Life coaching business plan for starting your own practice
Are you planning how to start your own life coach business? Life coaching is an essential part of the society considering the high number of people who need the services of a professional to help them attain their personal goals. Since time in memorial, coaching has been part and parcel of the society as there were no formal schools or training centers. Today, the demand for life coaches has increased because many people are stressed, overwhelmed and confused about how to make certain key choices in life.
Factors such as the high cost of living and stress have contributed to the increase in demand. To succeed, you need to have a genuine passion to help and advice others. In the U.S, statistics have indicated an average annual growth of the life coaches industry by 3.3%. As a thriving industry, it’s definitely a good business idea with great potential so long as you have a good business plan in place.
2.1 The Business
The life coaching business will be registered under the name MakCoach LLP and will be based in Detroit, Michigan. The business will be owned by Paul Markins who is an experienced Personal Life Coach. This life coach business plan is supposed to guide you on what you need to know and what should be accomplished to ensure a successful set-up and strategic positioning of the business.
2.2 Management Team
Before having an interest in entrepreneurship and coming up with a life coaching business plan, Paul worked as a professional life coach and boasts of over 25 years’ experience in this field. In the course of his career, Paul Markins worked in federal institutions, the private corporate sector as well as the sports industry. He had a privilege of working for various reputable entities across the United States, Canada and Mexico.
2.3 Customer Focus
Mark has been a personal life coach for many years; over two decades and has seen how the industry has changed over the years. Given his extensive experience, he has offered his services in various industry sectors including numerous government agencies. With this in mind, Paul Markins has an in-depth understanding of the industry trends and is therefore in a good position to know who needs his services most.
2.4 Business Target
Paul Markins knows where he needs to concentrate his energy and focus to ensure MakCoach LLP reaches out to the right target market and acquire an attractive revenue for the life coach business. His intention is to have this business be the most famous and highly rated life coaching service in Detroit, Michigan and the surrounding areas. With his in-depth skills and industry knowledge, it is expected MakCoach LLP will easily meet its business targets.
3.1 Company Owners
Paul Markins is an experienced life coach with extensive skills in life coaching. Before venturing into business, Paul worked for various establishments both in the private and public sector across United States, Canada and Mexico. Paul knows how to run an effective life coach business model as aside from his professional experience, he has also bagged numerous life coaching and personal training certifications. He is a certified NPL Practitioner and is a member of numerous regional and global federations such as the International Coach Federation. A lot of people across various social, economic and cultural circles have benefitted from his expertise.
3.2 Aim of Starting the Business
Even though life coaching has been there for long, the demand for these services has continued to increase. With an increasing segment of the society that needs professional help, Paul knows too well now is the best time to chat his own way and invest in a life coaching business that he has direct control over. Having been in the industry and witnessed all the changes, this sample life coaching business plan if well implemented has a good chance of building a successful business brand. As time goes by, the demand for personal life coaches is expected to increase.
3.3 How the Business will be Started
MakCoach LLP is expected to launch operations after doing an extensive market research. Even though Paul Markins is an experienced life coach with extensive experience, he intends to hire a team of financial analysts and professionals to come up with a detailed financial analysis for the business. Paul is also relying on his vast knowledge of the industry to propel the business to success. With a team of business consultants handling the figures and projections, it is expected the business will get its priorities right.
|Research and Development||$9,000|
|TOTAL START-UP EXPENSES||$40,000|
|Other Current Assets||$8,000|
|Start-up Expenses to Fund||$20,000|
|Start-up Assets to Fund||$22,000|
|TOTAL FUNDING REQUIRED||$0|
|Non-cash Assets from Start-up||$7,000|
|Cash Requirements from Start-up||$0|
|Additional Cash Raised||$30,000|
|Cash Balance on Starting Date||$10,000|
|Liabilities and Capital||$0|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$70,000|
|Loss at Start-up (Start-up Expenses)||$55,000|
|TOTAL CAPITAL AND LIABILITIES||$40,000|
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Services for Customers
MakCoach LLP plans to offer a wide variety of services in order to have a better foothold of the market and compete effectively in the industry. Paul Markins knows his experience, his personal and professional image as well as track record as a personal life coach will help him to effectively market his service and grow the clientele base. Aside from individual customers, MakCoach is keen to customize its services for the corporate industry to increase its revenue base.
In this coaching business plan, the plan is to be creative and diversify as much as possible. Paul wishes to stand out and create as much personal linkages and connections as possible. When planning how to start a life coach business, you need to get your priorities right and tailor your products and services to respond directly to market needs. In this regard, MakCoach LLP intends to offer the following products and services.
