massage company business plan

Massage Therapy Business Plan Template

Written by Dave Lavinsky

Massage Therapy Business Plan

You’ve come to the right place to create your massage therapy business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their massage therapy businesses.

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.

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:

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.

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:

Customer Segmentation

Peaceful Massage will primarily target the following customer profiles:

• Individuals suffering from chronic pain
• Individuals with injuries
• Pregnant women
• 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.

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.

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.

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

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.

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

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, balance sheet, cash flow statement, 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:

• How to Open a Massage Therapy Business

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Massage Therapy Business Plan

If you are planning to start a new massage therapy business, the first thing you will need is a business plan. Use our massage therapy business plan example created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing a business plan for your new massage therapy business, spend as much time as you can reading through some samples of message-related business plans.

Reading some sample business plans will give you a good idea of what you’re aiming for, and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample massage therapy business plan for you to get a good idea about how perfect a massage therapy business plan should look and what details you will need to include in your stunning business plan.

Massage Therapy Business Plan Outline

This is the standard massage therapy business plan outline, which will cover all important sections that you should include in your business plan.

• Management and Personnel
• Marketing/Sales
• Planning/Organizing
• Legal Structure
• Permits and Licenses
• Accounting & Record Keeping
• Market Needs
• Target Market
• Market Potential
• Mission Statement
• Online/Social Media
• People/Networking
• Other Promotion and Publicity
• SWOT Analysis
• Gift certificates available
• Monthly Personal Budget
• Expansion Costs
• Sources of Financing
• Overhead Business Costs
• Projected Profit and Loss
• Projected Cash Flow
• Projected Balance Sheet
• Sales Forecast
• Profit and Loss
• Balance Sheet

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After  getting started with Upmetrics , you can copy this massage therapy business plan example into your business plan and modify the required information and download your massage therapy business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

Download a sample massage therapy business plan

Need help writing your business plan from scratch? Here you go;  download our free massage therapy business plan pdf  to start.

It’s a modern business plan template specifically designed for your massage therapy business. Use the example business plan as a guide for writing your own.

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How to Write An Effective Massage Therapy Business Plan

Learn how to create a business plan for your massage therapy practice.

May 20, 2013

There's that line from Field of Dreams that most everybody knows, even if they've never seen the movie: if you build it, he will come. Though in the movie the phrase relates specifically to baseball, many people have since assigned a more general meaning to the expression—don't worry about the outcome, because simply making the effort will produce results.

And there is something to be said for passion driven by blind faith.

But, particularly in business, there’s also something to be said for taking the time to outline where you are now and where you want to be—and how exactly you plan to get from point A to point B. In other words: writing a business plan.

The topic of writing a business plan can bring a wide variety of reactions, most of which range somewhere between reluctance and fear. The process, however, doesn’t have to be painful. Here are some tips to help you make the most of this important business tool.

Part of the reluctance to write a business plan might come from some misconceptions surrounding the practice. Many people think of these documents as long and complicated, taking days and months to write and finalize. But that doesn’t have to be the case, according to Kelly Bowers, a licensed massage therapist in Washington, D.C.

In fact, for most massage therapists, a one-page business plan is probably sufficient. “What most of us think of when we say business plan is what I call the standard or large business plan, but it’s not what most of us are going to want to work with,” she says. “We’re going to want to work with a simplified form of the standard business plan.”

To get to a clear understanding of how elaborate your business plan needs to be, Bowers suggests asking yourself some basic questions: How specific are your goals? How long-range are they? Are your goals ambitious? Are they a stretch? Do you really just want to make enough money to live comfortably and peacefully? Do you already know how much money that will take?

Also, consider your own personality. Are you a planner, for example? Do you tend to live in the moment or are you always looking down the road, thinking about where you want to be in two, five or 10 years?

“The more you want to move outside the simple or outside your comfort zone, the more you’ll benefit from having a business plan,” Bowers says. “If you are a planner, you will benefit from a business plan. If you tend to be overwhelmed by too many choices, a business plan can help you stay focused.”

Bowers quickly cautions, too, that simple isn’t going to work for everyone, and she encourages massage therapists to remember this rule of thumb: “The more people that are engaged in your practice and the more of someone else’s money you’ll be asking for, the more involved your business plan needs to be,” she says.

When Bowers decided to leave her job as a technical writer and pursue massage therapy full time, she started having lunch with a group of women who were starting their own businesses. “They were all big proponents of using business plans,” she says. “They kept pushing me to write one.”

Bowers didn’t follow their advice right away, however. Then, finally, she took herself on a business retreat one January and worked her way through Jim Horan’s “The One Page Business Plan,” a book her friends she lunched with had recommended to her.

She learned a few lessons from her first attempt. “My first business plan was, ah, optimistic, to say the least,” she recalls. “It turns out that making $50,000 a year requires more than writing it down confidently in your business plan! But I was hooked on the process.”

Some of why writing a business plan is helpful comes from being able to clarify your vision. “Having a clear sense of my personal vision and my practice’s mission has made a big difference for me,” Bowers explains. “It’s given me a clarity and focus I probably never would have found otherwise.”

In addition to more focus, writing a business plan gives Bowers a way of evaluating any new opportunities that might arise. “Does this opportunity I’m considering or being offered line up with my mission and vision?” she asks herself. “There are a lot of things I could do as a small business. But, as a very small business, I want to focus my time, energy and money on those things that help me bring my vision to life and fulfill my mission as I understand it.”

Bowers has advice that is quick and to the point for those reluctant to start writing a business plan: “Give up any idea that you aren’t smart enough or educated enough to write a business plan,” she says. “If you’re smart enough to do the work, then you’re smart enough to explain it in a business plan.” That’s not to say you might not need a little help, Bowers adds.

First, relax a little. You might find a different perspective helpful, like thinking of writing a business plan as having a conversation. “A business plan, at its most basic, is a conversation,” Bowers explains. “The conversation might be between you and an investor or business partner. For most of us, it’s a conversation we’re having with ourselves.”

Bowers elaborates on this idea, suggesting you look at the business plan as a kind of conversation between your present self and future self. “These two selves are working out what they want to build together and how they’re going to move that thing from today to the future you want to have,” she adds.

You might also find that imagining yourself sitting with a friend describing what you envision your practice looks like is a good way to approach writing a business plan. “Imagine describing, with passion, the practice you want to have,” Bowers says. “Imagine the two of you brainstorming what it would take, in some detail, to make that happen. If you wrote that down, you’d have a basic business plan.”

Remember, too, that writing a business plan shouldn’t be something you do once and never revisit. “As long as your business is alive, your business plan needs to be alive,” Bowers explains. “That means you need to be looking at and updating your business plan regularly.” For Bowers, that happens every January, when she takes her annual business retreat.

Writing a business plan might not be at the top of your priority list—and that’s OK. You don’t have to dedicate months to the process. But engaging in the process of putting your plans in writing can be a great exercise, and help you increase business and clarify your own vision. “I think getting clear on your vision and mission are the two biggest benefits of a business plan,” Bowers says. “Writing a business plan is a way to tell the story of your passion and how you’re going to make that passion sing.”

Anatomy of a Massage Therapy Business Plan

Though many massage therapists may not need to create an in-depth standard business plan, knowing what this document comprises is a good idea. You also might find that at least some of these elements will be included in your own business plan, no matter how simple.

Executive summary . Here, you’ll summarize the key points of the rest of the plan. “It lets you highlight the exciting parts,” says Kelly Bowers, a licensed massage therapist in Washington, D.C.

Company description . This description tells people what kind of practice you’re creating. You can detail the legal structure of the company, for example, as well as how management will work, if you’ll have a management team in place. “This is also a summary of things you’ll get into in greater detail later in the plan,” explains Bowers.

Product/service . Obvious, perhaps, but in this section you’ll detail what products or services your practice will offer.

Target market . When thinking of who your target market will be, Bowers suggests thinking of these questions: Who is going to buy your products or services, and why would they buy your products and services?

Competitive analysis . No matter how simple you make your business plan, you should have a good idea of who in your area may serve as competition for business and clients. “Who is already selling your product or service?” Bowers asks. “How are you going to be able to compete with them?”

Marketing and sales plan . Here, you are going to outline how you’ll reach potential clients and get them to buy your product or service. In today’s world, there are a lot of different ways you might choose to market your practice, so take some time to think about what might work best for you.

Related: Marketing Tools for Massage Therapists

Operations plan . How does your company run? Where is your practice located? What equipment do you need? All of these are questions you’ll answer in this section, Bowers says.

Management team . If you plan on setting up business with other people, or going into business with a fellow massage therapist or someone from a complementary profession, you’ll need to outline leadership roles. Who will be in charge, for example?

Development plan  and milestones . This section will work through some of your future plans, as well as how you’ll measure if you’re on track or not. You might also think about exactly how you plan to grow your practice, if growth is indeed a goal.

Financials . Money is sometimes the last thing you want to talk or think about when you’re excited about starting your own business, but especially if you’re looking for investors or need a loan, you’ll need to have a good idea of where you’re starting financially, what you expect to make and what you’ll need to spend in overhead, for starters.

“Each of these sections answers specific questions about business,” explains Bowers. “Even if you aren’t writing a standard business plan, it’s worth it to at least look at the questions and think about them.”

Business Plan Mythbusting

Whether you’re just starting out or you’ve been in business for 10 years, you can probably benefi t from writing a business plan. To help you get over any hesitation you might feel, we’re busting some of the common myths that seem to surround this practice.

No. 1: You need a formal business education to write a business plan—False.

“For the kind of businesses most of us are running, what we need is a guide that is written to our level of business knowledge,” explains Kelly Bowers, a licensed massage therapist in Washington, D.C. Now, she adds, you might have to look up a few terms in the dictionary, but if you have a solid vision for your practice, that’s the important piece to the business plan writing puzzle.

Related:   It's Your Business: Understanding Business Concepts | 3 Credit Hours

No. 2: You should never start a business without writing a business plan—False.

Contrary to what some people might think, writing a business plan doesn’t have to be the fi rst thing you do when you’re thinking of starting your own practice. Much of what a business plan is designed to do is give you a clear direction and focus your efforts. “When you want to get clear with yourself about what you’re doing, why you’re doing it, and how you’re going to do it, a business plan can help,” explains Bowers.

But, Bowers says, though many people come out of school believing they know what their practice will look like and the types of clients they’ll work with, many don’t really know. “For a lot of us, it makes more sense to write a business plan after we’ve been in practice a year or three,” she says. “A few years of practice will tell us what our reality actually looks like, making writing a more realistic business plan easier to do.”

Times of change, too, are natural places to create a business plan. “Times of change are great times to work on a business plan to help you chart your new course,” says Bowers. “If you’ve worked in a spa for five years, for example, but now want to go out on your own, that’s a good time to write a business plan.”

There is one caveat to this advice, however: “If your starting point is a big plan that requires borrowing money, bringing in partners and things of that nature, your fi rst step should be to write a detailed business plan,” Bowers explains.

No. 3: Business plans are all about numbers and money—False.

“The heart of a business plan, any business plan, is what you want to build (vision) and why it’s worth building (mission),” Bowers says. “Everything else in the plan needs to be detailed enough to help you get there.”

That’s not to say you don’t need any information about financials, because you will definitely need to have an idea of what you want to make and what you’ll spend. “This information only needs to be as detailed as you personally need it to be,” Bowers says.

Related Resources

Massage therapy journal 3 tips for starting a massage practice.

When you first start thinking about opening a massage therapy practice, your natural inclination might be to focus primarily on the positive aspects of business ownership.

Continuing Education Attracting Business Clients: Part I-Start-up & Retention

Massage Therapy Business Tips

How To Create A Massage Therapy Business Plan

August 9, 2023

Starting a massage therapy business can be an exciting and rewarding venture. That’s why a lot of massage therapists choose to go into business for themselves. You might think all you need is a place to work and your and in some respects, that’s true. However, if you want your business to reach its full potential, you need a massage therapy business plan .

In most cases, you don’t need a whole lot of capital to start a massage therapy business. Service based businesses usually don’t have a lot of overhead, especially when your hands are the most valuable pieces of equipment. If you’re working as an independent massage therapist, your business plan doesn’t need to be too complex. It just needs to lay out your intentions, goals and a plan for reaching them.

If you plan on bringing in partners, hiring staff or borrowing money, then your business plan will need to be more extensive. Your lenders will want to see your business plan before offering you any sort of financing. You don’t need a business degree to create a business plan . If you need help, there are a lot of free resources available. For additional resources check out the SBA or find and work with a business mentor.

It’s never too late to create a business plan for your massage therapy business. If you’ve been in business for a while and you don’t have one, now’s the time to create one . In fact, you should be reviewing your business plan on a regular basis.

What’s The Biggest Thing To Consider Before Creating A Massage Therapy Business Plan?

Creating a massage therapy business plan requires aligning your life goals and business expectations. Get clear on what you want in life. Then, craft a plan to support your desired lifestyle and fulfill financial obligations, without exceeding your physical limitations. Plan for balance, happiness, and sustainability.

When you’re a business owner, it’s easy to get caught up in the tasks of taking care of clients and keeping the clinic clean. Sometimes you get so busy, the business becomes a part of who you are. So, before you start creating a plan for your massage therapy business, you first need to have a plan for your life . 

It’s important to know what you want your days, weeks and years to look like before you throw all your time and energy into your business. Your massage therapy business should support the lifestyle you want and help fulfill your financial obligations. Get clear on what your business needs to provide you, before you create a plan for your business.

Your massage therapy business plan needs to be realistic. So, be honest with yourself about how much time you can invest into your business, what you’re physically capable of, as well as what your true motivations are. There are no right or wrong answers here. 

Questions To Ask Yourself Before Creating Your Massage Therapy Business Plan

• What are your current financial obligations, and how do you expect them to change over the next 1, 5, 10+  years?
• What are your current family and social obligations, and what changes do you anticipate in the future?
• What sort of lifestyle do you want to have?
• How much free time do you need to be happy and healthy?
• When do you want to retire? 
• If you could create the perfect weekly plan for yourself, what would it look like?
• What are your health needs, and what does your overall well-being require?
• What sort of fulfillment do you want to get from your work or business?
• What contributions do you want to make to your family, community and the world?
• What are your core values? What’s most important to you?

You’ll be spending A LOT of time in and on your business. So create the culture, work ethic and identity of your massage business intentionally . Ideally, your business reflects your own values and intentions. Don’t waste the opportunity to create the perfect workplace. Your massage therapy business plan will lay out how exactly you intend to do that, plus a whole lot more.

