Congratulations! So finally you have decided to be your own boss! But are you still unclear about how to start a coaching business from scratch?
Are you inspired by the success of some famous coaches but don’t know how to reach the same or even a greater level?
No worries! Your dreams are soon going to be translated into reality.
By the end of this blog, you will have a crystal-clear idea about not just how to begin the best coaching business but a business that actually grows phenomenally well.
As it is rightly quoted- “Well begun is half done.” Today I would be sharing with you some really worthy tips that will create a strong foundation for you to embark on this new venture.
If you follow them with full dedication, you can easily skyrocket your growth and achieve a 6-figure coaching business in a matter of months.
Yes! You heard it right. You just need to imbibe the top coaching skills and follow the right methodology passionately and success is yours, my friend!
Let me quickly share with you some of the best practices that you should follow before starting your coaching business.
Best Practices to follow before you start your coaching business from scratch
1. Pen down the goals of your business
Before even giving a thought about your niche, you should figure out what you actually want to achieve from your coaching business? Why this and not something else?
Let me tell you that only a few people have clear written goals and that’s what makes them different from the crowd.
Once you have clarity in your mind it would become easier for you to proceed at a faster pace.
2. Decide your business model before starting your coaching business from scratch
Ask yourself, “Where are you going to generate revenue from?”
In the present world running a coaching business has become extremely easy.
You need not even resort to local ground marketing. I personally prefer webinars and group coachings.
Webinars provide you with an easy way to market your services across the globe.
Workshops are great at their end but webinars include a very low operational cost.
Not that confident enough at present? Why not chase a freelance business model then? It comes with a lot of comforts and will also give you enough chance to build skills and gain market knowledge.
4. Strengthen your network
Do you think discussing your thoughts with your family and friends might discourage you? Are you hesitating to share your thoughts because you are not sure of their reaction?
That’s where you are going wrong.
Before commencing the journey of becoming a coach you need to first build confidence and trust in yourself. How would your clients believe you if you lack belief in your own capabilities?
Widen the reach of your network. Build contacts and share your ideas with your close acquaintances. Your personality and relation building will play a crucial role while growing your coaching business from scratch. (You will get a lot of support too!)
5. Discover what makes you different than others
There are a lot of established coaches already in the market. Whatever niche you choose, the competition is intense. As a beginner, you neither have star power nor a lot of money to compete with the already established ones.
So, what’s the way out? Discover yourself. Introspect and find what’s unique about you. Your skill set will matter a lot while fixing your coaching niche.
Let me put it this way, maybe a fitness coach has recently inspired you but till now this realization has not dawned upon you that you are great in handling relationships. By becoming a relationship coach you might earn 10x times more than your current inspiration.
So what I want you to do is just take some time and reflect (You are unique!).
6. Find the top mentor
You might not need one, but let me tell you, your business surely needs it. Right now you are in a very naive stage. You might excel all alone but there are enough chances that due to the lack of proper mentoring you may face disastrous consequences.
You would definitely not like to take that risk. Right? This is the reason that I suggest you opt for a mentor who can guide you and accelerate the pace of your business.
I have come across many new coaches who regret not taking a mentor before when it’s already too late.
The right mentor will help you to overcome all hurdles in your path and fulfill your requirements.
How to kick start a successful coaching business? (that actually makes money)
1. Establish your niche(choose wisely!)
Now, this is what I consider to be the most important part of starting your coaching business from scratch. Many new coaches make a fatal mistake by not digging up deep while choosing their preferred niche (Also called as market research) and they later realize that they have made a wrong choice.
In the coaching business, I personally believe that the best niche is where competition is low. You might be wondering how to do that?
If you design a category that is absolutely unique or plan to target a subset of the market then probably you would not have any competition and it would be easier for you to attract clients.
For example, look at this successful dating coach Sarah who chose to target only introverted shy men and coach them to approach beautiful ladies and become successful in their love lives. She created a unique category for herself and in a way reduced her competition too.
For a start, you can explore the below niches to check what suits you well.
Proven and profitable niches for a successful coaching business
- Health and fitness
- Relationship and dating
- Business and career
- Family and parenting
- Spirituality and faith
There are various life coaching niches amongst others for you to explore. Whatever you choose remember to target a specific market which has low competition so that you can easily become a go-to-market expert.
2. Identify your preferred coaching business structure
There are six coaching business structures majorly followed in the USA.
4. Limited Liability Company
5. Sole Proprietorship
6. S corporation
Each of the above structures offers a different set of protections and comes with various tax obligations.
