How to Make a Smooth Transition From Therapist to Coach

From therapist to coach feature

Both therapy and coaching can be fulfilling careers on their own, but together, they can be a real superpower for helping clients. Expanding your services with coaching may bring you more fulfillment and variety in your day-to-day work and even increase your earning potential.

However, you might wonder how to make the move ethically and legally. Read on to find out how you can integrate these two careers successfully.

The Difference Between Offering Therapy and Coaching

First, let’s break down the differences between offering therapy and coaching as services to your clients.

You can diagnose and treat various mental health conditions as a licensed mental health professional. Your sessions focus on past events in your client’s life and how they affect their life in the present. You may address issues like anxiety, depression, mood disorders, or addictions.

Life coaching, in contrast, does not require a license. Coaches can obtain certifications from institutions such as the International Coaching Federation (ICF) or the European Mentoring and Coaching Council (EMCC), but certification is not mandatory to practice.

[ Read: Are You Embodying These 7 Roles of a Coach? ]

Life coaches don’t spend much time analyzing past events and instead focus on the client’s current life and desired future. They help clients set and achieve personal and professional goals through various coaching models, exercises, questioning techniques, and accountability strategies.

Therapy and coaching are typically set apart by their approach and focus.

Therapy addresses and heals past traumas and mental health issues, providing clients with tools to manage their emotions. It involves a deep exploration of past experiences to foster mental wellness.

Coaching, however, is future-oriented. It helps clients define their goals and create actionable plans to achieve them. Coaching is about envisioning the future and maintaining accountability, building on the foundation of emotional stability that therapy provides.

It’s essential to recognize that neither approach is inherently better than the other. These approaches complement each other and offer different tools for healing and personal development. 

Clients may benefit from starting with therapy to heal from past experiences and then moving into coaching to pursue future aspirations. Although, many go back and forth between the two depending on which approach suits them better at a particular time in their lives.

What Can Coaching Offer to Clients That Therapy Can’t?

Coaching is increasingly accepted among mental health professionals as a valuable adjunct to traditional therapy. Research shows that coaching can be highly effective alongside psychotherapy or counseling.

Coaching offers several unique benefits:

  • It emphasizes actionable strategies and regular accountability, which motivates clients to stay committed to their goals.
  • It also provides a non-clinical perspective, making it more accessible and less intimidating for some individuals.
  • Additionally, coaching empowers clients to take control of their lives, fostering self-efficacy.

Additionally, many individuals seek help not only for mental health issues but also for navigating other aspects of life, such as careers, relationships, finances, and spirituality. Coaching addresses these broader areas in ways traditional therapy typically doesn’t.

By integrating coaching into your practice, you can offer a more comprehensive service that supports clients in healing their past and achieving their future aspirations.

[ Read: What Is a Coaching Plan and How Can You Build One? (Example & Free Template) ]

Why Therapists Are Making the Move

Therapist burnout is real. Many people in this field feel constrained by state regulations and insurance policies that limit their earning potential and ability to help clients in various ways.

At the same time, many of them battle the pressure to have it all together as a licensed expert in mental health. They might also feel they would waste the time, money, and effort invested in becoming a therapist if they made the switch.

As John Kim, co-founder of Lumia Coaching, says, “The guilt of taking out a student loan, maybe quitting a career, borrowing money from family, makes you stuff your feels down as you force yourself to feel some gratitude.”

Also called the “Angry Therapist,” John beautifully describes the internal monologue that might go through a therapist’s head when considering a career change: “This is what you wanted. And you’re doing it. So shut up and keep going. It’s not about you anyway. It’s about helping others.”

However, becoming a coach doesn’t mean you’ll be throwing away the years you’ve invested in becoming a psychologist. Coaching can complement your existing practice and skills and expand your capacity to help clients in impactful ways.

Instead of sticking to traditional therapy, you can grow a business and design it however you want. Here are a few reasons why therapists may consider stepping into coaching.

