Coaching is one of the fastest growing sectors today, sitting at an estimated market size of almost $20 billion today. People have started understanding the role, impact and need of coaches for a better personal and professional life.
If you’re a coach or thinking of starting a coaching business, writing a viable and rock-solid business plan is the first step to show you the reality.
Why should you have a coaching business plan?
There is an old profound Chinese proverb. A journey of a thousand miles begins with a single step.
Once you’re mentally ready and sure, think of creating a coaching business plan as that first step.
There are several reasons to write a coaching business plan whenever you get to know about the importance. I will share top 3.
It gives you the clarity about your purpose, goals, actions and expectations. See it like your playbook, outlining your gameplan for your coaching business.
It helps you with risk mitigation. When you write your potential challenges, roadblocks and risks, you will be better equipped to address them.
It keeps you focused and on track
Business Overview
Business overview covers the foundational elements of your coaching business such as business name, legal structure, history if any, vision and mission statement.
Example of business overview for a life coaching business
- About the Business
- Ownership
- Vision statement
- Mission statement
This section should give a clear, brief yet in-depth idea of your coaching business. Additionally, write this section in an engaging and precise manner
Coaching Business Model
The way you deliver your coaching makes a huge difference in your profits, time and business goals. This section helps you stick to the most viable and profitable coaching model.
Write this section by answering the following questions:
- Are you most comfortable delivering one to one private coaching or in a group?
- Is your offering more suitable to group or one to one ensuring maximum value to the customer?
- If you choose to go with one-to-one mode, can you sustain with your pricing and demand in the market?
- If you choose to go with the group programs, are you ready to invest the time, effort, patience and money to create the groups?
- How do you plan to deliver the coaching? Offline or online or both? Think about the cost and time involved for each mode of delivery.
- Have you thought of creating online courses that buyers can use without your live involvement?
It’s best to start with one-on-one business model because it is independent, easy to start and sustain when you’re establishing your personal brand as a coach. However, the model isn’t scalable. After 10-15 clients, you will be fully booked without much scope of growth.
Online courses make the most scalable offerings when you have created a powerful and credible personal brand to sell the courses under your name.
Irrespective of the business model you choose, its important to be sure about the three key elements for your coaching business.
1. The right product that sells
2. The right and ready audience
3. The right price that buyers can’t say No to
People loved reading: When is the Right Time to Get Business Coaching
Offerings and products
This section describes the list of free and paid offerings and products your coaching business sells. Write this section by answering the following prompts:
List of sellable services along with their pricing range. For example, you might be offering corporate trainings, one to one coaching, masterclasses etc.
Describe each service with clear details, duration, outcome and eligibility of the participants.
Write your coaching methodology and style you will use for every offering. If you’re working with team or in collaboration, mention the qualification and credentials of the coaches who can deliver the services.
List the tools and assessments you plan to add to make your offerings more valuable.
Be sure that the offerings are customer-focused and look equally irresistible to your prospective collaborators, partners and investors.
Industry Analysis
This section encourages you to research, evaluate and understand the market better. You can draft a better marketing and penetration strategy when you understand you market, it’s trends and demands well.
Answer the following questions to write the industry analysis section in your coaching business plan.
- How big is your coaching niche market [in your currency or based upon the audience you operate in]?
- Is the market declining or increasing?
- What trends are affecting your niche market?
- What is your coaching niche’s growth forecast over the next 5 – 10 years?
Example of Industry Analysis section for a health coaching business plan
You may read: 10 Essentials of Coaching Business – Profitable Assets & Key Elements
Competitive Analysis
Knowing your competition helps you position your coaching business and personal brand differently. It helps you amplify your strengths and competitive edge.
Research and identify both, direct and indirect competition of your coaching business. Direct competitors are other coaches in your niche. Indirect competitors are the options for your potential clients consider. For example, for a body building and fitness coach, Yoga teachers can be an indirect competitor.
Consider answering the following questions to write a good competition analysis in your coaching business plan
- What kind of clients they’re serving
- Their pricing level [low, premium]
- Their strengths and weak areas
- The quality of their offering and products
- The age of their business and brand in the market
- Number of clients they have served/serving
Answering these questions in your coaching business plan will help you document and plan your offerings, pricing, quality and client acquisition strategy.
Example of competition analysis for a career coaching business plan
Customer Analysis
This section of your coaching business plan covers the details of your potential buyer, the demographics, their needs, pain points, the expectations
The customer analysis section of your coaching business plan must detail the customers you serve and/or expect to serve.
Your customer type decides the choice of your marketing channels and pricing model.
Consider creating your customer analysis with the following questions.
- Age group
- Gender ratio
- Targeted locations
- Income range
- What are 3 pain points of your customer
- What are top 3 expectations they have from a coach like you
- What can stop them buying from you
- What can facilitate them to convert
Example of Customer analysis section for a leadership coaching business plan
Business assets and Marketing Channels
This section plans your business assets and marketing channels that will support you in creating a successful, profitable and sustainable coaching business.