What I suggest is, go through this excellent resource made by U.S. small business administration to learn more about each business structure.
3. Let’s name your coaching business
Now, you can go for a name that reflects your brand identity. For example, if you are planning to open a coaching business that focuses on conflict resolution and communication coaching for divorced parents, you can have something like – “Peaceful resolutions”.
You can also have your own name to do the job. Many successful coaches prefer that as it also provides them with an opportunity to extend the range of their services in due course of time.
A quick Google search may reveal that all the desirable names have already been taken. Don’t lose heart. None of them can capture your unique services. For instance, James Browning may not work but JamaesBrowningCoaching may do the job.
4. How will you offer your coaching services?
We, coach, love to be in person with our coaching clients. After all, we are relationship-oriented people.
But today with technology by our side, life has become a lot more flexible taking us to our next question what way should you offer your services- by resorting to a professional office or with the comfort of your own home?
1. From office
If you are planning to interact with your clients through group coachings and workshops and need a professional appearance as well, working from an office can be your choice.
I must tell you that it comes with its own cons of infrastructural charges depending on the location.
2. From Home
If you want to save money in the beginning and would also love to have a work-life balance you can opt for delivering your services from home. (Don’t be bad at the cutting of all the distractions!)
I personally believe that in the initial stages of setting up your coaching business you should concentrate on generating revenue and save as much as possible.
When you can get hold of a global market with the help of webinars and building a solid digital presence, why to invest in infrastructural costs?
Get stable and start making money, keep the space expectations for later.
5. What else should you consider?
1. Client organization tools
In my opinion from the beginning itself, you should keep yourself organized in order to ensure that you are disciplined and effective in client management.
There are some popular platforms like CoachLogix, Life Coach office, Coaching console, etc. that can assist you in self-booking of clients, managing records, CRM, managing your billing, etc.
2. Professional services
If you are willing to spend a few bucks then I suggest you spend them to hire seasoned professionals for efficient services that you are not confident of.
Like a professional marketing coach, can save your hundreds of hours and thousands of wasted money. You can go for a web developer, graphic designer, copywriter as the need may be.
Make sure to think 10 times before investing a single penny since our goal is to generate revenue and find ways where we can minimize our expenditure.
3. Pricing and packaging
How phenomenally well your business grows, depend much on the pricing and packaging of your services.
I recommend having three types of packages in order to attract all kinds of customers- the taster, the midrange and the premium level.
Having said that, commanding on the premium pricing will only let your business to have a phenomenally greater impact. How would I do that?, I hear you say.
It is fairly simple, you are not selling the process but results. Just make your services client-oriented for creating a transformation in their lives and believe me they will pay you 10x more than your competitors.
Maximum of my clients are the high-end paying clients that choose my premium packages because I have built that deeper connection with them.
Many coaches that I come across make a fatal mistake of charging per session. Just think which one of the below coaches will have an indelible impact.
Hey, opt my coaching services and by charging $ 50 per hour I will make you slim and trim.
Hey, buy my monthly package of $15k and in the course of a month, you will lose your weight and get a dream body figure.
Yes, you are right the second one. It gives more authority and better convinces your client.
In order to succeed in the coaching business, you should follow one of the most important principles which is commanding premium pricing and leveraging your time.
Efficient marketing will drive your clients towards your business with the least efforts. Gone are the days when a local ground level marketing was the need of the hour. Now you can leverage the benefits of the internet to expand your reach and earn potential clients.
You can employ social media by running ads to drive lots of traffic. Avoid going for paid marketing more, rather choose organic growth.
Create a website that has a landing page with a call to action that can compel people to sign up for your services.
How much does it cost to start a coaching business?
- Cost of registering your business (depending on your location): In some areas, you may need to register your coaching business name or may even need to have a business license. The cost will vary according to location.
- Laptop and internet access: You can get an affordable laptop with internet access in the range of $1500-$3000.
- Website: You can spend up to $1000 to build a professional website. However, I recommend new coaches to have a simple website that just reflects your brand.
- Training and mentorship: Depending on your niche you can hire a mentor within your budget. For instance, Business and life coaches typically charge $350-$1,000 a month.
- Online Platforms: Some popular platforms are worth investing in for virtual meeting space. These include Google Hangouts( free for up to 10 participants; $5 per month for 11 to 15 participants), Fuze ($15 to $70 per month), Zoom.us (free to work with individuals and only $15 to work with groups)
7 secrets to grow your coaching business from the initial stage- P.R.O.C.E.S.S
Overwhelmed by so much around you? Relax, sit with a pen and paper and plan all sales, finance and marketing strategies to get an unclouded mindset.
