Coaching Business Plan Template
If you want to start a coaching business or expand your current coaching services, you need a business plan.
The following Coaching business plan template gives you the key elements to include in a winning business plan. It can be used to write a life coaching business plan, a career coaching business plan, or a plan for any type of coaching practice.
In addition to using this template, a solid plan will also include market research to help you better understand the coaching industry, your competitive advantage and your target customers. It will also help you craft your marketing strategy and strong financial projections.
Coaching Business Plan Example
I. Executive Summary
Business Overview
[Company Name], located in [Location], is a new career coaching business that provides services that help clients achieve their professional goals, improve their performance, and increase their productivity and efficiency. The company’s mission is to help each and every client with their career goals and help them become the best version of themselves in their place of work. We aim to become one of the leading career coach companies in the area by providing support, empathy, and guidance to each of our clients.
[Company Name] is founded by [Founder’s Name], who has been a mentor and career coach informally for several years. His coaching experience began when he was a manager providing guidance to his employees. Over time, he found himself providing insight and support to many colleagues in his company and decided to start his own business where he can dedicate all his energy to helping other professionals.
Products Served
[Company Name] provides career coaching services to help clients achieve their professional goals and become the best version of themselves in their place of work. Some of the services we provide include guidance about career direction, interview practice, and helping with job searches.
Customer Focus
[Company Name] will primarily serve individuals, entrepreneurs, business executives, and students that live in the [Location] area. The demographics of the area is as follows.
- 91,000 residents
- Median age: 38 years
- 52% college educated
- 45% in management/professional careers
Management Team
[Company Name] is founded by [Founder’s Name], who has been a mentor and career coach informally for several years. His coaching expertise began when he was a manager providing guidance to his employees. As time went on, he found himself being an informal career coach to several employees, colleagues, and other professionals in his network. He found this work far more enjoyable than his job, so he decided to start a career coaching business so he could focus all his energy on helping others in their career.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There has been significant growth in the career coach industry over the past few years. In addition, we surveyed the local population and received highly positive feedback pointing towards an explicit demand for the services, supporting the business after launch.
- The management team has a track record of success in the career coaching business.
- [Founder’s Name] has lived in [Location] all of his life and has raised his family in the same community as the target market. He has many connections with businesses, government officials, and local organizations.
Financial Highlights
[Company Name] is currently seeking $60,000 to launch its career coaching company. Specifically, these funds will be used as follows:
- Office location build-out and startup costs (training and certifications, website development, etc.): $35,000
- Working capital: $25,000 to pay for marketing, salaries, and lease costs
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name], located in [Location], is a new career coaching business that provides services that help clients achieve their professional goals, improve their performance, and increase their productivity and efficiency. The company’s mission is to help each and every client with their career goals and help them become the best version of themselves in their place of work. We aim to become one of the leading career coach companies in the area by providing support, empathy, and guidance to each of our clients.
Millions of people find themselves in professional careers but don’t know how to get the job of their dreams or reach their next career goal. [Company Name] provides numerous services to help people reach their highest potential in their careers. Whether a client needs some help with their job search or wants to completely reassess their career path, we can help them in any way they need to achieve their goals.
All the coaching programs will aim to provide transformational results. [Company Name] will ensure that its services are of the highest standards and meet the client’s needs precisely and completely through thorough follow-ups and assessments of the clients’ progress.
[Company Name]’s History
Upon surveying the local client base and finding a potential office location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [Date of Incorporation].
[Founder’s Name] has selected an initial location and is currently undergoing due diligence on the property.
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo, and website
- Determined the list of services to be offered
- Determined equipment requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] will provide the following services:
- Career mapping and assessments
- Job search assistance
- Mock interviews
- Resume help
- Guidance on how to get unstuck and advance one’s career
- Guidance on how to improve skills, performance, and productivity
- Other general career guidance and advice
III. Industry Analysis
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
[Company Name] competes against small, individually owned career coach businesses. The coaching industry in general has seen a huge boom in business since the pandemic. In the past few years, millions of people have been reconsidering their career goals and have sought out the guidance of a coach to help them navigate a new career path. The success of these coaches and their clients has led to an increase in demand.
The primary positive factors affecting this industry are the increasing demand for personal development and career coaches. Total advertising expenditure is expected to increase, representing a potential opportunity for the industry. In recent years, favorable government policies, such as the implementation of free trade agreements, are positively influencing market demand. Rising foreign direct investments coupled with improving economic conditions are expected to further boost the market.
According to IBIS World, the career and business coaching sector was worth $15 billion in 2022 and has been increasing at an average rate of 2.5% per year. With so much demand and potential, there is no better time to become a career coach.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the entrepreneurs, business executives, students, and other professionals in [Location]. The area we will serve is populated mostly by moderate to affluent people; as a result, they have the means to pay for higher quality services.
