Are you an aspiring coach planning to start your life coaching business? Then, you might be curious about the investment to kickstart your new journey. There are several things to consider here, such as certifications, permits, branding, etc.
A few months down the road, if you are scaling your business, you need to set your budget for altogether different things! This blog offers a quick breakdown of all the essential expenses and hidden costs you might incur as you start your life coaching business.
Let’s find out which costs are ineludible and the ones you can cut down through your journey!
What are the Cost Considerations for Starting a Life Coaching Business?
Life coaching is a demanding and fulfilling profession! Essentially, the cost of life coaching depends on whether you’re starting from scratch or possess some kind of experience.
Approximately, it takes from a few hundred dollars to $15,000 to become a life coach.
Essential Costs
1. Education
If you’re starting as a new coach, it’s recommended that you invest in education. A good certification offers you a foundation to build your business and gain credibility as a life coach.
Certification can cost from $3,000 to $13,000, depending on whether it’s a virtual, self-paced, in-person, private or group coaching program.
Here’s a list of popular certifications to start as a life coach:
● iPEC’s ICF Accredited Coach Training Program
● Coach Training Alliance
● Georgetown University Executive Coaching Program
2. Systems
Once you have your initial clients, running your coaching business can be easier with if you have an organized system in place.
These are the tools that help you to offer a seamless coaching experience:
● Calendly – Scheduling software for coaching calls
● Stripe/Paypal – Payment processor for managing transactions
● Mail Chimp and Google Analytics – Marketing tools
● Social Media Scheduler – Manages social media post scheduling across multiple accounts
● Zoom, Google Meet, LessonSpace– Video conferencing for coaching calls
● Bookkeeper – Accounts & Tax Management
● File Hosting & CRM Automation
3. Registration
Life coaches often choose sole proprietorship or Limited Liability Company (LLC) as their business structure. Sole proprietorship is the simplest business structure, where the company is owned and operated by a single person. There is no setup cost, and minimal paperwork is involved.
Setting up an LLC means protecting your business from debts and liabilities. Setting up an LLC ranges from $50 to $500, depending on your state filing fees.
4. Insurance & Licenses
Business insurance is another essential cost as a life coach and often involves liability insurance. This protects your coaching business from unexpected legal circumstances and offers a safety net.
Your insurance cost typically depends on your business needs and insurance coverage.
5. Marketing & Branding
You can’t run your business with just 4-5 clients! Hence, investing in branding and promotions is essential for spreading the word!
Dedicate 5-10% of your yearly revenue to marketing.
Marketing includes the following strategies:
● Website development, web and domain hosting
● Social media engagement and advertising
● Webinars and email marketing
● Creating podcasts
● Collaborations and referrals
6. Coaching Platform
Once you gain enough clients, you can use coaching software to streamline your business. The cost involved depends on the features your business requires. For example, calendar management might be essential for a new coach, but a shopping cart or course delivery module would be an optional feature.
Optional Costs
Now, let’s explore the additional costs involved in your coaching business!
1. Organization Fees
Coaching organizations can support and help in professional development as coaches. Although joining a coaching organization isn’t compulsory, it can prove valuable and help to network.
The yearly membership fees might vary from $100 to $1000, depending on the tier. Popular organizations include the International Coaching Federation, Association of Coaching, and International Association of Coaching.
2. Office Space & Equipment
Renting an office space might not be a necessary investment for an online business. A dedicated home space with the necessary equipment, such as Wi-Fi, headsets, and laptops, would be enough while starting.
3. Mentorship
While you might be certified from the best institute or have the most convincing business plan, experience and wisdom matter! It’s always good to seek the advice of someone who has walked a similar path.
Invest in a good coaching mentorship program to overcome the initial roadblocks!
Scaling Costs
While most people associate coaching costs with launching your business, growing your business is also essential to the roadmap!
1. Virtual Assistant/Assistant Coach
Once you reach 50 -100 clients, you can hire a virtual assistant or 2-3 assistant coaches to address queries, manage booking calls and respond to DMs in your email inboxes.
A virtual assistant could cost around $1200 – $5000 monthly.
2. Advanced Certification
Upgrading yourself with the industry trends and advanced certifications could help you climb the ladder!
Other effective strategies to scale your business are increasing your ad spend, offering new coaching offers, etc.
Last but not least, the time and effort you put into running your business also has value and comes with an inherent cost!
Conclusion
Building a coaching business comes with its own challenges and definitive cost. However, it’s your experience, hard work and dedication that help you make a six-figure income! Further, if you wish to build a community marketplace around your life coaching business, a ready-made script like Pinlearn is a valuable investment, offering all-in-one software under a single roof!