How To Create A Massage Business Plan That Supports Your Goals

Once you’re clear on what your business needs to provide you, it’s time to create some goals, if you haven’t already. Your business plan needs to be realistic; so keep your personal needs, abilities and limitations in mind when creating goals for your business.

Also, it’s not enough just to have goals. You need a specific, actionable plan for achieving them AND a deadline for getting them done. This is exactly what your massage therapy business plan is for.

One of the best goal setting strategies is the creation of SMART goals. SMART goals are specific, measurable, achievable, relevant, and timely.

Here’s an example of a SMART goal.

Within 2 years, my clinic will gross $75,000 annually by treating a total of 83 clients a month, with an average cost of $75.00 per session.

Let’s break this goal down. This is what makes this goal a SMART goal.

• SPECIFIC :   $75,000 annual gross income
• MEASURABLE:  83 clients a month at $75 a session
• ACHIEVABLE:  83 clients a month is a realistic number of clients for a full time therapist to see
• RELEVANT:  How much money you make matters
• TIMELY:  This goal will be reached within 2 years

Once you have a goal like that, you then need to create an actionable plan that will attract enough clients to your business to reach those numbers. And that’s just the tip of the iceberg! 

For every idea, plan or goal you create, you also need to create a strategy and a timeline for turning those ideas into accomplishments.

Every goal you set for your business should help create the work culture you want, reflect the identity of your brand, and add value to yourself, your business and your customers. If it doesn’t, you need to rethink your strategy.

Each goal needs a plan and a timeline. Having these benchmarks gives you something to measure your progress against.

Your goals should cover a variety of different timelines. Set short term goals that serve your needs today and lay the foundation for achieving bigger goals. Mid term goals help you reach new levels of growth and success over the next 1-3 years. Your long term goals will guide you toward achieving what you ultimately want to create.

Once you have a list of short term, mid term and long term goals, you’re ready to start creating your massage therapy business plan.

What’s Supposed To Be In Your Massage Therapy Business Plan?

The purpose of creating a business plan for your massage therapy business, is to have a written explanation of:

•  WHAT your business is
•  WHY it exists
•  WHO it helps
•  HOW it works
•  WHERE it is going

You can make this as simple or complex as you need. The ultimate goal is to create a plan that you are convinced will work.

How extensive your business plan needs to be depends on how many hands are in the mix. You’re primarily creating this plan for yourself. In some cases, there may be people you need to share your business plan with. If that’s the case, you need to elaborate more than you would otherwise. 

10 Essential Things To Include In Your Massage Therapy Business Plan

Follow this list step-by-step to create your massage therapy business.

1. Executive Summary

This is a summary of your entire business plan. If someone reads only one section of your business plan in order to understand your overall strategy and identity, it should be the executive summary. The executive summary highlights the most important details of all the other sections in your massage therapy business plan. This section could be a few paragraphs or a few pages, depending on the depth of the plan you’re creating. Tip:  Write this section first to create an overall plan for your massage therapy business. Then build out each individual section using the executive summary as a guide. ALTERNATIVELY, you can write the executive summary last by simply combining the most important details from all the other sections.

‍ 2. Overview & Objectives

In this section, you deep dive into the mission of your company. First you describe your brand, which is basically “who” your company is and who it serves. Then you list out what your company plans to accomplish right now and in the future. This is a good place to highlight goals, values and your target market. All the details about who your ideal clients are and the value your business provides its staff, clients, vendors and the community can be included here. Be specific. Use this section to create a niche and a purpose for your massage therapy business. Tip:  Now is a good time to take a look at the SMART goals you created. Include the goals you created for your business here. Focus on the goals that are geared towards your mission, style and purpose. The financial goals will go in a different section.

3. Products & Services

This is perhaps the easiest and most straightforward piece of your massage therapy business plan. List out every service you offer and what it costs. If you sell products, include them here too. Explain what each product and service is, what it does, and the benefit it provides.

Don’t forget to include things like spa packages and membership plans. Now’s the time to think through what you’re able to offer by yourself or if you need a team of practitioners to provide the services you want to offer. Tip:  If you have designed a massage therapy website , you probably already have a list like this. Copy the list from your website to save time.

4. Massage Therapist & Practitioner Staffing

If your massage therapy business is a solo practice, you can skip this part of the business plan. If you plan to hire a massage therapist or other practitioners, you need a detailed plan for that. That goes here. This section is for listing the members of your team, their roles and responsibilities. You can include a short bio for each person that highlights their background, education and expertise.

One of the most common things massage business owners debate is whether to hire employees or have independent contractors . The decision is up to you, but it will impact your business model.

Tip:  Before you hire anyone, create a Standard Operating Procedure (SOP) for all the tasks that need done in your business. Document SOPs in writing and use them to train new team members. ‍

5. Business & Compensation Model 

After carefully considering multiple wellness business ideas , you must settle on a single business model. That business model may be a membership based massage franchise, multi-disciplinary practice, or just a solo-practitioner. Whatever it is, describe the structure of the business and how it’s organized in this section.

Also, explain how you’ll compensate your staff (and yourself). Outline the details of the pay structure for practitioners , admin staff, contractors, ect. Include things like commission, tips and salaries. You should also create a plan for how you’ll implement pay increases over time and the benchmarks for being eligible for a raise.

Tip:  Consider short-term abilities and long-term objectives before making a decision about business and compensation models. It’s hard to change structure down the road, so start where you want to end up. If you can’t afford to start there, create a plan for how and when you’ll transition later.

6. Sales And Marketing

In this section, explain how you will sell your services and promote your massage therapy business . Break down exactly how you’ll reach the clients your business was designed to serve, and how you will get them to buy from you. List all your massage marketing strategies , and then explain how you will implement them. Include things like your company website, social media marketing, email marketing, networking, paid advertising and so on. Also consider the massage marketing software tools you will need to make this happen, and make a budget around them. Tip:  Think about the ideal client you described in your Overview and Objections section. Consider what this person’s struggles, desires and spending habits are. Then build your sales and marketing plan around that.

7. Competitive Analysis

Every business has some sort of competition. In this section, make a list of all your competitors. Make note of who they are, what they do and who their customers are. Next describe how you intend to compete with these businesses. Set yourself apart by describing what makes your business different from competing companies. This may be something that makes you unique, better or more specialized than the competition. Tip:  Other massage therapists are not your only competition. What other services or products may your potential clients be using instead of massage therapy?

8. Operations

This section breaks down how you do what you do. Organize everything involved in running your business here. Including, but not limited to, how you interact and engage with clients, maintaining your office space, and how you write your SOAP Notes. Go into detail about everything. Explain how your business takes care of laundering linens, keeping the office clean, answering the phone, greeting clients, filing intake forms, and the methods of payment that are accepted. Write out all of the things you’ll do to manage your client files, or simply indicate if you’ll use a program like ClinicSense to stay organized and automate the work for your business. Tip:  If you make this section a detailed step by step guide, you can use it to create training manuals for staff later.

9. Tech Stack To Run Your Business

Technology will be instrumental in managing and growing your business. List the software you’ll use for things like scheduling, charting, review collecting, and marketing in this section. Create a plan for leveraging technology to streamline your processes, cut costs, improve productivity, and increase sales. 

 Your technical stack of tools might include: Scheduling Software, Accounting Software, Marketing Software, EMS & Charting software, or an all-in-one software solution for massage businesses .

Tip:  Research the wide variety of medical spa software available to you. Choose one that fits your budget and the needs of your practice. Make sure it’s a system you’re comfortable using and easy to use for client communication.

10. Financial Analysis

This section is all about the numbers. Create a budget for your massage therapy business , and list the details here. Be realistic, and plan for unforeseen setbacks. In addition to your current budget, you should also include future projections. As your business grows, its financial blueprint will change as well. It may not be possible to have exact numbers for future year sales, but it is possible to create future financial sales goals and estimations. Tip:  Review your SMART goals, and use the ones that relate to money here. Create benchmarks for your financial progress.

What Do You Do When Your Massage Business Plan Is Finished?

A business plan isn’t something you do just once. Your business will change overtime. As things change, you’ll find that some parts of your business plan are no longer in line with your current goals. That means you need to update your massage therapy business plan on a regular basis.

Now that you have a business plan for your massage therapy business, you can use it to keep your business on track. It’s easy to waste time thinking up the same ideas again and again. All your ideas are now written down and organized. So now you can focus on getting things done, rather than wasting time thinking about how to get things done.

Use your business plan as a guide and a reference when you lose your way. It should ultimately be your map of how to get you from where you are now, to where you want to be . Maps are only effective if you get them out and study them. So don’t file your business plan away and never look at it again. Creating it is only the first step towards making it work for you.

It’s a good idea to set aside time once or twice a year to review and update your massage therapy business plan. When you do this, don’t forget to consider your own life, well being and personal goals, as well as your business goals. Make sure your business plans and your personal circumstances are still in alignment. If something is off, it’s time to make some changes.

Key Takeaways 

The effort you put into creating a business plan for your massage therapy business should inspire you to take action and reach your true potential. A business plan can keep you from wandering astray, because the plan for getting from point A to point B is already mapped out. Keep it somewhere easily accessible so that you can pull it out whenever you need it.

Use the benchmarks in your business plan as a ladder you can climb. Each benchmark is a step towards achieving your goals. With each one reached, you gain momentum. Keep climbing to reach your biggest and loftiest aspirations.

Remember, your business should be designed to support your personal goals and values. Creating a business plan is an efficient way to think through and plan exactly what needs done to have the type of business you want. Once that’s in writing, it’ll be clear what your next action steps are, no matter where you are in your journey.

Your business plan should be dynamic, which means it changes with you and your massage practice. As you execute your plan, you and your business will undoubtedly evolve. That means you need to periodically make the time to sit down and update your massage therapy business plan. You don’t need to start completely over each time. You only need to revise the parts that are out of date. That part will be easy, because by then you'll really know what you’re doing.

Ready To Start Building Your Massage Therapy Business? We Can Help!

ClinicSense is an all-in-one software solution designed to help massage therapists manage and grow their business. We help you lay the foundation for your practice by giving you the tools you need to get your practice off the ground and keep it running smoothly for years to come. 

We’ll help you get more clients with online scheduling, collecting & publishing reviews, and digital marketing. You’lll make a good impression with automated appointment reminders and digital intake forms. You’ll save time by using ClinicSense features to automate daily admin tasks.

Best of all, ClinicSense is designed to grow with you. We offer multiple pricing plans and packages Choose the plan that fits the needs of your business right now, and upgrade as your business grows. Try it for FREE and cancel anytime.

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How to Create a Massage Therapy Business Plan + 3 Examples

Nov.17.2022

Here’s how to draft a business plan that will keep powering your massage business forward for years to come

You have the vision and the talent necessary to turn your ambition into a thriving enterprise. But if you don’t know how to write a business plan for massage therapy, you may be in danger of skipping the most important steps of starting your massage business . We know, we know; you didn’t get into this line of work to spend your time perusing spreadsheets and strategic statements. Thankfully, it may take less than you think to lay out a massage therapy business plan that will set your business up for success for years to come.

Why do I need a business plan for my massage therapy business?

You need a business plan for your massage business because it is the foundational document for your new enterprise. It shows others (and reminds yourself) how you’ll start and build your business today, next month, a year from now, and beyond. A massage therapy business plan will help you set goals for the milestones you wish to reach and make changes to best achieve those goals. And, in the most practical and financial of terms, if you want to convince investors to seed money into your business, they will expect nothing less than a spotless business plan.

6 steps for creating a massage therapy business plan

Now that you know why you need a massage therapist business plan, here’s a clear list of steps to follow to make your own, complete with real-world examples.

Step 1: Craft an appealing executive summary

Think of the executive summary as the grand opening to your business plan. It’s the first impression you make on a reader, which means you should highlight the most engaging parts of your business. Let people know what you intend to accomplish, both fiscally and in the context of the local community. Explain why you’re excited and don’t be afraid to go big in your vision.

The way Elements Massage uses its About Us page to let potential customers understand its unique vision is one great massage therapy business plan example to follow. The franchise emphasizes the quality of massages it offers, backed up by the four pillars of the “Elements Way” that inform its every service. You feel like you know exactly what drives this business even before you step through its doors.

Step 2: Define your day-to-day

You know you want to start a massage therapy business, but what will your daily work look like? Will your business be part of a day spa, offering a range of additional experiences like facial treatments and saunas? Will it be a mobile business where you bring your materials to clients’ homes or offices, meeting customers where it’s most convenient for them?

Answering these questions early will help both you and potential investors determine what kind of funding you may need to create a feasible business. For instance, it costs a lot more to open a brick-and-mortar location staffed by fellow massage therapists than to do business out of your trunk.

Step 3: Identify your clientele 

What kind of customer are you trying to serve with your massage therapy business? Here are some specific questions to ask while envisioning your ideal clientele.

How old are they?

What do they do for a living?

Where do they live?

What’s their annual income?

What life stage are they in?

Once you start identifying these specific elements, you can create a customer persona. This will be an essential tool to return to throughout your process as you consider how best to meet the needs of the people interested in your services.

Keep in mind that your ideal customer may change as your business develops, and the conditions around them may evolve, too. Take note of the way Massage Envy created campaigns that targeted previous customers who stopped receiving massage therapy during the pandemic , showcasing why it might be time to get a massage again. By identifying its clients, Massage Envy always knows who to get the message out to. 

Step 4: Carve out your niche

Massage is a broad umbrella. Specialists can perform Swedish massage, deep tissue massage, hot stone massage, shiatsu massage, and many more types of service. What kind of experiences will your particular business specialize in, and what kind of clientele will be more inclined to use them?

Go back to your customer persona here and see how that shapes who your planned services will cater to versus the type of clients you most want to have. This is also a good time to begin considering how you will handle booking for your appointments . It’s the first point of interaction many clients have with your brand, so you want to make sure it’s one that leaves them excited to come in and continue the relationship, rather than exhausted and glad this part of the process is done.

Step 5: Pick the perfect location

If you’re planning to go the brick-and-mortar route, your choice of location is paramount. Return once more to your customer persona: What kind of storefront, and what kind of area, will serve best for attracting your ideal client? A trendy downtown location will mean high foot traffic and plenty of opportunities for drop-ins, but that won’t do you much good if most of your services require scheduling in advance.

If you’re planning to operate in clients’ homes and offices instead, determine how broad of an area you’ll serve. You can only go so far for a client before it no longer makes business sense, but reaching out to massage business contacts in nearby areas could help you set up a mutual beneficial referral arrangement. Whether brick-and-mortar or mobile, be sure to research your competition in the area before setting up shop.

