Massage Therapy Business Plan Template
If you want to start a Massage Therapy business or expand your current Massage Therapy business, you need a business plan.
The following Massage Therapy business plan template gives you the key elements to include in a winning Massage Therapist business plan.
Massage Therapy Business Plan Example
I. Executive Summary
Business Overview
[Company Name], located at [insert location here] is a brand-new, upscale massage therapy center focusing on providing high-quality, full-service massage therapy services to the surrounding community. Our product and service lines fit nicely with the prevailing tastes and preferences of the local area – middle class suburbanites want quality massage therapy services, but don’t want to pay luxury prices for it.
Products Served
[Company Name] will provide massage therapy services for all ages and both genders. Services will include:
- Therapeutic Massage
- Deep Tissue Massage
- Hot Stone Massage
- Relaxation Massage
In addition to providing these services, [Company name] will also retail exclusive massage and beauty products. Customers will find products at [Company name] that they won’t find in department stores.
Customer Focus
[Company Name] will primarily serve the residents within a 5 mile radius of our location. The demographics of these customers are as follows:
- 117,827 residents
- Average income of $74,700
- 60% married
- 45% in Mgt./Professional occupations
- Median age: 38 years
In addition to this prime adult demographic, there are two large high schools and a college in the area. Students, particularly girls, from these schools will be sure to patronize [Company Name] for massage services.
Management Team
[Company Name] is led by [Founder’s Name] who has been in the massage therapy business for 20 years. While [Founder] has never run a massage therapy center herself, she has been a therapist since the age of 15 and spent most of her adult life working as a therapist at various massage therapy centers. As such, [Founder] has an in-depth knowledge of the massage therapy business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The Company will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
- Our location is in a high-volume area with easy access from multiple residential and commercial areas.
- The management team has a track record of success in the massage therapy services business.
- The massage therapy services business is a proven, successful and profitable business in the United States.
- Local competitors leave a large gap in the massage market—there are low-cost providers ($30-50), and an ultra-luxury beauty salon ($120+), but nothing in between.
Financial Highlights
[Company Name] is currently seeking $260,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $140,000
- Working capital: $120,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| Financial Summary | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Revenue | $400,000 | $466,067 | $524,563 | $590,400 | $664,500 |
| Total Expenses | $345,594 | $385,172 | $419,434 | $475,894 | $507,480 |
| EBITDA | $54,406 | $80,895 | $105,129 | $114,506 | $157,020 |
| Depreciation | $20,840 | $20,840 | $20,840 | $20,840 | $20,840 |
| EBIT | $33,566 | $60,055 | $84,289 | $93,666 | $136,180 |
| Interest | $16,822 | $14,719 | $12,617 | $10,514 | $8,411 |
| PreTax Income | $16,744 | $45,336 | $71,673 | $83,153 | $127,769 |
| Income Tax Expense | $0 | $0 | $17,104 | $29,103 | $44,719 |
| Net Income | $16,744 | $45,336 | $54,569 | $54,049 | $83,050 |
| Net Profit Margin | - | 10% | 10% | 9% | 12% |
II. Company Overview
Who is [Company Name]?
[Company Name], located at [insert location here] is a new, upscale massage therapy services focusing on providing professional massage therapy treatments and services in a relaxing environment. It will showcase a well-designed interior as well as a full-featured waiting area equipped with a relaxing lounge and refreshments. [The Company] also sells a variety of premium essential products which will be on display in the waiting room.
[Company Name] was founded by [Founder’s Name]. [Founder’s Name] has been in the massage therapy business for some time and will apply all of her industry learnings to this new business concept.
At [Company name], we truly care for all our clients. Our staff will also be highly-trained professionals to ensure exceptional service.
[Company Name]’s History
Upon surveying the local customer base, and finding a potential location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
Since incorporation, the Company has achieved the following milestones:
- Found location and signed Letter of Intent to lease it
- Developed the company’s name, logo and website
- Hired an interior designer for the decor and layout
- Determined equipment and fixture requirements
- Begun recruiting key employees with previous massage therapy experience
[Company Name]’s Products/Services
Specialists will provide the following services for both men and women:
- Therapeutic Massage
- Deep Tissue Massage
- Hot Stone Massage
- Relaxation Massage
The company will also sell a variety of high-end massage and beauty products.
III. Industry Analysis
The Massage Services industry has grown over the past five years. Given the discretionary characteristics of industry services, the increase in per capita disposable income during the period has provided consumers with the means to afford massages. In addition, overall consumer spending is expected to rise at an annualized rate of 2.9%, further benefiting industry operators. As a result, industry revenue is anticipated to increase at an annualized rate of 4.7%.
The relationship between industry operators and the healthcare sector has continued to grow, driving rising demand for industry services over the period. According to the American Massage Therapy Association (AMTA), the number of massage therapists who receive referrals from healthcare professionals has steadily increased during the period. Combined with rising consumer income levels, the strengthened relationship between industry operators and the healthcare sector drove industry revenue and profit growth during the past five years.
Moreover, the aging of the US population is also forecast to benefit the industry because people aged 35 and older make up a significant and stable market for massage services. The number of adults aged 20 to 64 is expected to increase at an annualized rate of 0.2% in the next five years, expanding the potential customer base for domestic massage therapists and boosting industry revenue.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediate surrounding areas as well as those who work in [company location].
The area we serve is populated mostly by moderate to affluent homeowners; as a result, they have the means to pay for higher quality service.
