Massage Therapy Business Guide

By Ann B.

About The Author:

I became interested in becoming a massage therapist when I was around 37 years old. My sister in law, had waited until she was 44 before deciding to go to muscular therapy school in Boston and opening her own muscular therapy practice. I believe age does help to a certain extent, because people just assume you have been doing this all your life.

Before I graduated I started looking for the best spot to open my massage therapy establishment. opening my own place was by far the best decision I made. I will admit, I had witnessed my sister in law have great success in her muscular therapy establishment, that she opened directly after graduating and passing her state license, that it gave me the confidence that I needed to do the same.

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Getting Started in Your Massage Therapy Business:

If you haven't already gone to school and taken your state and national test to become a massage therapist, this is the first thing you need to do.

Take your time thinking about your next move. Many times working for someone else will make you more money in the short term then owning your own business.

Owning your own massage therapy business takes a lot of work. If you took all the hours you are putting into starting your massage therapy business compared to working for someone else you will find you are not making as much and have less free time.

The joy of owning your own massage therapy business, is your time is your own. You dictate the hours that you work, how the business is run etc.. You will also have great pride in your accomplishment of having a successful business.

You will also be building a massage therapy business that one day you can sell. This is when you will get paid back for all the hard work you put in. You won't have to be worried about getting fired or laid off. Your dreams are for you to fulfill. You will be looked at with more respect from your peers and your clients. It takes a lot to succeed in your own business. The first thing you have to do to succeed is try.

Naming Your Business:

This is one of the most important decisions you need to make. I decided to choose a name that was more health care related. I believed at the time and still do, that the appearance you want to present to the public should lean towards the health care industry.

I designed my massage therapy establishment to have the feel of a spa, as far as nice decor and comfort. But my advertising and website leaned towards the medical massage feel. I tried to fall between the spa and the individual massage therapist who would be renting a space from a hair salon or physical therapist. This way when people wanted to just have a relaxation massage my establishment had a warm friendly feel to make them feel comfortable, but if they had an injury the fact that I took insurance and worked with the doctors in the area I would get these clients also.

So when choosing your massage therapy business name if you want to be thought of as a medical massage therapy establishment try to choose a name with a healthy sound to it. Make sure you choose a few different names and be careful that the initials do not spell a bad word.

After you have chosen a few names try them out on friends and family see what they think and see how they look written. Now choose say the top three you have decided on. The reason you need to choose a few names is because, you will now need to check and see if that name is available as a domain name. If you go to the section on having a website this will explain how to check and make sure the name you have chosen is available.

Now do not purchase the domain name just yet. You now have to search your state's fictitious name data base to make sure someone else doesn't have the rights to that name. Once you have done that you want to fill out the form to apply for the fictitious name you have decided on. Now you can purchase the domain name for the business name that you chose and made sure was available.

If you are going to incorporate your business make sure you read my section on business entity, because you have to go about choosing your name a little different.

Business Entity:

You have some decisions to make. You can incorporate, be a sole proprietor or start a partnership. I personally run my business as a sole proprietorship. I will go over each option and explain why I chose the one I did.

Incorporating

Businesses that use a name other than the owner's must register the fictitious name with the county as required by the Trade Name Registration Act.

This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name.

If you are choosing to incorporate, you have to decide on what type of corporation you want to form. Most small businesses who incorporate either incorporate as a S-corporation or a LLC which is a limited liability corporation. Each one protects you differently so I recommend checking with incorporate online they have a lot of information on this subject. They can also handle the complete process of incorporating for you.

How can incorporating help you?

If you run into some problems and you have to go bankrupt, you limit your loss to what you have in your business. Your other personal assets are protected.
When you incorporate you are now working for the corporation. And because you are now, not self employed it is easier to get mortgage loans and such.

Partnerships

You should always have an attorney draw up your partnership agreement. Starting a partnership is more expensive then a sole proprietorship but usually less then incorporating. Having a clearly defined partnership agreement will help solve disputes that will come up. Just remember a partnership makes you liable for your partners actions also.

Your agreement should include the following:

Type of business.
Amount of equity invested by each partner.
Division of profit or loss.
Partners compensation.
Distribution of assets on dissolution.
Duration of partnership.
Provisions for changes or dissolving the partnership.
Dispute settlement clause.
Restrictions of authority and expenditures.
Settlement in case of death or incapacitation.

Sole Proprietorship

This is what I opened my business as. First it is the least expensive. It is also the easiest to run. Corporations and partnerships require an accountant to do your books and taxes. You also have fees you will have to pay, along with added time needed to follow the rules and regulations involved in incorporating. When incorporated you have to pay yourself like an employee, so now you have to deal with state unemployment, social security etc.. all the things that go with setting up your payroll.

