Here's the Plan

On any given day on my FB page, there will be massage therapists who are excitedly reporting an increase in their practice, talking about the big day or big week they just had, or some other joyful news related to their business. On any given day, there will also be someone posting that they’re closing up shop because they can’t make it, and taking a job they don’t really want because they have to have money to survive. And let’s be real, folks…none of us want to just survive. We want to thrive, don’t we? Be able to take a vacation, give money to charity, buy a new car when we need one without having a financial meltdown. All those things are hard to do when you’re worried about making the rent.

Nine times out of ten, it isn’t that they’re not a talented massage therapist that leads to their failure. Most of the time, it is a lack of careful planning that leads to the demise. Here’s a reality check:

Almost no business is profitable during the first year. Those folks who work from their home or who only do outcalls may be exceptions, but if you’re operating a massage business out of your own storefront, planning to do so, or or even as a renter or independent contractor in someone else’s space, there are a lot of things to consider.

I’m going to get the independent contractors out of the way first. You are a self-employed person who performs your services in someone else’s space. You don’t have all the same overhead that a person in their own space does, but you still have certain expenses, and you’re working in someone else’s environment. They may–or may not–be throwing you a lot of business. If you don’t have all you need or want, and it’s because you’re just sitting there waiting for the owner to do it all for you, you’re missing the boat. You still need to market yourself. That doesn’t mean taking out a big ad in the paper. It means you are actively engaged in trying to increase your client base on a daily basis, by networking, giving out business cards, getting yourself out there by performing community service, introducing yourself to people and telling them about the benefits of massage. Instead of blaming the owner for your lack of business, look at what you could be doing to increase it.

For those who are opening their own business, starting out without a business plan and a budget is a serious mistake. My advice is don’t take the plunge into opening your own business until you know you can survive for a year without a profit. When you initially open your business, you’re going to have a lot of one-time expenses–equipment, office furnishings, security deposits for rent and utilities. If you’re signing a lease, you’re committing yourself to paying rent (or a mortgage payment, if you’re buying.) You need to know what your monthly expenses are before you open the door.You need to include laundry, phone, Internet access, office and cleaning supplies, liability insurance, bank service charges and credit card processing charges, self-employment taxes–and that’s before you’ve spent any money on advertising.

I know that in my office, 52 massages have to take place before I’ve covered the monthly overhead. That’s my break-even point, and you need to figure out what yours is. But you can’t stop there–especially if you’re a single person or if your family is dependent upon a two-income lifestyle. You also need to figure your break-even point for supporting your household. READ MORE...