Step 6: Get cozy with a spreadsheet 

OK. We can’t put off talking about it any longer. Your massage therapist business plan also needs a detailed accounting of your finances. You might need to take out loans, apply for grants, or even tap into savings to get a business off the ground before investors will bite, and that’s OK — as long as you plan for it ahead of time. Success isn’t guaranteed overnight, so it's important to plot out best and worst case scenarios for at least a few years in advance, based on ranges for your potential income as well as rent, utilities, and other ongoing expenses.

Turning to another brand name in the space, MassageLuXe’s financial reporting reveals detailed information for new franchisees and their upfront investment . The report breaks down the low and high end of expected expenses across categories, which is helpful for arriving at estimates for your own business even if it won’t be part of a franchise.

It’s never too early to start planning how to make your business even bigger and better. Get your free copy of The Ultimate Growth Playbook for Beauty Businesses today.

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Massage Therapist Business Plan

Identify target market for massage therapy services, research on industry trends and competition, define the types of massage therapies to be offered, establish pricing strategy for different services, draft initial business plan, approval: initial business plan.

• Draft initial business plan Will be submitted

Identify suitable location for the clinic

Plan for massage therapy equipment purchase, obtain necessary licenses and permits, develop marketing and promotional strategy, establish operational policies and procedures, hire and train massage therapists, set up an appointment scheduling system, create a system for recording client details and history, establish safety and hygiene protocols.

• 1 Disinfection and sterilization
• 2 Hand hygiene
• 3 Waste management
• 4 Emergency procedures
• 5 Comfort measures

Establish a customer service strategy

Plan client retention strategies.

• 1 Loyalty program
• 2 Referral program
• 3 Special offers
• 4 VIP membership
• 5 Customized newsletters

Approval: Marketing and Promotional Strategy

• Develop marketing and promotional strategy Will be submitted

Approval: Operational Policies and Procedures

• Establish operational policies and procedures Will be submitted

Review and revise the final business plan

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How To Start a Massage Therapy Business: Step-by-Step Guide

09 Jul, 2023 | By: AIAM Author

Are you passionate about the art of healing touch and looking to transform your skills into a thriving business? Starting a massage therapy business can be an incredibly rewarding and fulfilling venture. It allows you to share your expertise and provide much-needed relief to individuals , offering the potential for financial independence and the freedom to be your own boss. However, like any other entrepreneurial endeavor, launching a successful massage therapy business requires massage therapists careful planning, dedication, and a solid understanding of the industry.

In this guide, we will explore the essential steps and considerations involved in starting your massage therapy business, from creating a business plan to building a client base and establishing a solid professional reputation. Whether you are a seasoned practitioner or just starting your journey in massage therapy, this comprehensive guide will equip you with the knowledge and strategies to turn your passion into a flourishing business venture.

How To Start a Massage Therapy Business

If you are interested in starting a massage therapy business, there are a few steps you need to go through, including:

Get your training, education, and licensing

Before embarking on your journey to start a massage therapy business, obtaining the necessary training, education, and licensing is crucial. Research reputable massage therapy schools or programs that offer comprehensive training in various techniques and modalities. Completing a recognized program will equip you with the necessary skills and knowledge and provide credibility and assurance to potential clients. Additionally, ensure that you fulfill the licensing requirements mandated by your jurisdiction, as each region may have specific regulations and certifications needed to practice legally.

Decide what your niche will be

Differentiating yourself in the massage therapy industry is essential for standing out and attracting your target market. Determine your niche by considering your unique strengths, interests, and the needs of your potential clients. Specializing in a specific type of massage, such as sports, prenatal, or deep tissue, can help you build expertise and develop a loyal client base. By honing in on your niche, you can effectively market your services to a specific audience and establish yourself as an expert in that area.

Analyze the market and competitors

Conducting thorough market research is crucial to understanding the demand and competition in your local area. Identify other massage therapy businesses and practitioners in your vicinity and analyze their offerings, pricing, target market, and reputation. This research will help you identify market gaps and determine how to differentiate your business. Additionally, understanding the needs and preferences of potential clients will allow you to tailor your services and marketing efforts accordingly, giving you a competitive advantage.

Create a business plan

A well-structured business plan serves as a roadmap for your massage therapy business. Outline your business goals, target market, marketing strategies, financial projections, and operational plans. It will provide clarity and direction and serve as a tool to attract investors or secure financing if needed. Your business plan should include the following:

• Information on acquiring clients.
• Pricing strategies.
• Promotional activities.
• The estimated costs of starting and running your business.

Choose a location

The location of your massage therapy business plays a significant role in its success. Look for a space that is easily accessible, preferably in a high-traffic area, such as a shopping center or business district. Consider parking availability, visibility, and proximity to complementary businesses, such as health clubs or wellness centers. Additionally, ensure that the space meets the necessary zoning and licensing requirements for operating a massage therapy business.

Choose a name

An important branding decision is selecting a compelling and memorable name for your massage therapy business. Your business name should reflect your values, target market, and the services you offer. Conduct a search to ensure the name is not already used and check if the domain name is available for a website. Aim for a unique, professional, and easy-to-pronounce name that will help you establish a strong brand identity.

Form a legal entity

Establishing a legal entity for your massage therapy business, such as a sole proprietorship, partnership, or LLC (limited liability company), provides legal protection and separates your personal and business assets. Consult with a lawyer or accountant to understand each entity type’s legal requirements and benefits. Register your business with local, state, and federal authorities and obtain any necessary permits or licenses to operate legally.

Set up your finances and figure out your pricing

Proper financial management is crucial to the success of your massage therapy business. Set up a separate business bank account to separate your personal and business finances. Determine your pricing structure based on your experience, location, market demand, and the cost of running your business. Consider offering different packages or membership options to incentivize repeat clients. Additionally, implement effective bookkeeping practices to accurately track your income, expenses, and taxes.

Acquire permissions and insurance

Ensure you have obtained all the necessary permissions and insurance for your massage therapy business. Check with your local authorities to understand any permits or licenses required to operate legally. Also, obtain liability insurance to protect yourself and your clients in case of any accidents or injuries during your sessions. Insurance provides peace of mind and adds credibility to your business.

Get your tools

Investing in high-quality massage tools and equipment is essential to provide clients with a professional and comfortable experience. Consider the types of massages you offer and the tools required, such as massage tables, oils, lotions, bolsters, and hot stone sets. Research reputable suppliers and compare prices to ensure you get the best value for your investment.

Start marketing yourself

Building a strong client base requires effective marketing strategies. Create a professional website that showcases your services, credentials, and testimonials. Utilize social media platforms to share valuable content, engage with potential clients, and promote special offers. Network with local businesses, fitness centers, and healthcare providers to establish referral partnerships. Consider offering introductory discounts or hosting special events to attract new clients. Implementing a combination of online and offline marketing tactics will help you increase visibility and reach your target audience.

In conclusion, starting a massage therapy business can be a fulfilling and lucrative endeavor for those with a passion for healing touch. By following the steps outlined in this guide, from obtaining the necessary training and licensing to analyzing the market, creating a business plan, and setting up your finances, you can pave the way for a successful venture.

Remember to choose a niche, select a suitable location, and establish a strong brand identity through a well-chosen name and legal entity. Additionally, acquiring the required permissions and insurance, investing in quality tools, and implementing effective marketing strategies will help you attract clients and build a thriving practice. With dedication, expertise, and a commitment to delivering exceptional service, you can embark on a rewarding journey as a massage therapy business owner.

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Massage Therapy Business Plan Template & Guidebook

Looking to start a massage therapy business but don't know where to begin? If so, you'll be glad to know that there is a comprehensive and easy-to-follow template & guidebook that makes starting your business a breeze. The #1 Massage Therapy Business Plan Template & Guidebook will provide you with the tools and resources you need to create your own successful massage therapy business. Learn more about this must have plan and see how it can help you get started right away.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Massage Therapy Business [11 Steps]
• 10+ Best & Profitable Massage Therapy Business Ideas [2023]

How to Write a Massage Therapy Business Plan in 7 Steps:

1. describe the purpose of your massage therapy business..

The first step to writing your business plan is to describe the purpose of your massage therapy business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a massage therapy business:

Our mission at ABC Massage Therapy is to provide the highest quality of massage services that promote health, wellness, and relaxation for all of our clients. We strive to create an environment where our clients can experience deep relaxation while they receive personalized massage treatments. We are committed to using only the best products and techniques in order to ensure that our clients get the most effective and beneficial massage experience possible.

2. Products & Services Offered by Your Massage Therapy Business.

The next step is to outline your products and services for your massage therapy business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your massage therapy business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your massage therapy business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your massage therapy business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a massage therapy business?

• Massage table or chair
• Massage oils
• Towels/sheets
• Portable heater/air conditioner (if necessary)
• Business license
• Certification and/or degree in massage therapy

5. Management & Organization of Your Massage Therapy Business.

The second part of your massage therapy business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your massage therapy business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Massage Therapy Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a massage therapy business varies based on many different variables, but below are a few different types of startup costs for a massage therapy business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your massage therapy business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your massage therapy business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your massage therapy business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Massage Therapy Business Plans:

Why do you need a business plan for a massage therapy business.

A business plan for a massage therapy business is essential for setting clear goals, outlining the resources and cost needed to reach those goals, and evaluating progress along the way. It also serves as a roadmap for starting and operating a massage therapy business, as it lays out the steps needed to ensure success. Additionally, because lenders, investors, and other stakeholders may need to review the plan in order to make decisions or provide support, having a thorough and well-thought-out business plan is important.

Who should you ask for help with your massage therapy business plan?

It is advisable to seek professional help when developing a business plan. Look for an experienced business consultant who specializes in massage therapy businesses. They will have the expertise and experience necessary to guide you through the process of creating a comprehensive and successful plan.

Can you write a massage therapy business plan yourself?

Yes, it is possible to write a massage therapy business plan yourself. You will need to research the market and come up with a sound strategy for growing your business. You will also need to identify who your target customers are, determine your pricing strategy and create a marketing plan. Additionally, you will need to develop an operational plan that outlines how you will manage all aspects of your business including staffing, scheduling, accounting and quality control. Finally, you may want to consult a financial advisor or accountant to help you create a financial model that reflects the goals and objectives of your business.

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How To Write A Business Plan For Massage Therapy In 2024?

Whether you want to expand or start massage therapy pratice , a detailed massage therapy business plan is essential. Before you own massage therapy business you should be aware of it’s revenue and costs.

What You Will Learn

We'll go through what you need to do to create a business plan, useful tips and a free massage business plan template.

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What is a massage therapy business plan, why does your massage therapy need a business plan, how to write a massage therapy business plan, key elements of a good massage therapy business plan, massage therapy business plan sample free.

A business plan is a document that describes the financial, administrative and marketing aspects of running a massage therapy businesses. It includes things like financing and start-up costs, market research and competitive strategies to grow your business.

In addition to a description of your business and a clear plan of how you will market and develop your products and services, and a description of your target market, you will also want to include a summary of the plan itself (more on this later).

You should also include a plan for supporting your technicians and massage therapists, including massage therapists needs and any training or support they will receive.

Market research is essential whether you are developing a business plan for medical massage therapy or setting up a luxury massage therapy. In addition to the mission and vision, the business plan should include clear business objectives, a sample budget and information on current trends in the industry.

You can review the plan regularly, make changes as necessary and use it as a guide to help you manage your massage therapy, make informed business decisions and ensure you achieve your success goals.

Your management team can use the plan to help you forecast future sales and profitability, adjust massage therapistsing or advertising strategies, and review financial projections at a glance.

Let's face it, every owner or manager needs a business plan - and it's not just limited to the massage therapy industry.

This plan is a living, breathing document that will help you make financial projections and decisions that will affect your customers and massage therapists - it's as important as your massage therapy's techniques.

Whether you need help raising loans, attracting investors, deciding which massage therapy services or products to promote, or even how to reach out to a new potential clientele, a solid financial plan and strategic vision will make everything much easier.

A sound business plan is not only the key to ensuring success to, it is also a blueprint for the future of your massage therapy. A vision and mission statement can help you brainstorm and hold team meetings, and can even form the basis for designing your massage therapy's rewards structure and loyalty program.

It's a way to make sure you stay on top of your game and meet the changing needs of your customers.

If you're wondering how to write a business plan for your massage therapy, you're not alone - these documents are actually as unique as the massage therapy's owners, customers and massage therapists. Much depends on the size and location of your business, but there are some common elements.

They always include an executive summary (overview), outlining the target market and services. They also include information such as projected sales and break-even points (sales and marketing plan), expected massage therapy fees and an overall financial plan.

For new massage therapy, all start-up costs should be included and an explanation of how financing will be obtained. If you are operating an existing luxury massage therapy, the contents of the business plan should include some financial highlights, such as whether you are achieving your goals and what your future objectives are.

Let's now look at all this in more detail.

How Do You Start a Massage Therapy Business Plan?

Whether you're dealing with potential investors or just planning your next round of equipment purchases and technician training, your massage therapy business plan will be useful.

It will give you a clear picture of your business finances and structure, keep you focused on your long-term goals and allow you to keep your mission in mind when considering decisions.

Gather Information

Research other massage therapy and businesses in the area, research the services you need to offer e.g. hot stone massage, deep tissue massage or other therapeutic massage , and decide on a target market (or how you can expand into new markets).

Know Your Limits

Sit down and make a list of issues that could affect your business in terms of cash flow, start-up costs, or time and training. Make sure you include them in your budget and financial plan.

Set Clear, Measurable Goals

Start by analysing the market to find out what the break-even point is for each service, and set targets based on these profits and costs.

Expert tip: massage therapy software can help you track your team's performance, offer online booking with digital SOAP forms and more.

Find Your Niche

What makes your massage therapy stand out, especially among all the other businesses? If you can offer unique selling points that appeal to specific customers (such as traditional swedish massage, sports massage), create a marketing plan to reach those customers.

Save Time With Free Templates

There are many examples of massage therapy business plans and free templates available online, and there are advantages to using them. Simply adapting existing business plan templates rather than creating a completely new business plan from scratch can save a lot of time (and stress).

Consult an Expert

This applies to the business plan of a large massage therapy business as well as a sing massage therapist. The more professional everything looks, the better.

Hiring a consultant to review the draft plan, the financial aspects and even help with the concept and marketing plan can go a long way, especially if you plan to use it to raise finance and attract potential investors.

This is where you make your first impression to potential investors and others who will help manage or run the massage therapy. Make sure it includes your massage therapy business name , logo and contact details.

Every business plan should be organized, and a table of contents helps. Clearly divide everything into sections to make it easier to find information.

