How to start a training business from the ground up

Starting a training business is an exciting venture that combines your subject matter expertise with sharp business savvy. The professional development market is a multi-billion dollar industry, with consistent demand for quality training from corporations, small businesses, and individuals looking to advance their skills.

This guide will take you through the practical steps of validating your business concept, securing funding, obtaining necessary licenses, and acquiring the right equipment to help you launch a successful training business in the U.S.

Step 1: Plan your business and validate your idea

Before you build anything, confirm people will pay for your training. You can survey potential clients in professional groups on LinkedIn. Also, use Google Trends to gauge interest in your proposed topics over time. A frequent misstep is creating a course without this initial validation.

Analyze the competition

Look at what similar trainers offer on platforms like Coursera or Udemy. This helps you find gaps in the market and set your pricing. Many new trainers underprice their services, so research competitor rates to value your expertise appropriately.

Estimate your startup costs

Your initial investment can range from $2,000 to over $10,000. Planning for these expenses helps you secure the right amount of funding. Here is a typical breakdown:

• Legal and Admin: $100 - $700 for LLC formation and business licenses.
• Curriculum Development: $0 if you do it yourself, or $1,000 - $5,000+ to hire an instructional designer.
• Technology: $1,500+ for a reliable computer, presentation software, and a Learning Management System (LMS) subscription.
• Marketing: $500 - $2,000 for a basic website and initial promotional efforts.

Here are 3 immediate steps to take:

• Survey at least 20 potential clients about their biggest professional challenges.
• Analyze the course content and pricing of three direct competitors.
• Create a preliminary budget based on the cost estimates above.

Step 2: Set up your legal structure and get licensed

You might want to consider forming a Limited Liability Company (LLC). Many new trainers default to a sole proprietorship for simplicity, but this mixes personal and business assets. An LLC protects your personal finances if the business faces legal issues. Filing fees range from $50 to $500.

Secure your licenses and permits

Once you have a structure, get an Employer Identification Number (EIN) from the IRS. It’s free and you will need it to open a business bank account. The online application takes about 15 minutes to complete.

Next, register your business name with your state, usually through the Secretary of State's office. You will also need a general business license from your city or county. These local permits can cost between $50 and $150 annually.

A detail that's easy to miss is state-specific training certification. Check your state's Department of Education or equivalent agency for rules on vocational training. Some states require this, even for non-accredited corporate training, so it's worth a quick search to stay compliant.

Here are 3 immediate steps to take:

• Decide on your business structure, weighing the liability protection of an LLC.
• Apply for a free Employer Identification Number (EIN) on the IRS website.
• Research business registration with your Secretary of State and local city clerk.

Step 3: Protect your business with the right insurance

With your legal structure in place, the next move is to manage risk. Insurance might feel like an extra cost, but it protects your personal assets and business from unexpected claims. For a training business, two policies are fundamental.

Key insurance policies for trainers

Your primary focus should be on liability coverage. Many new trainers underestimate the risk of a client lawsuit based on their advice. Here are the policies to consider:

• General Liability: Covers third-party bodily injury or property damage. Expect to pay $400 - $900 annually for a $1 million policy.
• Professional Liability: Also called Errors & Omissions (E&O), this covers claims of negligence or bad advice that cause a client financial loss. This can cost $500 - $1,500 annually for $1 million in coverage.
• Other Policies: If you hire employees, you will need Workers' Compensation. If you lease an office, you will need Commercial Property insurance.

A frequent misstep is to only purchase general liability. This policy will not protect you if a client claims your training program failed to deliver promised results. Professional liability specifically covers the services you provide, which is a unique risk for trainers.

When you search for policies, look at providers who understand consultants. Companies like Hiscox, The Hartford, and Thimble are good places to start because they specialize in small business insurance and can offer relevant packages.

Here are 3 immediate steps to take:

• Request quotes for both general and professional liability insurance.
• Compare policies from at least two providers that specialize in small businesses.
• Determine if your business plan requires workers' comp or commercial property insurance.

Step 4: Select your location and acquire equipment

Your first decision is whether to train online or in person. Many new trainers start with a virtual model to minimize overhead. This approach lets you build a client base before you commit to a physical space and the costs that come with it.

