If you are trying to quit your 9-5 job and start a business as a life coach, you must have an effective business plan. A lean and effective life coach business plan is free from unnecessary details – leaving a concise document providing only the most important ingredients for success.
Most of the coaching and consulting industry out there thinks that you only require a lean life coach business plan if you have need of financing or investors. While it’s good to have financial support, there are many other benefits of creating a business plan to make your life coaching business successful.
Advantages Of Life Coach Business Plan
Besides financial support, a well-constructed business plan allows you to achieve your goals faster and reduce failure risk. It is noted that business owners who create a business plan grow their company 35% faster on average. Moreover, an ideal business plan is quite easy to adjust and revisit – that cultivates tremendous growth.
Here are some of the major benefits of an effective life coach business plan:
Solid Action Plan
Having a business plan not only allows you to see what your current situation is, but also provides a clear path of where you are headed. You will have a solid action plan to follow that will accelerate your chances of achieving success for your life coaching business.
Your business plan allows you to select a specific niche in life coaching such as Business Coaching, Grief Coaching, Mindset Coaching, Intimacy Coaching, and more. By specializing in a specific niche, you can get the most out of it and help many paying clients.
Brainstorm New Ideas
As a life coach, you aid your clients in improving their day-to-day lives, careers, and relationships by targeting their unique gifts and skills. If you have a proper business plan, you’ll come up with new ideas and creative solutions to overcome the tough scenarios.
Due to your new ideas, you’ll be able to provide better service than your competitors, which will earn you more respect in your specialized niche. Your new ideas also help you while creating marketing strategies for your new life coaching business.
The main advantage of a well-constructed business plan is that it will help you think rationally and make better decisions. With proper planning, you will be able to figure out what type of service you are going to offer (mastermind program, in-person coaching, online coaching, etc.), investments, marketing strategies, pricing strategies, and more.
Furthermore, by having a plan, you can test your new ideas and identify errors and gaps. Plus, you might manage to make head or tail of what needs fixing before investing your money and time in an idea.
How To Create An Effective Life Coach Business Plan?
Your journey to building a solid coaching business depends upon your life coach business plan. To write an effective business plan, there are some steps you should follow and some things you must keep in mind. To help you out with this process, below, we have provided a complete guide for you to follow while creating a life coach business plan.
Why Life Coaching?
First of all, write down your mission statement. This is a brief explanation of why you selected life coaching? Within this step, consider explaining what changes you can bring to people, how you can improve people’s lives and who you can help.
This step is the base of your business plan and must explain all future decisions. Try avoiding creating a plan just to serve other people. You must include your personal needs in your business plan because it’s okay to be a little selfish when it comes to personal growth and business vision.
Business Description And Type
You can set up your business as a partnership, sole proprietorship, or limited liability corporation. There are different financial implications, such as tax, based on what you select. A sole proprietorship business only has one owner, while a partnership business can contain multiple owners.
As for limited liability corporations, business owners (s) are not responsible for business debts in case of bankruptcy. So don’t forget to make a plan for your spending budget and sales forecast while creating a life coach business plan. For sales forecast, you don’t require a business degree; simply make a guess based on other businesses in your niche.
Unique Selling Point And Niche
What do you do or have that other life coaches don’t? Why should people hire you? Ask yourself, what is your unique selling point? Your unique selling point allows you to grab clients’ curiosity and attention in the life coaching business. As a life coach, you can specialize in the following niches to gain more reputation and clients:
- Intuitive Coaching
- Business Coaching
- Grief Coaching
- Mindset Coaching
- Intimacy Coaching
- Empowerment Coaching
While writing a business plan as a life coach, you must do your homework and try to observe your competitors. Find out what their pricing strategies are? Who are they targeting as clients? And how are they helping people?
This will allow you to make even better marketing strategies and services to improve people’s lives in your specialized coaching niche. Plus, remember that you don’t want to work with anyone. Instead, you want to work with your ideal prospects and clients – people who will be perfect for your personal brand, personality, coaching style, etc.
Building Relationship With Client
Trust equals sales. Therefore, ask yourself, how can you create a real and long-term connection with people so that you can build trust? Would you build your connection in person, on social media, or through speaking events?
Note down your top four ways on how you would create meaningful relationships with your clients. Remember that due to the internet, people have stopped connecting. Therefore, try to directly interact with your ideal prospects in order to gain their full trust.
Once you decide how you would build relationships with your clients, you are in the conversation stage. This stage of a business plan is quite important because, in this part, you have to encourage a conversation that represents a future that your client desire.
At this stage, you have to plan your marketing. Do your homework and adopt better marketing strategies to interact with most of your ideal prospects. Nowadays, the cheapest and most effective way to market your life coaching business is through digital marketing that includes email marketing, Google Ads, Facebook Ads, and many more.
You also have to improve your communication skills in this stage so you can successfully encourage and inform that deep discussion with your clients and ideal prospects. To make it simple, think about an opening question that you can ask new clients to jump-start that deep conversation.
Convert Prospects Into Clients
After marketing and discussion with your ideal prospects, you have to make a plan to convert them into paying clients. In this stage, you have to guide your clients to achieve specific goals, whether it is a coaching plan to quit smoking or a business plan for a CEO.
This stage is quite important; it can impact on both your reputation and financial rewards as a life coach. Therefore, whether it is a small-term or long-term coaching package, you must create a complete plan that will solve your prospect’s problem and allow them to live a better life.
Execute Your Ideas
Now that your life coach business plan is complete, all you have to do is execute your ideas. In this stage, your intentions come to life. It is where you take action on your ideas and convert your intentions into reality. You should take an ICF-certified life coaching course and have an accelerated coaching certification to complete this step effectively.
This one is probably the hardest stage because it is where you do the work. To make this step simple, create an action plan that contains small tasks and their time-frames. Once you complete small tasks, you will become more productive, which will speed up your journey towards a successful business as a life coach.
A life coach is a type of wellness professional who helps people to achieve certain desires by targeting their gifts and unique skills. However, starting a business as a life coach from scratch can be intimidating. That’s why before investing your time and money, you must create a business plan to achieve success in your life coaching business.
To recap, major benefits of a life coach business plan are:
- Solid Action Plan
- Brainstorm New Ideas and Think Rationally
- Better Decisions
- Financial Support
- Reduce Failure Risk
Furthermore, the top eight things you should consider while writing a solid life coach business plan are:
- Why Life Coaching?
- Business Description and Type
- Unique Selling Point and Niche
- Target Market
- Building Relationship with Client
- Conversation Stage
- Convert Prospects into Clients
- Execute Your Ideas and Thoughts