The insurance you are provided with, when you join the AMTA is substantial, I believe, it would cover any law suits, for problems that may occur while giving a massage. As far as protecting you from the lease you signed, incorporating will not help because your landlord is going to require you sign personally. I believe you will find that any loans or credit you receive to help you start your business will all want personal guarantees. This is why I did not incorporate my business. It is however much harder to qualify for loans for yourself, such as mortgages and home equity loans being a sole proprietor.

Overview

Advantages - Sole Proprietorship

Profits go to you
Small business owner tax advantage
Low startup costs
Few regulations
You are in control
Less working capital needed

Disadvantages - Sole Proprietorship

All liability falls on the owner
Harder to get personal loans

Advantages - Partnerships

Less startup costs
Help in managing the business
Few regulations to contend with

Disadvantages - Partnerships

Difficult in finding the right partner
Liable for you and your partner
Hard to get loans
Decisions have to be agreed upon

Advantages - Corporations

Easier to get loans
Legal entity
You can sell or transfer the ownership of the business
Better tax benefits depending on type of corporation.

Disadvantages - Corporations

Many regulations
Cost more to get started
Accountant must prepare your taxes.
Strict bookkeeping rules.

Massage Therapy Bookkeeping:

Once you have your massage therapy business name you need to get your books started. First thing, is to open a checking account. You need to keep your business separate from your personal, otherwise you will have a nightmare trying to do your taxes.

Now they're a couple of different ways to get started. If you are going to start off accepting insurance you will need a way to fill out a CMS-1500 form every time you bill the insurance company. This is a standardized form the insurance companies require.

I originally purchased Massage Office Professional because, I thought it would do everything I needed. But it doesn't, if you are going to bill just a few insurance claims each month, I would recommend, just purchasing a program that you can enter the needed information in and print it out on the form. I still use the massage office pro program, but only for insurance claims. One main reason is it doesn't track expenses and give you reports the way an accounting program does. So basically I don't need it, but since I spent the money I am using it rather then purchasing a program just for the CS-1500 form.

What I did, is use QuickBooks, their online version. This way I can keep track of all my bookkeeping needs and it is accessible from anywhere, safe and secure. It will also access your bank and automatically download every transaction. With one glance you know exactly how you are doing.

QuickBooks will also take care of accepting credit cards online through the same program. This is the only way to go. QuickBooks will also take care of accepting credit cards online through the same program. This is the only way to go.

QuickBooks will also take care of accepting credit cards online through the same program. This is the only way to go.

I accept insurance mainly for the perception of what it brings. So I do not push to hard to get these clients, but I do not turn them away either. When you read my section on accepting insurance you will understand what I am talking about.

If they come out with a program, that will let you accept credit cards, book appointments online, bill insurance, and track all of your income and expenses, then that is what I would purchase. They may have one, but I haven't seen it.

One thing you want to do is take your time on deciding how you are going to do your books, because changing the way you do it late takes a lot of time.

If you want to do your books the old fashion way here is a basic by hand system to use. CLICK HERE

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Choosing Your Massage Business Location:

The main things I looked for when choosing my location, for starting my massage therapy establishment were.

Safe area
Clean building or plaza
Cheap
No more then 3 miles from the area I wanted to service.
The right square footage.

When looking at possible locations don't worry about the inside of the space you are going to rent. Everything inside you will want to fix the way you want anyway. If you are on a main road or next to a popular mom and pop restaurant, yes this will bring you some traffic. But you don't need to be in a place like this to make it. Word of mouth in this business is how you will get most of your clients. Just make sure you are in a spot that is easily assessable all year. Not on a dirt road with a bunch of pot holes, that floods when it rains. If you can get lucky and find a place by medical offices or other professional offices or even near a health food and vitamin store would be great. Look for places by fitness centers like Shapes or Curves are great spots.

Just be patient, find the best spot you can. A great size location is 800 square ft. this will give you enough room to have two massage rooms, a small reception area, and a nice work room in the back. Try to rent a location that is big enough to put two massage rooms in. You will eventually be able to put another therapist on and this will easily pay your overhead for your business. Once you get to that point you will increase your profit by $1500.00 per month minimum. Making money off of other people working is going to be the smartest thing you can do.

When renting try to find a location that cost you about 15 one hr massages to rent. In other words if in your area the going rate for a 60 minute massage is 60.00 then try to find a place to rent for $900.00 per month. You may have to go over a little but try hard to stay in that range or lower.

My rent is 560.00 and the going rate for 60 minute massage is $60.00. My sister in law rents for $900.00 per month and she gets $75.00 per hr. massage. So it depends on where you live. You just don't want to be working to make your landlord rich.

