The life coaching industry presents extraordinary profit potential—we’re talking billions with a capital “B” in revenue. Market Research projects that life coaching business revenue will surge beyond $1.34 billion by 2022.
If you’re ready to join this rapidly expanding industry, the time to act is now.
Taking action means investing time to understand the industry landscape, securing proper credentials, developing a comprehensive business plan, and executing other essential steps that will propel your career goals forward.
I’ve compiled a comprehensive guide of actionable steps to launch your life coaching career. Through extensive research, I’ve identified and outlined the exact process you should follow.
What I discovered is that building a successful life coaching business starts long before you begin offering your services. Before taking any action, you must fully grasp what being a life coach truly entails.
What Is Life Coaching?
Life coaching frequently gets mixed up with other seemingly similar professions, but closer examination reveals completely different operating models.
Consulting represents one career commonly confused with life coaching services. Consultants bring field-specific experience and are regarded as industry experts. They make recommendations to individuals or groups based on their specialized knowledge.
Consultants essentially advise clients based on personal expertise. Coaches take a different approach—they never impose their ideas or expertise on clients. Instead, they guide coaching clients in organizing their thoughts into actionable strategies that help achieve their established goals.
Counselors and therapists also get confused with coaches. These professionals assist clients with mental health challenges that may be hindering success. They examine the past to create positive future changes. Coaches spend minimal time dwelling on the past—they’re solution-focused and help clients maintain forward momentum.
Athletic coaching comes to mind when most people hear “coach.” They picture someone in polyester shorts wearing a whistle, shouting at athletes. It’s unfortunate that today’s athletic coaches aren’t incorporating more life coaching principles.
Life coaches empower clients through guidance, inspiration, and strategic planning to enhance their professional lives, personal development, or both. Once you understand a life coach’s role, you must identify your motivations for entering this service field.
What’s Your Why?
Regardless of your motivation, you can become a life coach and build a thriving coaching business. Even if financial gain is your primary driver, success is possible. However, the level of success you achieve will largely depend on your underlying “why.”
Have you always felt called to motivate and inspire others toward their goals? Do you define success as helping someone conquer fears for a better life? Does encouraging and empowering others energize you?
Or are you simply looking to generate extra income?
Exceptional life coaches invest deeply in their clients—even when payments are late or appointments are missed. You must invest in them so they can learn to invest in themselves.
Poor reasons to become a coach include seeking new friendships or romantic connections, needing quick job replacement after unemployment, enjoying talking and giving advice, thinking it sounds easy, or following family and friends’ suggestions that you’d make a great coach.
While there are countless wrong reasons to enter coaching, let’s concentrate on the right motivations.
- You have a demonstrated success record in a specific field and want to share that knowledge with others.
- You feel called to this industry as your life’s purpose.
- You find joy in witnessing others succeed.
- You’re driven to help others achieve their aspirations.
- You want to earn money doing what you’re passionate about.
- You possess non-judgmental, creative, objective and sincere qualities.
- You’re passionate, empathetic, and determined to make a meaningful difference.
You’ll excel as a life coach when your focus centers on helping others. You’ll build their confidence, help them overcome obstacles blocking success, and develop their skills while transforming them into leaders.
After discovering your “why” and fully committing, you can focus on determining your coaching specialty. This decision should align with your areas of expertise.
What Is Your Expertise?
Becoming a life coach for accountants would be foolish if your expertise lies in manufacturing. Similarly, you’re unlikely to get hired as a personal life coach for celebrities if your background is exclusively in information technology.
To identify your expertise, consider these questions: What activities do you excel at? Which jobs have you performed successfully for extended periods? Have you mentored someone in a particular field? In what areas do you stay current and continuously develop your skills? Which abilities come naturally to you? What topics do you discuss and promote effortlessly?
These questions will help you compile a list of coaching areas where you feel confident guiding others. Once you’ve identified your expertise, examine which coaching methods will work best for you.
What Is Your Coaching Method?
When you envision yourself coaching, do you see yourself on NFL sidelines inspiring star quarterbacks? Or do you picture yourself teaching corporate leaders how to motivate their teams?
Your vision of service delivery can guide your coaching method selection. Below are several delivery formats. Be honest about your strengths and choose strategies that will help you excel.
- One-on-one sessions, working exclusively with individual clients
- Group coaching, with small or large groups
- Video content that can be sold and distributed globally
- Podcasts with weekly recordings on your chosen topics
- Blogging with regular articles on your website covering topics of your choice
- Online courses available for worldwide purchase
- eBooks on your specialty topics, produced and sold on platforms like Amazon
- Motivational seminars or webinars
Now you’ve determined your desire to become a life coach, selected a method, and identified your “why.” However, it’s still premature to start promoting your services. You can take several additional steps to maximize your chances of building a successful coaching business.
First and foremost: establish your credibility.
Be Able to Prove Your Credibility
When promoting your coaching business, you’ll need to demonstrate why you’re the right person for the job. Potential clients will ask, “why should I choose you as my coach?”
