Coaching has become very popular over the past few years and continues to grow. According to research coaching is one of the fastest growing sectors in the world. The estimated market size of the coaching industry was $20 billion in 2022 with a total of $10.5 billion worth market value in the US alone - wowza!
Coaching specialties are almost as flavorful as ice cream - whether it's career, business, money, life, weight, sex, relationships, speaking, dressing - the role of a coach is to help their clients achieve their goals and make positive changes in their lives.
But, with the growing demand for coaching services and some questions about integrity in marketing coming to light lately, it's becoming increasingly important for coaches to protect themselves and their clients by having a contract in place.
In this blog post, we'll explore why every coach needs a contract and the awesome things that contracts do for you AND your clients.
1. CONTRACTS CLARIFY EXPECTATIONS
A coaching contract serves as a written agreement between the coach and client, outlining the terms and conditions of the coaching relationship. This document clarifies the expectations of both parties, including the length of the coaching package, the frequency and duration of coaching sessions (how much notice do you require if they need to cancel?), and the scope of the coaching services (how much access is there to you? Voxer? email?).
By clearly outlining these details, the client can have a clear understanding of what they can expect from the coaching relationship and the coach can have a clear understanding of what's expected of them.
2. CONTRACTS PROVIDE LEGAL PROTECTION
You know I will stand on this soapbox until the cows come home. This is hands down the MOST IMPORTANT thing a contract does. It provides legal protection for both the coach and client. It can include provisions that protect the coach's intellectual property rights, such as any proprietary coaching methods or materials. Additionally, the contract can outline the coach's liability and disclaimers, as well as limits on the coach's liability (THIS IS VERY IMPORTANT). This protects the coach from any potential legal claims that may arise during the coaching relationship and keeps you out of court (we love limits on liability).
3. CONTRACTS ESTABLISH BOUNDARIES
Boundaries for the win! We love boundaries and contracts help establish these with your clients. In a contract you can outline your role and responsibilities, as well as your client's role and responsibilities. It can also include provisions that address confidentiality and the handling of sensitive information. By setting these boundaries upfront, the coach and client can establish a clear understanding of the coaching relationship, which can lead to more effective coaching sessions.
You should have your contract in place on DAY 1 of your coaching business. Every coach needs a contract to protect themselves and their clients and how awesome that a contract does all the other cool stuff outlined above right!? If you are seeing clients and don’t have your contract in place yet, please head over to the Template Shop and grab yours today. Your business and your clients will thank you for it!
And if you want to know what else you may need to protect your coaching business? Grab our Free coaches legal checklist down below.