I have enclosed a layout of how I laid out my location. In my section on remodeling you can see how I set my establishment.

Remodel Your Massage Therapy Business:

This is going to cost a few dollars. But if you are smart you can still do it as least expensive as possible. First off you want to try an avoid getting a permit. So the first thing I would do, is ask the landlord if he knows someone or even better yet, if you can get him to do the work and spread it out onto your lease payments.

I was lucky on this part because my husband knew how to do the work. What he did first, was paper all the windows over like he was going to paint. Then on nights and weekends when no one was around he quickly framed it out , hung dry wall and painted. If anyone asked all he did was paint and replace a couple of doors.

I recommend using an electrician for any lighting and a plumber for any plumbing. My husband says no one ever gets hurt from a wall falling over, but you do not want to be responsible for electrical and plumbing.

Still the best way is to draw it up and have the landlord get it done. He will have someone who will do it without permits. He does not want to pay the taxes on the increase of property value either. Do your best to talk him into it.

Now when you look at my drawings of my location you will see it has a small reception area. This does not have to be real big just comfortable for one ore two people, no one is sitting there for more then 10 minutes anyway. It just looks professional to have one.

Next you will see I have wide enough walkways to get a wheel chair or walker down if necessary. You also want to have 3 ft. wide doors to make it easy for you to move tables and furniture in. Also wheelchairs and walkers need to be able to get into your rooms. These are things that are nice to have if at all possible. I wrapped all the front offices and hallways with chair rail and painted one color below and a different one above. Keep your colors neutral and appealing to 90% of the people, don't paint it your favorite color just because you like it. This is a business not your home. But I do suggest using colors that you use in all your printing. Even if it just a line or below the chair rail, try to tie it in some how.

click picture to enlarge

I suggest you use can lights if possible in the hallways, and ceiling fans with lights in the massage rooms. By using can lights they direct the light straight down where needed , like over a desk and down the hallway. This will keep your establishment more cozy and warm. Put remotes on the fans so you can dim the lights and control the fans to get the feel you are trying to accomplish in the massage rooms.

Make sure you replace the toilet and sink, if you want to succeed you need to look successful. If everything looks clean and inviting you are on the right path. Make sure you have nice music playing, keep it low but make sure every room including the waiting room can hear it. So you may have to put speakers in each room.

What I did is only build the walls up in the massage rooms to within 18" of the ceiling, this solved a few things. One I did not have to move any A/C or heating vents because the air could flow through complete front area of my location. Now I could mount the speakers on the ceiling between the two massage rooms and you could hear the music through out the entire establishment.

I insulated all the interior walls to help with the sound of talking. Now two things happened when I left the walls short of the ceiling, one you could hear the therapist talk sometimes. At first I thought it would be a problem but it wasn't. Second thing that happened is because other people could possibly hear what was being said it kept men from ever saying things I did not want to hear.

You would be surprised how bold some men can be especially on the phone. But once you let them know, that isn't happing here they hang up. Sometimes you get that guy who comes in who gives you that gut feeling that this guy maybe a pervert. But he restrains from saying anything because he realizes, he can be heard outside the massage room. Usually your gut feeling was right and you find he doesn't ever come back, but at least, you did not have to hear him say, what he wanted to say.

Make sure you put some plants and a water feature in your establishment. I capped the top of the walls, that I did not run all the way to the ceiling with a 1 x 6, this way I could set silk plants on the top of the wall. I put one 4 ft. long arrangement on top in the center of each wall. When someone was lying on their back getting their massage they could see some beautiful plants instead of just the ceiling.

The hardest thing is to get the client to come in the door. You want all their senses to feel good.

Nice smell but not over powering. You will know by the comments if you are doing good job.
Music and water give off the sounds to relax them.
Soft lighting, and one candle in the waiting area and one in each massage room, plants and cleanliness give them a warm feeling.
Remember you need to keep all the candles the same or ones that compliment each other, or you will have to many different smells.

So now they are glad they came, and if you do the best you can, and truly care about doing a great massage, that is why they will come back.

Massage Therapy Equipment:

When choosing what massage therapy business equipment you purchase, always keep in mind that the hardest thing to do in the massage business is get the customer to come in to get a massage. So you want to do your best to make their session as close to perfection as possible.

You do not need a whole lot of equipment, so purchase the best you can afford. I don't mean you have to go out and purchase a hydraulic or electric table, now don't get me wrong, they are nice to have. Purchase the best most comfortable, stationary table you can afford, push the envelope on what you can spend on the table, because besides your hands and knowledge the table is the next most important item you can purchase. Use the portable table, you probably already own to put in the other massage room until you can replace it. You also want to invest in a fitted fleece table cover for your tables they are worth every penny.

