Originally published: September 9, 2016 | Last updated: March 2026
Since starting Training Industry, I’ve had the opportunity to meet many exceptional people in the process of starting a training company. Some come from corporate leadership roles, others from distinguished careers in the military and many from learning and development (L&D) positions. All are good development grounds for entrepreneurs and offer excellent credentials for credibility with prospective clients, but background alone does not guarantee success.
Some plan to launch a consulting or coaching practice where training will be one component of their service offering. Others intend to build a dedicated training business offering customized services or courses. The challenge is figuring out what your customers will actually buy.
When I talk with aspiring training entrepreneurs, I often ask a simple question: Why training? Of all the business alternatives you could choose, why are you interested in starting a training company? The most common answer is they truly enjoy helping people.
I know we would all agree that this is a very noble perspective. It’s one of the reasons many of us entered this field. As important as it is to have a passion for helping people, it isn’t enough to build a successful training business.
The good news is the barrier to entry in the training market is extremely low. All you need is a website, a business card and a point of view, and you are ready to greet the world as a bona fide training provider. No formal certification is required, and there are few upfront costs. But ease of entry also means intense competition and no guarantees.
That’s why my second piece of advice always starts with “Entrepreneurs beware!” Starting a training company is easy. Sustaining one is hard.
Sadly, many talented people fail because they don’t build the right foundation or they overlook critical business practices once they get started. And the cost of those missteps can be significant.
While there’s no specific failure rate for training companies, broader small business data shows that about 20% of businesses fail in the first year, and roughly half don’t make it past five years. Having started my own training business after managing a training organization for a large corporation, and making my own share of mistakes, I’ve learned what matters most when starting a training business.
Whether you want to become a training consultant, instructional designer, facilitator or build a scalable L&D business, these principles will help you reduce risk and improve your chances of success.
10 Tips for Starting a Training Business
10. Hold the Right Training Credentials
If you are starting a new training business, it helps immensely to demonstrate that you possess the knowledge, education or validation that proves you know more about the subject than others. A valid credential may be an advanced university degree, industry-recognized certification, professional license or something else that comes from an independent third party. Experience is also important. It quantifies the time you have invested in certain situations, although it doesn’t qualify your expertise at that skill. Leverage your credentials with experience to differentiate yourself as a thought leader.
9. Be Fully Committed
If you want to be a successful training entrepreneur, you must act the part. You must put both feet in the water. Hesitancy manifests as passive behavior. I’ve seen too many training entrepreneurs fail because they passively approach day-to-day activities. Starting a business isn’t a fast process; it can be a grind. Success comes by working through the failures on an even keel and not getting too high on early successes nor too low on early failures. Commitment means not accepting failure. We’ve all heard that success comes to those who work hard. I believe success comes to those who are committed to success.
8. Productize Your Offerings
Most training startups struggle to accurately define their capabilities and services. They promise the customer they can do anything the customer wants. But clients buy specific products and services, not a nebulous claim of proficiency. If your main business is a service, then productize that service. Model it and graphically show it. Anyone can claim they do custom course development, but to differentiate yourself, you must define and name the proprietary process for your course development more clearly and effectively than others.
7. Articulate Your Value
Once you have created a product, you must articulate its value to the client. A value proposition is not why you think you’re special, but why your client should think you’re special. Take your time to define it succinctly and convincingly and then test the message with others to see if it works. But remember: If you can’t adequately explain your value proposition, you can be sure your client will not understand.
6. Publish, Publish, Publish
Buyers of training products and services are proficient at researching potential suppliers. They use internet search engines and look for things that thought leaders have done in the past. One of the best marketing strategies for any new (or mature) training company is to leverage their knowledge. Show the market that you are the expert in your field. Publish articles, e-books and case studies — anything that documents your expertise. Your ability to articulate concepts and thought leadership in writing is a great example of who you are and what you can do for prospective clients.
5. Network With Training Buyers
Many well-intended individuals advise that you should get to know as many people as possible. They are partly correct. Yes, networking is important, but getting to know the RIGHT people is the goal you should strive for. I often find startup entrepreneurs attending meetings and conferences that have no buyers. Why are they there? Make sure the events you attend have the people you need to meet. Also, develop and execute an aggressive plan to meet potential buyers of your services. Don’t attend events that are full of the same people as you, looking to start a business or land a job. They don’t buy from you. Success comes from getting to know as many people as possible who buy your kind of products and services.
4. Speak Your Customer’s Language
Many people who enter the training business speak their own lingo, expecting the buyer of those services to understand. Some try to impress by using industry-based language. But remember that buyers of training products and services are not always training professionals. In fact, more than two-thirds of the value of training purchased is done by non-training professionals. So, communicate your offerings and your value proposition into words that your customer understands.
3. Limit Non-Binding Partnerships
The life of an entrepreneur can be a lonely existence, especially if one hasn’t yet attracted customers or hired employees. Startup entrepreneurs often seek relationships with others who are non-threatening and help them feel they are not in this business alone. Be careful. These relationships can become a distraction if they are not, or won’t become, contractually binding partnerships. Relationships should be about growing your business, not making you feel good. If you are going to form some kind of partnership, do it with people who have the same objective: making money for YOU. Minimize relationships that don’t pay your bills.
2. Create a Supply Chain
Recognize that the training industry is very large and complex with multiple levels of buyers and suppliers. A common mistake is to think that your only clients are the end customers of your services. Many tier 4 suppliers sell into tier 3, 2 or 1 suppliers. There is plenty of business to be had by training consultants who sell through another, larger training supplier that has an established channel to the end customer. Find the right supply chain for your business, and don’t limit your opportunities to selling direct.
1. Capitalize Your Business
This is the absolute most important thing you must do when starting your training company: Make sure you have enough cash to make it through the sales cycle. I recommend you have at least six months of working capital on hand to get through the ebb and flow of cash management. It is frequently said that the number one failure of startup businesses is not having the proper level of cash for the business they are in. Training is no different.
Final Thought
Starting a training company can be incredibly rewarding, but it requires more than expertise in learning and development. It demands business discipline, strategic focus and a clear understanding of how buyers make decisions.
If you approach it with both passion and pragmatism, you’ll be in a much stronger position to build something that lasts.
Frequently Asked Questions
Here are answers to some of the top questions when starting a training company:
How do I start a training company?
To start a training company, define your niche, validate your expertise, create clear service offerings and develop a value proposition. From there, build a marketing strategy, network with potential clients and ensure you have enough working capital to sustain your business through the sales cycle.
Do you need a certification to start a training business?
No, formal certification is not required to start a training business. However, credentials, industry experience or recognized expertise can help build credibility and make it easier to attract clients.
How do training companies find clients?
Training companies find clients through a mix of content marketing, networking with decision-makers, partnerships with other providers and referrals. Publishing thought leadership content is especially effective for building trust and visibility.
What services can a training company offer?
A training company can offer services such as custom course development, instructor-led training, virtual training, coaching, consulting and learning strategy design. Many companies also productize their services into repeatable programs.
How much does it cost to start a training business?
Startup costs for a training business are relatively low, often including a website, marketing and basic tools. However, it’s recommended to have at least three to six months of working capital to cover expenses while building a client base.
Why do training businesses fail?
Training businesses often fail due to lack of consistent revenue, unclear value propositions, weak marketing or insufficient cash flow. Many also underestimate how long it takes to close deals and generate steady income.
