Massage Therapy Business Plan
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Massage Business Plan Example
Below is an example of a Massage Therapist business plan.
Executive Summary
Business Overview
Peaceful Massage is a startup massage therapy company located in San Francisco, California. The company is founded by Daniel Young, a certified massage therapist who has been recognized for several years as one of the top massage therapists in the area. Now that Daniel has garnered a positive reputation for providing exceptional massage therapy services, he is ready to start his own company, Peaceful Massage. Daniel is confident that his reputation and massage therapy skills combined with his ability to effectively manage client relationships will help him to quickly secure a loyal client base for his new business. Daniel plans on recruiting a team of highly qualified professionals to help manage the day to day complexities of running a massage therapy business including marketing and sales, accounting and bookkeeping, client reception, and record keeping.
Peaceful Massage will provide a comprehensive array of massage therapy modalities and services in a calming environment. The Peaceful Massage facility will be the ultimate choice in San Francisco for massage therapy while being the best-priced option in the area.
Product Offering
The following are the services that Peaceful Massage will provide:
- Acupressure
- Aromatherapy
- Deep Tissue Massage
- Hot Stone Massage
- Pregnancy Massage
- Sports Massage
- Swedish Massage
- Thai Massage
Customer Focus
Peaceful Massage will target anyone in San Francisco looking for a calming massage. The company will target people with chronic pain or injuries that could benefit from massage therapy. Peaceful Massage will also target athletes and people with active lifestyles. No matter the client, the clinic will deliver the best communication, service, and prices.
Management Team
Peaceful Massage will be owned and operated by Daniel Young. He has recruited an experienced administrative professional, Barbara Lewis, to be his office manager and help run the day to day operations.
Daniel Young is a graduate of Monterey Peninsula College with an associates degree in massage therapy. He has been working at a local spa for more than eight years as a certified massage therapist. Daniel’s expertise in various massage therapy techniques and effective communication skills have allowed him to develop a loyal client base.
Barbara Lewis has been an administrative assistant for over ten years at a local health spa. Daniel relies strongly on Barbara’s diligence, attention to detail, and focus when organizing his clients, schedule, and files. Barbara has worked in the health spa industry for so long, she understands all aspects required in running a successful massage therapy business.
Success Factors
Peaceful Massage will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly qualified team of certified massage therapists who will be able to assess each client’s massage therapy needs and provide the modality that will work best for them.
- Comprehensive menu of services to cater to a wide range of clients from those in chronic pain to those just looking to relax.
- Peaceful Massage offers the best pricing in the area. The pricing structure is the most cost effective compared to the competition.
Download the Massage Therapy business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Peaceful Massage is seeking $250,000 in debt financing to launch its massage therapy business. The funding will be dedicated towards securing the clinic space and purchasing massage therapy equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for print ads and association memberships. The breakout of the funding is below:
- Massage therapy clinic build-out: $50,000
- Equipment, supplies, and materials: $20,000
- Three months of overhead expenses (payroll, rent, utilities): $160,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Peaceful Massage.
Company Overview
Who is Peaceful Massage?
Peaceful Massage is a newly established massage therapy clinic in San Francisco, California. Peaceful Massage will be the most caring, clean, and comfortable choice for clients in the area. Peaceful Massage will provide a comprehensive menu of massage therapy services performed by experienced certified massage therapists who are experts in specific modalities.
Peaceful Massage will be able to provide soothing massage therapy techniques for optimal calming and relaxation. The team of professionals are highly qualified and experienced in various modalities such as Swedish massage, sports massage, massage for chronic pain relief, and hot stone massage. Peaceful Massage therapists are excellent communicators in addition to being highly qualified massage experts, creating a welcoming environment for all clients.
Peaceful Massage History
Peaceful Massage is owned and operated by Daniel Young, a certified massage therapist who has been recognized for several years for his exceptional service. Daniel has worked for a local massage therapy spa in San Francisco for several years. Daniel’s tenure with the massage therapy spa has given him the skills and knowledge required to venture out on his own and start his own company. Daniel has gained the trust and loyalty of a number of clients who have expressed interest in following him to his new clinic.
Since incorporation, Peaceful Massage has achieved the following milestones:
- Registered Peaceful Massage, LLC to transact business in the state of California.
- Has a contract in place to lease the massage therapy clinic.
- Reached out to numerous contacts to include former clients, massage therapists, and friends and family members to spread the word about his new clinic.
- Began recruiting a staff of massage therapists, accountants, sales and marketing associates, and office personnel to work at Peaceful Massage.