So now your client comes in and it smells nice, it looks nice, your professionally dressed and you have a comfortable table. Now you need soft flannel sheets. I personally purchased white flannel sheets. You can purchase the one's made in china for about $12.00 a set. The reason I purchased white is I always bleach my sheets and white always look crisp and clean.

You need to have a couple of bolsters. You need one to support your clients head and a couple of different sizes for other support when needed. I also use a standard pillow, I place under the fitted sheet, positioned to lay under my clients knees. I should mention I always start my clients on their back first. I know some of you will disagree, but if you think about it, do you want your therapist to massage your face after they get done massaging your feet or before, second it is much more relaxing laying prone with your face in the cradle, so save the best for last, this is what you want them to remember total relaxation.

I purchased a hydrocollator definitely should have one. You will find yourself using it all the time. It is also billable on insurance to use moist heat when prescribed.

Get a refrigerator, you can keep your cold packs you purchase in the freezer and I always give my client a bottle of water when they leave. The little things like giving your clients water, having cold and hot therapy available, these will be the things, that help separate you from your competition.

I also purchased a hot stone setup. I use the hot stones on every massage, not like your traditional hot stone massage you will see advertised. If you use them towards the end of your massage, holding them and using them to massage with, you will get all kinds of compliments. I always tell my clients I incorporate them in my massage and explain, that they help with spasms etc.. and if they do not like it, let me know and I won't use them. Only one person has ever ask me to not use them. This is another way of making your massage and your client's experience different and more enjoyable then your competition. Also if you put a drop of lavender oil in the hot stone water it is very calming. Of course, you also advertise that you offer hot stone massage if someone would like the traditional hot stone massage.

You also need a utility sink, this will make cleaning up much easier. Make sure you have hot water it is nice to wash your hands in hot water.

As you can see, I have taken the services spa's up charge for and incorporated a portion of that service into my massage at no extra charge. Your clients will love it, trust me. Now, on the other hand, I have the hot and cold packs and accept insurance etc... to attract athletes and medical referred clients.

I also have a paraffin wax setup, I hardly ever use it on clients, because most people are not interested in it. I have it for me, it helps my hands and it can be prescribed by a doctor and you can bill it on insurance. It is nice to have when you need it.

Ok, so here is a list of equipment & supplies I have.

Refrigerator
Utility sink
Stationary massage table
Fitted fleece cover
48 sets of flannel sheets
2 dozen wash clothes ( cheap ones work the best )
10 full size towels ( wrap the hot packs in ) (good ones)
Assorted bolsters
4 standard pillows and cases
Hot stone set
hydrocollator
Cold packs
Bottled water
Paraffin wax set
Computer
File cabinets
Phone
Stereo
Fax
Printer / scanner

Licensing & Insurance:

If you haven't already taken the state and national test to become a licensed massage therapist you will need to. Purchase one of the testing study books, they will help you prepare. Even if your state does not require you to be licensed, you want to take the national test and get your license.

It takes about three weeks to get your license once you pass the test. You normally find out if you passed the test as soon as you finish taking it.

Once you have your license you can get your insurance. The best way to do this, is to join the AMTA. When you join you are also purchasing very good insurance coverage at the same time. I believe it to be the best buy in the industry. If you do not already have your business name and location at the time you join, you will have to contact them when you do. Some states require your business name be listed on the policy exactly as it will appear on your application for your establishment license.

The establishment license takes time to get, be patient. In Florida you have to first have your insurance. Then you request a inspector to come out. This can take up to three weeks. Once they come out and you pass, they will put you in for your license. This can take up to 3 more weeks. You can not open your doors until you have your establishment license.

Make sure your exit signs work and you have certified fire extinguishers, not the kind you get at Home Depot. Look in the yellow pages and call a company to come out and tell you what you need. They will install them why they are there. You also have to have your licenses posted and your insurance declaration page on site.

You also need to purchase your occupational license. You used to have to have your occupational license before you could get your establishment license, but now many cities require you get your establishment license first.

If you plan on selling products like Bio Freeze etc.. you will need a sales tax license. I recommend selling some different products so go ahead and get your sales tax license. Go to my section on taxes to learn more. Some states may require you to pay sales tax on services like massage, so make sure you check with your state.

Income & Sales Tax:

If you decided on becoming a corporation, then you must have an accountant do your quarterly books and send in your quarterly tax payments. You must also have applied for your FEIN number, this would have been done when you incorporated.

Assuming you started as a sole proprietor, you will still be obligated to send in an estimated quarterly tax payment. Your first year you will not have been issued payment vouchers from the IRS. I suggest you hold out at 20 to 25% of your profits for each month to set aside for taxes at the end of the year. After your first year the IRS will send you vouchers to make these payments quarterly. As a sole proprietorship you do not have to apply for a FEIN number you can use your social security number. You can apply for a FEIN number if you choose. This number will replace your social security number on all correspondence and payments made to the IRS.

