Startup cost
$500–$5k
TRUiC Business Ideas
How to Start a Life Coaching Business
Decision Snapshot
Life Coaching
Idea Score
69
Profit margin
28%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Low
Time commitment
Part time
Part 1 - How to start a Life Coaching business - Background
Almost everyone wants to better themselves, but many people struggle to make significant improvements. Life coaching business help people make the changes they want to see in their lives, whether those changes are related to their careers, health, relationships, or some other aspect of life.
A life coach is there to speak with clients about any issues the clients have, help clients set motivating goals for themselves, navigate through important personal and professional decisions, and much more. Though most life coaches help coach clients in various aspects in their lives, it is possible to specialize your coaching to an area about which you are really passionate. A few examples of specialized life coaches include health coaches, special needs life coaches, relationship coaches, career coaches, and executive coaches.
You may also be interested in additional side hustle ideas.
Our guide is in 3 parts:
- Part 1 - How to start a Life Coaching 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 life coaching business?
Starting up a life coaching business is a low-cost endeavor. Business owners need reliable transportation, a phone, a computer and internet access. Other expenses include marketing costs and insurance.
To keep initial expenses minimal, most business owners use their personal vehicle, phone and computer when starting out, and they meet clients in public places (e.g. coffee shops or business centers).
What are the ongoing expenses for a life coaching business?
The ongoing expenses for a life coaching business, like the startup expenses, are low. Ongoing costs include expenses for insurance, marketing, transportation, internet access and a phone. Coaches that hire employees and open offices also have labor, rent and utility expenses, but coaches don’t have to take their business in this direction.
Who is the target market?
Your clients will be people that are looking to make improvements in their lives. They may be people who feel like they are caught in a slump and need a kickstart to start succeeding the way that they want to, or they may be already successful individuals that are looking for someone to help coach them through successfully managing the various tasks and situations that they have to handle.
Regardless of the situation in which your clients find themselves, they will be looking for a life coach who gives off an aura of success, confidence, and support.
How does a life coaching business make money?
A life coaching business makes money by charging clients for coaching services. Coaches often either charge an hourly fee or request a retainer. (A retainer is when a client is guaranteed that a professional, such as a coach, will be available for a certain amount of time in a given week or month.)
How much can you charge customers?
Top life coaches charge as much as $3,500 per hour to help CEOs and other executives, but few are able to command such high salaries. Most life coaches’ hourly rates fall between $75 and $200 per hour coaching a client, which doesn’t typically include prep time. When working on a retainer, coaches typically charge a client between $500 and $2,000 per month.
How much profit can a life coaching business make?
Citing an ICF study, the Bureau of Labor Statistics reports that the average life coach earned $61,900 in 2015. This is substantially higher than the median annual wage of $36,200 that year.
How can you make your business more profitable?
Life coaches can increase their revenue by offering coaching online, or running classes or seminars. Online coaching doesn’t require traveling to meetings, so life coaches are able to serve more clients. Classes and seminars also help coaches reach more clients, as they can speak to several people at once in each setting. Classes and seminars can be especially successful after a coach has a list of established clients to recruit to a class or seminar.
Day-to-Day and Growth
What happens during a typical day at a life coaching business?
Life coaches spend much of their time meeting with clients. Many coaches meet with each client two to four times in each month. Meetings usually last between 20 and 60 minutes, but this doesn’t include doing pre-meeting preparation, driving to and from meetings, and taking post-meeting notes. An hour-long meeting may easily take up two hours of a business owner’s time, especially if it’s held at a client’s location.
Coaches can reduce the time they spend driving to and from meetings by having clients come to an office. Clients may not want to drive to an office, though, and running an office increases overhead. When not meeting with clients, life coaches often spend time building on their own skills by attending seminars and marketing their businesses.
What are some skills and experiences that will help you build a successful life coaching business?
In most places, there is no legal obligation to obtain certification for life coaching. Anyone can start a business and be a self-proclaimed life coach. However, becoming a certified life coach can provide a lot of benefits that will help you succeed in your coaching. Two of these benefits are very important.
First of all, certification helps to distinguish you from the “self-proclaimed life coaches” that have sprung up online. It is not uncommon for someone to abuse the lack of legal certifications in order to take advantage of clients. So your potential clients will worry about the legitimacy of your business if you are uncertified. Certification will provide your clients with a sense of trust before you even begin to work with them.
Secondly, certification involves training that will help you become the best coach you can be. Not only will training help you learn techniques that will help you service clients as well as you can, it will also help you learn how to think like a successful coach in order to succeed in your own personal and professional endeavors.
You can learn these beneficial life coaching strategies and methods through books, such as The Life Coaching Handbook, and classes, like the training programs offered by the International Coach Federation (ICF). The International Association of Coaching (IAC) also has resources available for members.
What is the growth potential for a life coaching business?
Life coaching business’ brands often revolve around the business owner. Even if a business has employees providing coaching service, the business owner is usually the leader who oversees all coaching. Therefore, they become the face of the company.
Because the business owner is largely a life coaching business’ brand, the growth potential is somewhat limited. Business owners often garner a reputation within a geographic region or an industry, and this market eventually defines how large a business can become.
What are some insider tips for jump starting a life coaching business?
When working as a life coach, it’s vitally important to “dress for success.” Clients hire life coaches to help them be successful, and portraying an image of success will give clients confidence in a business. Life coaches should both look professional and act professional whenever they’re seeing clients.
Having a credential can also give clients confidence. The most widely recognized credentialing body is the ICF, which offers associate, professional and master coaching certifications.
How and when to build a team
Life coaching businesses can be run by one person, and some coaches never hire employees. Others find that hiring a personal assistant streamlines their workflow, as an assistant can help prepare documents and schedule meetings. A few life coaches hire other employees to coach clients in specific areas. Having several employees, each specializing in a different area of coaching, helps a business appeal to a broader market and lets it provide more comprehensive coaching.
Part 2 - Is a Life Coaching business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Life Coaching business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Life Coaching Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Life Coaching business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.