Your response can determine whether you land the client or get dismissed.
Credibility reinforces your reputation as a life coach. It demonstrates that you have proof of competence, practiced coaching skills, and authority in your expertise area.
Credibility can be established through different approaches:
- Credibility develops through earning authority, trust, respect, competence, accountability, loyalty, and discipline.
- Credibility builds through your success history, including previous client testimonials, education in your expertise field, certification or accreditation, or a proven track record of achievements in your industry.
One of the most effective ways to establish credibility is earning life coach certification. With numerous certification programs available, you’ll need to research and identify the one that best fits your coaching objectives.
Certification Programs
Coach training is essential whether you aspire to become a general life coach or an executive coach. The good news: over 800 life coaching certification programs exist. The challenging news: over 800 life coaching certification programs exist.
Rather than detailing different programs, I’ve created a checklist to help you select the best option for your coaching business:
- It provides an actual certificate upon completion, demonstrating your status as a certified life coach.
- It’s a paid program within your budget. Paid certificate programs typically offer more comprehensive training and are better regarded by clients.
- The program has International Coaching Federation (ICF) accreditation.
- The program covers both your expertise area and general coaching principles. While this option isn’t always available, it provides double the value when found.
- The program delivery method matches your learning style (online vs. in-person).
- The program provides access to other coaches and resources for ongoing skill development.
To assist your search for the right certification program, the International Coaching Federation offers a free Training Program Search Service that includes a directory of accredited programs.
Upon completing your training, you can even be listed as a coach on the ICF website, making it easier for potential clients to discover you.
More on the International Coaching Federation
The ICF stands as the premier coaching certification authority—the most recognized training program available. They offer three distinct training pathways: Associate, Professional, or Master Certified Coaching programs.
They also provide opportunities to work with mentor coaches or receive supervision through their learning portal, which houses self-paced training courses.
Once you’ve earned accreditation, you can launch your life coaching business. Whether hanging a sign outside your office or announcing your services on social media, here are additional tips that will establish a foundation for years of successful coaching practice.
Name Your Business
Your business name carries significant weight. It can be bland and confusing, or clearly communicate your services while exciting your target market.
For instance, “Joe Smith, Life Coach” feels boring and overly self-focused. Instead, embrace creativity. For conservative or traditional preferences, consider names like “Life Worth Living” or “Life Coaching for Change.”
If you prefer something more contemporary and millennial-focused, try names like “You Are Woke” or “Your Life is Goals.”
If your clientele consists of math enthusiasts, consider business names like “Root to Success” or “Integrate.”
The essential point is ensuring your business name reflects your coaching niche and attracts your ideal client demographic.
Setting Up Your Business Legally
Establish a legal business entity. Consider options like sole proprietorship or limited liability company (LLC) to protect yourself from potential lawsuits.
You’ll need to obtain an Employer Identification Number for this process. The application is straightforward and completely free.
If you plan to include your name in the business title, registration may be unnecessary. However, if you choose a name that doesn’t include your personal name, you’ll need to register it. This process is also straightforward.
Business registration occurs at the state level, so check your state’s specific application requirements.
Open a dedicated business bank account. If possible, avoid accumulating debt or obtaining credit cards. Your profitability increases as you minimize debt.
Establish business accounting systems.
Secure business insurance.
Decide on a Business Location
Determine whether you’ll coach from an office, meet clients in person at various locations, or operate online.
If you want a dedicated life coaching office where clients visit you, consider several important selection factors.
Ensure the location maintains high safety standards.
Secure all necessary permits and licenses for occupancy, zoning, and safety compliance.
Your office environment should reflect your coaching philosophy. A rundown, unprofessional space will undermine your credibility and message.
Operating online requires creating a strong internet presence with the appropriate tools for virtual coaching.
Working with clients in their natural environment minimizes overhead while providing valuable insights into their performance on familiar turf.
Combining all approaches may offer the most comprehensive service delivery.
Establish Fees and Payment Methods
Before meeting your first client, establish your fee structure and create multiple payment collection methods. Maintain consistent pricing—avoid adjusting costs for different clients, as inconsistency can damage your reputation.
Determine your value and maintain those prices consistently.
Multiple payment options prevent situations where clients can’t pay due to lack of cash on hand. Consider accepting PayPal, Google Pay, Apple Pay, credit and debit cards, checks, and cash.
Now you’re prepared to attract your first client. Social media serves as your most powerful marketing resource. Create a business Facebook page and start sharing content. Use Instagram to post inspiring life coaching messages through pictures and stories.
Enable appointment booking on Facebook. You can even create and sell inspirational merchandise on Facebook as an additional revenue stream for your business.
Request client referrals, connect with corporate executives who might hire you to coach their teams, and partner with local therapists, schools, and consultants who can refer clients to your business.
Finally, embrace your new venture. You chose this path because helping others succeed brings fulfillment. You’re prepared, knowledgeable, and ready to make an impact.