Customer Segmentation
[Company Name] will primarily target the following customer segments:
- Entrepreneurs and business executives: A large number of entrepreneurs and business executives who want to succeed and build sustainable brands are looking for professional and quality career and business coaching services.
- Professionals: Many people are in professional careers but don’t know where to move forward. We will provide a long list of services to help these professionals navigate their career path and prepare for their next big challenge or transition.
- Students: [Company Name] will offer coaching services to students who want to start mapping out their career opportunities.
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments are located within a ten mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Career Development Inc.
Career Development Inc. is one of the leading providers of career coach services in town and has been in business for ten years. Career Development Inc. specializes in providing individual coaching classes and group coaching classes to its clients to help them achieve their career goals. They can help clients with the job search process, improving their performance, or mapping out a whole new career path.
Career Gurus
Career Gurus has been in the industry since 1990, catering to various groups of clients, including managers, entrepreneurs, executives, students, and other professionals. Career Gurus was designed with state-of-the-art coaching programs which has led thousands of their clients to great success. Career Gurus focuses on the creation of custom executive & leadership coaching, career coaching, skill building, transformational intelligence, and women at work.
Career Transformations
Career Transformations was established in 2000 and offers one-to-one coaching, group coaching, speaker & influencer workshops, vision board, team building workshops, and leadership training. Career Transformation provides the most comprehensive range of services within the area but also charges the highest prices. Clients who can afford these services get the expertise of coaches with decades of experience as well as the potential to network with hundreds of other professionals and influencers.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: [Company Name]’s management team has ten years of business and marketing experience that allows them to serve customers in an improved and sophisticated manner than the competitors.
- Relationships: Having lived in the community for twenty years, [Founder’s Name] knows all of the local community, media, and other influencers. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.
- Great services at an affordable price: The complete array of career coaching services offered by [Company Name] nearly equals our most premium positioned competitors. However, [Company Name] will offer these services at a much more affordable price.
- Location: [Company Name]’s location is near the center of town, giving the company access to entrepreneurs & business executives, students, and government officials.
VI. Marketing Plan
The [Company Name] Brand
[Company Name] seeks to position itself as a respectable, upper-middle-market competitor in the career coach service market. The [Company Name] brand will focus on the company’s unique value proposition:
- Offering a wide collection of high-quality career coaching services
- Convenient location
- Comfortable, customer-focused environment
- Moderate pricing
Promotions Strategy
[Company Name] expects its target market to be individuals living within a ten mile radius of its location. The following are [Company Name]’s promotions strategy to reach these individuals:
Website/SEO
[Company Name] will develop a professional website that displays images of [Founder’s Name] and the services that we provide. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. [Company Name] will use social media to develop engaging content in terms of career topics and guidance and post customer reviews that will increase audience awareness and loyalty.
Word of Mouth Marketing
[Company Name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. [Company Name] will be incentivizing its existing customer base to encourage their friends to come and try their services for the first time.
Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. [Company Name] will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. [Company Name] will advertise its company offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its services in various media outlets like podcasts, television stations, radio shows, etc.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of our career coaching services.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions, including the following:
Administrative Functions
- Bookkeeping
- Marketing
- Website maintenance
- Hiring and training staff
Service Functions
- Provide general career guidance and coaching
- Provide career maps and assessments
- Help with job searches
- Create mock interviews
- Create resumes
- Provide emotional support to clients
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been career coaching professionals for several years. He used to work in management in a Fortune 500 company and found himself providing career guidance to his employees, colleagues, and others in his network. He spent so much time coaching others that he decided to turn his skills into a new business.
While [Founder’s Name] has never run a career coaching business himself, he has extensive experience as a manager in a large company, so he knows the operations and management sides of running a business. He will hire other staff members who can help him manage other facets of the business.
Hiring Plan
[Founder’s Name] will start off as the only Career Coach. In order to launch, the company will need to hire the following:
- Administrative Assistant
- Marketing Assistant
- More Career Coaches as the business grows
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the fees charged for providing career guidance and coaching.
The major costs drivers for the company will include overhead and marketing expenses.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $60,000 to launch its career coaching company. Specifically, these funds will be used as follows:
- Office location build-out and startup costs (training and certifications, website development, etc.): $35,000
- Working capital: $25,000 to pay for marketing, salaries, and lease costs
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of clients per day | Per location |
|---|---|
| FY 1 | 10 |
| FY 2 | 15 |
| FY 3 | 20 |
| FY 4 | 25 |
| FY 5 | 30 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