- Family and Relationship coaching
- Personal Improvement coaching including career and financial coaching
- Business coaching
- Weight Loss and Fitness coaching
Marketing Analysis of Life Coaching Business
Life coaching has been around since time in memorial only that the techniques and environment for coaching has changed. With the current economic challenges and career-related pressure, many people are now seeking the services of a life coach. As an ever expanding industry, there are plenty of opportunities for entrepreneurs to tap into.
The Life Coaches Industry is the United States is expected to grow at an annual average rate of 3.3% to around $868.5 million. In the U.S. alone, there are more than 12,000 licensed and registered life coach companies with almost over 18,000 employees working in the industry.
In this coaching business plan, MakCoach LLP has carefully surveyed the industry and identified opportunities to be tapped into. This coaching business model template shows how MakCoach LLP has carried out an extensive market analysis knowing where to focus on to grow revenue shares.
5.1 Market Segment
For MakCoach LLP to achieve its revenue targets, the life coaching business has identified the appropriate markets that are in need of both personal and business coaching. Detroit is a large city that presents many untapped opportunities which this life coach business plan sample hopes to identify and harness. If you intend to venture into this business, finding a comprehensive life coaching business plan pdf online with step-by-step instructions is a great idea to help you have an idea of the target market.
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5.1.1 Enterpreneurs and Business Executives
Detroit is a large city with many corporate establishments and a large number of business professionals and executives. With a desired to succeed and build sustainable brands, many entrepreneurs are increasingly looking for professional and quality business coaching services. This is a lucrative market as new businesses keep opening in the city and entrepreneurs are in need of personal coaching to help them acquire skills that will help them to excel in business.
Marketing a life coaching business should place emphasis on this target group as it has endless opportunities to explore and promises great revenue channels. Corporate executives keen on getting a good professional image and outlook are also in need of coaching services especially in areas such as corporate governance and management.
5.1.2 Celebrities and Public Figures
Celebrities and personalities have an image and perception to protect. MakCoach LLP stands a good chance to offering different types of coaching services to individuals such as celebrities and politicians as well as groups who’re always in the public limelight. These people know the society is likely to judge every decision they make and therefore, require a professional to constantly advice and guide them on the right way to do things. In this life coach marketing plan, strategies have to be put in place to connect the business to personalities in various segments of the society.
5.1.3 School Leavers and Students
MakCoach LLP offers coaching services which touch on areas such as career choices and excelling in school. For students still in school, constant coaching and mentoring is important to enable them excel in their academic work and attain good grades. School leavers on the other hand are at a critical stage in their lives where they need to be guided appropriately in order to make wise career selections. This is definitely a good market for the life coaching business considering the high number of schools and colleges.
5.1.4 Government Officials
Because of the sensitivity of their jobs, government employees need to be constantly guided and advised to excel both at the workplace and personal lives. Due to the nature of their responsibilities, having a personal coach to advise them on a wide variety of issues is an opportunity MakCoach shouldn’t let go. To enhance performance, governments are increasingly looking for professional life coaching services for their employees in different cadres.
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5.1.5 Sports Men and Women
The services of a personal coach are highly appreciated by sports professionals. In most cases, these individuals have to endure numerous challenges and require coaching services to boost morale, increase optimism and improve personal image. MakCoach LLP has an incredible chance to market its life coaching services to stakeholders in the sports industry. With an ever increasing sports industry, there are numerous new opportunities the life coaching business can tap into to make its impact and usefulness felt in the sporting industry.
|Potential Customers||Growth||YEAR 1||YEAR 2||YEAR 3||YEAR 4||YEAR 5||CAGR|
|Entrepreneurs and business executives||25%||13,000||15,000||17,000||19,000||21,000||12.00%|
|Celebrities and public figures||24%||12,000||13,000||14,000||15,000||16,000||11.00%|
|School leavers and students||20%||11,000||13,000||15,000||17,000||19,000||10.00%|
|Sports men and women||13%||7,000||9,000||11,000||13,000||15,000||8.00%|
5.2 Business Target
MakCoach LLP intends to establish itself as one of the most popular and reputable life coaching businesses in Detroit. Detroit is a large city with good success prospects across all the customer target groups. Good life coach business plan examples should clearly highlight the intentions or gains a business hopes to benefit right from its inception. In this case, MakCoach LLP hopes to achieve an annual sales growth of between 20%-25% in the first three years since opening.
L-1 Update – RateGain – KOTHARI, Siddharth
Alex has been super quick with his responses to my emails. I needed my business plan very urgently and whether it was Saturday or Sunday, Alex made sure that i had my plan ready in the shortest amount of time possible. My finance team is also very impressed. Well done Alex and keep up the good work!!!!! Sid Kothari Executive Vice President www.rategain.com 470.422.8578 8300 Greensboro Drive, Suite 800, Mclean, VA, 22102
5.3 Product Pricing
This life coach business plan pdf and outline indicates how pricing for MakCoach LLP will be implemented. Before making a decision on prices, extensive research was carried out to check what competitors are charging and carefully structure the prices to attract customers but at the same time, ensure profit margins are maintained.