To apply for a FEIN number you can click here. The main reason I like to use my social security number over the FEIN is, when you open a bank account, if you open your business account in the same bank as your personal account, you can access both at the same time online, because they are connected by your social security number. When you use a FEIN they become un attached so you have to login into each one separately.

Sales Tax

Anytime you sell items to the public at the retail level, you must charge sales tax. Now, when you have a sales tax number you can purchase items for resale without paying tax on them. Most states you can apply online for your sales tax number for free. You must fill out and send in a sales tax form every quarter with your payment, this form must be filled out and sent in regardless if you have any tax to pay. The form is very simple and they even give you a small discount for collecting the tax.

Tangible Tax

You will have to check with your city your business is located in, to find out if they have a tangible property tax, most do. What tangible tax is, it is tax that they levy on all items in your business except inventory for sale to your clients. You will have to list every pie

Printing & Signs for Your Massage Therapy Business:

You want to create a massage therapy business logo and pick colors that you will use on all your printing. If you want to have a professional create a logo for you, I recommend you try Logo Works they do great work at a good price. You want to look professional and once you get your logo and colors picked out, it doesn't cost anymore to do all your business cards, brochures, thank you cards and gift certificates with the same style, font and look.

You should have these items printed.

Business cards
Thank You post cards
Gift certificates
Intake forms
Punch Hole cards
Birthday cards
Brochures
Menu

Business Cards

Let's start with the business cards. Make sure you keep them easy to read, many people try to put to much information on them. You need your business name / logo, phone number, address, your name and license numbers, web address, and I had a short slogan on my cards. On the back have it say-

Your Next Appointment
Days of the week ( so you can circle one)
Date: (the date of their appointment)
Time: (the time of their appointment)
24 hr. notice for cancellation.

Make sure you purchase, High Gloss cards. This is representing you and you want to have people get the right impression from the start.

Thank You Cards

You want to design post cards to have the same look and logo as your business cards. I send one out to every new client. I try to send them out the next day after their first visit.

Gift Certificates

What I did, is designed one gift certificate with the same look as the business cards. I designed it in Microsoft Digital Image Pro. Make it the size of about 1/3 sheet of paper, aprox 8 1/2 wide x 3 inches tall. This way you can get three certificates out of one piece of paper. I have Staples print them on heavy paper stock, they will even cut them if you want. This way I just print 100 at a time and it is affordable. On the gift certificate, make sure you leave a little square that you can write a number in, so you can keep track of the ones you sold and the ones that are used.

Punch Hole Cards

I use the same business high gloss stock card to make this card. This is how, I take care of clients that use me on a regular basis. I punch the card every visit, and after every 4th paid visit they will get the next one free. Everyone loves this and they feel good that they are rewarded for being a regular client.

Birthday Cards

I also had these designed to math everything else. I always make sure and send one a week before their birthday. I do not give any discounts or specials, just a happy birthday card. You will find if you get the card to them a week before their birthday, one of their family members usually come in and purchase a gift certificate for them.

Brochures

I have included a brochure below, You can use this if you choose. It can be edited in Microsoft word. If you go to staples you can purchase pre scored brochure paper. I use the high gloss, Just print one page then put it back in your printer and print page 2. They fold easily and work great.

Intake Forms

Just have your logo up in the corner, this is very professional looking.

I included a few pictures of the items above to help clarify what I am talking about. If you can not afford to have these items all printed to match each other, then at least have nice return labels printed and have your envelopes pre printed. Many programs will print envelopes for you. if you look at the links on the side of this website, you will also see a site that offers 250 free business cards. This will help you get going but eventually it is nice to have everything match. I have change the name and phone number on my samples. This is because, I do not have the time for people to ask me questions by phone.

Massage Therapy Website:

In this day and age, every business should have a website. Whether it be a one page site that just introduces yourself and your business, or preferably, a 4 to 6 page site that tells a little more about you, your business and what you have to offer.

With a website, people can get a feel of what you and your business is about. A very clean professional website will make people feel you have a clean and professional business. If you look successful people will feel you are successful and they are more likely to keep coming back.

When you run a newspaper ad, they charge you according to the size of your ads. So if you can steer people towards your website when reading your ad, you are capable of telling them so much more about your business, because you can put as much information as you like on your website. This means you can run a smaller newspaper ad and still get great results.

On your answering machine, always let the caller know they can visit your website at such and such to get more information. Have your website on everything you have. Especially on your door with your phone number. People will right down the website before they right the phone number down. People like to research things before talking to someone, this way they don't feel they will be pressured into something they don't want.

