Starting a coaching business feels like a huge undertaking, but it breaks down into a series of practical, manageable decisions. From picking a name to finding your first clients, each step builds on the last. It’s less about a single giant leap and more about consistent, thoughtful progress.

Let’s walk through the foundational elements you need to get right, from the legal stuff to your first sale.

Getting Your Foundation Right

Before you can focus on clients, you have to build the container for your business. This starts with a name and a legal structure.

Choosing a Name and Domain

Think bigger from day one. Does your proposed business name make sense internationally? Is it easy to say and hard to misinterpret? The most successful entrepreneurs I’ve seen were prepared for growth they hadn't yet achieved. This forward-thinking approach pays off. The name should make you feel proud and confident.

There’s a debate about using your own name. Some argue it helps build a personal brand, linking you directly to your coaching. Others feel an unknown name is a disadvantage and that you miss a chance to use a name that describes what you do. There’s no single right answer, so go with what feels authentic to you.

Once you have a name, you have to think about a web URL. This is non-negotiable today. Before you commit to a name, check if a corresponding domain is available. While a perfect match is ideal, it’s not required. What matters is that the URL is logical, easy to spell, and memorable. If your ideal .com is taken, get creative. I once co-wrote a book called Guerrilla Networking, but all the obvious domains were gone. We landed on StopMeetingPeople.com—it was catchy, related to the book’s theme, and it worked. Once you secure a domain you like, it's a smart move to buy up the common variations (.net, .biz) and forward them all to your primary site.

Handling the Legal Formalities

You could technically start as a one-person shop with no paperwork, using your personal bank account. However, this looks unprofessional and creates a massive headache at tax time. A better first step in starting a coaching business is to register a DBA (“doing business as”). This is usually an inexpensive process that lets you open a business bank account, which is crucial for separating personal and business finances.

As you grow, you might consider an LLC (limited liability company). This provides the liability protection of a corporation—meaning your personal assets are protected if the business is sued—but with simpler tax filing. It costs more to set up than a DBA, but the peace of mind can be worth it. For those bringing on partners, an LLP (limited liability partnership) is similar but protects partners from each other’s legal mistakes. C and S corporations are generally too complex and costly for a new coaching venture.

If you're unsure, just start with a DBA. You can always upgrade later.

Finding Your Niche and Standing Out

The best place to launch your business is usually right where you are. Thanks to the internet and phone coaching, geography is no longer a major barrier. Moving to a new city to be closer to a perceived "hotspot" for your niche often just means more competition and a two-to-three-month setback while you get settled.

Your target market is probably bigger than you think, which means you should get more specific, not less. The more defined your niche, the easier it is for the right clients to see you as the perfect solution to their specific problem. Don't be a generic motivational coach; specialize in an industry you know well. Remember, your market is global. I have clients from Europe to South America I’ve never met in person. It all works through phone and email.

Your number one task is to be unique. Differentiate yourself from the competition. Ask yourself, “Why am I different?” If you offer nothing better than the market leader, there’s no reason for a customer to switch. You're not just competing with other coaches; you're competing for a client's discretionary income. That $750 for your program could also go toward groceries, a car payment, or school supplies. You have to convince them that investing in your coaching will bring a better return than anything else.

Setting Up Shop (Without Going Broke)

You don’t need a fancy office. When first starting a coaching business, you can save a tremendous amount of money by running the business from home and meeting clients at coffee shops, in parks, or over the phone. I saved $1,300 a month in rent by giving up my New York City office and working from home. My clients loved the relaxed, informal meeting settings.

Your startup toolkit is simple: a computer, a website, a cell phone, and a way to handle payments. That’s it. Your website is essential; not having one today looks sketchy. But you don’t need to spend a fortune. A simple, professional site for under $750 is plenty to get started.

From day one, start collecting email addresses from your site visitors. An email list, whether it’s 20 people or 20,000, is a powerful tool for sales, marketing, and client acquisition. It allows you to stay top-of-mind by sharing valuable content. For payment processing, a service like PayPal Pro is a great starting point. It allows you to take credit cards over the phone, which adds a layer of professionalism.

Finally, get some business cards and brochures. Don’t order huge quantities at first, as you’ll likely update them often. A well-designed card makes a memorable impression and can help qualify prospects on the spot.

Getting Your First Clients

Finding your first clients can feel like the hardest part, but they are often closer than you think. Start with referrals. Ask friends, family, and colleagues. If you truly believe in the service you offer, you won’t be afraid to talk about it with anyone.

Once you get a potential client on the phone, the challenge shifts to converting them into a paying client. The key is to be direct: tell them you can help them. You have to get used to hearing “no,” but it’s a numbers game. The more you ask, the more you’ll hear “yes.” You need a strong backbone to withstand the rejection. In the early days of any venture focused on sales, marketing, and client acquisition, you just have to make the calls.

An interesting thing about sales is that many people who want to buy won't pull the trigger unless you actively ask them to. It’s a sign of confidence. Ask simple, direct questions like, “Does this sound like something you would like to do?” and if they say yes, follow up with, “Great! When do you want to get started?” Asking for the sale is non-negotiable.

Pricing, Packages, and Profit

Deciding how much to charge is a balancing act. Charge too little, and you might signal low quality. Charge too much, and you’ll scare away ideal clients. The best approach is often trial and error. A good rule of thumb: if no one ever tells you you’re too expensive, you’re not charging enough. Your price isn't just about what you think you're worth; it's about what the market is willing to pay. My own rates evolved from $50 an hour to $125 an hour over many years as my experience and credentials grew.

A great tool for setting a baseline is a break-even analysis. First, list all your monthly business expenses (let's say $3,000). Then, estimate how many clients you can realistically serve in a month (say, 8). This means each client needs to generate $375 for you to break even. If you plan to meet with each client for 5 hours, your break-even hourly rate is $75. This becomes your starting point for any effective business management and growth strategy.

This brings us to packages. I strongly recommend selling packages (e.g., a five-hour block) instead of single hours. It ensures client commitment, simplifies billing by charging once upfront, and allows you to focus on coaching instead of constantly reselling. Offering too many choices can paralyze potential clients. Keep it simple, especially at the start. One clear package makes the buying decision easier for them.

Keeping Your Business Running and Growing

Starting is the easy part; the hard part is keeping the business running. This requires consistency and routine, particularly in your efforts toward sales, marketing, and client acquisition. Set a minimum number of prospect calls to make each week. Follow up with past clients. And, critically, prepare your financial statements every single month. Understanding your income statement (profit and loss) and balance sheet (assets and liabilities) is the only way to truly know the health of your business. This is the heart of business management and growth.

As your business stabilizes, you can start improving your offerings. This might mean adding different package tiers, exploring group coaching sessions, or running in-person seminars. Seminars are fantastic tools; they can be lead generators for your one-on-one services or standalone profit centers.

Finally, never forget that it’s easier and cheaper to keep a current client than to find a new one. Once you land a client, your focus should shift. I recommend a 60/40 rule: spend 60% of your time servicing current clients and 40% attracting new ones. Go above and beyond for them, document their progress, and confidently ask for the renewal. Happy clients are the foundation of a sustainable business.