  • More opportunities to earn money: Therapy often relies on insurance reimbursements or sliding scale fees. Coaching lets you set your rates and charge for multi-month partnerships rather than single sessions. You can also host events and retreats or create courses to supplement your income.
  • More flexibility: Coaching is not bound by these regulations, unlike therapy, which requires state-specific licensing. This flexibility allows coaches to work with clients from anywhere globally, expanding their potential client base and reach.
  • Charging directly: Dealing with insurance can significantly burden therapists, involving rejected claims and extensive paperwork. Coaching eliminates this headache as clients pay upfront—and it’s easy if you use Paperbell.
  • Diversifying your services: As personal development gains popularity, there is increasing demand for life coaches. By offering coaching services, you can serve clients seeking help beyond traditional therapy in areas like career advancement or spiritual growth.

Venturing into coaching can open up new entrepreneurial pathways for you. You can explore different niches and gain more autonomy in your practice.

As Michele Schwartz, an occupational therapist, says, “Being able to work in the life coaching field gains me credibility, higher hourly rates, and without the insurance paperwork and oversight for my clients.

Besides, you’ll be free to combine these two methodologies in a way that works best for you. As Naomi Anold, an award-winning coach, points out:

Naomi Anold award-winning coach

So, how do you make the switch?

How to Go From Therapist to Coach

Here are some important steps to consider when expanding your services with coaching.

  1. Get trained: Consider obtaining a coaching certificate to learn coaching methodologies and skills in your chosen coaching niche.
  1. Research state laws: Adhere to your state’s licensing laws for therapists. Contact your licensing board if you have any concerns.
  1. Revise your agreement: Create a separate contract for your coaching services that outlines what you offer.
  1. Check your insurance: Make sure your liability insurance covers coaching sessions. If it doesn’t, add coaching to your policy.
  1. Get a coach or mentor: Seek guidance from experienced coaches or dual practitioners on working with coaching clients and running your practice.
  1. Pick up some marketing skills: Learn online marketing strategies to help you create visibility for your new services.

If you’re unsure how to combine therapeutic techniques with coaching, consult a lawyer who understands state regulations regarding your license. This step is crucial as navigating the transition to life coaching can be complex and legally sensitive.

How to go from therapist to coach

How to Run a Dual Practice Ethically

Offering both therapy and coaching services can be tricky. You cannot treat and coach the same person simultaneously. Clients must be clearly categorized into one service or the other and educated on the differences.

Ensure they understand that coaching is not a substitute for mental health counseling or psychotherapy. If it becomes clear that a coaching client needs therapy, talk to them about transitioning them or referring them to another therapist.

Explain the change in roles and what the client can expect from the new service. Revising your contracts can also make this distinction clear. 

While integrating some coaching techniques (like goal-setting or accountability) into your therapy process is much more straightforward, it’s usually the other way around that leads to confusion. Using therapy techniques in coaching sessions may blur the boundaries and create ethical dilemmas.

To solve this, some dual practitioners suggest setting up two separate LLCs and websites for therapy and coaching services. If you’re looking for a way to run a more integrated practice, it’s best to speak to a lawyer and your licensing board to ensure you can keep your license and serve clients the best way.

Automate Your Coaching Practice With Paperbell

Wouldn’t it be nice if client management ran itself in the background while you made an impact on your clients?

That thought inspired Paperbell, the all-in-one client management software made for coaches.

Paperbell runs your day-to-day processes, from payments and contract signing to scheduling, and more. It keeps all your client information in one place while conveniently linking your landing page to your client management system.

Try Paperbell now for free with your first client.

From therapist to coach pin

By Annamaria Nagy
Annamaria Nagy is a Brand Identity Coach and Copywriter. She's been writing for over 10 years about topics like personal development, coaching, and business. She was previously the Head of SEO at the leading transformational education company, Mindvalley.
May 24, 2024

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