Business Overview

A health coach combines a variety of wellness techniques to give their clients a better outlook on their bodies and their lives. They help the community by spreading positive change and wellness techniques that can be used by more people than just their direct clients. This business is all about finding customized solutions that fit an individual’s lifestyle, so they’re more likely to stick with a plan.

Who is this business right for?

This business is excellent for people who love to give practical advice to everyone they meet. Health coaching has everything to do with finding goals that work from an individual, so health coaches need to be emphatic listeners and excellent communicators. They should also be comfortable with authority, as clients hire coaches to take charge. Entrepreneurs should also have a strong sense of how to achieve a balance between diet, exercise, and everyday life.

What happens during a typical day at a health coaching business?

Health coaches primarily work on the schedules of their clients. Their job may include the following duties:

  • Initial consultations with prospective clients
  • Coaching sessions with clients
  • Developing personalized plans
  • Scheduling and billing
  • Researching new trends in nutrition and exercise
  • Outreach and customers engagement

What is the target market?

Your target market is anyone who wants to live better. You are not solely looking for those who want to lose weight or exercise more, thought that's likely the primary concerns people will approach you with. A better body may be a byproduct of health coaching, but the primary market is someone who wants to make the long-term changes that will put them on a path toward a more productive life.

How does a health coaching business make money?

Health coaches charge for each session they give. When owners set their prices, they need to factor in not just the time spent with the client, but also the amount of money it costs to both get and keep the client. This includes time spent researching and drumming up business, as well as money spent for advertising.

What is the growth potential for a health coaching business?

A health coach is many things all at once: a therapist, a nutritionist, a life coach, and an ally. The growth potential is high, especially given that many people need external motivation to succeed. While it will be easier to grow in a wealthier area, health coaches have plenty of opportunities to branch out by giving online sessions or by expanding their travel budget.

Getting Started

What are some skills and experiences that will help you build a successful health coaching business?

Having a background in counseling, nutrition, and wellness will definitely come in handy. The right person doesn't necessarily need to have gone to college, but you may find it's far more difficult to get off the ground without formal education. Owners should also be excellent at demonstrating specific results their clients have achieved.

What are the costs involved in opening a health coaching business?

Overhead will be low to open a health coaching business. Typically, you’ll visit your client’s homes to observe their daily challenges so you can get a sense of their unique barriers to achieving their goals. You will need to budget for advertising though, which should include both online and in-person outreach to potential clients.

What are the steps to start a health coaching business?

Once you're ready to start your health coaching business, follow these steps to ensure that your business is legally compliant and avoid wasting time and money as your business grows:

STEP 1: Plan your Business

A clear plan is essential for success as an entrepreneur. A few important topics to consider are:

  • What are the initial costs?
  • Who is your target market?
  • How long it will take you to break even?
  • What will you name your business?

Choosing the right name is very important. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

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STEP 2. Form a legal entity

Establishing a legal business entity such as an LLC prevents you from being personally liable if your security guard company is sued. Consider using a registered agent service to help protect your privacy and stay compliant.

STEP 3. Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

STEP 4. Open a business bank account

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 5. Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 6. Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7. Get Business Insurance

Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.

STEP 8. Define your brand.

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

STEP 9. Establish your Web Presence

A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.

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Select your state below for an in-depth guide on completing each of these steps in your home state.

Where can I find a business mentor?

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

What are some insider tips for jump starting a health coaching business?

Successful health coaches stress that you need to devote yourself to your clients even before you have any. Owners need to learn exactly people may chose to hire a life coach, and then work towards altering their services to fit the needs of the community. A vague promise of helping someone to lead a better life isn't going to be enough to spark the kind of interest you need to thrive.

Develop very specific goals of what you want to achieve, so you (and your clients) don’t end up losing focus. For example, you may want to concentrate on work-life balance for clients, or small habit changes that clients will actually stick to.

Finally, ensure you're signing contracts with clients that specifically detail the terms of service to avoid confusion down the line.

Growing Your Business

How to promote & market a health coaching business

The key is to form strong relationships with clients, regardless of how you meet them. Beyond just professional conduct, you need to keep what you say in line with your own personal brand. Find out what makes your services unique, so you can market to the right people. Are you more of a friend or a drill master? Once you know what your style is and what your ideal client is, you can start finding out more about where they live (either physically or online).

When you’re starting off with no clients, the first thing you’ll want to do is create content that stays on brand. Start a YouTube channel or Facebook page that promotes what you do, and how you do it. Emphasize that the best course for change is not to consult endless websites that all say the same thing. People need personalized plans that work around their schedules. You may even want to offer a few sessions for free to companies in the area if you're just starting out.

Recommended: Get started with local advertising for your business with a $300 credit from Yelp.

How to keep customers coming back

The best way to get customers to come back is to be the motivation to make noticeable change in their lives. Focus on the techniques that create results, and then hone those skills with each client. Take your business seriously, and they’ll have reason to do the same.

How and when to build a team

Health coaches generally work on their own, but there are ways to delegate website work and social media postings to other people. Should you reach your own client capacity, you can consider hiring other people who have the same background (in terms of education and values) as you.

Legal Considerations

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a health coach business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

For information about local licenses and permits:

Maintain Personal Asset Protection

Don’t think that just forming an LLC, or any other type of business, will save your personal assets in case of a lawsuit or other matter by itself.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your LLC is sued. In business law, this is referred to as piercing your corporate veil.

Two of the simplest steps that will protect your business, and yourself, are to:

Open a business bank account

  • This separates your personal assets from your company's assets, which is necessary for personal asset protection.

  • It also makes accounting and tax filing easier.

Get a business credit card

  • This helps you separate personal and business expenses by putting your business' expenses all in one place.
  • It also builds your company's credit history, which can be useful to raise money and investment later on.
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To learn more about maintaining your LLC's corporate veil, read our guide and protect your personal assets.

Services Contract

Health coach businesses should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership.

Earning Potential

How much can you charge customers?

Clients are willing to pay to make changes in their lives they can’t make themselves. Some health coaches charge up to $500 an hour for their services, though most start with different monthly packages. Look to see what other health and lifestyle coaches charge in your area, but beware not to dramatically undercut your numbers. This may make you look like an amateur amongst professionals.

What are the ongoing expenses for a health coaching business?

Health coaches should prepare their budget with the following in mind:

  • Website upkeep
  • Cost of ongoing education
  • Exercise equipment upkeep (if applicable)
  • State licensing costs

How much profit can a health coaching business make?

Standard average salary is about $43,000 for a health coach a year, but in wealthy areas that have a lot of life-work balance problems (e.g., San Francisco, San Jose) the salary increases dramatically to about $63,000 a year.

How can you make your business more profitable?

Health coaches can make a lot of money if they expand their services to fit the needs of companies. While health coaching is primarily one-on-one, the advice can be tailored to larger groups. However, the advice will need to be industry specific and relevant to a work setting.

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