As you begin writing your life coach business plan, careful planning can help you create a path to professional success.
A quality life coaching business plan sets you apart from the competition and can help your business achieve long-term growth. If you’re ready to start planning, we’ll walk you through the steps to develop a life coaching business plan that will set your business up for success.
Who are we?
We’re Coach Training EDU, a life coach training center founded by two experienced life coaches. We’re on a mission to provide a world-class education to up-and-coming life coaches so they can go out and make a positive impact on the world. Thousands of students have completed CTEDU’s programs and started their careers as life coaches. And what’s the key to their success? They’ve created a solid business plan that helps guide them at every step of their journey.
Step One: Create Your Niche
More than just distinguishing yourself in a crowded market– it’s about understanding who you serve and how you can serve them best. Your niche should also be something you’re passionate about! After all, you’re coaching because you love it, right?
When choosing your niche consider your passions, expertise, and unique value only you could offer. When you narrow your focus to something you’re good at, passionate about, and qualified for, you become an authority in that area. Coaching clients who are looking for a coach in your niche will notice your experience suits them the best.
Some examples of life coaching niches:
- Health & Wellness Coach
- Executive Coach
- Academic Success Coach
- Personal Life Coach
- Relationship Coach
- Spiritual Coach
- Financial Coach
- Career Coach
- Parenting Coach
- Leadership Coach
- Creativity Coach
- Confidence Coach
- And many more!
Finding a specific niche doesn’t limit your potential, it amplifies it! By aligning your practice with the clients who will find the most success from working with you.
Step Two: Set Clear Business Goals and Objectives
Once you know where you want to go and who your target market is, it’s time to set clear business goals and objectives. These goals and objectives serve as milestones to achieve and form a mission statement about what you hope to achieve. Goals could be related to the number of clients you see, certain financial goals, or a certain number of services you offer.
These goals can be whatever speaks to you specifically, but should be measurable and achievable. Don’t only include your biggest goals, set milestones for yourself to celebrate along the way, too!
Employ the SMART Framework
To make sure your goals are measurable and achievable, try following the SMART framework. This means every goal will be specific, measurable, achievable, relevant, and time-bound. Here are a few examples:
Now write a few of your own utilizing this template:
Once your goals are set, you’ll want to regularly review and adjust them to meet your next milestone. This dynamic approach allows you to learn from past milestones and make the next set of goals even better! And rather than being defeated that you haven’t hit your long-term goals, you can track ongoing growth in a healthier way and stay motivated.
Step Three: Conducting Market Research & Analysis
Understanding your market is critical to your success. At this point you’ve dialed in your niche and goals, now it’s time to figure out what the market for coaching in that arena looks like. Conducting market research and analysis provides you with insights you may not have known. It can teach you about your target audience’s needs, preferences, and behaviors so you can tailor your offerings to best suit them.
Creating Your Ideal Client Profile
Identify who they are, what they do, and what they’re aspiring to achieve with the help of your services. Ask yourself questions like… what challenges are they facing? What are their strengths and weaknesses? Where are they located? What is the best way to find them?
Analyze Your Competitors
Get studious and learn what services your competitors offer and find their strengths and weaknesses. You may learn you need to differentiate yourself further, or you might find a lack of certain offerings you could cover.
Gather Information
Through surveys, online research, and industry reports, you can learn about what your clients are looking for. That information helps you to build a comprehensive picture of the coaching landscape.
Now that you have a solid understanding of your target clients, specific niche, and business goals — you’re ready to tackle your financial plan.
Step 4: Financially Plan For Your Life Coaching Business
“How do I Financially Plan for My Business”? This is a question we often receive from new coaches looking to build out their business. It is important to be both realistic and creative with your financial plan. What additional services could you offer? For more information on the types of revenue streams life coaches can offer, check out our blog: How to Make a Living as a Life Coach.
Start-Up Costs
These initial expenses are required to begin operating. This could include certification, website development, marketing materials, business licenses, and more. Considering that these costs will be incurred before you take on clients, so you’ll need to have this funding up-front.
Pricing Strategy
Determine how you’ll charge for your services. It’s important to decide if you’ll offer packages, hourly rates, or value-based pricing before you get your first client. Consider your target market’s ability to pay and your desired income when creating your pricing strategy.
Revenue Streams
Beyond one-on-one coaching, what additional revenue streams can you offer? From group coaching to workshops to online coaching or digital products– diversifying your income sources enhances financial stability.
Financial Projections
Part of a successful coaching business plan includes forecasting revenue, expenses, and cash flow for the first few years. Once you’re up and running, update these projections regularly with your actual performance. If needed, adjust your strategies accordingly.
