82% of Coaching Businesses Fail in 2 Years: Here’s Why
Starting a coaching business feels exciting. You launch with energy, invest in your tools, and get ready to serve. You know coaching changes lives, and you are eager to make an impact. But as time goes on, excitement alone is not enough to keep things moving. The leads slow down, the challenges pile up, and you start to see that building a coaching business takes more than passion. It takes skill, strategy, and consistency.
Here is the surprising reality: about 82 percent of coaching businesses do not make it past their second year. That number is not meant to discourage you. It is a reminder that passion needs a plan. The good news is, success in coaching is not about luck, and it is not about being the loudest voice in a crowded space. It is about building wisely, learning the right skills, and avoiding the common traps that cause so many to give up too soon.
Let’s take a closer look at why most coaching businesses fail, and more importantly, how you can build one that thrives.
1. Confusing Passion for Preparation
There is no shortage of passion in the coaching world. Most coaches genuinely want to help people. They feel called to guide others, and they care deeply about making a difference. But passion, while essential, is not the same as preparation. It is like setting out on a road trip with no map or gas in the tank. Coaching is a professional skill that takes training and practice. It requires tools like active listening, powerful questioning, goal-setting methods, and accountability structures. Without these, coaching can feel like a good conversation but deliver little real change. The coaches who succeed understand this. They commit to becoming excellent at their craft.
Passion gets you started, but preparation keeps you going.
2. Underestimating the Business Side of Coaching
You know the old saying, “If you build it, they will come?” It is a great line from Field of Dreams, but it does not work in coaching.Being a great coach does not automatically fill your calendar. Coaching is both a service and a business, and you need to treat it like one. That means learning how to talk about what you offer in a way that connects with clients. It means setting up systems to manage inquiries, schedule sessions, and handle follow-up. And it means getting comfortable with marketing, even if that is not your favorite part of the job.
The best coaches are not only strong in their sessions. They also know how to run their business well behind the scenes.
3. Trying to Serve Everyone
There is a common mistake many new coaches make. They try to serve everyone. They think, “If I keep my options open, I will reach more people.” But in practice, the opposite is true. When you try to speak to everyone, your message becomes too general to resonate deeply with anyone. People need to know exactly who you serve and what problems you help solve.
The clearer you are, the stronger your business becomes. Clarity builds confidence, and confidence attracts the right clients.
4. Going It Alone
Building a coaching business can feel lonely at times. Many new coaches try to figure everything out on their own, thinking they have to prove they can do it without help. But the truth is, no one builds a successful coaching practice in isolation. The most effective coaches surround themselves with mentors, peers, and communities that keep them sharp and motivated. A strong network accelerates your learning. It provides encouragement when things get tough and offers insights you would not find on your own. Success in coaching is rarely a solo effort.
Here is the bottom line. Coaching businesses do not fail because coaching is too hard or the market is too crowded. They fail because too many coaches skip the steps that set them up for lasting success. If you take the time to prepare, treat your business like a business, focus your message, and stay connected to a community, you will be well on your way to building something that lasts.
At ICCA, we help coaches build that foundation. With the right training, tools, and support, you can turn your passion into a thriving, sustainable practice. Because when you build it right, they really will come.