How to Start a Life Coaching Business

Before you take your first paid client, get the business basics right. This isn't glamorous, but it protects you and looks professional.

Choose a business structure. Most coaches start as a sole proprietorship (simplest, no filing required in most states) or an LLC (more protection, recommended). An LLC separates your personal assets from business liabilities. Filing costs range from $50-$500 depending on your state.

Register your business. File a DBA ("doing business as") with your county if using a name other than your legal name. Register with your state's Secretary of State for an LLC.

Get an EIN. A federal Employer Identification Number (free from IRS.gov) is needed for tax purposes, opening a business bank account, and filing taxes as anything other than a sole proprietor.

Open a business bank account. Keep business and personal finances separate from day one. This makes taxes simpler and looks more professional.

Get professional liability insurance. Covers claims of negligence, harm, or breach of duty. Typically $200-$500/year for coaches. Companies like HPSO and the ICF offer policies designed for coaches.

Create a coaching agreement. Every client should sign a contract covering: scope of services, fee structure and payment terms, cancellation policy, confidentiality boundaries, disclaimer that coaching is not therapy, and how either party can end the relationship.

This is the most important business decision you'll make. Generic "life coaching" is nearly impossible to market. A niche gives you:

A clear target audience. "Professionals navigating career transitions" is a market you can reach. "Everyone who wants a better life" is not.

Higher perceived expertise. An executive coaching specialist commands more authority (and higher rates) than a generalist.

Easier marketing. When you know exactly who you serve, your messaging, content, and networking become focused and effective.

The 2025 ICF Global Coaching Study found that 54% of coaches focus on leadership/executive coaching — the most common specialization because corporate clients pay premium rates. Other profitable niches include business coaching, career coaching, and health & wellness coaching.

Pick a niche that combines three things: your expertise/background, your passion, and market demand. Explore all options on our specializations page.

Pricing is where many new coaches get stuck. Here's a practical framework:

Start with market research. Look at what coaches in your niche and geographic area charge. Industry benchmarks:

New coaches (no credential): $50-$100/session. Certified coaches (ACC-level): $100-$200/session. Experienced coaches (PCC-level): $200-$350/session. Executive/corporate coaches: $300-$500+/session.

Consider packages over hourly billing. Most successful coaches sell packages — for example, a 3-month program at $1,500-$5,000 that includes 12 sessions, email support, and accountability check-ins. Packages give clients a clear commitment and give you predictable revenue.

Don't undercharge. Pricing too low signals low quality. It also makes your business unsustainable. Calculate your target annual income, divide by the number of client hours you can realistically deliver (remember, ICF reports coaches average 11.6 hours of coaching per week), and set your rates accordingly.

Raise rates as you build credibility. Start with rates that reflect your current experience level, then increase as you accumulate testimonials, credentials, and a track record. Most coaches raise rates 10-20% annually.

This is the hard part. Here's what actually works, based on what successful coaches report:

Start with your network. Your first clients will come from people who already know, like, and trust you. Tell everyone in your network that you're coaching. Offer a few pro bono or discounted "founding client" sessions to build testimonials and coaching hours.

Get referral partners. Therapists, HR professionals, recruiters, business consultants, and financial advisors serve the same audience you do. Build referral relationships where you send clients to each other.

Speak and teach. Workshops, webinars, and community talks establish your expertise and generate leads. Offer a free 45-minute workshop on a topic in your niche, then offer coaching to attendees who want to go deeper.

Leverage LinkedIn. For B2B coaching (executive, leadership, career), LinkedIn is the highest-converting platform. Share insights related to your niche, engage with your target audience's content, and use your profile as a coaching-focused landing page.

Offer discovery calls. A free 20-30 minute discovery call lets potential clients experience your coaching style before committing. Most coaches convert 30-50% of discovery calls into paying clients.

Long-term client acquisition requires consistent marketing. Focus on one or two channels that fit your audience:

A professional website. You need one. It doesn't need to be fancy, but it should clearly explain who you help, how you help them, your credentials, testimonials, and how to book a discovery call.

Content marketing. Blog posts, videos, or a podcast that demonstrates your expertise and attracts organic search traffic. Write about the problems your ideal clients are searching for.

Email list. Build an email list with a free resource (guide, checklist, assessment) related to your niche. Nurture subscribers with regular value-driven emails.

Social media (strategically). Pick one platform where your audience spends time. LinkedIn for corporate/executive. Instagram for wellness/lifestyle. TikTok if your audience skews younger. Don't try to be everywhere.

Avoid common mistakes. Don't spend money on paid ads until you've validated your offering organically. Don't post motivational quotes as your primary content strategy (it doesn't convert). Don't rely on coaching directories as your only lead source.

One-on-one coaching has a ceiling — you can only serve so many clients in a week. Coaches earning $100K+ typically diversify their revenue:

Group coaching. Serve 6-12 clients simultaneously at a lower per-person price. You earn more per hour while clients benefit from peer support.

Online courses. Package your methodology into a self-paced course. This creates passive income and reaches people who can't afford 1-on-1 coaching.

Corporate contracts. Organizations pay premium rates for coaching their leaders and teams. A single corporate contract can be worth $50,000-$200,000+ per year.

Workshops and retreats. In-person or virtual events generate revenue and position you as an expert in your niche.

Training other coaches. Experienced coaches can become mentor coaches or develop their own training programs. This is where the ICF ecosystem creates opportunities — mentor coaching is required for credential applicants.

The ICF reports that coaches globally also offer training (60%), consulting (57%), facilitation (55%), and mentoring (49%) alongside coaching (ICF 2025). Diversification isn't optional for most successful coaching businesses — it's the norm.