Executive Summary

First impressions are crucial, especially if you are trying to get funding. A clear and concise summary is very useful. Remember to include.

Massage Therapy Mission Statement

This should set out your business objectives and plans to achieve them. Stating where you want your massage therapy to be in the future, even years from now.

Business Concept

Outline your massage therapy concept - for example, medical massage therapy focusing on specialized and licensed massage therapist experience. Briefly describe what you are planning.

Key success factors (what do you need to make your massage therapy work?).

Business Description

• Briefly describes your business and services. Be sure to include details of your location
• The massages you currently offer (and any new massages you would like to offer your clients).
• Staffing information (e.g. number of technicians and support massage therapists).
• A breakdown of your market research and competitors (including how you differ from these massage therapy or companies).

Target Customer

Explain who your target customers are and why. Take into account.

• Which demographic groups does each service appeal to?
• Do these people live, study or work nearby?
• Why you have chosen them (massage businesses often base future decisions such as massage therapist training, product sales, equipment and décor on their clientele).
• What the average customer wants/needs (and how you can help them).
• How are you different from other massage therapists in the area?

When developing your plan, consider a SWOT analysis (strengths, weaknesses, opportunities and threats) to better understand all of this.

Competitive Analysis

Know the market you plan to enter and how you can succeed in it.

• Who are your competitors?
• Where are their massage therapy located? Are they nearby?
• What facilities do you have in common?
• How do you differ from each other?
• How do your costs and prices compare?
• Do you compete for the same clientele?
• How do you attract new customers and keep them coming back?

Management Plan

A business plan for a massage therapy explains exactly how everything works, including:

• The management structure (this may be simpler if it is a small massage therapy, or more complex if it is a large chain with several locations).
• Massage Therapy Business strategy (including key objectives, targets to be achieved and projections of future success and how you will achieve them).
• Massage therapists needs (how many people you need and what their roles are).

Products and Services

This information will help potential investors understand your massage therapy's sales and revenues, as well as projected costs and profit margins. Be sure to include the following information.

• Massage therapy services offered e.g. relaxation massage, hot stone massage, sports massage etc.
• Any products you use for clients during the treatment
• Your retail products all the services you offer

It is a good idea to break down the prices of each product listed here, along with their costs and profit margins (if you are an existing massage therapy, you can also include information on customer demand for each product).

Marketing Plan

How do you plan to reach new customers and expand your customer base? What is your advertising plan with costs? This may be a rough outline, but make sure you have done your background research and have a solid plan.

• Your massage therapy marketing plan (how you plan to reach new customers).
• Any sales and promotional plans (how you plan to drive sales and retain and reward customers).
• Your advertising strategy (this can include low-cost and free methods, such as newsletters or social media, as well as paid advertising for your massage therapy).
• Defining the brand and its image (and reputation if it is an existing massage therapy or chain).

This applies to the massages you offer and the products you sell, including.

• How you intend to introduce and market these products
• Why these services/products will benefit and attract customers.
• Sales targets and target values
• Your expected income from massage therapy services and retail sales
• Cost estimates and financial plans for massage therapists training or equipment purchases

Financial Plan

This explains the initial costs of your massage therapy and plans for turning a profit as soon as possible or the costs and financing of any expansion/improvements and projected profits. Be sure to include:

• Financial statements (in particular the profit and loss account).
• Assumptions (projected costs and resources needed to cover them).
• Projected profits and losses and profitability margins.
• The massage therapy's balance sheet (also known as the "book value", which reflects the true value of the current business).
• A breakdown of all liabilities, including loans and debts.

This information should be reviewed by an expert before the final plan is drawn up. He or she can check for any discrepancies and give useful advice.

Do not miss our post on massage franchise .

Operational Plan

This plan describes how your massage therapy will operate and includes.

• The head office (if you have several massage therapy, where the head office is located).
• A breakdown of the management structure

Additional Information

Please include here any additional information that you think is important to potential investors or management. For example.

• Other documents
• Policies and statements

If you need to refer to them in the main body of the plan, you can attach these documents as annexes at the end of the plan.

We know that developing a business plan for your massage therapy can take a lot of time, and hiring an expert to write the entire plan can be expensive. We have tried to help you by creating a free massage therapy example.

Your massage therapy free template will look like this.

Creating a business plan for your massage therapy doesn't have to be stressful. With proper planning, it can be a rewarding process that helps you set new goals and decide on the best strategy to achieve them.

How to write a great business plan https://ieeexplore.ieee.org/iel3/46/14446/00660335.pdf

What do investors look for in a business plan? A comparison of the investment criteria of bankers, venture capitalists and business angels https://journals.sagepub.com/doi/abs/10.1177/0266242604042377

Anatomy of a Business Plan: A Step-by-step Guide to Building the Business and Securing Your Company's Future https://books.google.com/books?hl=en&lr=&id

About the author Bartek Kulasza

Bartek Kulasza creates informative content that focuses on efficient business management. He covers salon software, marketing and sales, budgeting and reporting, salon design and equipment, inventory management, growing customer base, helping businesses optimize operations, enhancing customer experience, and increasing profitability.

• Business Plan For Massage Therapy

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Healing Touch Massage

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Healing Touch Massage is a sole proprietorship owned by Lavinia Watkins, LMT. Ms. Watkins has been a Licensed Massage Therapist in the State of Oregon since July 1984, and has run the business from a home-based location since then. The business has consistently been profitable since its inception.

We offer massage in a variety of styles – traditional Swedish Massage, Deep Tissue work, Sports Massage, Hot Stone Massage, Reflexology, and others.

This massage therapy business plan is being used to explore the cost effectiveness of expanding by moving the business into a downtown location. This would make the services more accessible to people who work full time, and also make the office more convenient for clients with medically-ordered massage therapy.  Billing insurance companies for medically required massage is lucrative, but the nature of the therapy – usually 15 to 30 minute sessions, focused on a specific body area, with a short-term duration – makes it imperative that the clients can get in to see the therapist over their lunch hour or during their work day.

Our mission is to run a profitable business by providing therapeutic massage in a caring, professional environment. We offer massage in a variety of styles – traditional Swedish Massage, Deep Tissue work, Sports Massage, Hot Stone Massage, Reflexology, and others. Our goal is to tailor the client’s experience based on initial interview information, as well as in-the-minute feedback during the massage, to insure the client’s comfort and satisfaction, and to increase repeat business. We intend to offer massage that is effective, yet respectful of the client’s personal boundaries, so that the experience is relaxing and energizing for both the client and the provider. We are mindful of the overall experience – using quality oils and lotions, appropriate scents, and soothing music, nature sounds or silence – as the client prefers.

• Increase number of day-time clients by 100% by moving to a downtown location.
• Increase new clients by 50% by advertising locally.
• Find other LMT or other personal service provider to sublet space in new location.

Keys to Success

• Professionalism: which includes everything from maintaining confidentiality, to keeping our LMT training up-to-date, to maintaining good boundaries between clients and therapist.
• Individual Attention: making that extra effort to customize each client’s experience to his or her preference.
• Repeat business/Recommendations: giving the kind of service that brings people back for regular treatments, and encourages clients  to recommend us to friends, and other health professionals to recommend their clients.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Healing Touch Massage is a Sole Proprietorship owned by Lavinia Watkins, LMT. Ms. Watkins has been a Licensed Massage Therapist in the State of Oregon since July, 1984, and has run the business from a home-based location since then. In the years since first obtaining her license, Ms. Watkins has consistently taken more Continuing Education classes than required to continue her degree, and has studied a wide variety of massage and other therapeutic techniques, including: Shiatsu, Deep Tissue, Sports Massage, Reiki, Watsu, Acupressure, Reflexology, and Integrated Breathing. As  a result, Ms. Watkins has is adept in a wide range of massage styles, and can tailor each massage to the client’s needs and preferences.

Company History

Lavinia Watkins, LMT, owner of Healing Touch Massage, has been licensed by the State of Oregon since July 1984. An initial (and expensive!) advertising blitz in the local paper helped Ms. Watkins establish an initial clientele, many of whom are still clients, some of whom she continues to offer in-home service. The bulk of her clients come to her home office, and her advertising has been primarily word of mouth for a number of years. Volunteering to work at local track and bicycle events in the late 80s established her reputation as a Sports Masseuse, and attracted another group of long-term repeat clients. In 1993, Ms. Watkins began to make contact among the local chiropractors, orthopedic surgeons, and other medical professionals in an effort to build her referrals of “medically-necessary” massage.

The increased in popularity of Section 125 and other “cafeteria plans” has given rise in recent years to clients who are able to afford regular massage by using these “pre-tax” dollar plans to increase their discretionary spending budgets for massage.

In 2000, Ms. Watkins became affiliated with the American Health Specialties Network, whose website is: http://www.ashn.com. This increased her exposure to clients with health insurance coverage that have Alternative Care coverage, and also greatly decreased the time lag and difficulties usually associated with filing insurance billing claims.

Ms Watkins is now looking at moving to a downtown location, to further increase her availability to short-term clients referred my medical professionals.

Company Ownership

Healing Touch Massage is a Sole Proprietorship owned by Lavinia Watkins, LMT. 

Market Analysis Summary how to do a market analysis for your business plan.">

The planned move to a downtown location will facilitate access by clients recovering from injuries. We have identified this as a lucrative target market because they usually are funded by insurance claims, and represent repeat visits for a duration of up to one year. Because this group very often needs multiple, short sessions for a series of weeks or months, a downtown location would make us convenient for mid-day appointments.

It is also quite probable that other clients who work during the day would be more likely to book a day-time massage when we are more conveniently located to their place of work. Since the number of day time slots far exceeds the number of evening slots, this is increased business we would be able to book in addition to our current clients.

Market Segmentation

Clients who come for massage fall into four basic groups:

• Usually insurance will pay for short-term therapy only, although clients will sometimes supplement out-of-pocket
• High disposable income individuals
• Sometimes have chronic pain or old injury issues
• Massage 1 – 4 times a month for relaxation
• Try to have massage as regularly as they can afford – usually once per month
• Massage for improved performance – great for word-of mouth referrals if they see results

Target Market Segment Strategy

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The Injury recovery group is usually referred by a Chiropractor, self-referred through our listing on the American Specialty Health Network site, or referred by another client who found massage helpful during an injury recovery. So the marketing to this audience is done indirectly, through the referring parties. While car insurance will typically pay for massage for only a limited time period (less than one year), many health insurance policies now have Alternative Care coverage with a renewable annual maximum. And Cafeteria Plans will reimburse for “medically necessary” massage – which is a bit ironic since few, if any, medical doctors will proactively recommend massage, but most will be willing to sign off on a recommendation, if specifically asked by their patients. The rapid turnover of this group is offset by the fact that they will pay top dollar per session. The key is to keep getting new referrals.

Clients who have the disposable income to indulge in massage for self-pampering or relaxation are the core of our long-term repeat customers. These clients will come once a week to once a month for years, and often refer other family and friends. The difficulty working with these clients comes from the ‘familiarity breeds contempt” factor – they can believe they deserve lower rates, cancellations of short or no notice, and can come to seem as friends, rather than clients. The challenge here is maintain a professional relationship, while encouraging the warmth and personal connection that is as much a part of their experience as the actual massage. This type of client can be  difficult to find – an ad in the local alternative news weekly (especially with a coupon for $5 off ) or a donation to a charity auction may result in a one-time visit, or a long-term client. Another source of usually one-time visitors is the Gift Certificate – friends pampering friends for a birthday or other special occasion.

The third group are Alternative Care users. These are people who mistrust allopathic medicine, and prefer to use chiropractors, naturopaths, herbalists, acupuncturists. A local networking group of alternative care providers is a great way to get referrals, as well as placing posters on other practitioners offices, and ads in the local alternative newspaper. The problem with this group is that they can tend to have relatively small disposable incomes, so that a massage once every two months may be all they can afford. A relatively large pool of these clients will book only 20% of the available appointments in any given month. 

The final group is another backbone of this business – the amateur athletes. There is a large population of runners and bicyclists in the local areas, as well as out-of-town participants who return for annual events, and book massages during those times. This business tends to be slightly seasonal – as most amateur athletes will only train, or gear-up their training during the Spring and Summer months. However, they are a very loyal group, and will readily give word-of-mouth recommendations, especially if they see massage as having given them a specific boost to their performance. This group will cross over from the Injury group, and become long-term clients after the specific initial injury has healed. They also tend to have chronic injuries or pain, especially as they age, which can help them become repeat clients.

Service Business Analysis

The massage industry consists of several dozens of individual therapists working out of home or private offices, in addition to LMTs working in chiropractors’ offices, gyms, beauty salons, and other venues.

Additional massage services are offered by graduates of specialty schools; Rolfers, Breath Managers, Hakomi Therapists, as well as Physical Therapists.

Fortunately, massage is a very personal service, and different clients are attracted to different techniques and personalities. Healing Touch Massage offers the unique services of Lavinia Watkins, LMT, which cannot be duplicated by any other practitioner.

This business is becoming increasingly easy to “break into,” since obtaining the training necessary for licensing is not all that arduous, nor difficult to maintain. But while getting the credentials and equipment necessary to start a new massage business is easy, establishing a clientele is not, so our established practice of over 20 years duration helps us compete with the ever-available flow of LMTs graduating from local schools.

Competition and Buying Patterns

The key element in purchase decisions made by potential massage clients is trust in the professional reputation, and ultimately, in the skill and knowledge of the provider as experienced in the initial massage. For this reason, a discount coupon or donation to a charity auction can be an effective way to troll the waters for new clients. Recommendations from other clients and alternative health service providers is also critical.

While there is a range of prices charged for massage service in the area, there is some price sensitivity among the long-term clientele. Since the variable cost of each massage is nominal, the best bet has seemed to be to charge less than the market will bear. The one exception is when billing insurance companies, where there is no penalty for charging the full Reasonable and Customary Rates for the area.

Clients rarely compare massage therapists directly, although they may try a second LMT if they are not entirely happy with their first experience. Usually they follow word-of-mouth recommendations, and return for repeat sessions as often as their budget allows.

Strategy and Implementation Summary

If, as it has been said, the top three items which determine success in business are location, location, and location, then the planned move to a downtown location represents our top marketing strategy. By being more available to working clients, and by making the other health professionals who will refer those clients to us aware of our new location, we literally make ourselves accessible to more business.

Once a client experiences the level of personalized care that we offer, we are confident that we will have a return client, for as long as their funding holds out. And since we have seen many clients who began as insurance-paid injury-recovery cases turn into regular self-paying clients, we believe this will serve our long-term goal of increasing business also.