MakCoach LLP intends to come up with an effective marketing strategy to help the life coaching business target all the crucial target markets. The success of any business depends on the nature of marketing strategies implemented to sell the business brand in a highly competitive market. This life coaching marketing plan template clearly outlines the strategies the business intends to roll out in order to reach out to prospective customers in need of life coaching services. When choosing a marketing strategy, it is important to come up with a sustainable and cost effective strategy that will support the growth of the business.
6.1 Competitive Analysis
MakCoach LLP has done an in-depth market research to have a better understanding of the market. The secret is to put in place the most effective strategies that will not only help the business to compete favorably but increase the market share as well.
6.2 Sales Strategy
For MakCoach LLP to effectively reach the intended customer segments, this life coaching business plan template free intends to use the following strategies to advertise the services offered by the business.
- Send out introduction letters, flyers and brochures to different sectors of the target market in order to create awareness about the business
- Organize a grand opening party and invite guests from all the targeted markets in order to create awareness about the business. During the event, take time to interact with guests and explain various products and services offered.
- Take part in exhibitions, seminars and other industry related events in order to bring MakCoach into the limelight and establish connections with other stakeholders.
- Use social media networks such as Facebook and Twitter to advertise the life coaching business to an online audience. Use of Google Ads is also an excellent idea.
- Design a simple but powerful search engine optimized business website in order to boost visibility in search engine rankings.
- Advertise the life coach business in local directory listings such as Yellow Pages and other business directories
- Utilize both local print and broadcast media channels such as television, radio, newspapers and magazines.
- Post information about the business and coaching services on school bulletin boards and other places such as libraries and local coffee shops.
- Direct marketing approach which involves use of friends, family, relatives, colleagues and other referrals to spread the word.
6.3 Sales Forecast
Before starting business operations, a comprehensive sales forecast has been formulated to guide the business on what it can anticipate in terms of sales volumes.
|Unit Sales||Year 1||Year 2||Year 3|
|Family and relationship coaching||200,000||210,000||220,000|
|Personal improvement coaching||210,000||220,000||230,000|
|Weight loss and fitness coaching||230,000||240,000||250,000|
|TOTAL UNIT SALES||860,000||900,000||940,000|
|Unit Prices||Year 1||Year 2||Year 3|
|Family and relationship coaching||$130.00||$140.00||$150.00|
|Personal improvement coaching||$120.00||$130.00||$140.00|
|Weight loss and fitness coaching||$100.00||$110.00||$120.00|
|Family and relationship coaching||$130,000||$140,000||$150,000|
|Personal improvement coaching||$120,000||$130,000||$140,000|
|Weight loss and fitness coaching||$100,000||$110,000||$120,000|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Family and relationship coaching||$0.50||$0.60||$0.70|
|Personal improvement coaching||$0.30||$0.35||$0.40|
|Weight loss and fitness coaching||$2.00||$3.00||$4.50|
|Direct Cost of Sales|
|Family and relationship coaching||$80,000||$100,000||$150,000|
|Personal improvement coaching||$45,000||$70,000||$105,000|
|Weight loss and fitness coaching||$14,000||$36,000||$70,000|
|Subtotal Direct Cost of Sales||$150,000||$200,000||$250,000|
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When determining the cost to start a life coach business, it is important to factor in a personnel plan in order to have an idea how much you will spend on your personnel. Personnel plays a key role in determining the success of a business and therefore, it is good to put in place a good strategy to hire the best staff. With a good team of staff in place, a business can be assured to achieve its targets and have exceptional results.
The business will hire members of staff to work in different departments but all cooperating towards a common goal to see MakCoach LLP succeed. As part of the plan to start a life coach business, Paul Markins has put in place a personnel plan that identifies who shall be employed to work in the business.
7.1 Personnel Plan
To help the life coaching business realize its goals, the following members of staff will be hired to work in MakCoach LLP. Paul Markins who is an expert personal life coach and owner of the business will be the Chief Executive Officer. He will be assisted by the following team of staff.
- 1 Business Coordinator
- 1 Office Administrator
- 4 Life Coaches/Personal Trainers
- 2 Marketing Executives
- 1 Accountant
- 1 Customer Service Executives
Upon successful hiring, staff will undergo training to equip them with useful skills before the life coaching business opens its doors to the public.