If you opt for a physical location, look for small office spaces or dedicated training rooms in co-working facilities. For a class of 10-15 people, you will need about 300-500 square feet. When you negotiate a lease, ask for a shorter term, like 1-2 years, to maintain flexibility.

Core technology and equipment

Your equipment needs depend on your delivery model. A common misstep is to overspend on gear before you have steady revenue. Start with the basics and upgrade as your business grows. Your initial setup will likely include:

• Reliable Computer: This is your primary asset. Plan for $1,500 or more for a machine that can handle video and multiple applications.
• Webcam and Microphone: For clear virtual delivery, a Logitech C920 webcam (around $70) and a Blue Yeti microphone (around $130) are solid starting points.
• Presentation Software: You can create professional materials with software like Canva or Google Slides, which offer robust free versions.
• Learning Management System (LMS): To host and sell online courses, platforms like Teachable or Kajabi are popular. Subscription plans typically start around $39 per month.

Here are 3 immediate steps to take:

• Decide between a virtual or physical training model based on your startup budget.
• Price out your core technology, including a computer, webcam, and microphone.
• Research LMS platforms like Teachable to understand their features and pricing.

Step 5: Set up your payment processing

For corporate clients, Net 30 payment terms are standard. For individual coaching or public workshops, you should require payment upfront to secure a spot. Many new trainers forget to ask for a deposit on large contracts, which can leave them unpaid if a client cancels.

To protect your time, you might want to require a 25-50% non-refundable deposit before you begin any curriculum development for a corporate client. This should be clearly stated in your service agreement.

Choose your payment solution

Look for a payment processor with low transaction fees and fast access to your money. For trainers who need to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone.

At just 1.99% per transaction with no hidden costs or extra hardware, it is a strong offer compared to other providers whose rates often exceed 2.9%. It's particularly useful for collecting payment after a one-on-one session or selling materials at a workshop. Here is how it works:

• Get Started: Download the JIM app for iOS.
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
• Access Funds: Your money is available on your JIM card as soon as the sale is done.

Here are 3 immediate steps to take:

• Decide on your payment terms for individual versus corporate clients.
• Draft a clause for your service agreement that requires a deposit for large projects.
• Compare payment processors, including the fee structure of JIM for in-person sales.

Step 6: Secure funding and manage your finances

Funding options for your training business

You will likely need $5,000 to $15,000 in working capital for your first six months. This covers your salary, marketing, and software before you have consistent revenue. A mistake many new trainers make is to only budget for business costs, not personal living expenses.

The SBA Microloan program is a good place to start. It offers loans up to $50,000 for small businesses, with interest rates that typically fall between 8% and 13%. You can also explore a business credit card for initial equipment purchases, but watch the interest rates.

Manage your cash flow

Once you have funds, open a dedicated business bank account. This separates your finances for tax purposes and makes your business look more professional. Do not mix personal and business transactions in one account; it creates a headache during tax season.

Use simple accounting software like Wave or Zoho Books, which have free plans. Track every dollar you spend. This helps you understand your profit margins and make smarter financial decisions as you grow. It also prepares you for tax filing.

Here are 3 immediate steps to take:

• Calculate your total working capital needs for the first six months.
• Research the SBA Microloan program and its requirements in your area.
• Open a separate business bank account to manage your funds.

Step 7: Hire your team and set up operations

You will likely start as a one-person operation. Once you have consistent client work, you can bring on help to scale. Your first hires should be freelancers, which keeps your fixed costs low while you grow your revenue stream.

Your first hires

Many new trainers try to do everything and burn out. Instead, consider hiring a Virtual Assistant (VA) for 5-10 hours a week to manage your calendar and emails. VAs typically charge $25-$50 per hour and free you up to focus on clients.

If curriculum design is not your strength, a freelance Instructional Designer can be a great investment. They can help structure your content for maximum impact. Expect to pay between $75 and $150 per hour for an experienced professional.

Manage your daily workflow

To streamline your operations, use a scheduling application like Calendly or Acuity Scheduling. These let clients book sessions directly, which eliminates back-and-forth emails. For project management, a simple board on Trello or Asana can help you track client work.

As you build your team, aim to keep total payroll costs below 50% of your revenue. This is a healthy benchmark for service-based businesses and ensures you remain profitable as you expand.