Make sure your website resembles all of the printing you have already done. Everything should match as much as possible. This will help people have no doubt that they are is the right place. When someone sees your printing, whether it be a brochure, business card, flyer etc.. if they have been to you they will remember right away.

If you are capable of doing your own website, I highly recommend using HODI Hosting, they have great support team and are very affordable. They have a lot of different templates to choose from, so sometimes if you start with the website and then match your printing to that is easier.

Massage Therapy Forms:

If you decide to accept insurance and purchase Vivian Mahoney's guide to insurance billing, which I did and you should. She has all of the forms you will need to accept insurance and more. I use these same forms so I can not give them to you. She will also answer any questions you have a insurance billing, just email her, she is great lady.

You need basic forms, especially if you are doing your bookkeeping with a program like QuickBooks etc... I have listed the forms I use and given you samples of the ones I could.

Soap notes, use it for initial visit. front & back
Patient's Daily progress notes (Vivian Mahoney)
Code of Ethics (AMTA has the one I use)
Confirmation Phone Auth. (Vivian Mahoney)
Intake Form (mine I use for non insurance)
Intake Form (Vivian Mahoney) for insurance
Workers Compensation form (Vivian Mahoney)
Initial Visit Report (Vivian Mahoney)
Independent Contractor form (Vivian Mahoney)
CMS-1500 Forms (to bill insurance) Special forms that have to be ordered online.

When I get a client who is non insurance, I have them fill out my intake form and sign it. I use my soap form to take the initial visit notes. From then on I use a daily progress sheet for any future visits. If something drastically changes, like an accident or something other then the basic problems I have been working on, I would fill out another soap form.

When taking insurance, which I do, and you can see what I take and why in my section on (insurance) you need to keep better records and notes, that is why it is great to have all the forms that come with Vivian Mahoney's book. I personally do not use every form she offers. I have not had a problem myself, but then again I do not handle a lot of insurance claims.

Advertising Your Massage Therapy Business:

When starting out, you need to spend more then once you get going. At first, you need to get people in to experience your massage and see your massage therapy establishment. But be careful to spend your money in the right places. Once you open, everyone will ask you to advertise in all types of events and papers.

When you advertise you need to focus on the area you are in, so stay focused on say a 10 to 15 mile radius if possible. If you live in a county or city that is spread out, and has say 40,000 people. If you advertise in the local paper and pay to get your ad out to all 40,000 it will be expensive and 30,000 of them will never use you because you are to far away. Or they will just use you for your promotion and never come back.

Try to advertise in local papers that go to just certain areas close to you. If you have a large higher end neighborhood focus on that area. Do mailings just to them. Try to advertise in any events they have. Help sponsor their kids events.

If they have a baseball or football park in that area, get your name on their printing for rosters and such. Same with golf tournaments in your area, make sure you sponsor a hole etc... Stay focused on one area and do your best on getting the word out. This way you will get a much better return for your money.

Mail or stop in to local doctors, chiropractors and physical therapists and give them a brochure and some business cards with your promotion on the back. The reason I started the 1/2 hour free was so I could easily approach these professionals and let them know if they have a client they think massage will help, give them a card and I will give them a free 30 minutes and see if I can help them. When you stop in to the local professionals let them know they can take advantage of your special also.

Health clubs, fitness centers, health food and vitamin stores are excellent places to leave your promotional business cards. I also went to all the local hair and nail salons, if you want to make a good impression, when asking them if you can leave your cards, see if they will give you some of theirs so you can put them in your establishment. They will appreciate, that you were thinking of how you could help them, besides just yourself.

I soon realized after running several different promotions that giving away 30 minutes worked fantastic. First off, 99% of the people will upgrade to the 60 minute massage for the difference. Also, 90% of people if they never had a massage don't take advantage of the promotion. This way, you only get people to respond to the offer if they already like massages, so your chances of re-booking them is very high. Make sure you also put a brochure holder on the outside of your entrance door. You will be surprised at how many people will take a brochure when you are not there, if you make them available.

Now, the prices I charge in my massage therapy business may be low for your area. I live in a retirement area, with the rate being charged falls between, $65 to $70 for a massage at a day spa and $50 to $60 for massage elsewhere. The promotions I suggest, will need to be adjusted for what you can charge in the area where you live..

I have given you a couple samples of newspaper ads, that I have the most success with. Remember adjust the prices for your area, if your area charges $90.00 then offer 30 minutes free and discount it $40 or $45.00.

Newspaper Ads.

