Within the coaching industry, there are many different paths you can take. But the two we’ll be talking about today are widely considered to be two of the most viable options. And they are; creating your own coaching business versus being a self-employed coach.

We’ll be discussing the pros and cons of each path, how they’re different and how they’re alike, plus my final thoughts and opinions on the topic. So let’s begin!

Similarities/Differences of Being A Self Employed Coach VS Creating A Coaching Business –

There are far more differences than similarities when it comes to comparing these two paths, so let’s start with the similarities that do exist between them.

Similarities –

• Both these paths are obviously part of the same industry, no matter which one you choose, you will be coaching. So if the act of coaching is your passion, then either option would suffice on that basis alone.
• Another similarity is freedom of being in control of your career. Both a self employed coach (which is essentially where you’re coaching as a freelancer) and the owner of a business, you’re the creator of your own destiny. You can choose which clients you take on, choose your work hours, etc. So both these career options vary from simply being an employee.

But this is where the similarities end and the differences begin…

Differences –

• There’s a huge difference in the cash flow potential of these two options which we’ll dive deeper into a bit later, but for now, just know that you’ll likely never be able to make as much money as a self employed coach as you could potentially with your own business.
• Safety is another difference to keep in mind. As a self employed coach all you have to worry about is making enough money to keep food on the table so to speak; but when you’re running a business, the stakes can be a lot higher.
• The amount of work involved also has the potential to be different. When you’re running business, in order for it to be successful, it’s far more than a 9-5. Whereas a self employed coach could potentially maintain normal work hours.

Those are just a few of the differences, and they already briefly mentioned some of the pros and cons involved, but now let’s take a closer look.

Pros and Cons of Being A Self Employed Coach –

Let’s start off with being a self employed coach, what do you stand to gain but what are you giving up?

Pros –

• You’re in charge of your own time. You don’t have to report back to your employer, because you are your own; and additionally you don’t have to worry about the fact you’re controlling a business. You don’t have as many responsibilities and that offers a lot of freedom.
• You’re not risking any money. When you start a business, you’ll often need to invest some of your own money to get it going; or you’ll need to reinvest profits in order to grow it. Being a self employed coach, you’re simply making money to pay for your personal expenses and you don’t have that overhead to worry about. It’s virtually risk free.
• It’s simpler. There are many different aspects to running a business, but simply employing yourself as a coach takes a lot less effort.

Cons –

• You don’t have the potential to make massive amounts of money as a self employed coach. Your income stream is very limited because you’re trading your time for money, and time is a resource that you can’t expand. In other words, you’re never going to get rich from this path.
• You can’t make as big of an impact. Since you’re just one person, coaching for whichever few clients you can handle per day; you don’t have the each of a potential business. You’re never going to be able to spread your knowledge as far and wide as if you were willing to put the time into forming more of a business model.
• Generational wealth is off the table. Many people in today’s world value building wealth that will span for generations, something that their kids and grandkids will still be able to profit off of. But you can’t do that with an income stream as small as the one of self employed coach. Once you’re done coaching, no more money is coming in.

Pros and Cons of Building A Coaching Business –

Now let’s look at the alternative, building your own coaching business. What are the pros and cons of that?

Pros –

• The biggest pro, and possibly the only one that many people would need, is that you have unlimited opportunities when you build a business. The old saying “the sky’s the limit” really applies here, you can take your coaching to the next level and keep expanding your company over time. Whatever product you want to build, or service you want offer in the coaching industry is ultimately possible.
• Alongside unlimited opportunities comes the potential to make a lot of money. Since so much expansion is possible, you could potentially become rich from a well executed coaching business. And in fact, the coaching industry is booming right now so this might be one of the best times to do it!
• And finally, you can make a difference with a coaching business. Various business opportunities give you the ability to reach a wider audience, you can give value to more people, and all these pleased clients could build your credibility and therefore you brand. So if your focus is to help as many people as possible, then this could be the route for you.

Cons –

• Stress might be the largest con associated with starting any business, and a coaching business is no different. You’ll need to put massive amounts of time, elbow grease, and possibly money, into making your business grow; so you have to be ready to take on that kind of a project.
• Risk is another thing you’re taking on; the harsh truth is that not all businesses succeed. And by failing, you’re potentially losing everything you put into the project. But with the right strategy and enough coaching knowledge, this is a con that could be avoided so take it with a grain of salt.

My Final Thoughts –

I believe that starting a coaching business is the better of these two options, and can help you metaphorically “break the matrix” in the coming year. By taking control of your own career in this way, you’re opening yourself up to unlimited opportunities that only you control! You’re taking on a lot of responsibilities, but in return, you’re gaining unique power over your career.

And with my program, The Bossable Membership, you can learn to become financially independent with your coaching business. Which is one of the main steps in achieve the success you’re looking for! I’ve been in this industry for a long time, and in my program, I offer unique insights on how to get started.