Life coaches are basically people who help other people incorporate significant changes in their lives that they have been struggling to make to better their lives. It can be from any aspect – betterment in careers, relationships, health, or any other aspect.
Whatever it is, starting a business can be very overwhelming, and that’s why we are here today to make some things streamlined for you. Here are the ten basic steps you first need to focus on in the very beginning while opening a life coaching business.
- Plan your business
A crystal clear plan is the first essential plan for a successful business, not to mention a backup plan if it fails and another backup for the backup. In short, you need heavy planning for everything. It will not only help you track your next and successive steps in the business but also help you identify the areas where there might be a shortcoming, and you need to resolve the problem before it arrives. A few important questions to start out are:
- What will be the total startup and current production costs?
- What can be the range to charge your customers for the service you are giving?
- What will be the name of your business?
To give a head start, we have done some research for you as below:
- Launching a life coaching startup is generally a low-cost venture. Business owners first-off require reliable transportation, a communication system (preferably a phone), a computer, and of course, basic internet access. Other initial startup expenses may include client acquisition or marketing costs and business insurance.
- Later on, as the business takes up a pace, the costs can grow a bit like when coaches cannot handle everything single-handedly and have to hire employees or open physical offices. This will cost labor, utility, and rent expenses. This is optional.
- How much can you charge customers? The topmost strata of life coaches charge as high as $3,500 for only an hour of sitting, and mostly CEOs are their clients. The average life coaches’ hour-based rates range somewhere between $75 to $200. Alternatively, retainer charges typically range between $500 to $2,000 a month.
- Choosing a right name is very crucial for any business, not to mention a challenging task.
When registering your business name, you must research about the following things:
- Your state’s list of business records
- Records of state and federal trademark
- Social media usernames across all platforms
- Availability of web domain – grab your domain name before somebody else! It’s very crucial.
2. Form a legal entity
The four major business structures are – partnership, sole proprietorship, corporation, and limited liability company (LLC).
Legally establishing your business as a corporation or LLC will protect you personally if your business is sued.
3. Register for taxes
You have to finish registering for several federal and state taxes before you can physically open for business.
4. Create a business bank account and credit card
Using a dedicated business bank account and credit cards are essential for the protection of personal assets.
5. Setting up a business accounting system
Recording the various expenses along with the sources of income is very critical for understanding the overall financial performance of the business. You have to keep all the accurate details of inflow and outflow of income, including profits and debt profiles, from the very beginning.
6. Obtain necessary permits and licenses
Failure of getting necessary licenses and permits can lead to hefty fines and even lead to your business completely shut down.
7. Get business insurance
Just like with licenses or permits, a business requires insurance to survive and operate lawfully and safely. Business Insurance will help you protect your business’s financial well-being during any event of a loss.
Beginning with the most common General Liability Insurance, there are several other insurances for companies. However, you can choose this when starting out.
8. Defining your brand
Your brand will be your power even if your business is going down and your brand has the ability to bring it back up.
Radio or newspaper advertisements are a common choice for marketing and brand building when it comes to a life coaching business. As a business owner, you can also ask your current clients to refer to any other potential customers. You can also possibly arrange for a free sitting as part of client acquisition.
9. Creating your dedicated business website
After defining clear goals for your brand and finalizing the logo, the very next step for your business would be to create a dedicated website for your business.
10. Don’t give up
The last but the most important step for any business is not giving up.