Newspaper Ad

Yellow Pages

I do not advertise in the yellow pages. First off they are extremely expensive, that monthly bill just keeps coming. You will get a free listing anyway if you have a business phone. I recommend having a business phone, cell phones are great but you want to have a business phone and a fax number. You can get the fax on the same line with a different ring. Just ask your phone company they will explain it to you.

Stay focused on your advertising, one area and do not get talked into other advertising that people try to sell you. Never say yes right away always take a day to think about it.

Advertise to reach new customers. Your market changes constantly. New families in the area mean new customers to reach. People earn more money, which means changes in lifestyles and buying habits. The client who wouldn't consider your business a few years ago may be a prime customer now. Remember 20% of families will move this year, 5 million people will be married and 4 million babies will be born.

Managing Your Time:

This is an area that can make a big difference on how successful you are. being self employed many people lose their focus during the course of a day and waste a lot of valuable time. You can not control the passing of time, so do your best to make the most of it.

I leave 15 minutes between every massage appointment. You need time to change the linens and to give yourself a small window for spending a little extra time with a client when needed. This is not very long, you will have to be moving at a pretty good organized pace in between clients. I also use an online appointment calendar. This allows my clients and my other therapist clients to book their appointments online. I love this system because I can book appointments at home or work and so can my other therapists. You always have access to your appointments. Learn More

Because you will probably be a one person show, for a while anyway. Most every task will have to be done by you. So stay focused when you have spare time. Don't day dream and look around on the internet. Focus on your next ad, get your filing done, make sure your soap notes for that day are done.

You need to treat your time at work as work. Keep your rooms clean and make sure you have all your supplies. Stand back and look at your business as a potential client, what could you make better.

Take 5 minutes at the end of every day to look over the next days appointments. Bring out their folders and have them ready for your next day. When you get home you will have to do your laundry, if you are married or have kids get some help with this. If you get to the point where you have both massage rooms going most of the day, hire a service to do your laundry or hire a receptionist and have them do laundry for 2 hours either at your establishment ( just think about the noise when deciding on this) or at their home or laundry mat. You can have them come in for 4 to 6 hours a day and keep up with answering the phones and filing paper work etc.. When you first get your business open, you need to try and utilize your slow days, by getting the word out about you and your business.

Accepting Insurance:

Tired of working for the other guy. It's time to open your own business. Stop punching that time clock for someone else and put your time to use making yourself successful in your own business.

Going into business is no small step, but if you are prepared and do your homework, you can become very successful. Just because you are good or great in a certain field of work, does not mean you will succeed in your own business.

Becoming a good business person takes a complete skill set all its own. You may already have many of the skills and knowledge necessary to open your own small business or you may need to learn them. With the help of many different Americans, we have put together a constantly growing data base of information from people just like you who have succeeded in their own business, in the hope of helping you succeed by limiting your mistakes and giving you the priceless experience and knowledge that so many have been willing to share.

It's true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.

You will be your own boss.
Hard work and long hours directly benefit you, rather than increasing profits for someone else.
Earning and growth potential are far greater.
A new venture is as exciting as it is risky.
Running a business provides endless challenge and opportunities for learning.

Keeping Your Clients:

Don't watch the clock, if you don't have a client waiting give an extra 5 minutes or so. Your clients will notice. Make sure you dress and look professional. I suggest you were a uniform. I like the choices at YeahBaby spa uniforms. They run small, so order 1 size larger.

Use the punch cards I talked about in the printing section. When someone asks me what I charge, I explain that I charge $60.00 for a 1 hr massage, but every 5th one is free so if you are a regular client it ends up only costing you $48.00 per hour.

1) 98% of dissatisfied customers never complain, they just leave.

2) 85% of dissatisfied customers tell nine people about their poor experience and 13% tell twenty people.

3) A satisfied customer tells just five people.

Be conscientious! Show care and concern for them ask them how they are feeling. Show your client you care about the quality of your massage. When a client comes in and has pain, call them the next day or so and see how they are doing.

Send birthday, thank you and Christmas cards. Thank them if they referred someone to you. If they took a trip, make sure you ask how it was. Be honest at all times, don't try to bs them. If you don't the answer to something they ask tell them.

Be prepared, when you are booking the appointment, if they tell you they are having a certain pain or stiffness, research the best way to handle the injury or pain so when they come and can talk intelligently about their problem.

It's about treating every client like they are your number one customer. Make them feel important because they are! You are going to work hard to get your clients so the last thing you want to do is lose them. Remember, your customers are your business.

Financing Your Massage Therapy Business:

Confused by how to finance a small business? One key to a successful business start-up and expansion is your ability to obtain and secure appropriate financing.

Raising capital is the most basic of all business activities. But as many new entrepreneurs quickly discover, raising capital may not be easy; in fact, it can be a complex and frustrating process. However, if you are informed and have planned effectively, raising money for your business will not be a painful experience.

