How to Start a Business Coaching Business: A Comprehensive Guide

Starting a business coaching business is a rewarding way to leverage your expertise and help other entrepreneurs grow their companies. Business coaching is a rapidly growing industry as more people recognize the value of guidance and mentorship when it comes to scaling their ventures, improving productivity, and achieving long-term success. Whether you want to offer one-on-one sessions or group coaching, in-person or online, there’s a format that fits your skills and goals.

In this guide, we’ll cover everything you need to know to start a successful business coaching business, including types of coaching, formats, costs, profitability, marketing strategies, and the best technologies to use.

What Is Business Coaching?

Business coaching is a professional service that helps entrepreneurs, business owners, and executives develop strategies, set goals, solve problems, and grow their companies. Coaches provide personalized guidance, accountability, and support to help clients overcome challenges, improve their business operations, and scale efficiently.

Business coaching focuses on various aspects of running a business, such as:

• Leadership and management

• Financial planning and cash flow management

• Marketing strategies and customer acquisition

• Productivity and time management

• Team building and employee development

• Scaling and business growth strategies

Unlike consulting, where experts may take an active role in solving business problems, coaches focus on empowering clients to make their own decisions by guiding them through the process.

Types of Business Coaching

There are several types of business coaching, each targeting specific areas of expertise or client needs. When starting your business coaching business, consider which type of coaching aligns best with your skills and target market:

1. Executive Coaching: This type of coaching focuses on leadership and management skills, often targeting high-level executives and business owners. Executive coaches help clients navigate complex business environments, enhance decision-making, and improve leadership effectiveness.

2. Small Business Coaching: Designed for small business owners and entrepreneurs, small business coaching focuses on all aspects of running a successful small business, from marketing to operations and growth strategies.

3. Startup Coaching: This niche is aimed at startup founders and early-stage businesses. Startup coaches help entrepreneurs with the foundational aspects of launching a business, from developing a business plan to fundraising and scaling.

4. Niche-Specific Coaching: Coaches can specialize in particular industries, such as e-commerce, real estate, or tech. Niche-specific coaching offers industry-relevant insights, helping business owners navigate unique challenges and opportunities.

5. Mindset Coaching: While not directly tied to business operations, mindset coaching focuses on personal development, confidence, and overcoming mental barriers that may limit business success. It’s often paired with business coaching to create a more holistic approach.

Formats for Business Coaching

When starting your business coaching business, you can choose from a variety of formats, depending on how you want to interact with clients. Consider the following formats when deciding how to structure your services:

1. 1:1 Coaching

• What it is: One-on-one coaching provides personalized guidance tailored to an individual client’s needs. Sessions are typically more intensive, offering specific feedback and strategies for the client’s business challenges.

• Advantages: Provides a high level of customization and personal attention, making it easier to address specific issues and foster a strong relationship with the client.

• Disadvantages: Time-consuming and less scalable, limiting the number of clients you can serve at once.

2. Group Coaching

• What it is: Group coaching involves coaching multiple clients at once, often in a workshop or mastermind setting. This format allows participants to learn from both the coach and each other.

• Advantages: More scalable than 1:1 coaching, allowing you to serve multiple clients at once. Group dynamics also foster collaboration and shared learning.

• Disadvantages: Less personalized than 1:1 coaching and may not be suitable for clients with highly specific needs.

3. Online Coaching

• What it is: Online coaching takes place via video calls, webinars, or online courses, allowing you to reach clients across the globe. Platforms like Zoom, Skype, or dedicated coaching tools can be used to facilitate sessions.

• Advantages: Offers flexibility for both you and your clients, expands your client base globally, and lowers overhead costs.

• Disadvantages: Limited face-to-face interaction, which can sometimes make it harder to build rapport.

4. In-Person Coaching

• What it is: In-person coaching takes place in physical meetings, whether at the client’s office, your own workspace, or a neutral location.

• Advantages: Builds stronger personal connections and allows for deeper, more interactive sessions. Useful for clients who prefer face-to-face interaction.

• Disadvantages: Limited to clients in your geographical area, making it harder to scale.

How Much Does It Cost to Start a Business Coaching Business?

Starting a business coaching business typically requires lower upfront costs compared to traditional brick-and-mortar businesses, but it still requires some investment in marketing, tools, and certifications. Here’s a breakdown of potential costs:

1. Certifications and Training: While not mandatory, getting certified by a recognized coaching organization (e.g., International Coach Federation) can boost your credibility. Certification programs can range from $1,000 to $5,000, depending on the level of certification and provider.

2. Website and Branding: You’ll need a professional website to showcase your services and attract clients. A basic website with branding can cost between $500 and $3,000, depending on whether you hire a professional or use DIY website builders.

