Step 3: Identify your preferred coaching business structure

In the United States, there are six unique business structures:

Each offers a variety of legal protections and comes with a range of different tax obligations. The U.S. Small Business Administration has created an excellent resource for learning more about each of the specific types, as well as the common industries that most often take advantage of them.

In addition, one of our graduates (who is a CPA and small business coach) offers some insider tips on the pros and cons of the most popular business structure options for coaches. As you watch Ana, keep in mind the two most important details when choosing your structure: legal liability and taxation.

Coaches love to work with their clients in person. After all, we are relationship-oriented people. But the option of web connectivity provides a broader reach and more convenience, both for the coach and their clients.

This takes us to another decision in the process: should you get an office or work from home?

The decision to invest in a physical office really depends on your preferences and your budget. Having an office can feel really good. It gives your services a professional appearance, especially if you plan on offering group coaching or workshops.

If you dont need the space full-time, you may be able to sublet or rent it to other coaches if your lease allows. This is one way many coaches subsidize their office space when theyre just starting out. As their practice grows and they need the space more often, they simply scale back on the subletting. Craigslist.org is a great place to find such opportunities within your area.

One potential drawback to keep in mind: A physical office requires separate phone services, high-speed web access, and utilities. These services can add up quickly depending on your location. But there are also a number of offices you can rent by the hour.

Day offices like ShareDesk and Davinci provide a complete office setup and include all the necessary business amenities (some even come with a live lobby greeter). Prices start between $10 and $60 per hour, with day rates from $30 to $300. On-demand work spaces can be booked online and offer a variety of unique office settings, from individual work stations to full conference rooms and office suites. Theyre another great way to get started without a ton of expense.

In contrast, working from home has its own set of rewards. I love it! And the pros are obvious:

One potential drawback to keep in mind: If you end up working at home, youll need to find a way to separate your business from the rest of your life. This includes kids, dogs, and household distractions such as laundry, yard work, and the siren song of the refrigerator.

When setting up a home office, establish a place that makes boundaries clear and enables you to easily avoid the distractions and temptations that threaten to keep you from focusing on your clients. Also, consider how comfortable you feel having people over. How easy will it be to constantly maintain a clean and private environment?

That said, if you plan on coaching clients primarily on the phone or online, a home office might be the way to go.

My favorite setup is a self-contained office located on the property similar to a guest house or bungalow. Its in a separate area from the main house so it feels more professional but also offers the convenience of proximity. Its the best of both worlds.

Another version of this setup is a separate entrance into a private area of your home. But honestly, when you start packing in the clients, a separate office or location is really the way to go. And if you havent noticed the number of coaches working out of coffee shops, pay attention to whos around you the next time youre in one!

With your ideal space chosen, the final core component is to furnish it with the tools of the coaching trade. Most coaches need a good phone and a headset for phone coaching. And thats about it! I recommend a landline with a wireless headset. Although a good noise-cancelling headset and your cell phone might do just as well.

Before buying equipment, consider where youll be coaching from. To give you an example, Ive coached while traveling, using my cell and a laptop computer from as far as Indonesia with no problem. One word of caution: make sure you have a backup plan to avoid disappointing your clients if your primary means of communication fails. Wireless signals and web connectivity can be unreliable, more so in some parts of the world than others.

Skype is one of the most popular platforms for offering coaching services. Its free for most people, easy to use, and accessible anywhere and on a variety of devices, including smartphones and tablets. If you intend on using Skype, ensure that you have a strong Internet connection.

It might also be worthwhile to invest in another virtual meeting space that, for a small fee, will give you more reliable service. Popular examples include Google Hangouts (free for up to 10 participants; $5 per month for 11 to 15 participants), WebEx ($25 to $50 per month), and Fuze ($15 to $70 per month). Although in the past year, you cant go wrong with Zoom.us free to work with individuals one-on-one, and only $15 a month to work with groups.

If you decide to do group coaching, youll definitely want an online meeting/seminar service like WebEx or GoToMeeting. These platforms offer additional options and enhanced features for leading groups and managing participants.

Starting a life coaching business is similar to any other enterprise: there are a number of components that minimize cost, organize your process, and ensure success.

Among the most common, youll find:

Liability insurance. Depending on your risk tolerance and the type of coaching you plan on offering, you might want to look into liability insurance for life coaches. As a certified life coach, holding either an ICF or BCC Credential, youll qualify for discounted rates on this type of policy with many insurance companies. Start by comparing premiums directly through the ICF.

Client organization tools. For those who like to stay super organized and have a streamlined system in place, explore online platforms that minimize your administrative duties. This can include everything from letting clients self-book their appointments to managing your billing, record keeping, CRM, appointment reminders, and the hosting of client information and session data. Popular platforms include:

Taxes, write-offs and quarterly estimated taxes. You can begin writing off your business expenses once youve officially opened the doors to your business. But be aware: there are a few exceptions.

Professional services. This isnt just for coaches. Its for anyone starting their business. Create your dream support team in advance to avoid stress and unwelcome surprises. This typically includes resources for legal advice, accounting and taxes. Also, hiring a seasoned marketing coach is never a bad investment. It could save you hundreds of hours and thousands of wasted dollars. Depending on your marketing skills, you may also require a graphic artist, web developer and copywriter to help brand your services.

The above topics represent broad considerations for starting your life coaching business. But as you integrate the specifics of your chosen niche, you may have questions or need additional guidance to ensure you take the most direct and economical path forward.

Coach Training World offers two business courses for coaches: Live & Brand Your Brilliance and CONVERT: From Clarity & Confidence to Clients. They are included free with our Whole Person Certified Coach Training (WPCC) Certification package but can also be taken independently. Within each, youll find a comprehensive series of strategy, tools and business resources that can simplify the often frustrating process of establishing and promoting a new coaching business.

Contact us to learn more about how you can become a successful coach and start your coaching business this year!

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