Competitive Edge

This is another section where mission and passion create the same results as “Marketing.” Our “competitive edge” is our ability to give intuitive massage – to sense in the client’s musculature, posture and presence what work is needed – where the pain is, where the tension is. There is a way that years of study of technique combine with a deep knowledge of kinesiology and anatomy, that is then synthesized with an acute sense of empathy and ability to “read” people that enables us to provide a massage experience that is exactly what each client needs at that given moment.

We have repeatedly heard of word-of-mouth recommendations bringing in new clients with words like “magic hands” and “a higher sense of healing.”

The change to having an outside-the-home office in a downtown location is both exhilarating and a bit scary. It will definitely make Healing Touch Massage accessible to more clients – and hopefully, the top-end, insurance-paid clients. But can we also retain the long-term clients who feel ‘at home” in our home office after all these years? We believe so.

Marketing Strategy

Critical to the success of the move to a new location with be the maintenance of referral – creating contacts with other health care providers, especially chiropractors. Also, researching the possibility of becoming a Preferred Provider with other health insurance companies that offer Alternative Care to their members will be critical. Any opportunity to convince allopathic physicians – MDs – to see massage as having long-term healing benefits for their patients will also be taken, since they hold to key to having massage paid for as “medically necessary.” 

Sales Strategy

It can be difficult to think of offering the best possible massage service as a sales strategy, since that is also the mission and personal passion of the owner of Healing Touch Massage. Each client comes with a specific personal agenda, both emotional and physical, and the goal is to “read” that client, and provide the pain relief, relaxation, and feeling of increased well-being that will allow that client to leave feeling satisfied.

This is one business where the service IS the sales technique. It is impossible NOT to offer completely customized services, since each client will present a unique body to be worked on. Of course, the total environment in which the service is offered – smells, lighting, sounds, feel of the linens and oils, emotional presence of the therapist – all combine with the techniques of actual tissue manipulation and knowledge of the musculo-skeletal systems to create the client’s experience.

Sales Forecast

The following table and charts give a run-down on forecasted sales. We expect sales to remain fairly stable, as the practice is relatively “full” for the present. We anticipate moving into the new downtown location in 2004. This move to a location more convenient for mid-day appointments should increase our injury/insurance billing by 50%, and our self-pampering group by at least 5%.

There is also a bit of seasonality – athletes tend to get more massage during the Spring and Summer “performance” months.  Also, we have regularly experienced a slight increase in late December, January, and May due to Gift Certificates purchased for the holidays and Mothers Day.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Healing Touch Massage is a sole proprietorship owned by Lavinia Watkins, LMT. Ms. Watkins has been a Licensed Massage Therapist in the State of Oregon since July 1984. Ms. Watkins has consistently taken more Continuing Education classes than required to continue her degree, and has studied a wide variety of massage and other therapeutic techniques, including: Shiatsu, Deep Tissue, Sports Massage, Reiki, Watsu, Acupressure, Reflexology, and Integrated Breathing.

Ms. Watkins currently holds certificates of completion of the Advanced level training from the prestigious Boulder School of Sports Massage, a Second Level Reiki Degree, and 30 hours of Watsu training. She is also an avid practitioner of Ki Akido, and a member of the Eugene Zendo. She hold a BA degree from University of California, Riverside in Urban Studies, with a minor in Business. She is a member of the Oregon Association of Alternative Practitioners, and of the American Massage Therapy Association.

Financial Plan investor-ready personnel plan .">

The following Financial Plan represents a continuation of actual business revenues and expenses for the remainder of 2003, and then a planned increase in both revenues and expenses as a result of a location change.

Another scenario for maintaining income to match the increased expenses of the new downtown location would be to sublet part of the space to another LMT or complementary health care provider. A third scenario would be to try out a downtown location by subletting office space from a chiropractor or in an existing LMT office. Since these last two scenarios are mutually exclusive to the first, preferred plan, they are not reflected in financial plans presented here.

Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions.

The collection days are for insurance billings only, and not a factor we can influence easily. Interest rates, tax rates, and personnel burden are based on conservative assumptions.

Two of the more important underlying assumptions are:

• We assume, of course, that there are no changes to the Medical/insurance Industry, such as the nationalization of health care.

Break-even Analysis

The following chart and table summarize our break-even analysis. Because this business has been run from a home office, the fixed costs for rent and utilities have been moderate. As we move the business into a downtown location, the fixed costs will rise substantially.

The break-even assumes minimal variable costs: linens and massage oil. If having a downtown office increases the number of clients paid for by insurance, there will be additional costs per client for claims processing.

Projected Profit and Loss

Sales and expenses for 2003 are projected from YTD actuals, and seasonal variations noted over the last few years. The big change comes in 2004 and 2005, with the addition of a downtown office, which will increase the rent dramatically. As noted in the Sales Forecast, the expectation is that the number of Insurance Billing clients will rise as the business becomes more convenient for short, mid-day appointments.

There is no personnel cost other than the owner’s draw, as the company is a sole proprietorship. Payroll taxes are calculated at 15%, however, as Self Employment Taxes (FICA) must also be paid. Estimated taxes will be paid quarterly, although they are calculated monthly on this table.

Not included on this table is the scenario where the Insurance Billing clients do not increase sufficiently quickly to cover the increased cost of rent. At some point, the decision could be made to rent out part of the office space, or rent the entire space to another massage therapist for set times during the week, which would offset the same costs. If a lease needs to be signed, which is most likely for the 2004 year, it will be for one year only, to minimize the risk if the anticipated increase in Insurance Billing clients does not occur.

Projected Cash Flow

The following Cash Flow table shows us with a consistent positive Cash Flow throughout the transition. Because the business is a sole proprietorship, the amounts listed as “payroll” are, in fact, owner’s draw, so they are obviously the area of cash flow where adjustments are, and will be, made if  the Cash Flow becomes tight.

We do list a marked increase in outflow of Cash for the purchase of Fixed Assets in 2004. These would be for fixtures and lease improvement to whatever new space we rent for our new downtown location. Since all of the equipment we currently use is portable, this additional cost is fairly moderate, since it mostly represents cosmetic improvements. There is a possibility that the landlord would do many of the improvements before we moved in, in exchange for an increase in the monthly rent, which would flatten out the cash outflow a bit.

Projected Balance Sheet

The only Accounts Receivable carried is any Insurance Billings that are not paid during the month. It is rare for insurance companies to take more than 6 weeks to pay, and some pay as quickly as 10 working days, so these numbers assume that they will pay in 30 days.

The Accounts Payable is for linens (paid monthly) and lotions/supplies (usually purchased quarterly).

We assume that there will be some additional expenses, in the form of long-term assets purchased, when we move to the new office in 2004.

Business Ratios

The following table shows the projected businesses ratios. We expect to maintain healthy ratios for profitability, risk, and return. The ratios for the initial year of growth are, of course, not as favorable as the second year. And if we cannot maintain healthy ratios during that growth phase, a return to the lesser level of expenses we have historically had in a home-based business can be returned to. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8049.02, Physical therapists, are shown for comparison.

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Massage Therapy Business Plan Example

Published Jun.14, 2018

Updated Apr.23, 2024

By: Brandi Marcene

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Table of Content

Massage therapy practice business plan for your own salon

Are you planning to start a massage therapy business ? Well, massage therapy business is a profitable business that offers healthcare related services to help heal people from some ailment or help them in soothing their muscle soreness, improving their sleep, boosting their immune function, enhancing their mental skills, aiding headache sufferers, alleviating depression, and reducing stress and anxiety. And considering the present situation, where every second person is in depression, this massage therapy business plan has a lot of market.

So, before you move on to opening your therapy clinic, you will have to prepare a comprehensive business plan for a massage therapist which will establish the basis of your company’s future operations and decisions. If you are wondering how to write an effective business plan for a massage therapist then here we are providing you a sample physical therapy clinic business plan of a startup named ‘HealCo Relaxing Center’.

Executive Summary

2.1 the massage therapy business.

HealCo Relaxing Center will be a licensed massage therapy center located in the Manhattan borough of the New York City. The business will be started in an existing therapy center which ceased to function two months ago.

2.2 Management of Massage Salom

HealCo Relaxing Center will be a sole proprietorship owned by Susan Frank. Susan is a licensed massage therapist from Florida who has been in this industry for the last ten years. Due to her extensive experience in the industry, Susan knows everything about how to open a massage business .

2.3 Clients of Massage Salom

We will provide therapeutic massage to the people with ailments so as to help them cure faster, and relaxation massage to relax the people who are in stress, depression or anxiety.

2.4 Target of the Massage Salom

The massage business plan  or massage therapy center outlines the company’s three years target as follows:

2.5 Keys to Success

• Professionalism : We’ll maintain a professional approach as well as good boundaries between therapists and the clients.
• Individual Attention : We’ll go the extra mile to customize the experience of our clients according to their preferences.
• Client Satisfaction : We’ll ensure that our clients are always satisfied with us and leave our center in a fully relaxed state.

Massage Salom Summary

3.1 company owner.

HealCo Relaxing Center will be a sole proprietorship owned by Susan Frank. Susan is a licensed massage therapist from Florida who has been in this industry for the last ten years. Susan is adept in a variety of massage styles, and in tailoring each massage to the specific needs and preferences of clients. She is particularly expert in Integrated Breathing, Shiatsu, Sports Massage, Deep Tissue, Reiki, Watsu, Reflexology, and Acupressure.

3.2 Why the Massage Therapy Business is being started

The massage therapy business plan is being started due to Susan’s passion to serve the society by using her exceptional physical therapy skills. The second reason is to make profits in this industry by providing unparalleled massage therapy services to the clients.

3.3 How the Massage Therapy Business will be started

The first thing to do before you start thinking about how to start a physical therapy business is to develop a business plan for a massage therapist . You can also take help from this massage business plan template . After this phase, you can start executing the planned steps. As the next phase, Susan will procure and enhance an existing therapy center in downtown Manhattan which ceased to function two months ago. Since the facility was previously used as a therapy center so the cost of inventory is cut down and the biggest expense will be incurred on the renovation work. The costs for the startup are as follows:

The detailed startup requirements are given below:

Services for customers

After you have planned how to start up a massage therapy business, the next step is to plan what services will you provide to your clients.

This step is extremely important because all the subsequent things will depend on your services so make sure to plan it before starting your own physical therapy business . HealCo Relaxing Center will be a massage therapy center that will provide therapeutic massage to people with ailments so as to help them cure faster, and relaxation massage to relax the people who are in stress, depression or anxiety. We will provide following types of therapies and massages to our esteemed clients.

• Riekie Therapy
• Aroma Therapy
• Acupuncture
• PDSD Therapy
• Driving Therapy
• Physiological Therapy
• Mobility Therapy
• Gym Therapy
• Water Therapy
• Physical Therapy
• Massage Therapy
• Occupational, Physical, and Speech Therapy
• Reflexology
• Hot Stone Massage
• Deep Tissue Work Sports Massage
• Traditional Swedish Massage

HealCo Relaxing Center will operate 24/7 to attend to clients round the clock. We will also offer home services to the clients who are severely ill or can’t make it to our center due to their busy routine. To further facilitate our clients, we will arrange transportation facilities for them and allow them to make reservations online via our website or our official App.

Marketing Analysis of massage therapy business

The most important component of an effective business plan for a massage therapist  is its accurate marketing analysis that’s why Susan acquired the services of marketing experts to help her through this phase. It is only after this stage that a good physical therapy clinic business plan could have been developed. If you are starting your therapy clinic on a smaller scale then you can carry out the marketing analysis of your business plan for a massage therapist yourself by taking help from this massage business plan sample or other massage therapy business plan examples available online. On the other hand, if you are starting on a larger scale, you can seek help from marketing experts and can develop your own massage business plan template . In any case, you should pay special attention to this part of your physical therapy business plan .

Business plan for investors

The four main steps to carry out an accurate marketing analysis are to identify the current market trends, identify your target audience and potential clients, set out the business targets to achieve, and finally set the prices of your products and services.

5.1 Market and Industry Trends

Market trends can be analyzed in various ways such as by manual surveys, online research or even from guessing the pattern from any sample physical therapy business plan available online. You can also take help from the marketing trends given in this massage business plan template . Massage therapy industry generated about $12.1 billion in revenue in 2015 while it is expected to reach $16 billion this year. On average, the revenue growth is projected to increase at the rate of 3.6 percent per year through 2020. There are more than 300,000 massage therapists present across the United States and their number has increased from 14 to 19 percent over the course of just 4 years from 2011 to 2015. The number of American adults who had a massage at least once between July 2015 and July 2016 is roughly around 50 million. Furthermore, the number of therapists is increasing throughout the United States as well as in Manhattan. These stats show massage therapy has a lot of market and any massage business plan in this industry can prove to be immensely profitable provided that you plan and market it successfully.

5.2 Marketing Segmentation

A good massage business plan sample also categorizes its target market into various groups or segments after which different strategies are devised to target each group in accordance with its specific needs and requirements. Our target market is the residential community as well as the working-class community living or working near us. The community consists of all types of people from varying backgrounds. As per the financial position, nearly half of the community has a monthly income ranging from $40k to $50k while nearly 10% people have incomes even around $100,000. There are currently more than 738,000 households in Manhattan out of which 17.1% have children under the age of 18 living with them, 25.2% are married couples living together and 12.6% have a female householder with no husband present. 59.1% are non-families, out of which 48.0% of all households are made up of individuals and 10.9% have someone living alone who is 65 years of age or older. A successful and efficient marketing strategy can only be developed after we completely know our potential clients. Our experts have identified the following type of target audience which can become our future consumers:

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Clients Needing Therapeutic Massage

This category includes all those clients who need therapy for some medical purposes such as for relieving pain or chronic health issues. The therapy is done by using advanced techniques such as trigger point therapy and deep tissue massage. The clients lying in this category will make the biggest contribution to our revenue since they frequently need therapy on a regular basis as a part of their medical treatment. This category is further divided into following groups:

• Clients with injuries: This group includes those clients who have incurred an injury in some accident or by any other means. They need therapy as a part of their medical treatment, for proper muscle repair and for relieving severe pain. This group may include individuals from all age groups and backgrounds. Sportsmen and athletes are also included in this group who regularly take therapies for addressing the minor/major injuries they usually face.
• Clients with chronic illnesses: This group includes those clients who are fighting with or have just recovered from chronic illnesses such as cancer, arthritis, backbone problems or other similar ailments. This group mostly include the senior citizens.
• Clients with disabilities/issues: This group includes those clients who have either some sort of disability like Down’s syndrome and Autism, or the clients who have other body problems like posture and weight issues. This group mostly include children and teens.
• Expectant mothers: This group includes expectant mothers who are prescribed to take a therapeutic massage (both Prenatal and Postnatal Massage Therapy) for addressing any issue with them while they are in labor or after their delivery.