3. Marketing and Advertising: Digital marketing, including social media ads, Google ads, and content marketing, may cost anywhere from $500 to $5,000 per month, depending on your target audience and marketing strategy.

4. Coaching Tools and Software: Investing in coaching platforms like Skool or Kajabi for managing courses, memberships, and client interactions can cost between $100 and $200 per month.

5. Business Expenses: Other costs may include liability insurance, office supplies, and any additional tools you need for online coaching, such as video conferencing software.

In total, startup costs can range from $2,000 to $10,000, depending on the scope of your business and the tools you choose to invest in.

How Profitable Can a Business Coaching Business Be?

A business coaching business can be highly profitable, depending on how you structure your services, pricing, and client base. On average, business coaches charge between $100 and $500 per hour for 1:1 sessions. Group coaching or online programs may generate even more revenue if priced effectively.

Here’s an estimate of potential earnings:

• 1:1 Coaching: With 10 clients paying $300 per session, you could earn $3,000 per week, or $144,000 per year.

• Group Coaching: If you run group coaching sessions with 10 participants paying $1,000 for a 6-week program, you could earn $10,000 for each group cycle. Running four cycles per year could bring in $40,000.

• Online Courses: With platforms like Kajabi, you can sell online coaching courses. If 100 clients purchase a $500 course, you could earn $50,000 from one course.

With multiple revenue streams like 1:1 coaching, group coaching, and online courses, a well-run business coaching business can generate anywhere from $50,000 to $250,000+ annually.

How to Create a Business Plan for a Coaching Business

Creating a business plan is essential for outlining your goals, services, and strategies. Here are the key components of a business plan for a coaching business:

1. Executive Summary: Summarize your coaching business’s mission, vision, and the type of coaching you’ll offer (e.g., executive coaching, small business coaching).

2. Market Research: Identify your target audience, competitors, and market demand. Analyze your niche to understand the pain points of potential clients.

3. Service Offerings: Detail the coaching services you’ll provide (1:1 coaching, group coaching, online programs) and the specific issues you’ll help clients solve (e.g., scaling their business, leadership development).

4. Pricing Strategy: Set pricing for each service, whether you charge hourly, per session, or through fixed programs. Include discounts for longer commitments or package deals.

5. Marketing Strategy: Outline your marketing plan, including how you’ll attract clients through social media, SEO, email marketing, and paid advertising.

6. Operational Plan: Define how you’ll deliver your services, whether in person, online, or a combination of both. Include details about the technology platforms you’ll use to facilitate coaching.

7. Financial Projections: Estimate your revenue, expenses, and profitability for the first year of operations. Include pricing tiers, client acquisition costs, and projections for scaling.

How to Market a Business Coaching Business

Marketing your business coaching business is essential for attracting clients and establishing your brand. Here are some effective strategies:

1. Content Marketing: Create valuable content (blog posts, videos, webinars) that addresses the challenges faced by your target clients. This helps establish your expertise and build trust with potential clients.

2. Social Media Advertising: Platforms like LinkedIn, Facebook, and Instagram are perfect for targeting business owners and entrepreneurs. Use paid ads to promote your coaching services and drive traffic to your website.

3. SEO and Website Optimization: Ensure your website ranks well for key terms like “business coach” or “leadership coaching” through search engine optimization (SEO). Create landing pages for each of your services to capture leads.

4. Email Marketing: Build an email list by offering free resources, such as eBooks, webinars, or guides. Nurture your email subscribers with valuable content and promote your coaching services through targeted email campaigns.

5. Networking and Speaking Engagements: Attend business events, conferences, and networking meetings to connect with potential clients. Offer free workshops or presentations to showcase your expertise and attract interest in your coaching services.

6. Referral Programs: Encourage satisfied clients to refer your services by offering incentives, such as discounts or free coaching sessions. Word-of-mouth referrals are powerful in the coaching industry, as people trust recommendations from others they know.

7. Client Testimonials and Case Studies: Showcase your success stories on your website and social media platforms. Client testimonials and case studies build credibility and provide social proof that your coaching delivers results.

Technologies to Use for Your Business Coaching Business

Leveraging technology is crucial to running an efficient, scalable coaching business. Here are some of the best platforms and tools to help manage clients, deliver coaching sessions, and build online programs:

1. Kajabi

• What It Does: Kajabi is an all-in-one platform for building and marketing online coaching programs, courses, and memberships. It provides tools for creating online content, email marketing, sales funnels, and client management.

• Best For: Coaches looking to sell online courses, create membership sites, or run group coaching programs.

• Cost: Starts at $119/month.

