own rates for their services so it is difficult to know how much money you will make as a coach. Follow coaches in your market to understand the average rates and what services they offer. Adjust your own rates to be comparable.
Is there a demand for life coaches?
This depends on the market you are trying to reach. If you are a coach in a market where other solutions are already available, then you might not see a huge success as a coach. However, if your services provide unique results or if you coach a very concentrated market, you may find there is more demand for your services.
Is coaching a good career?
A coaching career is one that allows you flexibility with your time, offers the opportunity to set your own salary, and fulfills you on a deeper level through client transformations. Yes, it is a good career to pursue. It is also a very rewarding career.
How do life coaches get clients?
This depends on your market, and you can learn how to attract your ideal client through a mentor. However, many coaches get clients through social media sites like Facebook, Instagram, and LinkedIn. Attracting clients is about getting in front of the right people so that they know you have something to offer them.
Is life coaching a legitimate career?
It is most definitely a legitimate career. There are a number of things people need help with in life when trying to reach their personal goals and a coach can get them to that result. Life coaches have been around for decades and many coaches have become highly popular and financially successful. It is up to you to determine your own success as a coach.
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Who Should Start a Coaching Business?
A new business coach should be someone who is willing to put in the work to start their business, find clients, and provide value to those they serve. If you are looking for a way to make money by doing nothing, then this job is not for you.
As a coach, you invest yourself mentally and emotionally into your clients. You become their mentor and/or friend, which is a true honor. However, you have to know where to draw the line so that you don’t begin to do more work for less money. Connect with others through various social media platforms, collaborate with other professionals in your market, and be genuine.
In order to have the best chance at starting a successful coaching business, you have to be willing to invest in yourself and learn what you can about the industry. Otherwise, who is going to want to invest in your services if you’re not willing to invest in yourself? Being a coach is a once-in-a-lifetime opportunity; don’t miss your calling!