Create this section by identifying the following questions to finalize your assets and channels that you can plan your investments and time accordingly.
- What kind of website your coaching model needs?
- What kind of marketing channel will work for your audience? Is it blog, podcast, videos?
- Which social media network will bring the maximum visibility and business opportunities for you?
- Which networking groups, communities and offline events can support your brand with more exposure?
- Do you need to create flyers, brochures, handbooks etc.?
- Will it help if you create promotional merchandise such as calendars, flipbooks, mugs, planners etc. for your coaching business?
Suggested reading: How to Get High Paying Coaching Clients Fast
Sales and Marketing Strategy
This is the section that brings the leads and prospects in. Write this section answering the following questions
What is your USP? Write the clear reason and differentiator people will prefer you. What sets you apart, your methodology.
What is your pricing strategy and model? Do you have packages or sessions? You sell results and outcomes? Do you offer discounts and promotions? Is your pricing competitive, affordable yet profitable for you?
What marketing channels you will use? Decide upon a mix of offline and online marketing strategy that includes social media, SEO, email marketing, offline networking, print etc.
What is your sales an client retention strategy? Do you have referral programs? Have you thought of collaborations and middlemenship? Do you offer free trials? How do you plan to build customer loyalty?
Remember, your marketing and sales strategy section outlines your plan to attract, convert and retain your potential customers.
Operations Plan
This section of your coaching business plan details day-to-day operations of your coaching practice such as appointments, tools and technology, clients coaching sessions, billing, your staff and administration and more.
Your operations sections in business plan helps with execution of your coaching goals.
Consider answering the following questions to write the operations section
- Who will handle the leads and enquiries? How much time it takes on day to day basis? How will you plan the communication blueprints.
- What are the exact roles and responsibilities of the team members and coaches when you’re working in collaboration with multiple coaches in your coaching business?
- How and how often you plan to review your sales and marketing strategy performance? Prepare the process.
- What are the tools and facilities required to run your coaching business smoothly? Internet connectivity, scheduling and meeting apps, podcasting and recording equipments, accpunting and marketing management apps, clients and performance tracking apps etc.
Team and Management Plan
This section outlines your team and their roles and responsibilities to run your coaching business. This helps you define your organizational structure and the long term business strategy, even if you’re a solo business owner to start with.
When you have the structure and plan in place, executing your plan will easier and simpler.
Consider using this structure to create your team plan:
- Write the key roles for your coaching business and describe the responsibilities along with clear expectations. For example, when I started my coaching business, I identified myself, my EA, my accoutant, my marketing manager and my board of advisors.
- Write the compensation plan including salaries, bonus, incentives etc.
- Write the reporting and internal communication lines.
Having a clearly defined team section in your coaching business plan will help you find and retain the right people.
Financial Plan
This section outlines a comprehensive overview of your financial projections. From your monthly expenses, personal savings to client acquisition costs and profits, your financial plan gives you the clarity to plan your funding and cashflow for a sustainable coaching business.
Monitor key financial metrics like client acquisition cost, lifetime value, and monthly recurring revenue.
I help my business coaching clients to create a 5-year financial statement broken into monthly and quarterly for an easier tracking and management.
Consider preparing the following for your financial plan
Funding: Estimate the funds you need to start and run your coaching business in the first year or in the current year.
Cashflow statement: Estimate your income and expenses for the first 2 years of your coaching business. If you’re already running a coaching business for a while, applying this financial plan at any stage is useful. It ensures that you never run out of money. Include and record everything from vendor payments, clients’ payments, loans etc.
Create your financial plan with realistic presumptions. For example, you will see 2 new clients and 5 existing clients per month. Estimate the income it brings. Interestingly, your financial projections work like a visualization and manifestation activity.
Balance Sheets: Create a projected balance sheet showing your assets, equities and liabilities.
Profit & loss statement: Use your cashflow and expenses statements to create a projected profit & loss statement that shows you an expected revenue per month. Having a clearly defined profit and loss statement in a coaching business plan gives you confidence and motivation to keep going and make this statement show bigger numbers.
Break-even point: Having an idea of breakeven point where your revenue starts to cover the operating costs is useful in planning your pricing model and how long it will take to get profits.
When creating your financial plan, be sure to include the key costs needed in starting or growing a coaching business:
- Cost of utilities, internet service, and office supplies
- Payroll or salaries paid to staff
- Business insurance
- Taxes
- Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and office furniture
I wrote this coaching business plan blog to support you so you can write a confident and rock-solid business plan with all essential components of a successful and profitable coaching business. Do not forget to download your coaching business plan pdf.
If you still need help and clarification about writing your coaching business plan, feel free to write “my coaching business plan” in comments along with your coaching niche, we will do it together.
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Sunita Biddu is a digital business coach and power blogging mentor helping coaches and small business owners. She helps with building a strong and profitable online presence and reputation that creates a self-sustaining business. Sunita writes on this blog once a week about easy-to-use guides and articles about business, coaching, social media and blogging. You can grab some of her free resources and ebooks from the resources section.