The precise demographics of the town in which our retail location resides is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following three customer segments:
- Stay-at-home moms: The town has a large population of stay-at-home moms who are active in the school and community. These moms seek massage therapy services on a regular basis. Winning the loyalty of a mother often includes winning the business of her friends. These women are well connected to each other and as such are a prime source of referral business. [Company name] expects to regularly acquire new customers from referrals.
- Professionals: [Company name] is located along a well-traveled commuter route. By offering a convenient location and exceptional service, [Company name] will draw in working men and women.
- Students: There are multiple high schools and a college located in the surrounding area. Students, particularly girls, from these schools will be sure to patronize [Company Name] for massage services.
V. Competitive Analysis
Direct & Indirect Competitors
Parlor
Parlor is the largest massage therapy franchise in the United States, in terms of both revenue and location count. The company has grown to 1,150 franchise locations across 49 states, employing more than 35,000 massage therapists and estheticians.
While Parlor offers a variety of spa services, ranging from massages to facials, massage services account for a significant portion of the company’s total revenue. The company has differentiated itself from other massage service providers by offering treatments at highly competitive price points. The company also offers a membership program through which members can earn free massages or purchase additional services at a discount.
Massage Inc.
Massage Inc. provides on-site chair massage services nationwide. The company has an extensive network of therapists that offer corporate programs, and serve conventions, meetings, or one-time special events.
Its programs can either be incorporated into existing wellness programs, or can be a stand-alone offering. Further, the company offers a proprietary online scheduling tool that allows employees to schedule a massage, while giving administration a view into utilization rates, participation, and schedule gaps. Visits are typically scheduled for a 3-hour minimum.
Infinity Massage
Infinity Massage is a massage franchise specializing in offering high quality massage services at affordable prices. With more than 250 locations across the country, the company strives to bring massage services to the masses.
Services include massage, hot stone massage, facials, reflexology, aromatherapy and hand treatments. Rates for Infinite Massage are available by consultation only; however, the company does have a “price match” policy in which they will beat any competitors’ rates.
Competitive Pricing
| Parlor | Massage Inc. | Infinity Massage | |
|---|---|---|---|
| 60 Minute Massage | $60 | $75 | $90 |
| 90 Minute Massage | $90 | $100 | $125 |
| Reflexology | $30 | $45 | $50 |
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is near the center of town, giving us access to commuters going to and leaving the train station, local office workers, and passersby shopping in the city. We also offer adequate parking making it easy for customers to patronize us.
- Great service at an affordable price: The massage therapy services offered by [Company Name] are similar quality to its most premium positioned competitor. [Company Name] will offer these services at a much more affordable price.
- Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Convenient location
- Familiar, regular therapists
- Significant personal attention
- Moderate price point
- Comfortable, customer-focused environment
Promotions Strategy
[Company Name] expects its target market to be individuals working and/or living within a 5-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.
Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events. Since mothers are often heavily involved in such things, we will not only reach the lucrative audience of adult women, but also potentially their families by extension.
Commuter Advertising
We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Customer Loyalty Programs
[Company name] will create a winning customer loyalty program to keep its best clients coming back again and again. When not actively providing services to customers, our professionals and other employees will make periodic, regular phone calls to customers. These phone calls will (a) ensure that customers are satisfied with their therapy, and (b) remind customers after a certain period of time has passed that they are due for a massage. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the massage therapy center.
Pre-Opening Events
Before opening the store, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Pricing Strategy
[Company Name]’s pricing will be moderate so customers feel they receive great value when patronizing the center. The anticipated price point for a standard massage is $80. The customer can expect to receive quality massage therapy, for a more affordable price than what they pay at an ultra-premium massage therapy center.
VII. Operations Plan
Functional Roles
[Company name] will carry out its day-to-day operations primarily on an appointment basis. Walk-in clients will be served by the earliest available specialist, but priority will be given to clients who called ahead.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. The majority of employees will assist in helping customers select and book appointments, in addition to the primary functions of massage therapists.
Milestones
[Company name]’s long term goal is to become the dominant provider of massage therapy services in the [location] area.
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
[Company Name]is led by [Founder’s Name] who has been in the massage therapy services business for 20 years.
While [Founder] has never run a massage therapy center herself, she has extensive experience providing massages for the past 20 years. She began her career in [19xx] when she received a certification from [Massage School] and began work at [major chain], where she worked for X years.
[Founder] graduated from the University of ABC where she majored in Communications.
[Other person’s name] will serve as the customer service manager. [He/she] has extensive experience in the hospitality industry.
Hiring Plan
[Founder] will serve as the location manager. In order to launch our clinic, we need to hire the following personnel:
- Therapists (3 to start)
- Assistants (1 to start)
- Receptionist (1 to start)
As dictated by demand and operational maturity, [Founder] will consider hiring an Assistant Store Manager, Marketing Director and Product Specialist.
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from the services rendered and secondarily from the sale of massage therapy services and products.
As with most services, labor expenses are the key cost drivers for massage therapy centers. Specialists are paid through a combination of salaries and commission, rewarding them for performance and making specialists an active part in business retention and development.
The major cost drivers for the company’s operation will consist of:
- Commission paid to specialists on a per service basis
- Salaries
- Lease
Ongoing marketing expenditures and cost of good sold expenses are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking total funding of $260,000 of debt capital to launch its store. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $140,000
- Working capital: $120,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model.
| Number of customers per day | Per location |
|---|---|
| Year 1 | 2000 |
| Year 2 | 3500 |
| Year 3 | 5000 |
| Year 4 | 7000 |
| Year 5 | 8000 |
| Massage Price | $75 |
| Product Sales | $20 |
| Annual Rent | $90,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