Peaceful Massage Services
The following will be the services Peaceful Massage will provide:
- Acupressure
- Aromatherapy
- Deep Tissue Massage
- Hot Stone Massage
- Pregnancy Massage
- Sports Massage
- Swedish Massage
- Thai Massage
Industry Analysis
The United States massage therapy industry is valued at an estimated $16B and is expected to grow by 2.6% this year. Additionally, the number of massage therapists in the U.S. has grown by 14% in the last decade. The American Massage Therapy Association (AMTA) reports that people between the ages of 20-64 are the highest demographic to use massage therapy services.
The primary driver for industry growth is more people becoming health conscious and looking for ways to improve their overall wellness. According to a recent survey, approximately 93% of respondents believe massage is beneficial to their overall health and wellness. A majority of people seek out massage therapy for health and wellness concerns including pain relief (43%), relaxation/stress reduction (43%), soreness (37%), injury recovery/rehabilitation (33%), fitness/wellness (30%), prevention/improve quality of life (29%), and to control headaches/migraines (28%).
The main negative factors impacting the U.S. massage therapy industry are low barriers to entry and high competition. Industry operators can be competitive by offering a unique atmosphere, in-demand services, flexible scheduling, and high customer service standards.
Download the Massage Therapy business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Peaceful Massage will target anyone seeking massage therapy services in San Francisco, California. The clinic will target people with chronic pain or injuries that could benefit from massage therapy. They will also target athletes and people with active lifestyles. No matter the client, Peaceful Massage will deliver the best communication, service, and prices.
The precise demographics for San Francisco, California are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Peaceful Massage will primarily target the following customer profiles:
- Individuals suffering from chronic pain
- Individuals with injuries
- Athletes
- Pregnant women
- Seniors
- Individuals who work in high stress environments
Competitive Analysis
Direct and Indirect Competitors
Peaceful Massage will face competition from other companies with similar business profiles. A description of each competitor company is below.
Best Bay Area Massage
Located in San Francisco, Best Bay Area Massage is able to provide a wide variety of massage therapy services for its clients. The clinic’s list of services include deep tissue massage, Swedish massage, sports massage, stretch massage, and trigger point massage. Best Bay Area Massage is also able to perform additional services such as aromatherapy and salt stone massages.
Best Bay Area Massage’s promise is to deliver effective and rejuvenating massages in a comfortable environment. Best Bay Area Massage’s team of experienced massage professionals assures each client receives the best care and the proper modality for their unique massage therapy needs.
Golden Massage
Golden Massage is a San Francisco-based massage therapy spa that provides outstanding massage services for its clients. Golden Massage provides comprehensive massage therapy services for clients of all ages. The company specializes in sports massage, injury/rehabilitation massage, and relaxation massage. The owners of Golden Massage are massage therapy professionals so they understand how a massage therapy spa should be managed. Clients can depend on caring staff to provide exceptional customer service throughout the process from booking an appointment and speaking with a massage therapist to determine which therapist will be the best fit to getting a massage and booking the next appointment. Golden Massage takes the stress out of finding a convenient time for a massage and the uncertainty for new clients by maintaining a flexible schedule and ensuring all staff adhere to a high standard of customer service and communication.
City Massage & Bodyworks
City Massage & Bodyworks is a trusted San Francisco massage therapy clinic that provides superior service to clients in San Francisco and the surrounding areas. They are able to provide multiple types of massage therapy services including aromatherapy, sports massage, pregnancy massage, restorative massage, rejuvenation massage, and hot stone massage. Clients can make an appointment online, in person, or by phone. Additionally, clients can come in without an appointment at a time that is convenient for them. City Massage & Bodyworks offers an array of pricing options. Clients can pay per massage session or they can pay on a monthly basis for weekly massages.
Download the Massage Therapy business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Peaceful Massage will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly qualified team of certified massage therapists who are experts in their modalities and will provide caring, supportive customer service.
- Comprehensive menu of services that allows for a client to find the massage service that works best for them.
- Peaceful Massage offers the best prices in the area. The company’s pricing structure is the most cost effective compared to the competition.
Marketing Plan
Brand & Value Proposition
Peaceful Massage will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled massage therapists that is able to provide a comprehensive set of services (sports massage, hot stone massage, pregnancy massage, Swedish massage, etc.).
- Unbeatable pricing to its clients – Peaceful Massage does not mark up its services at a large percentage. They will offer the lowest pricing in the area.
Promotions Strategy
The promotions strategy for Peaceful Massage is as follows:
Word of Mouth/Referrals
Daniel Young has built up an extensive list of contacts over the years by providing exceptional service and expertise to his clients. Many former clients have communicated to Daniel that they kept coming back because they were happy with the massage therapy services he was providing. Once Daniel advised them he was leaving to open his own massage therapy business, they expressed interest in following him to his new clinic and will help spread the word of Peaceful Massage.
