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FREE Sample Business Plan for a massage therapy business

FREE Sample Business Plan for a massage therapy business

Business name ? Mobile Massage Therapy
Business address ? Your address
Telephone ? Your telephone number
Email ? Your email address
Business structure ? Sole practitioner
Proprieter ? Your name
Proprieter?s address ?  Your address.

I. The Business 

1. Purpose 

The business will offer a mobile sports massage therapy service
specialising in the rehabilitation of athletes and treating athletic
injuries.
Sports massage offers athletes several performance advantages including:
a. Reducing the chance of injury by relieving stress points in
muscles, before they result in restrictions or spasm.
b. Improving range of motion and muscle flexibility, resulting in
improved power and performance;
shorten recovery time between workouts; 
c. Maximizing the supply of nutrients and oxygen through increased blood flow; 
d. Facilitating the body?s regular processes for recovery from exercise; 
e. Decreasing performance anxiety and sharpen mental focus. 

2. Legalities 
The business will be a new independent business. It will operate as a
sole proprietor  with your name as proprietor.
The business will have the necessary licenses to practice in Anytown.
Your name will be covered by professional and general liability insurance.

3. Service offered
The business will offer a mobile sports massage therapy service to
athletes in the Anytown area.
The therapist will visit the clients and perform the service at their location. 
Massages lasting between 15 minutes and 90 minutes will be offered.

4. Business aims
The short-term aim is to grow the business to serve 3,000 customers
per year. It is anticipated that it will take up to 1 year to build
the business to this level. The long-term aim is to exceed this level
of clientele and contract out additional work to other massage
therapists.

5. Hours of business.
Business hours will be flexible to take account of the scheduling of
sports events. The business is to a certain extent seasonal with a
greater number of sporting events take place in the summer.

6. Personal experience
Name 
A trained massage therapist with five years experience in sports massage. 
Fully licensed.
Qualification include?
Professional member of American Massage Therapy Association  (AMTA).

7. How the service will compete.
The business will offer customers the convenience of massage therapy
in their own premises. A specialist service will be offered to
athletes.

8. Location 
The business will operate from a home based office. It will serve an
area within a 30 mile radius of Anytown. The owner will travel to and
perform the service at the customers premises.

B  Marketing. 

1. Customers 
The customers will be athletes aged between 18 and 64 years. Massage
therapy is popular across these age ranges.
18-24 (22%) 
25-34 (31%) 
35-44 (25%) 
45-54 (22%)
55-64 (19%)
Massage is popular among people with some college education (31%) and
people with only a high school education (16%), but more popular among
college graduates (35%).
"Public Attitudes Towards Massage Study," Caravan Opinion Research
Corporation International (August 1999).
Both individual athletes and teams of athletes will form the customer base.

2. The market for massage therapy
According to the American Massage therapy association, people spend
between $4 billion and $6 billion annually on massage therapy and make
114 million visits each year. Some 27 percent of adults in the United
States report having massages in the past five years, 15 percent in
the past 12 months.

Massage is increasingly being sought after for pain leaf. A survey
conducted by the AMTA found that 47 percent of those polled said they
have tried massage for pain relief - 58 percent of which are between
the ages of 18-24 and 35-44 years. Additionally, 91 percent of the
adults polled said massage therapy is effective in reducing pain.

In another survey from AMTA, sixty-three percent of massage clients
polled said that massage therapy provides more relief from pain than
chiropractic, acupuncture, physical therapy and other forms of
bodywork. Ninety-six percent of these same clients said they would use
massage again for pain relief; 74 percent reported a temporary
reduction in pain following their massage; and 14 percent reported a
permanent elimination of pain.

A survey of 1,007 hospitals found that  82 percent of those offering
complementary and alternative medicine included massage and over 70
percent used massage therapy for pain relief and pain management.
Massage therapists earn between $20,000 - $29,000 per year

3. How customers will be found.
A variety of marketing methods will be used to attract customers which
will include:
Printed business cards
Printed brochures
Yellow pages
Website
Newspaper advertising
Forming links with local sports teams.
Forming links with local health practitioners.

In order to form links with local sports teams, the proprietor will
contact the coach/manager and offer athletes a free 15 minute massage
before they compete. This opportunity will be used to hand out
business cards and brochures. After play the therapist will be
available for paid massages and will solicit regular bookings. Any
injured athletes will be offered rehabilitation services.

4. Pricing strategy.
Customers will be charged on an hourly basis at the following competitive rates:
15 minutes - $16
30 minutes - $33
60 minutes - $61
90 minutes - $84

C.  Competition 
According to the American Massage Therapy Association, there are
between 260,000 and 290,000 massage therapists in the US.
There are currently two other massage therapists in the area that the
business will be targeting.
Their businesses are steady. 
Business A has been operating for five years. It has 3,000 clients.
The business is advertised in the local newspaper. Charges are $50 for
one hour.
Business B has been operating for three years. It has 2,000 clients.
Clients are obtained via word of mouth and personal contact. Charges
are $70 for one hour.
Neither of these therapists specialise in treating sport injuries.
This will give the proposed business a competitive advantage.
D. Operating Procedures.
Name will be responsible for the management of the business and will
deal with enquiries from customers, market the business and prepare
the accounts. When a client base of over 3,000 has been achieved,
additional work will be contracted out to other suitably qualified
therapists.

