How to Become a Life or Business Coach

Is Professional Coaching Right for You?

Although it can be exciting to become a life or business coach, there will be significant demands on you. Here are some of the things you can expect.

A Day in the Life of a Life or Business Coach

Here are some of the typical tasks you’ll be performing on a daily basis:

• Marketing for new clients
• Dealing with inquiries from potential clients
• Reading the latest research and studies in your field
• Traveling to meet with clients or having them come to you
• Holding coaching sessions
• Writing up coaching sessions
• Dealing with financials and administration
• Life coaches: Ongoing training in psychology, counseling and related fields
• Life coaches: Researching specific questions or problems your clients may have
• Business coaches: Learning about the business you’re providing coaching for, including strategy, financials and the executive team
• Business coaches: Research into the sector or industry of the business you’re providing coaching for

Skills Needed by a Life or Business Coach

The following skills will be very useful in your role as a life or business coach:

• Excellent interpersonal and influencing skills to talk with and listen to clients
• Powerful analysis and investigative skills to get to the root of an issue
• Good marketing skills to promote your coaching business
• Strong administration skills so you can stay on top of your schedule and finances
• Strong research skills so you can understand the history and context of the individuals and businesses you’re helping

What Your Coaching Clients Are Looking For

Ultimately, people come to a coach because they want to improve their life or business.

Validating Your Professional Coaching Business Idea

Remember, the ideas above are just a starting point. You can define and tweak exactly what type of life or business coach you want to be through conducting your own research.

• Identify your coaching business’ unique selling points (USPs):Whether you’re competing on your niche, results, pricing or something else, your USPs set you apart from other coaches and encourage clients to come to you.
• Look at who your competitors are in the space: Having competitors is a good thing as it shows there’s a market. Look into the other coaches operating in your niche and area.
• Understand your market: Clearly identify exactly who your clients are likely to be through the niches you serve. This will be essential to your marketing, communications, sales and client support.
• Talk to clients: Speak with potential customers to understand what they want from your coaching services, and validate this by asking if they would commit to spending real money on them.

Not every idea you have will make it through to becoming a coaching business. There are all sorts of reasons to say “yes” or “no” to specific businesses, so think about what your strengths and weaknesses are so you can choose a business you’d be great at.

Choose the Right Business Structure and Register Your Coaching Organization

There are five main business structures you can have in the U.S., and it’s important to choose the right one. We’ve shared your options below. They are:

Sole Proprietorship

This is the "default" business structure and is what your life or business coaching venture will be if you decide not to create a more formal structure. We don\'t recommend this type of business as it doesn't give you the legal protections you need.

Partnership

This is a type of business that is formed when two or more people work together without creating a more formal business entity. Like a sole proprietorship, it may not give you all the protections your life or business coaching organization may need.

Limited Liability Company or LLC

The Limited Liability Company (LLC) is ideal for most life or business coaching startups. An LLC is easy and inexpensive to set up, and has the least administrative requirements of any formal business entity.

S Corporation

This is a more complex type of business and isn't generally recommended for smaller organizations.

C Corporation

These are the largest and most complex types of businesses and are typically far more than the average entrepreneur will need.

Setting up Your Life or Business Coaching Operations

Once you've legally created your coaching business, you’ll need to get some other things in place.

Location of Your Coaching Business

Almost all coaching entrepreneurs can work from home, although you may need a dedicated space to meet with clients (or you may want to travel to their home or business location). This is great as it reduces your office costs considerably. Don't forget that if you work from home, you can write off part of your utility and housing costs against your taxes.

Equipment for Your Coaching Business

It’s likely that the only equipment you will need to run your life or business coaching venture is a computer, laptop, tablet or smartphone. You will also want to invest in a wardrobe that keeps you presentable for client meetings.

Marketing Your Coaching Business

Marketing will be a huge part of your coaching business. Naturally, you will need an awesome website, but you'll also need to get branding, newsletters, digital ads, social media accounts and other channels in place.

Software and Processes

Life or business coaching entrepreneurs make extensive use of software; see our great list of the top apps at the end of this guide.

Employees

To begin with, you probably won’t need to hire anyone else for your life or business coaching business, especially if you’re a good administrator.

Life or Business Coach Qualification, Certification and Training

It will likely help you to prove your expertise as a life or business coach with the right qualifications. Types of qualifications and certifications will vary depending on your chosen field.

Finances and Taxes

You will need a separate business bank account for your coaching business. You might also want to consider a business credit card. Additionally, you will also need to keep careful bookkeeping records to file business and personal taxes. Here at Incfile, we can even help you file your taxes.

Our Start a Business Checklist will get your boutique business going in the best possible way.

Rules, Regulations and Taxes for Your Coaching Business

You will need to explore local, state and federal licenses and permits, and we can also help out with researching your business licensing needs.

Taxes for Professional Coaches

Taxes are a fact of life if you’re in business, and there are various ways you will need to file and pay them. This can include self-employment tax, state income tax and federal income tax. Depending on where and how you’re selling products and services, you may also be liable for sales and use tax.

As a rule of thumb, we recommend holding back around a third of your earnings to pay your taxes. We can also prepare and file your tax returns for you.

Maintaining Your Professional Coaching Organization

There are certain forms and legalities you need to follow to keep your life or business coaching business in good standing.

Insurance for Your Professional Coaching Organization

Most life or business coaching organizations should have comprehensive business insurance. There are various types.

Useful Online Tools for Professional Coaches

Here are some really great online tools for managing your life or business coaching business. They will reduce the time you spend on administration, help you to collaborate with others and free up your time to grow and manage your new venture.