Professional Associations and Networking
Peaceful Massage will become a member of commercial and residential professional associations such as the American Massage Therapy Association (AMTA), Alliance for Massage Therapy Education (AMTE), Clinical Massage Association (CMA), and the Massage Therapy Foundation (MTF). The clinic will focus networking efforts on expanding its client network.
Print Advertising
Peaceful Massage will invest in professionally designed print ads to display in programs or flyers at industry networking events and in magazines, newspapers, and direct mailers.
Website/SEO Marketing
Peaceful Massage will create and maintain an organized, informative website that lists all the services that the clinic is able to provide. The company will employ an in-house marketing director that will also manage Peaceful Massage’s website presence with SEO marketing tactics so that any time someone types in the Google or Bing search engine “San Francisco massage therapy” or “massage therapy near me”, Peaceful Massage will be listed at the top of the search results.
Social Media Marketing
The company’s marketing director will create and maintain an active social media presence on multiple social media platforms including Facebook, Instagram, Twitter, YouTube, LinkedIn, and TikTok to promote the clinic and attract new clients.
Pricing
The pricing of Peaceful Massage will be moderate and on par with competitors so customers feel they receive value when purchasing their services.
Operations Plan
The following will be the operations plan for Peaceful Massage.
Operation Functions:
- Daniel Young will be the Owner and President of the company. He will oversee all staff and manage client relations. Daniel has spent the past year recruiting the following staff:
- Barbara Lewis – Office Manager who will manage the clinic’s administration, client files, and accounts payable.
- Charles Thomas – Staff Accountant who will provide all client accounting, tax payments, and monthly financial reporting.
- Nancy Richards – Marketing Director who will provide all sales and marketing campaigns for Peaceful Massage.
Download the Massage Therapy business plan template (including a customizable financial model) to your computer here <–
Milestones:
Peaceful Massage will have the following milestones complete in the next six months.
8/1/2022 – Finalize contract to lease the clinic
8/15/2022 – Finalize personnel and staff employment contracts for the management team
9/1/2022 – Finalize contracts for massage therapists
9/15/2022 – Begin networking at industry events and initiate the marketing campaign
9/22/2022 – Begin moving into Peaceful Massage clinic
10/1/2022 – Peaceful Massage opens its clinic for business
Management Team
Peaceful Massage will be owned and operated by Daniel Young. He has recruited an experienced administrative professional, Barbara Lewis, to be his Office Manager and help manage the office and operations.
Daniel Young is a graduate of Monterey Peninsula College with an associates degree in massage therapy. He has been working at a local spa for more than eight years as a certified massage therapist. Daniel’s expertise in various massage therapy techniques and effective communication skills have allowed him to develop a loyal client base.
Barbara Lewis has been an administrative assistant for over ten years at a local health spa. Daniel relies strongly on Barbara’s diligence, attention to detail, and focus when organizing his clients, schedule, and files. Barbara has worked in the health spa industry for so long, she understands all aspects required in running a successful massage therapy business.
Financial Plan
Key Revenue & Costs
The revenue drivers for Peaceful Massage are the massage therapy fees they will charge to the clients for their services. The clinic’s price range will be $30-$90 per hour.
The cost drivers will be the overhead costs required in order to staff a massage therapy business. The expenses will be the payroll cost, rent, utilities, massage therapy equipment and supplies, and marketing materials.
Funding Requirements and Use of Funds
Peaceful Massage is seeking $250,000 in debt financing to launch its massage therapy business. The funding will be dedicated towards securing the clinic space and purchasing massage therapy equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for print ads and association memberships. The breakout of the funding is below:
- Massage therapy clinic build-out: $50,000
- Equipment, supplies, and materials: $20,000
- Three months of overhead expenses (payroll, rent, utilities): $160,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Massage Therapy business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of massage sessions per month: 200
- Average fees paid per month: $10,000
- Clinic lease per year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Massage Therapy Business Plan FAQs
What Is a Massage Therapy Business Plan?
A massage therapy business plan is a plan to start and/or grow your massage therapy business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your massage therapy business plan using our Business Plan Template here.
What are the Main Types of Massage Therapy Businesses?
There are a number of different kinds of vending machines, some examples include: Day Spa, Mobile Massage, and Medical Massage.
How Do You Get Funding for Your Massage Therapy Business Plan?
Massage Therapy Businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Massage Therapy Business?
Starting a massage therapy business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Massage Therapy Business Plan - The first step in starting a business is to create a detailed massage therapy business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your massage therapy business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your massage therapy business is in compliance with local laws.
3. Register Your Massage Therapy Business - Once you have chosen a legal structure, the next step is to register your massage therapy business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your massage therapy business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Massage Therapy Equipment & Supplies - In order to start your massage therapy business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your massage therapy business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful massage therapy business: