What to know about starting a coaching business in the UK 

Coaching was once quite niche. But now, as more people pursue self-improvement and more businesses need to manage rapid change, coaching is becoming a mainstream support function. 

Whether for personal development, executive leadership, or health and wellness, coaches are in demand.  Today, there’s a record-breaking number (122,974) of registered coaches worldwide. 

Starting a coaching business is an exciting way to take control of your career. It’s a chance to build something that fits around your life and your interests.

If you’ve got the desire to help people reach their potential but aren’t sure how to get started, we’re here to help. In this article, we’ll cover everything you need to know about how to start a coaching business in the UK, from deciding on your business structure to costs and qualifications. That way, you can focus on changing lives.

In this article

• What are the different types of coaching businesses?
• How to start a coaching business: 6 steps
• How much does it cost to start a coaching business?
• What insurance do I need to start a coaching business?
• Do I need any qualifications to start a coaching business?
• Is starting a coaching business worth it?

The coaching industry is huge and varied. There’s a niche out there for almost every kind of expertise, from life coaching to specific business coaching, like leadership or career coaching. 

For first-time founders, this broad market size is a great sign. It shows a strong and continuing demand for coaching services in the UK. At the moment, the most popular types of coaching businesses you’ll come across include:

• Life coaching: In the UK, it’s estimated that there are 80,000 to 100,000 life coaches serving a population of almost 68 million. Life coaching is a broad category, but generally, a life coach helps individuals achieve personal goals—whether that’s finding purpose, improving relationships, or general personal development. If you’re thinking about starting up a life coaching business, you’ll be tapping into a huge segment of the market where people are actively looking to improve their well-being

• Business coaching: It’s estimated that there are over 370,000 business coaching professionals registered on LinkedIn in the UK. This type of coaching focuses on helping business owners, directors, or teams grow their company. You might act as a business startup coach for new entrepreneurs, an executive coach for senior leaders, or focus on a specific area like sales, leadership, or strategy. First-time founders will be interested to know that this is a huge growth area, especially in the UK’s thriving SME sector 

• Health and wellness coaching: Today, health and wellness coaching is a recognised profession that supports the NHS, corporate wellness, community health, and private clients across the country. Health and wellness coaches help clients with their physical and mental well-being, focusing on things like fitness, nutrition, stress management, or specific health conditions

• Career coaching: The global career coaching service market size is projected to reach USD 6.8 billion (roughly £5 billion) by 2032. Here, coaches guide people through things like job changes, interview preparation and salary negotiation. You might help your clients overcome professional challenges by teaching them certain skills, creating action plans, or using self-reflection exercises 

• Sports coaching: This area is popular with individuals who once played a sport at a high level and who now want to help others reach their athletic potential. It involves teaching core skills, designing training programmes, analysing performance and providing important motivation. You can find sports coaches across all levels, from grassroots to elite competitions

The great thing about coaching is that you can incorporate different types of expertise into your services. For example, you could be a business startup coach specialising in health and wellness for entrepreneurs. Or a sports coach with a special interest in nutrition. 

If you’re just starting out, take some time to consider your offering and where your expertise and passion meet market demand.

Before you jump in, there are a few steps you need to cover off. Let’s look at how to start a coaching business in more detail, starting with choosing your coaching field.

1. Choose your niche

A specialist coach is far more appealing to a client than a coach who describes themselves as a generalist. Having a specialism, or a niche, shows you’ve got real experience in the particular area clients want help with.

Think about what you’re really good at. What personal or professional experience do you have? What do people naturally come to you for advice about?

To stand out, you also need to narrow down who you help and how. For example, perhaps you’re interested in coaching new mums returning to work after maternity leave, or coaching small business founders in public speaking. Pick a niche that lights you up — an area you feel really confident in. This narrow focus is how you make your mark. It helps ensure that people understand what you do.

2. Create your business plan

Honestly, you’re much more likely to be successful if you have a business plan. This is because it strongly encourages you to do your homework and iron out any issues before you spend any money at all on your business.

For example, you might be convinced that your area of coaching is in high demand, but you need solid evidence to back this up. Is it really something people want and need?