5.2.2 Clients Needing Relaxation Massage

This category includes all those clients who just want to relax after a hectic day at work. Relaxation massage can greatly reduce the anxiety and depression of a person thus this massage is very popular with the working-class community especially the senior level executives of various businesses who often lead a stressful life. This massage is relatively simpler and straightforward as compared to the therapeutic massage and includes classic Swedish massage techniques along with a mud or cream application, a sea salt or sugar body scrub, or a paraffin hand treatment to the body. Since this massage is just intended to relax the clients and isn’t as much needed as the therapeutic massage, the revenue contribution from the clients taking this massage is relatively lower. The detailed market analysis of our potential clients is given in the following table:

5.3 Business Target

We aim to become the best massage therapy center of Manhattan within next five years of our startup. Our main massage business plan targets to be achieved as milestones over the course of next three years are as follows:

• To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
• To balance the initial cost of the startup with earned profits by the end of the first year
• To open up a second massage therapy center by the end of three years in San Francisco, and a third one by the end of five years in Los Angeles

5.4 Product Pricing

After considering the market demands and the current competition, we have priced our services in the similar ranges as of our competitors. As of our relaxation massage, it will be charged on the basis of time, and clients can choose one of these three options—a 30-minute ($60), 50-minute ($95) or 75-minute ($135) massage. The price of every therapeutic massage will vary on the type of treatment and the condition of the patient but as a general rule, they will cost approximately 30 percent more than the relaxation massage. After analyzing all physical therapy business ideas and going through the market trends, the market demand, and the potential clients of the startup, the next step is to develop an ingenious strategy to attract those clients toward us.

Like marketing analysis, sales strategy is also an important component of a physical therapy business plan so it must be given proper attention before you think about how to start a massage business . That’s why Susan carried out an extensive research about various marketing strategies and went through a couple of massage business plan example templates before she decided on how to make a business plan for massage therapy along with an effective marketing strategic plans .

High Quality Business Plan and Professional Support

It was amazing to work with OGS Capital for our business plan. They promptly responded our enquires and delivered document on time.The document was well organized high quality and content.We succeded with Alex and his team support. We thank you guys again for professional approach and easy communication.

6.1 Competitive Analysis

As mentioned earlier, there are more than 300,000 massage therapists located across the United States. Similarly, there are hundreds of massage therapy centers located in Manhattan and their numbers are still on the rise. To survive and excel in such competitive environment, it is essential for a startup to work on its competitive aspects which will give it an advantage over the rest of the similar businesses in the locality. Considering the importance of the competitive advantage for a startup, we have come fully prepared to enter the market.

Our biggest competitive advantage will be our high-quality and unparalleled services where the environment in which the services are offered – lighting, sounds, smells, oils and linens as well as the emotional presence of the therapist – all will contribute to the best possible experience. Our staff is highly trained and well-groomed in all aspects of therapy, and we are exceptionally adept at providing customized service to our clients. We will ensure maximum client retainage by offering them pleasurable experiences that will make them come back over and over again. We will ensure that our therapists use quality supplies (such as lotions and massage oil) and create a friendly, relaxing and welcoming environment for our clients.

In addition to providing quality services, we will launch an App where our clients can make their reservations with us or can even pay online by linking it to their bank or PayPal account. This App will also remind them of their appointments with us by sending them timely notifications. This App will make it easier for our clients to connect with us and will give us an extreme advantage over other competitors since no massage therapy center within 10 km radius of our center has launched a similar App. Lastly, we will also provide home-therapy services which is also not provided by most of our competitors.

6.2 Sales Strategy

After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.

• We will carry out a large-scale social media campaign for our advertisement.
• We will establish a strong online presence by using SEM/SEO techniques.
• We will arrange seminars and informational sessions for increasing the public awareness about health benefits of massage and therapies.
• We will launch an App which will be used for online reservations, making payments and much more.
• We will offer a 25% discount on our services for the first three months of our launch.

6.3 Sales Monthly

Our monthly sales, as forecasted by our experts, are as follows:

6.4 Sales Yearly

Our yearly sales, as forecasted by our experts, are as follows:

6.5 Sales Forecast

Considering our innovative app, the quality of our services, and our unparalleled client service, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted in detailed the following sales on a yearly basis which are summarized in the column charts.

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

Personnel plan

A personnel plan, like all other plans, is an important component of an effective massage business plan . Its importance is due to the fact that the success of any business plan for a massage therapist significantly depends upon its employees. It is never easy to estimate the number and type of staff needed for a company before it is even launched therefore it is always better to seek the help of HR experts to get through this phase. However, you can have a rough idea before you decide on how to start your own massage therapy business . Susan acquired the services of HR experts to help her develop the following personnel plan for her physical therapy business model .

7.1 Massage Salon Staff

Susan will act as the General Manager of the HealCo Relaxation Center and will manage its overall operations while the company will initially hire the following people:

• 1 Accountant for maintaining financial records of the therapy center
• 2 Sales Executives responsible for marketing and discovering new ventures
• 15 Massage Therapist for giving therapeutic as well as relaxation massages to the clients
• 5 Exercise Physiologist for helping sportsmen, athletes and other injured persons with various exercises
• 6 Cleaners/Assistants for cleaning the facility and assisting with day-to-day operations
• 1 Inventory Manager for managing/procuring the stock needed for merchandise
• 3 Drivers for providing transportation facility to the clients
• 1 Technical Assistant for managing company’s App as well as web pages and social media accounts
• 1 Front Desk Officer for acting as a Receptionist, receiving calls and making reservations

All the professionals needed for starting a physical massage therapy business plan  will be hired by following strict testing procedures. After the selection of employees, the Massage Therapists and Exercise Physiologists will be trained for one month under the direct supervision of Susan herself so as to enable them to provide the highest quality of services possible.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for next three years. These salaries are estimated by financial experts and are expected to deviate but the overall expenses will be more or less the same.

Financial Plan

Just like the other plans, you must also prepare a detailed financial plan covering all financial aspects of your startup before you move on to starting a physical therapy business . The financial plan should craft a detailed map about the costs of startup, inventory, payroll, equipment, business plan for landlord , utilities and how these costs will be covered by the earned profits. Before getting to think about opening massage therapy business plan , make sure to carry out a detailed profit and loss analysis. The HealCo Relaxing Center financial plan outlines the development of the company over the next three years and is specifically developed to achieve the company’s short-term as well as the long-term objectives.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

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Massage Therapy Business Plan

Going for a massage therapy session is one of the most relaxing activities that you can pay for especially after a busy day’s work. This level of relaxation must also be felt by massage therapy business owners as well as its stakeholders. This is actually possible if a business plan will be developed. In comparison with the creation of self-catering business plan examples , it is also essential for you to ensure the completion and proper presentation of the massage therapy business plan that you will develop.

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Do you need document guides and references for developing your massage therapy business plan? Fret and worry not as we got you covered with the downloadable examples of massage therapy business plan templates that we have put together in this post. Download any of these examples so you can already have an idea not only of what content to look into but also on what format to use for the document that you would like to present to your target audience.

Massage Therapy Business Plan Template

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Massage Therapy and Reflexology Business Plan Discussion Layout Example

Basic Information That Should Be in a Massage Therapy Business Plan

Being hands-on with the operations and management of a massage therapy business can help you not just retain your existing customers but also to consider the needs and reasonable wants or demands of all your stakeholders. A massage therapy business plan can help you become more prepared when it comes to handling your business and its operations. For a massage therapy business plan to be fully maximized, you have to ensure that you will come up with a detailed, organized, and presentable document. Listed below are some of the basic information that are commonly found in every massage therapy business plan.

• The name or title of your massage therapy business
• The location of your business
• The purpose of the massage therapy business plan
• The scope and limitations of the massage therapy business plan content
• The vision and mission of your massage therapy business
• The specification of your long-term and short-term goals
• The discussion of the massage therapy services, products, and/or offers that you would like to introduce
• The list of objectives that you would like to achieve for your corporate vision to be realized
• The description of your target market and their activities and purchasing capabilities
• The workforce requirements of your massage therapy business in consideration to work experiences, technical skills, relevant credentials, and other deliverable
• The segmentation of your market as well as the niche markets that you would like to focus on
• The evaluation of the consumer demand based on the geography or demography of your market
• The legal requirements that you need to acquire especially business permits and related licenses
• The list of the challenges, threats, and risks that you expect to face and the countermeasures that you have prepared for your business to not fully be affected by the impacts resulting from the existence of these elements
• The operational requirements of the massage therapy business including manpower, supplies, equipment, tools, and other resources needed every operations
• The business regulations, policies, and protocols that you would like your workforce and other involved entities to be aware of
• The marketing and promotional plan that you will use so you can be visible in the marketplace
• The financial aspect of the business which includes your financial aspirations and objectives, the financial plan that your stakeholders need to look into, the resources that you will use as a part of your start-up expenses, the expected expenses of the business in a particular time duration, and the projections for business revenue to identify profits and/or losses
• The date when you have last updated the massage therapy business plan and the reason why there is a need for updating it

Kindly take note that these details are only for referencing purposes. Hence, you can develop a message therapy business plan that works even with the addition or removal of any information to/from the list above. Just like when making a  jewelry business plan , the content of your own massage therapy business plan will still depend on the jurisdiction or decision of the management as well as the scope and nature of your massage therapy business operations.

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Massage Therapy Business Plan Guidelines and Documentation Example

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Advantages of Creating and Using a Well-Formulated Massage Therapy Business Plan

Have you ever wondered why there are businesses within the same marketplace that do better than their competition? As an example, two juice bar businesses competing with one another do not have the same market reach, audience relationship, and profitability. Maybe one of them uses a  juice bar business plan  and is more aware on how to present the business to different types of audience. Though there are different factors and elements that can affect business operations, having a business plan is still one of the most important decisions that you can make for your organization.

If you will create a massage therapy business plan, you can experience benefits that scope not just your financial conditions but also the perception or impression of your target market toward your business and its brand. A few of the advantages that you can get if you will create and use a massage therapy business plan include the following:

• A massage therapy business plan can help your business define its goals. You need to be directed with the things that you would like to achieve so that you can be focused on the steps that are necessary for reaching specific milestones. With the help of a massage therapy business plan, you can ensure that all your efforts and undertaking will allow you to take a step forward in realizing the vision of the massage therapy business.
• A massage therapy business plan allows the business to prepare for the needs and demands of the operations. Through the usage of a massage therapy business plan, you can easily allocate your resources and you can identify the things that you still need to acquire. If you will have this document at hand, you can be aware of the level of your preparedness when it comes to the execution of your plans of action.
• A massage therapy business plan can help you avoid business pitfalls specifically on areas outside your business environment. Massage therapy business plans assess your strengths and weaknesses as well as the threats and opportunities that you need to be knowledgeable about. Understanding internal and external factors that can affect your business with the help of this document can make you more careful when making and finalizing business-related decisions.
• A massage therapy business plan can help you list down and assess your intentions. This document can set your goals accordingly and it can also summarize the things that you would like to achieve in particular time frames based on the growth and development needs of the business. If you will have a massage therapy business plan, then it will be easy for you to see the overview of how you can maximize the usage of your resources so you can get to the state or condition where you would like your massage therapy business to be at.

Spa Business Strategies and Massage Therapy Business Plan Example

Massage Therapy and Spa Business Plan Format Example

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Massage Therapy Competency Standards for Business Plan Guidance Example

Things to Look Into When Developing a Massage Therapy Business Plan

Have you ever made a  mobile catering business plan  or any other types of business plan documents? For sure, there are a lot of challenges that you need to face and go through before you can create a compelling, convincing, and effective business plan. However, this can refine and develop your senses and abilities when it comes to the drafting of a great document.

If you plan to come up with a massage therapy business plan, there are factors and elements that you have to consider so that you can ensure the high functionality and efficiency of the document that will serve as your output. Once you have decided to create a massage therapy business plan, make sure to include the following on the list of your considerations:

• Have a general overview of what the massage therapy business plan contains. An executive summary can be very helpful when it comes to identifying the key points of your discussion.
• Think of the entities that you will be working with. This includes your workforce, your management, your suppliers, and all the other individuals or groups who are involved in your operations.
• Ensure that you will develop statements that encapsulate your vision, mission, goals, objectives, and values. This can build the image and the brand of your business.
• Know how you can get the attention and approval of your desired audience or clients. Execute surveys and researches that will allow you to understand the movement of your market and how trends impact your overall massage therapy business operations.
• Have projections when it comes to finances, expenses, and other financial aspect-related discussions. You have to think of your budget and resources so that you can identify ways on how you can make the business profitable even during lean seasons.
• Analyze your market. Know the movement of your competition and see their efforts that work. It is important for you to be aware of these items as it will allow you to counteract and present something that can be deemed more valuable by your target audience.

Day Spa Offering Massage Therapy Business Plan Example

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Massage Therapy Business Plan with Spa Market Analysis Example

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Business Plan Template for a Massage Therapy Business and Other Establishments Example

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Tips to Help You Come up with an Effective Massage Therapy Business Plan

A massage therapy business plan can provide you with higher chances of successes and achievements. However, creating an amazing massage therapy business plan is not an easy task. Right now, are you finding it hard and challenging to create your own massage therapy business plan? Refer to these tips and guidelines and incorporate them in the processes involved in developing a massage therapy business plan:

• Begin with the basics of massage therapy business plan development. You do not need to come up with an initial document that works like the best business plan out there. Keep in mind that your business plan will develop as your business and its operation progresses.
• Always remember that you can improve the content and process specification of your massage therapy business plan through time. What is essential is for you to develop a strong foundation that can build the brand and operational management of your business. This is the reason why updating the document is very important.
• Just like when using a  restaurant and catering business plan , do not just focus with the end picture. Allow yourself and your stakeholders to immerse on the steps that are needed to be done so that both short-term and long-term goals can be given emphasis and importance. The ownership of obligations and responsibilities are very important as this will establish the credibility of the system and the efficiency of your work operations as well as the effectiveness of your workforce.

If you will create a document that can be used as a reference within the implementation of your action plans, then you can ensure that your call-to-actions and strategies are realistic, measurable, and attainable. Use any of our template examples and develop the massage therapy business plan that you need right now.

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How to Start a Massage Business in Bali

Bali is known for its pristine beaches, rich cultural heritage, and thriving tourism industry. However, it also offers a prime opportunity for entrepreneurs looking to start an online massage business. The island is a hotspot for wellness tourism, attracting millions of visitors seeking relaxation and rejuvenation.

This blog provides a detailed guide on how to establish a successful online massage business in Bali. We will talk about the latest market insights, regulatory requirements and practical tips.

Market Insights

Before starting any business, it is essential to look at the market and do some good research. Let’s first have a look at some important statistics.

1. Tourism Statistics

• Bali welcomed approximately 6.3 million international tourists in 2019. Although tourism saw a significant decline due to the COVID-19 pandemic, recovery is underway. By 2023, Bali recorded over 3.3 million international arrivals, a substantial increase from the previous years, indicating a strong recovery trend.
• Domestic tourism also plays a crucial role, with millions of Indonesian tourists visiting Bali annually. In 2023, domestic tourist arrivals reached 9.7 million, showcasing the robust local market.

2. Wellness Tourism Growth

• The global wellness tourism market was valued at USD 735.8 billion in 2020 and is projected to reach USD 1.2 trillion by 2027, growing at a compound annual growth rate (CAGR) of 7.2% from 2021 to 2027.
• Bali is a significant player in this market, renowned for its wellness retreats, yoga centers, and holistic spas. The island’s reputation as a wellness destination continues to attract health-conscious travelers from around the world.

3. Consumer Behavior

• Post-Pandemic Trends: There is a growing preference for personalized and private wellness experiences. Tourists are increasingly seeking services that can be enjoyed in the comfort of their accommodation. It makes online booking and home service options highly appealing.
• Digital Adoption: The pandemic accelerated the adoption of digital platforms for booking wellness services. Customers now prefer the convenience of online reservations, mobile apps, and digital payment options.

Steps to Start an Online Massage Centre in Bali

1. market research and business plan.

Conduct Market Research

• Target Audience: Identify your target demographic, including international tourists, expatriates, and local residents. Understand their preferences and spending habits.
• Competitor Analysis: Analyze competitors such as local spas, online booking platforms, and existing wellness centers. Identify gaps in the market that your business can fill.

Develop a Business Plan

• Mission Statement: Define your business’s mission, vision, and core values.
• Services Offered: Outline the types of massages (e.g., Balinese, Swedish, deep tissue, hot stone) and any additional wellness services (e.g., yoga sessions, meditation classes).
• Pricing Strategy: Set competitive prices based on market research and service quality.
• Marketing Plan: Develop a comprehensive marketing strategy, including online marketing, partnerships with hotels and travel agencies, and customer retention programs.

Also Read The Art of Selling Food Online: A Comprehensive Guide

2. Legal and Regulatory Requirements

Register Your Business

• Business License: Obtain the necessary licenses to operate. Foreign investors will need a PT PMA (foreign-owned company) license, which allows full foreign ownership.
• Tax Registration: Register for a tax identification number (NPWP) with the Indonesian Tax Office.
• Health and Safety Regulations: Comply with local health and safety standards for massage services, ensuring therapists are certified and trained.

Hire Local Experts

• Legal Advisors: Work with local legal experts to navigate Indonesia’s regulatory landscape.
• HR Consultants: For recruiting licensed massage therapists and administrative staff.

3. Build an Online Platform

Website Development

• User-Friendly Interface: Develop a professional website with a user-friendly interface. Ensure it includes an easy-to-use booking system, secure payment gateway, and detailed service descriptions.
• SEO Optimization: Implement SEO strategies to improve your website’s visibility on search engines, focusing on keywords related to wellness and massages in Bali.

Mobile Application

• App Development: Create a mobile app for seamless booking and customer management.
• User Experience: Focus on a clean, intuitive design to enhance user experience.

4. Marketing and Promotion

Digital Marketing

• Social Media: Utilize platforms like Instagram, Facebook, and TikTok to reach a wider audience. Share engaging content, customer testimonials, and promotional offers.
• Content Marketing: Produce high-quality content related to wellness, the benefits of different massage techniques, and Bali’s unique offerings. Blogs, videos, and infographics can help attract and engage potential customers.
• Email Campaigns: Develop targeted email campaigns to attract and retain customers. Offer special promotions, loyalty rewards, and updates on new services.

Partnerships and Collaborations

• Hotels and Resorts: Partner with local hotels and resorts to offer your services to their guests. Provide exclusive deals or packages to encourage bookings.
• Travel Agencies: Collaborate with travel agencies to include your services in travel packages, offering convenience for tourists planning their stay in Bali.

5. Operations and Management

• Therapists: Hire certified and experienced massage therapists. Ensure they are trained in various massage techniques and customer service skills.
• Customer Service: Employ a dedicated team for customer support and bookings management, ensuring prompt and professional service.
• Equipment and Supplies: Source high-quality massage tables, oils, and other necessary supplies. Maintain a stock of these items to ensure uninterrupted service.
• Transportation: Arrange for reliable transportation for therapists to travel to clients’ locations, ensuring punctuality and professionalism.

Quality Control

• Training Programs: Implement regular training sessions to maintain high service standards and update therapists on new techniques.
• Customer Feedback: Establish a system for collecting and analyzing customer feedback to continuously improve services. Encourage reviews and testimonials to build trust and credibility.

Also Read Local Marketplaces vs Global Giants: A Comparative Analysis

6. Financial Planning

• Initial Investment: Estimate the initial costs for website and app development, marketing, equipment, and staffing. Create a detailed budget to guide your financial planning.
• Funding Sources: Explore funding options such as personal savings, bank loans, or investors. Consider crowdfunding platforms if you have a compelling business story.
• Operational Costs: Plan for ongoing expenses including salaries, marketing, transportation, and equipment maintenance.
• Profit Margins: Set realistic profit margins and regularly monitor financial performance to ensure profitability and growth.

Starting an massage business in Bali requires meticulous planning, market research, and adherence to local regulations. Focus on quality service, customer satisfaction, and continuous improvement to build a reputable and profitable business.

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The rise of wellness businesses: how to start a successful massage service.

The wellness industry offers a wide range of products and services aimed at improving physical and mental health. Luxury spas are just one part of it. Nowadays, there are boutique fitness centers all over the place offering different types of exercises including yoga and high-intensity interval training.

There are also subscription boxes filled with healthy snacks and wellness products, and many workplaces are now including wellness activities like yoga and meditation as part of their employee benefits.

Over 47.5 million Americans had a total of 214 million massages as at 2018, making them a popular form of self-care. It is becoming more and more popular for a variety of reasons. In this fast-paced world of ours, a lot of people experience chronic stress. 

One excellent technique to de-stress, release muscular tension, and lower stress hormones is by getting a massage. As the demand for massage services rises, so does the possibility for aspirant business owners. 

In the sections that follow, we’ll walk you through the process of launching your own profitable massage business. We’ll provide you with the data and tools you require to create a strong business strategy and expand your clientele. Keep an eye out if you’re passionate about wellness promotion and would like to start your own company.

Why Massage Therapy?

Massage therapy is more than just a relaxing treat; it’s a proven therapeutic method. There is increasing scientific evidence of its many benefits. Here’s how a well-designed massage session can improve your clients’ lives:

Stress Reduction

Chronic stress seriously harms our physical and mental health. It sets off the “fight-or-flight” reaction, which raises the stress hormone cortisol, which can lead to headaches, tense muscles, and anxiety. A stress-relieving method that is natural is massage treatment.

With light strokes and focused pressure, it calms the nervous system, promoting relaxation and lowering cortisol levels.

Pain Management

Pain from workplace injuries, daily strain, or chronic conditions like arthritis can greatly affect a person’s life. A non-invasive method of managing pain is offered by massage therapy. Reducing tension and boosting blood flow to aid in healing is achieved by addressing trigger points and knots in the muscles with deep tissue massage. Furthermore, massage eases the pain associated with fibromyalgia, headaches, and the recuperation from surgery.

Improved Sleep

Do you struggle to get a good night’s sleep? Many people do, often due to stress and anxiety. Massage therapy can help by promoting relaxation and easing muscle tension, making it easier to fall asleep. A study shows that massage therapy can improve sleep quality , especially for those with chronic insomnia.

Planning Your Massage Service Business

To build a successful massage service business, you need a strong foundation. This section will guide you through the essential steps of the planning process.

Develop a Business Plan

Think of your business plan as a roadmap to success. It outlines your vision, strategies, and financial forecasts. Although it might sound challenging, creating a business plan can be straightforward. Here are the main sections to help you begin:

• Executive Summary: This is your elevator pitch, a concise overview of your business. Introduce your massage service concept, highlight your target market, and summarize your financial projections.
• Market Analysis: Before starting, research your local market. Look at other massage therapists and spas to see who you’re competing against. Decide on your ideal client, whether it’s busy professionals looking for stress relief, athletes needing performance enhancement, or a wider audience. Knowing who your clients are will help you set your prices and plan your marketing.
• Marketing Plan: A strong marketing strategy is crucial today. Make a website that is easy to use and lists your credentials, services, and availability for bookings. Use social media sites like Facebook and Instagram to interact with potential clients by sharing educational articles about massage therapy along with special offers. Also, consider partnering with local businesses like fitness studios or wellness centers to promote each other’s services and widen your customer base.
• Financial Projections: This part of your business plan details your financial setup. Begin by listing your startup costs, such as massage equipment, marketing expenses, and any permits or licenses you need. Include regular costs like rent, insurance, and supplies. Estimate your income based on your prices and expected number of clients. Although financial forecasts aren’t perfect, they help guide your financial decisions.

Legalities and Licensing

The massage therapy industry is regulated at the state level, and the rules can vary. To find out what you need to do, check with your state’s massage therapy licensing board. Generally, you will need to complete a state-approved training program and pass a national certification exam. 

Also, don’t forget to get liability insurance to protect yourself financially in case of any accidents or injuries during a massage session.

Location, Location, Location: Choosing Your Business Home

The best location for your massage service depends on your business plan and budget. Here are the main options to consider:

• Renting a Space in a Salon or Spa: Renting space in a salon or spa gives you immediate access to their customers, but you’ll need to share some of your earnings with the owner.
• Operating from a Home Office: Operating from a home office is an affordable option, particularly for new businesses. Make sure your home office complies with zoning laws and maintains a professional environment.
• Offering Mobile Massage Services: Offering mobile massage services lets you provide massages directly at your clients’ homes or offices. This option requires reliable transport and a portable massage table but offers great flexibility.

Consider factors like foot traffic, accessibility for clients with disabilities, and the professional image you want to project when choosing your location.

Remember, thorough planning is essential. By spending time on a detailed business plan, understanding legal requirements, and selecting the right location, you will establish a strong foundation for your massage service business to thrive.

Building Your Brand and Clientele

In the competitive wellness industry, a strong brand identity is crucial. It distinguishes you and draws clients looking for a particular experience. Here’s how to build a brand that conveys professionalism, relaxation, and trust:

Develop Your Brand Identity

Your brand identity includes your business name, logo, and overall look. Choose a memorable and easy-to-pronounce name that reflects your services. Design a visually appealing logo that appears consistently across all marketing materials. For your aesthetic, aim for a calming feel with soothing colors and imagery, and make sure your website is easy to navigate.

Crafting a Compelling Website

In today’s digital world, your website acts as your virtual storefront. Ensure it’s easy to use and informative. Clearly list your massage services with detailed descriptions and benefits. Include pricing and an easy online booking system. High-quality photos of your treatment room and professional appearance will also boost your brand image.

Social Media Marketing

Social media is a great way to connect with potential clients. Set up engaging profiles on platforms like Instagram and Facebook. Post useful content about massage therapy, self-care tips, and the benefits of managing stress or improving sleep. 

Show behind-the-scenes looks at your practice and your massage space to give a personal touch to your brand. Hold promotions and contests to encourage interaction and gain new followers. Remember to promptly respond to comments and messages to build a community and trust around your brand.

A Referral Program

Word-of-mouth marketing is extremely effective. Happy clients can be great promoters of your brand. Set up a referral program to encourage them to recommend your services to others. Offer incentives like discounts, free extras, or loyalty rewards for successful referrals.

Massage Booking Software

Technology can greatly benefit your massage business. To maximize productivity and lessen effort, think about using massage booking software that is easy to use and allows clients to arrange appointments online at any time. 

An additional feature that many booking systems offer to improve the customer experience is the ability to accept payments and to incorporate follow-ups and automatic reminders.

By using these strategies, you’ll create a brand that appeals to your target audience, builds trust, and secures a loyal customer base. Building a successful massage business takes time, commitment, and a focus on excellent service, setting you up for long-term success. 

Final Words

Starting a successful massage business today requires careful planning, legal readiness, strong branding, and smart marketing. Create sound business and marketing ideas after thoroughly understanding your market. Utilize software for massage scheduling as one way to speed up procedures.

Collaborate with your customers and build a solid brand by leveraging social media and referral programs. Both new and existing clients will be drawn in and retained by these activities.

With the right strategies, your massage service can become a go-to place for relaxation and well-being, helping your business grow and prosper.

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Protein ice cream company wins 2024 Rice Business Plan Competition

Ice cream company Protein Pints took home the grand prize at the 2024  Rice Business Plan Competition  (RBPC) April 6 as the best student ventures from top universities across the world competed for prizes in front of nearly 350 angel, venture capital and corporate investors and members of the business community.

During his acceptance speech, Founder and CEO of Protein Pints Paul Reiss said, “The love and support that we’ve been shown during our time here at Rice, and the relationships and the friends that we’ve made, is something that I know I and every other student here is going to remember for the rest of our lives.”

Hosted annually by the  Rice Alliance for Technology and Entrepreneurship  and Rice University’s  Jones Graduate School of Business , the RBPC is the world’s largest and richest student startup competition.

The RBPC offers real-world opportunities to learn what’s required to successfully launch a new business. In addition to the substantial cash, investment and in-kind prizes, the heart of the competition is the mentoring from investors and experienced entrepreneurs. RBPC alumni have raised more than $6.1 billion in capital and 288 are in business or have had successful exits.

The winners were announced at the conclusion of the three-day pitching, mentoring and networking event, which included an elevator pitch competition, practice round, semifinals, wildcard and final round. At the award celebration, more than 80 prizes were announced totaling $1.5 million in investment and non-dilutive cash prizes. Every team took home cash.

“We award the competitors $1 million in prizes, prizes that serve as foundational capital to launch their startup,” said RBPC Director Catherine Santamaria in her welcome speech at the awards gala April 6.

“That’s a large number of prizes, but the biggest thing our startups leave with is a feeling of generosity and community from this room. This community is always ready and willing to help our founders and support our vision for the competition by investing time, money and resources in these student innovators.”