Just visualize the feeling of earning a 6-figure monthly income from your coaching business some 6-12 months down the line. Feels great, right?
But to transform your imagination into the reality you need to you have a strong resolution and keep yourself bettering each day even if you feel low. It is rightly quoted- “Success is 99% perspiration and 1% inspiration.”
Most successful coaches have seen dark days. I myself have witnessed failure during my dating coaching business but I didn’t lose my vision and an optimistic attitude only helped me to flourish the same. Remember- Every cloud has a silver lining.
If you are a coach you are your sole trader, in many ways you are your own brand! Not every person has that aura to attract people and convince them with his words. Be creative as a person because that would reflect in your services. Have a quirky way of dealing with your clients. Maybe this list of Top 5 creative coaches may help you discover the creative skills within you.
Though you are pondering on how to start your coaching business from scratch now you also would be having that burning desire to emerge as a global leader in your domain soon. Don’t you?
For this to happen constant engagement with the audience is really important. You can do this by building a solid digital presence, blogging, offering free webinars and valuable content.
Build a system for lighting your load and managing sales, marketing, etc. well. Without a proper system in place, it will be tough for you to reach a 6-figure and beyond fast.
Place simplicity at the heart of your business. This will help you to connect with your clients more. Many coaches fail to build quick relationships with their clients which leads to their downfall. Simplicity will assist you in fast associations and will lead the foundation of an ever-lasting relationship.
5 critical concepts new coaches need to understand to succeed in 2020
1. You need to provide your client with an effective “model for change”
In order to be effective, your coaching should bring a change in the life of your client. Your client will only trust your services when he can see his life, his problems and the way he is operating in a different manner. This can be possible through the right set of Coaching questions.
2. Learn to say “No”
If you don’t know how to say a no to your client when he is demanding something extremely ridiculous then you will struggle every single day.
Focus only on “vital few” tasks in order to succeed and avoid distractions by “trivial many” items.
3. You are running a business more than just providing service
Don’t treat your coaching business as a hobby, but as a business. You need to have a grip over marketing, business development, financial, etc. skills that are required by any business.
4. Be a leader along with a coach
To become successful it’s just not the quality of your services that will set you apart but your own brand of thoughtful leadership will be needed too. Let the world know about your expertise by writing blogs, public speaking and offering high-quality training and workshops.
Avoid these 4 mistakes
1. Not taking into account the customer’s feedback
Your client’s feedback is the ideal way of knowing what is going good and what has to be refined. This will help you to improve your services.
I personally like the idea of anonymous feedback since it gives the client the opportunity to put his opinion freely. (try it once!)
2. Worrying much about how to scale fast
Concentrate on building a value coaching business rather than a vanity one. Many new coaches make this fatal mistake of scaling fast and spend too much which contributes to their bankruptcy.
Slow and organic growth is the need of the hour.
3. Trying to make a product for everyone
This will only amplify your problems. Find your target audience and let your services revolve around them. Be consistent and patient. Rome was not built in a day!
4. Not knowing your ideal clients
You should have a clarity of what kind of clients you are willing to have. Like, I like having high-paying clients that are dedicated and serious regarding my sessions.
You can have your own list. I recommend you to check out the ideal client checklist.
The secret of transforming your business into a 6-figure coaching business
1. Provide solutions not services
What will make you popular amongst the audience are the end results. You are trying to sell something which is not tangible. That’s not easy. Be solution-oriented, not service-oriented.
2. Create your private pond
Don’t start off by fishing for clients through mainstream outlets. Create a private pond for yourself to cut off competition.
There can be two ways of doing this- facebook groups and Instagram. These can help you create authority and brand awareness. You can create a 6-figure coaching business more easily this way.
3. Never underestimate yourself- charge what you’re worth
Most new coaches undercharge due to lack of experience. This leads to the death of any coach. Soon you will realize that you are overworked and underpaid which will eat your passion.
If your solutions are more valuable than your fee, then it’s your responsibility to charge what you are worth.
4. Overcome yourself
All the tactics, tools and strategies required to build a six-figure coaching business is at your fingertips. The only limiting factor is you.
Overcome limiting beliefs and fear. As a coach, you would be required to teach the clients to get out of their way to progress fast. But to do that first you need to get out of yours.
If you would like to know more about how to start a coaching business from scratch and make $10,000 as a coach then I would love to invite you to my webinar where I would show you a gradual process for the same.