A business plan makes you think seriously about your ‘what, why and how’. It should generally cover:

• Your mission, vision, and values: Define who you are and what change you want to create for your clients
• Competitor research: Look at similar coaching businesses in the market. Knowing who else is out there can help you avoid mistakes, find your audience, and confidently fill a market gap 
• Target market: Who is your ideal client? Include details like their age, income, and the types of problems you can help them with
• Your services: State what you’re selling, the format you will sell in, and the length of your coaching sessions. For example, will you offer 60-minute 1:1 online sessions, 90-minute in-person group sessions, or something else?
• Operations: Define how you’ll assess your clients, create improvement plans and track progress 
• Tech tools: As part of your operations, think about what tech you need to invest in, like appointment scheduling tools and calendar management 
• Financial plan: Include your projected startup costs (more on this later), pricing structure, and income goals

Marketing: How will you get the word out about your coaching business? Consider what channels your target market use — perhaps they’re on platforms like LinkedIn, TikTok, or Instagram?

3. Decide on your business structure

Did you know that the business structure you choose affects everything from your taxes and liability (your responsibilities) to how your business is perceived? Getting it right is important and we’re here to help you decide what’s best for you.

Most first-time coaching company founders choose between two business structures: sole trader and limited company. Let’s look at the key pros and cons of each:

Structure	What it is	Pros for a coach	Cons for a coach
Sole trader	You and your business are treated as the same legal entity	Easy and cheap to set up Minimal admin — you just need to register for self-assessment with HMRC Your details are kept off the Companies House public register	Limited companies come with limited liability,  which protects your personal assets like your home and car if your business gets into debt. It looks more professional and established Opportunity for tax efficiencies
Limited company	Your company is a separate legal entity from you	Limited companies come with limited liability,  which protects your personal assets like your home and car if your business gets into debt It looks more professional and established Opportunity for tax efficiencies	More paperwork, like filing annual accounts with Companies House Higher setup cost (£12–£50) More complex tax returns (including corporation tax)

If you want to test the waters and dip your toe into the coaching business world, becoming a sole trader is the quickest way to get started.

But if you plan to grow, hire staff, and want the extra protection of limited liability, a limited company is often the better choice.  Although there’s more admin, like submitting confirmation statements to Companies House, limited companies are often perceived as being more established and professional by businesses — something to consider if you want to work with professionals, including leadership and executives.   

4. Form your company

If you’re planning to set up as a sole trader, you just need to register for self-assessment with HMRC. This lets HMRC know that you’re self-employed and you’ll complete your own annual tax returns.

If you decide to set up a limited company, you’ll need to formally register your business with Companies House.  

You can form a company directly on the Companies House website, or you can use an official company formation agent like Countingup to handle the Companies House application for you. Our company registration service is quick and easy, and your new coaching business will be up and running within 24 hours. 

However, before you form a company, you need to gather some information and get a few documents in order. These include:

• Company name: First, you should check if your desired company name has not already been registered with Companies House — you can use an online company name availability checker for this
• Registered office address: This is a physical address in the UK where official company correspondence can be sent 
• Business activities: A description of what your company does — typically, this is a Standard Industrial Classification (SIC) code (for general coaching, 96090 is often used)
• Articles of association: These are the internal rules for how your company will be managed. Don’t worry, Countingup can help with this, and it’s usually very straightforward for first-time founders 
  Your details: This includes your name, address, date of birth, nationality, occupation, and a valid form of ID

You’ll then be ready to complete the limited company registration process — congrats! 

5. Set up your virtual shopfront

Unless you’re planning on using a physical office space for in-person coaching sessions, your shopfront will be online. 

You’ll need at least one professional online channel where potential clients can find you, learn about you, and book your coaching services. 

This doesn’t have to be complicated — it’s best to keep things simple but effective. You could: 

• Create a professional website: There are plenty of website builders out there, like Wix and Squarespace. Make sure you include clear pricing, a page explaining who you help and how you help them, and professional-looking imagery
• Set up a LinkedIn page (or another social platform): Choose one platform that you know your clients use and focus on providing value there — don’t try to be everywhere at once. Sharing useful, bite-sized coaching tips is a great way to promote your expertise

6. Start trading 

You’re now the owner of a fantastic new coaching business — well done. Growing your business is the next big step, and you’ll want to think about building out your marketing plan and developing your pricing strategy. 

As you settle into your day-to-day, also consider what systems you could set up to handle your business admin, like invoicing, managing expenses, and tracking your client sessions. 

Now that the basics are sorted, let’s dive into the essential details of running your coaching business, like costs, insurance, and qualifications.