II. Financial Plan

A. Start-up Expenses - Capital equipment
Car              $5000
Massage equipment $500
Computer         $1000
Printer           $100
Desk              $100
Telephone         $200
Total            $6900

B. Balance Sheet
As of opening (April 2005)
Assets
Current assets                                          
Cash $10,000
Prepaid expenses $0

Fixed assets 
Massage equipment  $500
Computer          $1000
Printer            $100
Desk               $100
Telephone          $200
Automobile        $5000
Total             $6900

Total assets $10,000

Liabilities 0
Net worth (owner equity) $40,000
Cash                     $10,000
Proprietorship Total net worth $50,000
Total assets $50,000

C. Breakeven analysis
In order to break even sales of  $967 per month  are required. Based
on the income projections this level of sales can be achieved by month
4.

D. Income Projections
Year 1 summary
Total net sales (revenues) $42,900
Costs of sales             $0
Gross profit               $42,900
Gross profit margin        $42,900  

Controllable expenses 
Marketing                  $4,500
Automobile                 $3,000
Office supplies            $300
Maintenance/repair         $1000
Oils etc.                  $200

Total controllable expenses $9000  

Fixed expenses 
Rent                       $0
Depreciation               $580
Insurance                  $300
Utilities                $1,200
Miscellaneous              $500 
Total fixed expenses      $2580

Total expenses           $11,580

Net profit before taxes  $31,320
Taxes                      $7900      
Net profit  after taxes   $23,420   

Financial Management Plan.
Start-up Budget
Legal        $300 
Stationery   $500
Insurance    $300       
Research and development $300
Capital Equipment       $6,900
Total   Start-up Expenses  $8,300

Monthly Operating Budget
marketing              $375
automobile             $250
insurance               $25
rent                     $0
utilities              $100
depreciation            $49
repairs/maintenance     $84
Stationery              $25 
miscellaneous expenses  $42
Oils, lotions etc       $17
Total                  $967

III. Personal Financial Statement.

Current Assets
Cash                   $10,000
Accounts receivable    $0
Fixed Assets   
Equity in house        $40,000

Total assets           $50,000
Liabilities 0
Net Worth              $50,000

III. Supporting Documents 
Cash flow analysis
Tax returns of principal for the last three years 
Personal financial statement 
Copy of resume of principal

-----------------------------------------------

Advice for writing a business plan.
Missourri Business shows a sample business plan that explains what to include.
http://www.missouribusiness.net/docs/business_plan_guide.pdf

Plannersguide.com offers a massage therapy business plan CD for $15.00
http://www.plannersguide.com/massage.htm

bp-4-U sells a massage therapy business plan for $49.95
http://www.businessplanning-4-you.com/businessproducts/Massage_Therapy_Business_Plan.html

CareerAtYour Fingertips offers a book about the massage business for $23.95
http://www.careeratyourfingertips.com/ordering.htm

bplans.com sells business plan software for $99.95. It includes plans
for 400 different businesses including massage therapy. An example
plan for a Health Club Business can be seen here.
http://www.bplans.com/spv/3060/index.cfm?affiliate=entreprene

This report from scrippshealth.org gives information about the size of
the market for massage therapy and uptake rates.
http://www.scrippshealth.org/scrippsnews_1327.asp

According to the American Massage Therapy Association, there are
between 260,000 and 290,000 massage therapists in the US.
http://216.239.41.104/search?q=cache:KlIEO6r_E9wJ:www.amtamassage.org/pdf/02demanddraft2.pdf+%22massage+therapy%22+billion&hl=en

Baby boomers
http://6news.ljworld.com/section/health/story/177803

Amtamassage gives information about the demographics of massage customers.
http://www.amtamassage.org/about/demand.html

The benefits of sports massage arediscussed in this report from AMTA.
http://www.amtamassage.org/publications/sports_massage_brochure.html

According to Massagetoday, massage therapy is increasingly sought for pain relief.
http://www.massagetoday.com/archives/2003/12/03.html

AMTA
http://www.americanfederationofumpires.com/massage.html
Membership of AMTA costs $235 and includes insurance.
http://www.amtamassage.org/

This AMTA report gives the earnings and average fees charged by massage therapists.
Earnings
$20,000 - $29,000 per year

Fees
15 minutes - $16
30 minutes - $33
60 minutes - $61
90 minutes - $84
http://www.amtamassage.org/pdf/AMTAdemographics03.pdf

According to this report it takes 6 months to a year to build a
massage therapy practice.
http://216.239.39.104/search?q=cache:QjuKAS4qkEgJ:www.massagetherapy101.com/massage-school/massage-therapy-salary.aspx+%22massage+therapist%22+expenses+%22massage+oils%22&hl=en

Massageking.com offers massage table start up packages.
http://www.massageking.com/massage-tables/popularity/1/37/catalog.html>
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