Here are 3 immediate steps to take:

• List five administrative tasks you could delegate to a Virtual Assistant.
• Research freelance instructional designers on a platform like Upwork.
• Sign up for a free plan with a scheduling app like Calendly to test its features.

Step 8: Market your business and acquire customers

Focus on one or two marketing channels

You might be tempted to market everywhere at once. This dilutes your efforts. Instead, master one channel where your clients are. For corporate training, LinkedIn is your best bet. Connect with HR and department heads by sharing content that solves their specific problems.

Another strong approach is content marketing. Create a valuable resource, like a free e-book or a webinar on a niche topic. You can promote this on LinkedIn to build an email list. Email marketing consistently delivers a high return, often converting leads at a rate of 2-5%.

Craft a specific offer

A frequent misstep is marketing "training" in general. This is too vague. Instead, sell a concrete outcome. For example, "Our leadership program reduces employee turnover by 20%." This specific promise makes it much easier for a client to understand the value and approve the budget.

When you reach out to prospects, aim for a 10% meeting conversion rate from your qualified leads. This is a solid benchmark for B2B sales. Your Customer Acquisition Cost (CAC) might seem high initially, but it is justified by the large contract values in corporate training.

Here are 3 immediate steps to take:

• Identify 50 potential clients on LinkedIn and draft a connection message.
• Outline a free checklist or short e-book to use as a lead magnet.
• Rewrite your service description to promise a specific, measurable result.

Step 9: Set your pricing strategy

Your pricing sends a message about your value. Set it too low, and clients might question your expertise. It is important to align your rates with the results you deliver. You have a few solid models to choose from for your services.

Common pricing models

Here are three standard approaches you can adapt for your business:

• Per-Participant Rate: This works well for public workshops. A typical price is $250 to $750 per person for a full-day session. This model scales well with group size.
• Daily Rate: This is standard for corporate clients. New trainers often charge between $1,500 and $3,500 per day. This fee covers preparation and delivery for a set group.
• Project Fee: Use this for custom curriculum design plus delivery. A project could range from $5,000 to over $25,000, based on its complexity and scope.

Many new trainers accidentally undercharge because they only bill for the hours they are in front of a client. Your rate should also account for curriculum design and administrative work. With virtual training, you might aim for a profit margin of 60-80%.

Here are 3 immediate steps to take:

• Calculate your target daily rate based on your desired annual salary.
• Analyze the pricing of three competitors who serve a similar audience.
• Draft a simple pricing sheet with options for your main services.

Step 10: Maintain quality and scale your operations

To ensure consistent quality, you can use a simple feedback system. After each session, send a survey based on the Kirkpatrick Model. Ask participants to rate their satisfaction (Level 1) and what they learned (Level 2). This gives you immediate data on your program's impact.

You can also track your Net Promoter Score (NPS). Ask clients, "How likely are you to recommend our training to a colleague?" A score above 50 is a strong indicator of client loyalty and a high-quality service that fuels word-of-mouth referrals.

Decide when to grow

Once you consistently generate $5,000-$7,000 in monthly revenue, it is a good time to hire a virtual assistant. This frees you from administrative work. Many new trainers wait too long and burn out on tasks that a freelancer could handle for $25 per hour.

When you expand your offerings, focus on depth, not breadth. Instead of adding unrelated topics, create an advanced version of your most popular course. This builds your reputation as a specialist and attracts higher-paying clients who seek deep expertise.

As your client list grows, a Customer Relationship Management (CRM) system helps you stay organized. Platforms like HubSpot and Zoho CRM offer free plans to track your sales pipeline and client communications without an initial investment.

Here are 3 immediate steps to take:

• Create a post-training feedback survey based on the first two levels of the Kirkpatrick Model.
• Set a monthly revenue goal of $5,000 to trigger the search for a virtual assistant.
• Sign up for a free CRM plan to start organizing your client contacts and sales leads.

Starting a training business is about packaging your expertise. Remember that your specific knowledge is the real product. The steps in this guide help you build the framework to deliver that value. You have the knowledge, now go build the business.

And when you get paid, keep it simple. JIM turns your phone into a card reader to accept payments anywhere, with no extra hardware and a flat 1.99% fee. This lets you focus on your clients, not your finances. Download JIM to get started.