Good news: costs for starting a coaching business are generally very low compared to other startups. This is because you’re selling a service, your time and expertise, rather than stock. 

For many first-time coaching business founders, the highest cost by far (but also the most worthwhile investment) is professional training. We’ll look at qualifications and accreditations in further detail a little later, but for now, here are your general startup costs:

Startup cost category	Typical cost	Notes
Training/certifications	£1,000–£5,000 (optional)	The UK coaching industry is not regulated and you often don’t need training or certifications. But some areas, like sports coaching, do require accreditation. This can range from a diploma to a university degree
Company registration	£12–£50	Registering as a sole trader is free, but there is a £50 fee to register a limited company with Companies House (or just £12 with Countingup)
Insurance	£80–£300 per year	Generally, you’ll want to consider professional indemnity and public liability insurance (see next section for further details)
Website creation	£50–£300 per year	This includes your chosen domain name and hosting for a simple website via a provider like Wix or Squarespace  Tip: You can often find website deals that include a free domain name — it’s worth researching for the best prices
Software	£0–£50 per month	This includes a simple session scheduling tool and CRM system, like Folk, to manage your client list and comms  Tip: CRM tools usually come with a free trial, so try a few out before committing to one fully
Marketing and brand	£0-£500 per year	You can get started on social media, like LinkedIn or Instagram, for free. There are lots of free imagery tools out there, like Unsplash, as well as free logo creators like Canva. How much you spend depends on what kind of branding you want
Total	£150–£1,200	This final cost assumes you already have a computer and internet, and you start with basic, low-cost training or none at all

Realistically, you could get up and running for under £500. As mentioned, the highest variable cost for coaches is usually training or accreditation, and this can range significantly: 

• If you are starting out as an executive or a business startup coach, you might invest in an established accreditation to improve your credibility, which often comes with an annual renewal fee (more on this later)
• But for new life coaches, you can usually start a life coaching business from home with minimal costs, as you don’t need an official certification 

Technically, there’s no legal requirement for UK coaches to have insurance, but running your business without it is risky. Let’s face it, despite your very best efforts, things can go wrong. We’re all only human, after all.

Insurance provides peace of mind and offers important protection for coaches, especially if you’re offering advice and guidance. Every coach should strongly consider two main types of insurance:

• Professional indemnity insurance: This is your most important type of cover. It protects you if a client claims that you gave them bad advice or made an error that caused them a financial loss or personal detriment. Even if the claim is baseless, professional indemnity insurance helps cover your legal defence costs

• Public liability insurance: This is important if you ever meet clients in person, even just in a co-working space or coffee shop. It covers you if a client (or a member of the public) is injured, or their property is damaged, as a result of your business activities. (Hopefully, no one will trip over a laptop cable, but better safe than sorry!)

You can consider other types of insurance, too. Here are some common options for the coaching industry:

• Business equipment insurance: If you invest in a good laptop, a business mobile or other valuable equipment for your coaching, this can cover the cost of repairs or replacements if they’re lost, stolen, or damaged

• Cyber insurance: As a coach, you’ll handle sensitive client data like names, addresses, and dates of birth. This insurance can protect you against data breaches, or if your systems are hacked (for example, by a virus), covering your legal costs and helping to maintain your professional reputation   

• Personal accident insurance: This is worth considering if you’re a sports coach. If you get injured and are unable to work, this insurance can help to cover your lost income

No, you don’t need any specific legal qualifications to start, run, and grow a coaching business in the UK. The coaching industry is unregulated. However, just because you can do it without qualifications doesn’t mean you necessarily should. Think of it from your client’s perspective: why should they trust you with their personal problems or their business’s future if you’re not qualified for the job? 

Coaching is all about credibility. While you might have the skills, getting a qualification or certification can help in three big ways:

1. Trust: A qualification from a recognised body gives your clients confidence that you take your job seriously. This is important in an unregulated industry, and it’ll help you stand out from the crowd

2. Structured methodology: Training teaches you proven frameworks and techniques that can make you a much better and more effective coach — very important for results-driven clients

3. Standards: If you’re working with businesses or professionals, having a certification shows that you’re committed to professional standards — this can help you get contracts with bigger businesses 

Think of accreditations as a badge of trust — they show you’ve put in the work to learn the professional standards. And clients will appreciate this.

