How to Start a Career Coach Business

Part 1 - How to start a Career Coach business - Background

Career coaching is in high demand as more individuals enter the job market and jobs continue to be scarce. Offering professional insight to others as they seek to grow their personal brand and increase their career trajectory can be a very rewarding business, both personally and financially.

You may also be interested in additional low cost business ideas.

Our guide is in 3 parts:

• Part 1 - How to start a Career Coach business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a career coach business?

The main costs to start your career coaching business will be certification, via a qualified program such as the CPCC, PARWCC, National Career Development Association, or others. General liability insurance may also be a factor, as well as cyber liability — a new form of insurance that protects you from hackers. Marketing and networking will also be expenses, as you’ll need to be visible in your community in order to begin attracting clients. Expect to spend several thousand dollars launching your new career, between additional training and certifications (around $800-$1,500) and marketing ($500-$750).

What are the ongoing expenses for a career coach business?

Ongoing expenses include marketing, advertising and networking costs to continue to grow your business, monthly or quarterly insurance rates and the costs of maintaining a website or personal blog. As your business grows, you may begin to outsource some of your content marketing or writing costs as well. Expect to re-invest anywhere between 5-10% of your income in marketing, with a minimum monthly spend of around $250 for website maintenance, ads and boosting social media posts as well as attending networking events. Depending on the level of client you service and level of insurance needed, this cost may be between $25 – $200 per month.

Who is the target market?

Preferred clients are individuals who are upwardly mobile, or who have recently been laid off from a mid-level or higher position. Understanding where people are in their leadership lifecycle is important to the type of advice and support you should offer to them.

There are no specific limitations on ages, but younger clients may be looking more for personal coaching, while older clients may need your assistance to stay up on current trends and assure that their resume is competitive.

Career coaches may also be hired by large organizations to help support high-level executives who are struggling with specific issues, such as dealing with difficult people or negotiations. These high-potential individuals may need a little boost in order to be as successful as possible in their position, or they may be preparing to take on new responsibilities.

How does a career coach business make money?

Career coaches make money by charging individuals or organizations for their services. Charging by the hour is the most common payment model in this line of work.

How much can you charge customers?

How much you’re able to charge clients depends on your level of experience and also the specific needs of your client. You may want to discount your services as you’re starting out in order to build your business. There are also likely to be people throughout your career that you want to help for various reasons, and you may discount your services for them as well. Some clients will want to work on an hourly basis, while others prefer to pay on a project-by-project basis. Still others will want to keep you on retainer: where you dedicate a certain number of hours per week or month to their support.

Depending on your skills and specialty, as well as the level of individual you are coaching, you can expect to charge between $100 and $500 per hour. The charge rate is vastly different depending on your geographic location. Here’s an example from the School of Coaching Mastery: an executive coach may charge $325 per hour, while a business coach might make around $235. A general career coach or “life coach” might charge around $160.

How much profit can a career coach business make?

If you’re fortunate enough to have good contacts and work with lucrative clients, many people are able to make a six-figure income through career coaching. For others, this is simply a side job that allows them to be more comfortable. As with many businesses, you will get out of the business what you put into it.

Considering monthly business costs of approximately $500 and working an average of 15 hours per week, a business coach charging $150 per hour would net $8,500 per month. Keep in mind that unless this is a second job, you would also need to cover taxes, health insurance and a range of other costs.

How can you make your business more profitable?

One of the most effective ways to increase the profitability of your business is through seeking out a higher level of clientele. While you may start with middle-managers or those who are beginning their career, you’ll eventually be able to work your way up to senior executives who have more disposable income to devote to growing their career.n

Another strategy is to take on apprentice coaches to increase  the number of clients you’re able to work with at any given time. This will also enhance the reputation of your company, and expand your network to bring in more new clients by word-of-mouth.

Day-to-Day and Growth

What happens during a typical day at a career coach business?

If you own a career coaching business, you’ll likely spend your day communicating with clients and doing research to help solve challenges. Continuing education is also in your future, as you’ll need to stay on top of leadership trends. Staying active on social media is also an important trait, as you’ll need to write and publish new content often to promote yourself as a leader in the career coaching space.

On a daily basis, you might find yourself re-writing a resume, updating a LinkedIn profile, polishing up a corporate presentation, or counseling a client on a particularly difficult situation with others.

What are some skills and experiences that will help you build a successful career coach business?

Empathy to others is always important when you’re working closely with individuals. Plus, you’ll need excellent oral and written communication skills, tact, patience, the ability to listen and learn new things. There are several levels of skills that will serve you well in this line of business: the ability to challenge others, specific, and give timely feedback as well as active listening skills such as observing body language and knowing when to break the silence. Reframing is also an important way to add perspective for your client. Many career coaching have a minimum of a Master’s Degree in their line of specialty — often a Master of Business Administration (MBA).

What is the growth potential for a career coach business?

Truly, the growth potential for a career coaching business is only limited by the owners ability to work hard and keep pushing! One way to continue to grow your business is by partnering with others. Executive coaching and leadership development companies such as Arden Coaching in New York can offer a stream of clients coming your way. According to the Bureau of Labor Statistics, individuals in this career path can expect to earn a median degree of $61,900 working full time. The good news is that the number of available positions in this career field is expected to grow at around 11%, which is faster than the average.

What are some insider tips for jump starting a career coach business?

Before you begin coaching others, it’s important that your own career is your first priority. Building a name for yourself and becoming respected in your business community is the best way to be successful. This jump start gives you a network of contacts that you can rely on as you begin working for yourself.

How and when to build a team

Feeling overly busy, and not sure when you’ll be able to get to all the tasks on your to do list? If you’re finding that you’re turning down jobs that you would have accepted when you first started your career coaching business, and you have the budget to take on extra help, it might be time to expand. The easiest duties to outsource are recurring items such as billing, filing, or other administrative duties.

Part 2 - Is a Career Coach business the right fit for you?

Part 3 - Action plan to launch your Career Coach business in 90 days