2. Skool

• What It Does: Skool is a community-based platform that allows you to build and manage coaching communities and online classrooms. It enables group learning, resource sharing, and discussions within your coaching cohorts.

• Best For: Coaches who want to build engaged communities or run group coaching programs with a social learning component.

• Cost: $99/month.

3. Zoom

• What It Does: Zoom is a popular video conferencing tool for running online coaching sessions. It offers features like screen sharing, recording, and breakout rooms, making it ideal for both one-on-one and group coaching.

• Best For: Online or remote coaching sessions.

• Cost: Free for basic accounts, $149.90/year for Zoom Pro.

4. Calendly

• What It Does: Calendly is a scheduling tool that allows clients to book coaching sessions based on your availability. It integrates with your calendar and automates reminders for both you and your clients.

• Best For: Simplifying session bookings and managing your schedule.

• Cost: Free for basic features, with paid plans starting at $8/month.

5. Stripe or PayPal

• What It Does: Both Stripe and PayPal are payment processing platforms that allow you to accept payments online. They integrate easily with most websites and coaching platforms.

• Best For: Handling online payments for coaching sessions, programs, or memberships.

• Cost: Both platforms charge transaction fees of approximately 2.9% + $0.30 per transaction.

Top 5 Business Coaching Providers in the World

Business coaching has become an essential resource for entrepreneurs and business owners looking to grow and scale their ventures. The following are five of the top business coaching providers globally, recognized for their innovative programs, expert guidance, and proven results:

1. The Entourage

• Location: Australia (Global Reach)

• About: The Entourage is Australia's largest business coaching provider, founded by entrepreneur Jack Delosa. It focuses on helping small and medium-sized businesses grow through strategic planning, sales, marketing, leadership development, and scaling initiatives. The Entourage offers a mix of online and in-person coaching, and its programs are designed for founders and business owners looking to take their businesses to the next level.

• Specialty: Scaling small and medium-sized businesses, particularly in the Australian market.

• Notable Programs: Elevate, Scale, Accelerate Programs.

2. Tony Robbins Business Mastery

• Location: Global (Based in the U.S.)

• About: Tony Robbins is one of the world’s most renowned motivational speakers and life coaches, and his Business Mastery program focuses on transforming businesses through mindset shifts, strategic innovation, and leadership training. Business Mastery is designed to teach business owners how to optimize their companies, drive growth, and create sustainable long-term success.

• Specialty: Mindset transformation and strategic business growth.

• Notable Programs: Business Mastery, Platinum Partnership.

3. ActionCOACH

• Location: Global

• About: Founded in 1997 by Brad Sugars, ActionCOACH is one of the largest and most recognized business coaching franchises worldwide. It offers personalized coaching services to help businesses of all sizes improve their leadership, sales, marketing, and operational efficiency. ActionCOACH has a large network of certified coaches and operates in over 80 countries, making it a go-to provider for business owners seeking structured, results-driven coaching.

• Specialty: Systematic, practical coaching for small and medium-sized enterprises.

• Notable Programs: One-on-One Coaching, Group Coaching, Workshops.

4. Vistage Worldwide

• Location: Global

• About: Vistage is a global organization that provides executive coaching, leadership development, and peer advisory groups for CEOs, business owners, and senior executives. With a network of over 23,000 members worldwide, Vistage focuses on helping leaders grow their businesses through shared knowledge, mentorship, and coaching from experienced business leaders.

• Specialty: Executive coaching and peer advisory groups for senior leaders.

• Notable Programs: Executive Leadership Programs, CEO Peer Groups.

5. Gazelles International (Scaling Up)

• Location: Global

• About: Gazelles International, now known as Scaling Up, was founded by Verne Harnish and is recognized for helping mid-sized companies scale efficiently. The Scaling Up Methodology focuses on four critical areas: people, strategy, execution, and cash flow. Coaches affiliated with Gazelles help businesses improve their operations, grow their revenues, and optimize leadership structures.

• Specialty: Helping mid-sized businesses grow using the Scaling Up methodology.

• Notable Programs: Scaling Up Executive Program, CEO Coaching.

Conclusion

Starting a business coaching business can be a highly profitable and fulfilling career, allowing you to share your expertise and help other entrepreneurs succeed. By understanding the different types of coaching, selecting the right format (whether 1:1 or group, online or in-person), and leveraging technology, you can build a scalable and sustainable coaching business.

Creating a detailed business plan, marketing your services effectively, and investing in the right tools like Kajabi, Skool, and Zoom will set you up for success. With a combination of expertise, dedication, and the right approach, you can turn your passion for business coaching into a thriving enterprise that empowers others to achieve their goals.