7.2 Average Salaries
MakCoach LLP plans to pay its staff the following salaries within the first three years of operations.
|Year 1||Year 2||Year 3|
|1 Business coordinator||$30,000||$32,000||$34,000|
|1 Office administrator||$25,000||$27,000||$29,000|
|4 Life coaches/ Personal trainers||$100,000||$110,000||$120,000|
|2 Marketing Executives||$50,000||$52,000||$54,000|
|1 Customer service executives||$20,000||$22,000||$24,000|
MakCoach LLP has formulated a detailed financial plan which is supposed to guide and orient the business towards achieving a high life coaching profit margin. To ensure the business makes profits, it is important to identify and compute key business financial parameters with an aim of determining the financial soundness of a business. At this point, issues such as start-up capital and how the business will finance its operations need to be addressed. When starting a life coach business, Paul Markins clearly understands that for life coaching for profit to be realized, having an extensive financial plan is a must-have. In this case, Paul will raise capital from his personal savings and seek additional financing from two investors. In addition, he will seek a small bank loan for business plan to bridge the financial gap.
Below is a detailed financial analysis for MakCoach LLP.
8.1 Important Assumptions
The financial forecast for MakCoach LLP is based on the assumptions below.
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.00%||10.00%||11.00%|
|Long-term Interest Rate||6.00%||6.00%||6.00%|
8.2 Brake-even Analysis
MakCoach LLP brake-even analysis is shown in the graph below.
|Monthly Units Break-even||3000|
|Monthly Revenue Break-even||$120,000|
|Average Per-Unit Revenue||$80.00|
|Average Per-Unit Variable Cost||$1.00|
|Estimated Monthly Fixed Cost||$130,000|
8.3 Projected Profit and Loss
Profit and loss information for MakCoach LLP as calculated on a monthly and annual basis is indicated below.
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$45,000||$50,000||$60,000|
|TOTAL COST OF SALES||$45,000||$50,000||$60,000|
|Gross Margin %||80.00%||84.00%||90.00%|
|Sales and Marketing and Other Expenses||$2,000||$4,000||$6,000|
|Total Operating Expenses||$150,000||$200,000||$250,000|
|Profit Before Interest and Taxes||$70,000||$80,000||$90,000|
8.3.1 Monthly Profit
8.3.2 Yearly Profit
8.3.3 Monthly Gross Margin
8.3.4 Yearly Gross Margin
8.4 Projected Cash Flow
Below is a summary of MakCoach LLP Pro forma cash flow, subtotal cash received, subtotal cash spent, subtotal cash from operations and subtotal cash spent on operations.
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$5,000||$7,000||$9,000|
|SUBTOTAL CASH FROM OPERATIONS||$35,000||$42,000||$49,000|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$35,000||$42,000||$49,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$27,000||$37,000||$54,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$28,000||$40,000||$56,000|
|Net Cash Flow||$10,000||$14,000||$16,000|
8.5 Projected Balance Sheet
Below is a Projected Balance Sheet for MakCoach LLP that shows assets, liabilities, capital, long term assets and current liabilities.
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$2,000||$2,000||$2,000|
|TOTAL CURRENT ASSETS||$152,000||$196,000||$240,500|
|TOTAL LONG-TERM ASSETS||$1,000||$500||$300|
|Liabilities and Capital||Year 1||Year 2||Year 3|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$10,000||$12,000||$14,000|
|TOTAL LIABILITIES AND CAPITAL||$165,000||$195,000||$225,000|
8.6 Business Ratios
The following is the Ratio Analysis, Business Ratios and Business Net Worth for MakCoach LLP.
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||1.00%||2.00%||1.95%||20.00%|
|Total Current Assets||100.20%||130.10%||150.25%||44.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||73.00%||70.00%||65.00%||62.00%|
|Profit Before Interest and Taxes||22.00%||25.00%||28.40%||1.50%|
|Total Debt to Total Assets||2.08%||1.00%||0.66%||45.00%|
|Pre-tax Return on Net Worth||60.00%||70.00%||72.20%||1.20%|
|Pre-tax Return on Assets||54.20%||57.00%||60.00%||5.00%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||15.20%||18.10%||20.00%||N.A.|
|Return on Equity||40.00%||43.00%||46.00%||N.A.|
|Accounts Receivable Turnover||3||4||5||N.A.|
|Accounts Payable Turnover||13.1||13.4||15||N.A.|
|Total Asset Turnover||1.6||1.4||1.2||N.A.|
|Debt to Net Worth||0||-0.01||-0.03||N.A.|
|Current Liab. to Liab.||0||0||0||N.A.|
|Net Working Capital||$100,000||$120,000||$140,000||N.A.|
|Assets to Sales||0.35||0.38||0.41||N.A.|
|Current Debt/Total Assets||3%||2%||1%||N.A.|
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