On-Going Costs
Consider ongoing costs that you may need to run your practice. Will you be running paid advertising? Do you need software to support your online coaching business? Does your business model require overhead costs like a physical office? It’s a great idea to calculate what it will cost to operate on a monthly, quarterly, and annual basis and to factor that into your projections.
Step 5: Build a Marketing Strategy
The next step in creating a life coach business plan is to develop a marketing strategy to reach your new clients! You’ve found your niche, researched where your audience can be found, and developed services that suit their needs and budget– employing a well-thought-out marketing strategy can help get your services connected to the clients who need them!
Digital Marketing
Digital marketing covers many areas like email marketing, blogs, articles, video content, and more. Before you dive into Google ads or writing hundreds of blogs, be sure to tailor your content to address the common challenges and goals of your target market. Showcase that expertise and find them where they hang out online. Marketing to executives? Start a must-read newsletter. Marketing to parents? Write advice blogs.
Social Media Marketing
Through organic and paid advertising like Facebook ads, Instagram accounts, TikTok, X, and beyond– the social media marketing landscape is vast and it seems you can access anybody through these channels. Create ads with impact by creating valuable content that offers a taste of what you provide your clients. Don’t miss out on the opportunity to dial in your ads by region, age group, hobbies, and more to make sure your marketing reaches the right groups.
Networking
Whether it’s a local chapter of coaches, a workshop, or online communities that suit your niche– connect with other coaches, potential clients, and other professionals regularly. Building a network can lead to referrals, but also will support you along the way in this journey.
Personal Branding
Developing a brand that reflects both your coaching philosophy and unique offerings can help you stand apart from the crowd. Thinking about your approach from day one can help you create a successful business that has cohesive branding that represents who you are and what you offer.
Word of Mouth Marketing
Don’t be bashful– share your success stories and testimonials far and wide. This builds credibility and trust, and potential clients are more likely to engage in your services when they see your real-life results. Don’t be afraid to tell friends, colleagues, and network contacts that you’re accepting new clients. You never know when someone may know somebody who needs your services and refer them!
How Do I Acquire and Retain Clients at My Coaching Practice?
There are many ways to turn networking into a new client. Consider these strategies for keeping your services top-of-mind for potential and returning clients.
Acquisition and Retention Methods:
- Providing Resources or Workshops
- Free Support Groups
- Text Marketing
- Email List Marketing
- Newsletters
- Free Initial Consultations
- Referral Programs
Continuing to offer value beyond coaching sessions via free resources, workshops, and support groups can enhance client satisfaction and loyalty and also create a community that is invested in staying with your practice long-term.
Step 6: Monitor and Adapt Your Business Plan
It’s time to get to work, and after a few months, you should begin to see the fruits of your labor as you welcome your first client and get coaching. But even a simple life coaching business plan needs ongoing monitoring to adapt to market trends, focus on what’s working, and adjust when things aren’t going well. The pros are keeping their plans evolving by following these steps to check in and re-evaluate if needed.
Remember:
Your business plan is a living document that can adapt and change, just like you! Developing a mindset of continuous improvement and adaptability will set you up for long term success and help you evolve.
Regular Reviews
Schedule quarterly or bi-annual reviews of your business plan to assess your progress. Look at the whole picture, not just financials or client count, but how it all works together, and see if you’re meeting your goals and milestones.
Asking for Feedback
If you’re wondering what clients, peers, and mentors are thinking about how things are going… just ask! Implementing feedback into your business planning process can reveal opportunities for improvement or expansion that you may not have considered. But be ready to get potential negative feedback as well. Staying open to opinions of all kinds can help you learn and grow.
Staying on Top of Market Trends
Don’t get so consumed by your work that you tune out of innovations in the coaching industry. Staying informed by following thought leaders on Linkedin, subscribing to newsletters about the latest trends, and listening to podcasts relevant to the field keeps your practice competitive and relevant.
Check Out CTEDU’s Coaching Workshops, Community Events, Continuing Education Events and More!
Be Flexible When Something Isn’t Working
Don’t be afraid to pivot when something isn’t working quite right. Whether it’s an internal performance issue or external changes in the market or economy– staying flexible and being open to pivoting to new opportunities can help you continue to grow and mitigate potential risks and losses.
The Competitive Edge: Continuing Your Education
It can be easy to get caught up in all the planning and working with clients and neglect your ongoing education, but that could harm your business in the long run. Staying on top of new methodologies, connecting with your peers, learning from their practices, and expanding your knowledge within your niche can help you grow and provide even more services to your clients.
FINAL STEP: Get Inspired to Inspire Others
Whether you’re writing a life coach business plan right this minute or are still in the planning stages, we hope this guide has helped you to understand everything that goes into setting up a successful strategy for your practice. A life coach business plan is a living, flexible document, and if you take the time to thoughtfully create it, you’ll see results for years to come.