Joining an official body like the International Coaching Federation (ICF) or the European Mentoring and Coaching Council (EMCC) isn’t a requirement, but it’s highly recommended for building credibility and professional development.

Joining a professional body is an investment, so let’s look at the pros and cons:

Pros of joining a professional body	Cons of joining a professional body
Credibility: You can put their logo on your website to show clients you follow a code of ethics and best practice	Annual fees: There is usually an annual membership fee, which needs to be budgeted for (for example, to join the ICF, it’s currently a global fee of $270 plus a UK chapter membership of £50)
Networking and mentorship: You get access to a community of like-minded professionals for support and referrals	Time commitment: Maintaining membership often requires completing a minimum number of continuing coach education (CCE) credits — currently, this is 40 with the ICF
Discounts and resources: They often provide discounted insurance and excellent learning materials to keep you up-to-date	Certification cost:  Certifications from a professional body, like the ICF’s ACC foundation certificate, come with their own fee outside of any membership costs

You can, of course, become a great coach without joining a professional body, but it can help to win your clients’ trust.

The answer is yes, but it takes work. 

Generally, the coaching sector in the UK is experiencing significant growth. In fact, the number of active coaches has risen substantially from 38% in 2022 to 53% in 2024, which shows coaching is a profitable career for many. 

However, the profitability of your coaching business is down to the effort you put in,  your qualifications, experience, area of expertise, and how well you sell yourself. In terms of what you can expect to make, let’s look at the numbers:

• For context, in 2025, the average salary in the UK is £39,039. And the average hourly rate is £25.40

• As a life coach, you can expect to earn anywhere between £15,000 and £153,000 per year, and the average hourly pay for a life coach in the UK is £58.55

• A business coach working in and around London can expect to earn £60,000+ per year

While you won’t wake up rich, there is money to be made. Success comes from knowing your niche, being clear in how you sell your services,  and working hard to deliver results for your clients. 

To help you decide whether or not to take the plunge, we’ve weighed up the pros and cons of starting a coaching business:

• You help people change their lives: Whether you’re helping someone overcome a major fear or guiding a small business owner through a growth phase, the impact you have is often visible and rewarding
  
• Low startup costs: As we’ve covered, you don’t need a significant amount of money to get started as a coach, especially if you choose to start your business from home

• Flexibility: As a coach and business owner, you get to set your own hours, manage your own schedule, and decide how and where you work

• Earnings potential: As you gain experience, become accredited, and get excellent client results, you can increase your fees, leading to more profit 

• It’s a hard sell: As an unregulated industry, some niches in the coaching market are becoming saturated (for example, life coaching), which means you face significant competition

• Inconsistent income: At the beginning of your coaching journey, your income can fluctuate wildly. Clients may cancel, or you might have dry spells between signing new ones. This can be stressful when you’re relying on your business to pay the bills

You’re on your own: This means doing all the marketing, admin, sales, and accounts. So you really have to weigh up whether these items are something you’re willing to take on, as well as coaching.

It’s easy to be swayed by some of the coaching testimonials out there that promise six-figure incomes in a matter of months. 

Honestly, that’s rarely the reality. Building a successful coaching business takes consistent effort, time, and persistence. But with a solid plan, passion, and a great niche, the rewards are absolutely there.

As you move forward with your new coaching business, we’re here to help with your admin and accounting. 

If you’re ready to form a limited company, ourcompany registration service is quick and easy. Your new coaching business could be up and running in as little as 24 hours!

If you form a limited company, you need to separate your business and personal finances. Our business current account app is built for first-time founders. It simplifies tax preparation and invoicing, making the lives of new coaches a lot easier.

In the meantime, check out our resource hub for more business guidance, advice and tips. Best of luck!

Getting funded as a coaching business is less common than in other industries. You might qualify for a government-backed StartUp Loan if you need money for formal training or a big marketing campaign. However, most coaches are self-funded and build their businesses incrementally by focusing on getting their first few clients.

You should focus on finding a niche where you already have transferable professional or life experience. For example, if you were a successful project manager, you could be a productivity coach. If you don’t have coaching experience, invest in an accredited training program or find a mentor or supervisor to guide you in your early client sessions.

Yes, you can. The title ‘coach’ is not legally protected in the UK. However, being unqualified makes it much harder to attract high-paying clients and establish yourself as a trustworthy professional. It’s generally recommended to get certified by a reputable organisation.