This guide focuses on ways a small business can raise money.

There are several sources to consider when looking for financing. It is important to explore all of your options before making a decision.

Personal savings: The primary source of capital for most new businesses comes from savings and other forms of personal resources. While credit cards are often used to finance business needs, there may be better options available, even for very small loans.

Friends and relatives: Many entrepreneurs look to private sources such as friends and family when starting out in a business venture. Often, money is loaned interest free or at a low interest rate, which can be beneficial when getting started.

Banks: The most common source of funding, banks, will provide a loan if you can show that your business proposal is sound.

Venture capital firms: These firms help expanding companies grow in exchange for equity or partial ownership.

It is often said that small business people have a difficult time borrowing money. This is not necessarily true.

Banks make money by lending money. However, the inexperience of many small business owners in financial matters often prompts banks to deny loan requests.

Requesting a loan when you are not properly prepared sends a signal to your lender. That message is: "High Risk!"

To be successful in obtaining a loan, you must be prepared and organized. You must know exactly how much money you need, why you need it, and how you will pay it back. You must be able to convince your lender that you are a good credit risk.

Things You Will Need

A good business plan to show the lender not only why you want a small business loan but what you plan to do with the money.

You will need a Cash Flow Projection showing the lender you will be able to repay the loan. Your business's cash flow projections give lenders the data they need to undertake the risk of lending you the money.

Personal Financial Statement helps the lender make a sound decision based on you and your character.

Also be prepared to show these documents.

Past business tax returns - This will help show the lender how you are doing financially.

A credit rating report - The lender will take your credit score and figure it into there formula for lending you money. You do not need to bring this with you because they will run a report themselves. But it is important you know what your score is.

You can get a credit report by contacting one of the three credit reporting agencies or services on the web. I will include a link on the links page.

Now that you have all of this in order you just need to find a lender.

Hiring Help:

You designed your massage therapy establishment so you have 2 massage rooms. Now you are thinking you are ready to hire another therapist. You may even want to hire two more therapists. If you both work 4 days a week, you can put a third therapist on to fill your days off, so they can work 4 days.

You have a decision to make. Do you want to put your massage therapists on as sub contractors or employees. You may even want to just rent the room to them at a fixed monthly rate.

Independent Contactors

If you hire them as sub contractors, they have to take care of paying there own taxes. You would just keep track of their income that you pay them and send them a 1099 at the end of the year. The IRS has strict guidelines on who qualifies as a sub contractor.

If they take orders from you, then you are their boss, so the IRS says they work for you. If they only work for you and have no other income, the IRS says they are employees. They're other guidelines you should review them all when making your decision. Read More

Now, I am sure you have seen hair salons and other massage establishments who have therapists working as independent contractors. This does not necessarily mean they are right in doing so. I don't mean to scare you from hiring massage therapists as independent contractors. I just want to make sure you do it correctly.

Employee

You will have more paperwork to do and you have to pay unemployment tax and match their social security and Medicare tax. But you will be building your business the way you want to. You will pay them less then the split you would if they were independent contractors, but that is because you are paying their taxes and workman's comp insurance. They will be still making about the same money if they were paying their own taxes.

I hire them as independent contractors, you just need to make sure you cover yourself to make sure you are not going to get in trouble with the IRS. Just be sure you are at the point that you need someone. If you can find someone who already has their own clientele great. If they don't have their own clients yet, then you want to get someone you feel is aggressive in getting clients.

Selling Your Massage Therapy Business:

Show as much profit in your business as possible for 3-5 years. I know everyone hates to pay taxes, but it is hard for a buyer to get a deal financed if there is not any profit showing on the books.

Be prepared to let potential buyers see the last 3-5 years tax returns on the business, balance sheets and equipment list, and an inventory list of the business.

Consider owner financing. Especially if your price includes money for blue sky or intangible assets, you may need to be willing to be paid over a number of years. This may also help on capital gains taxes. Check with your accountant and lawyer before you structure the deal to make it beneficial for both parties.

How much is your business worth? The only answer to this question is, of course, the amount that someone is prepared to pay for it.

During the course of selling a business you will get a lot of tire kickers. They won’t really be interested in buying and can waste a lot of your time. You need to be able to quickly judge the seriousness of a prospect so that the energy you put into discussing the business isn’t entirely fruitless. After all, you still need to concentrate on running your business.

You should start with the therapists who work with you. They are already aware of your business success and may already know some of your clients. This is usually the easiest way to sell your business. You should get the business appraised this will give you an idea of what it is worth. This will also be close to what the bank may loan someone to purchase it.

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Massage Therapy business plan click here.

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