Starting a coaching business is a great endeavor! You’ve been called to help other people with challenges and problems that you’ve managed to get through, or are working through right now.
One of the questions behind the question of how much does it cost to start a coaching business is, is it worth it? Is the coaching field growing and worth jumping into? In 2018 there were 53,300 coaches, today there are 71,000 plus in 161 countries. This industry is not going anywhere, it is growing and more people are willing to be coached now more than ever.
Now that you know your calling to be a coach can provide the growth you want, be it a part -time gig or a multi-million dollar company, what kind of investment does it actually take to start a coaching business?
Should you get a business coach?
In short, yes a business coach is a great asset to have. You can have a thinking partner to work with, bounce ideas off of, and be able to see around corners. Your coach has been there, done that and can give you the gift of speed to get your coaching business to the level of success you see in your mind.
Now that being said, all coaches are different and no one coach is the end all be all. Each coach is a piece of your business puzzle, not the entire picture. Also make sure the coach’s program and methods align with your spirit, who you are and how you want to show up in business. When it comes to business coaching and the investment of working with a coach there are many different programs, 10K for a 10 week program or $400 a month for 1 on 1 coaching as long as you need it. Do your research and again be sure the coach’s or program’s methods align with your spirit.
The Basic Foundations
In order to be a coach of any niche, you’ll need to have one thing, real life experience. If you haven’t lived it and try to coach others you will have loads of refunds, bad reviews, and have to shut your business down. The best part is that experience in terms of starting your new business doesn’t cost you anything. The second part is investing in training to relay tools, perspective shifts, and strategies to your clients. If you’re not growing you’re dying and your clients will outgrow you, so it is highly recommended to consistently learn and grow.
Growth comes in terms of buying books, courses, programs, etc. and the costs vary from $25 to thousands. The idea is to have room in your spending plan to invest in your growth every year.
One more thing that costs nothing and is literally your best business asset is social media. You probably have mixed feelings about social media, but the reality is that what you see on social media is a reflection of you. The moment you decide to change what you want to be you’ll start to see different things in your feed. Start changing your connections to your ideal client so that what you post will serve them. If you need a hand figuring out who that person is, download the Ideal Client Blueprint.
Additions only if you want them
So many people who are starting their coaching business or any solo-preneure so many times have questions around a few topics they view as key to business.
Do you need an LLC? The answer is only if you feel you need it. An LLC provides you a layer of protection between your personal and business assets, if God forbid you were to ever be sued for damages. That being said, the corporate veil is only there if you follow up on the legal obligations that an LLC requires. Now if you don’t see your business getting very big, or there’s no real danger of legal repercussions to what you do, then you don’t really need an LLC. An LLC is not very expensive and usually costs around $200-$500 depending on the service you use to put it in place.
Do you need business insurance? Again, only if you feel you need it. At the very beginning of your business it may not be feasible to purchase business insurance, but as you get going and start working with clients, having it is probably for the best. Given the boom of online coaching especially since the Covid breakout in 2020, professional liability insurance is the one that’s the most necessary, and will run you around $500-$1000 per year per employee.
Do you need coaching contracts? As a coach helping people in exchange for money it’s a good idea to have a contract in place which states the intended outcome for your process, a process for grievances, length of service, etc. The best and most careful advice is to have a lawyer assist you in drawing up your contract, which usually will run in the neighborhood of $100 per hour.
Starting a coaching business overall is not something that’s going to cost you an arm and a leg if you want to get going on the cheap. Use the general pricing of the services listed above to get a ballpark figure for your business, and swing for the fences!
Maybe you’re surprised there are some things left out of this list, things like;
A Digital Course
Well there’s a reason those items were not included. It’s because you don’t need any of them to start a coaching business. These three things are a way to get stuck in shiny object land and technical overwhelm. If you’re not a techy person you could become frustrated in trying to figure them out, which can open a whole can of limiting beliefs making you feel like you’re not meant for this entrepreneur stuff because you can’t figure out how to link your email list to your website pop up window. Nothing can be further from the truth. Just get started and all the tech stuff can come later, if you even want it. Remember to keep your business in alignment with your spirit, you can always outsource the tech stuff later as well if you feel your clients need it.
Now get out there and be the world changer you’re meant to be!