The 42 competing startups represented 35 universities from four countries. They were chosen from more than 450 applicants to compete in one of five categories: energy, clean tech and sustainability; life sciences and health care solutions; consumer products and services; hard tech; and digital enterprise. Learn more about all of the startups here .

The seven finalists based on the judges’ overall scores were:

Protein Pints, Michigan State University — first place and the $150,000 GOOSE Capital Investment Grand Prize.

• Protein Pints is a high-protein, low-sugar, ice cream product designed for people who would benefit from having access to a functional ice cream and/or better tasting and more enjoyable protein options.

Somnair, Johns Hopkins University — second place and the $100,000 Investment Prize, sponsored by David Anderson, Jon Finger, Anderson Family Fund, Finger Interests, Greg Novak and Tracy Druce.

• Somnair is a Novel Non-Invasive Neurostimulation device for the treatment of obstructive sleep apnea.

Power2Polymers, RWTH Aachen University — third place and the $50,000 Rice University investment, provided by the Rice Alliance for Technology and Entrepreneurship and sponsored by Finger Interests, the Anderson Family Fund at the Greater Houston Community Foundation, Greg Novak and Tracy Druce.

• Power2Polymers tackles the pressing issue of “forever chemicals,” which have been linked to over 6.5 million deaths in the U.S. alone, by offering safe alternatives free of forever chemicals.

Informuta, Tulane University — fourth place and the $5,000 prize, sponsored by Norton Rose Fulbright.

• Informuta’s proprietary technology leverages DNA sequencing to predict if bacteria will respond to different antibiotics or, for the very first time, develop future resistance thus causing treatment failure.

Icorium Engineering Company, University of Kansas — fifth place and the $5,000 prize, sponsored by EY.

• Icorium Engineering Company is a chemical engineering startup and University of Kansas spinout developing technologies to make sustainable, circular economies a reality for refrigerants and other complex chemical mixtures.

EndoShunt Medical, Harvard University — sixth place and the $5,000 prize, sponsored by Chevron Technology Ventures.

• EndoShunt is transforming trauma surgery with a rapid, targeted blood flow control device.

D.Sole, Carnegie Mellon University — seventh place and the $5,000 prize, sponsored by Shell Ventures.

• D. Sole is advancing the development of remote patient monitoring in podiatry with foot insoles designed for the early detection and monitoring of diabetic foot complications, such as ulcers and deformities.

The fourth through seventh place startups were also awarded an additional investment prize of $25,000 each provided by Rice Alliance and sponsored by David Anderson, Jon Finger, Anderson Family Fund, Finger Interests, Greg Novak and Tracy Druce, bringing their finalist prize totals up to $30,000.

Other  significant prizes  this year and the teams that won them include:

• $200,000 Goose Capital Investment Prize — Osphim, RWTH Aachen University
• $250,000 OWL Investment Prizes — MesaQuantum, Harvard University
• $100,000 OWL Investment Prizes — Icorium Engineering Company, University of Kansas
• $100,000 Houston Angel Network Investment Prize — Somnair, Johns Hopkins University
• $100,000 The Indus Entrepreneurs (TiE) Texas Angels Investment Prize — Protein Pints, Michigan State University
• $60,000 nCourage Courageous Women Entrepreneur Investment Prize — MesaQuantum, Harvard University
• $40,000 nCourage Courageous Women Entrepreneur Investment Prize — Icorium Engineering Company, University of Kansas
• $40,000 Pearland EDC Spirit of Entrepreneurship Cash Prize — Informuta, Tulane University
• $25,000 New Climate Ventures Sustainable Investment Prize — Oxylus Energy, Yale University
• $25,000 Dream Big Ventures Latino Entrepreneur Investment Prize — Dendritic Health AI, Northwestern University
• $25,000 NOV Energy Technology Innovation Cash Prize — LiQuidium, University of Houston
• $25,000 Urban Capital Network Diversity Investment Prize in Partnership with South Loop Venture Investment Prize — TouchStone, University of California, Berkeley
• $25,000 Southwest National Pediatric Device Consortium Pediatric Device Cash Prize — EndoShunt Medical, Harvard University
• $25,000 Jacobs, Intuitive Machines and WRX Companies Rising Stars Space Technology and Commercial Aerospace Cash Prize — MesaQuantum, Harvard University

For more information about the 2024 Rice Business Plan Competition, visit  rbpc.rice.edu .

This story was originally published on APNews.

About the MSU Innovation Center:  

The MSU Innovation Center is dedicated to fostering innovation, research commercialization, and entrepreneurial activities from the research and discovery happening across our campus every day. We act as the primary interface for researchers aiming to see their research applied to solving real-world problems and making the world a better place to live. We aim to empower faculty, researchers, and students within our community of scholars by providing them with the knowledge, skills, and opportunities to bring their discoveries to the forefront. Through strategic collaborations with the private sector, we aim to amplify the impact of faculty research and drive economic growth while positively impacting society. We foster mutually beneficial, long-term relationships with the private sector through corporate-sponsored research collaborations, technology licensing discussions, and support for faculty entrepreneurs to support the establishment of startup companies.    

Is your company interested in working with MSU’s Protein Pints Team? Click Here .

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The Possible Collapse of the U.S. Home Insurance System

A times investigation found climate change may now be a concern for every homeowner in the country..

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From “The New York Times,” I’m Sabrina Tavernise. And this is “The Daily.”

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Today, my colleague, Christopher Flavelle, on a “Times” investigation into one of the least known and most consequential effects of climate change — insurance — and why it may now be a concern for every homeowner in the country.

It’s Wednesday, May 15.

So, Chris, you and I talked a while ago about how climate change was really wreaking havoc in the insurance market in Florida. You’ve just done an investigation that takes a look into the insurance markets more broadly and more deeply. Tell us about it.

Yeah, so I cover climate change, in particular the way climate shocks affect different parts of American life. And insurance has become a really big part of that coverage. And Florida is a great example. As hurricanes have gotten worse and more frequent, insurers are paying out more and more money to rebuild people’s homes. And that’s driving up insurance costs and ultimately driving up the cost of owning a home in Florida.

So we’re already seeing that climate impact on the housing market in Florida. My colleagues and I started to think, well, could it be that that kind of disruption is also happening in other states, not just in the obvious coastal states but maybe even through the middle of the US? So we set out to find out just how much it is happening, how much that Florida turmoil has, in fact, become really a contagion that is spreading across the country.

So how did you go about reporting this? I mean, where did you start?

All we knew at the start of this was that there was reason to think this might be a problem. If you just look at how the federal government tracks disasters around the country, there’s been a big increase almost every year in the number and severity of all kinds of disasters around the country. So we thought, OK, it’s worth trying to find out, what does that mean for insurers?

The problem is getting data on the insurance industry is actually really hard. There’s no federal regulation. There’s no government agency you can go to that holds this data. If you talk to the insurers directly, they tend to be a little reluctant to share information about what they’re going through. So we weren’t sure where to go until, finally, we realized the best people to ask are the people whose job it is to gauge the financial health of insurance companies.

Those are rating agencies. In particular, there’s one rating company called AM Best, whose whole purpose is to tell investors how healthy an insurance company is.

Whoa. So this is way down in the nuts and bolts of the US insurance industry.

Right. This is a part of the broader economy that most people would never experience. But we asked them to do something special for us. We said, hey, can you help us find the one number that would tell us reporters just how healthy or unhealthy this insurance market is state by state over time? And it turns out, there is just such a number. It’s called a combined ratio.

OK, plain English?

Plain English, it is the ratio of revenue to costs, how much money these guys take in for homeowner’s insurance and how much they pay out in costs and losses. You want your revenue to be higher than your costs. If not, you’re in trouble.

So what did you find out?

Well, we got that number for every state, going back more than a decade. And what it showed us was our suspicions were right. This market turmoil that we were seeing in Florida and California has indeed been spreading across the country. And in fact, it turns out that in 18 states, last year, the homeowner’s insurance market lost money. And that’s a big jump from 5 or 10 years ago and spells real trouble for insurance and for homeowners and for almost every part of the economy.

So the contagion was real.

Right. This is our first window showing us just how far that contagion had spread. And one of the really striking things about this data was it showed the contagion had spread to places that I wouldn’t have thought of as especially prone to climate shocks — for example, a lot of the Midwest, a lot of the Southeast. In fact, if you think of a map of the country, there was no state between Pennsylvania and the Dakotas that didn’t lose money on homeowner’s insurance last year.

So just huge parts of the middle of the US have become unprofitable for homeowner’s insurance. This market is starting to buckle under the cost of climate change.

And this is all happening really fast. When we did the Florida episode two years ago, it was a completely new phenomenon and really only in Florida. And now it’s everywhere.

Yeah. And that’s exactly what’s so striking here. The rate at which this is becoming, again, a contagion and spreading across the country is just demolishing the expectations of anyone I’ve spoken to. No one thought that this problem would affect so much of the US so quickly.

So in these states, these new places that the contagion has spread to, what exactly is happening that’s causing the insurance companies to fold up shop?

Yeah. Something really particular is happening in a lot of these states. And it’s worth noting how it’s surprised everyone. And what that is, is formally unimportant weather events, like hailstorms or windstorms, those didn’t used to be the kind of thing that would scare insurance companies. Obviously, a big problem if it destroys your home or damages your home. But for insurers, it wasn’t going to wipe them out financially.

Right. It wasn’t just a complete and utter wipeout that the company would then have to pony up a lot of money for.

Exactly. And insurers call them secondary perils, sort of a belittling term, something other than a big deal, like a hurricane.

These minor league weather events.

Right. But those are becoming so frequent and so much more intense that they can cause existential threats for insurance companies. And insurers are now fleeing states not because of hurricanes but because those former things that were small are now big. Hailstorms, wildfires in some places, previous annoyances are becoming real threats to insurers.

Chris, what’s the big picture on what insurers are actually facing? What’s happening out there numbers-wise?

This is a huge threat. In terms of the number of states where this industry is losing money, it’s more than doubled from 10 years ago to basically a third of the country. The amount they’re losing is enormous. In some states, insurers are paying out $1.25 or even $1.50 for every dollar they bring in, in revenue, which is totally unsustainable.

And the result is insurers are making changes. They are pulling back from these markets. They’re hiking premiums. And often, they’re just dropping customers. And that’s where this becomes real, not just for people who surf balance sheets and trade in the stock market. This is becoming real for homeowners around the country, who all of a sudden increasingly can’t get insurance.

So, Chris, what’s the actual implication? I mean, what happens when people in a state can’t get insurance for their homes?

Getting insurance for a home is crucial if you want to sell or buy a home. Most people can’t buy a home without a mortgage. And banks won’t issue a mortgage without home insurance. So if you’ve got a home that insurance company doesn’t want to cover, you got a real problem. You need to find insurance, or that home becomes very close to unsellable.

And as you get fewer buyers, the price goes down. So this doesn’t just hurt people who are paying for these insurance premiums. It hurts people who want to sell their homes. It even could hurt, at some point, whole local economies. If home values fall, governments take in less tax revenue. That means less money for schools and police. It also means people who get hit by disasters and have to rebuild their homes all of a sudden can’t, because their insurance isn’t available anymore. It’s hard to overstate just how big a deal this is.

And is that actually happening, Chris? I mean, are housing markets being dragged down because of this problem with the insurance markets right now?

Anecdotally, we’ve got reports that in places like Florida and Louisiana and maybe in parts of California, the difficulty of getting insurance, the crazy high cost of insurance is starting to depress demand because not everyone can afford to pay these really high costs, even if they have insurance. But what we wanted to focus on with this story was also, OK, we know where this goes eventually. But where is it beginning? What are the places that are just starting to feel these shocks from the insurance market?

And so I called around and asked insurance agents, who are the front lines of this. They’re the ones who are struggling to find insurance for homeowners. And I said, hey, is there one place that I should go if I want to understand what it looks like to homeowners when all of a sudden insurance becomes really expensive or you can’t even find it? And those insurance agents told me, if you want to see what this looks like in real life, go to a little town called Marshalltown in the middle of Iowa.

We’ll be right back.

So, Chris, you went to Marshalltown, Iowa. What did you find?

Even before I got to Marshalltown, I had some idea I was in the right spot. When I landed in Des Moines and went to rent a car, the nice woman at the desk who rented me a car, she said, what are you doing here? I said, I’m here to write a story about people in Iowa who can’t get insurance because of storms. She said, oh, yeah, I know all about that. That’s a big problem here.

Even the rental car lady.

Even the rental car lady knew something was going on. And so I got into my rental car and drove about an hour northeast of Des Moines, through some rolling hills, to this lovely little town of Marshalltown. Marshalltown is a really cute, little Midwestern town with old homes and a beautiful courthouse in the town square. And when I drove through, I couldn’t help noticing all the roofs looked new.

What does that tell you?

Turns out Marshalltown, despite being a pastoral image of Midwestern easy living, was hit by two really bad disasters in recent years — first, a devastating tornado in 2018 and then, in 2020, what’s called a derecho, a straight-line wind event that’s also just enormously damaging. And the result was lots of homes in this small town got severely damaged in a short period of time. And so when you drive down, you see all these new roofs that give you the sense that something’s going on.

So climate had come to Marshalltown?

Exactly. A place that had previously seemed maybe safe from climate change, if there is such a thing, all of a sudden was not. So I found an insurance agent in Marshalltown —

We talked to other agents but haven’t talked to many homeowners.

— named Bobby Shomo. And he invited me to his office early one morning and said, come meet some people. And so I parked on a quiet street outside of his office, across the street from the courthouse, which also had a new roof, and went into his conference room and met a procession of clients who all had versions of the same horror story.

It was more — well more of double.

A huge reduction in coverage with a huge price increase.

Some people had faced big premium hikes.

I’m just a little, small business owner. So every little bit I do feel.

They had so much trouble with their insurance company.

I was with IMT Insurance forever. And then when I moved in 2020, Bobby said they won’t insure a pool.

Some people had gotten dropped.

Where we used to see carriers canceling someone for frequency of three or four or five claims, it’s one or two now.

Some people couldn’t get the coverage they needed. But it was versions of the same tale, which is all of a sudden, having homeowner’s insurance in Marshalltown was really difficult. But I wanted to see if it was bigger than just Marshalltown. So the next day, I got back in my car and drove east to Cedar Rapids, where I met another person having a version of the same problem, a guy named Dave Langston.

Tell me about Dave.

Dave lives in a handsome, modest, little townhouse on a quiet cul-de-sac on a hill at the edge of Cedar Rapids. He’s the president of his homeowners association. There’s 17 homes on this little street. And this is just as far as you could get from a danger zone. It looks as safe as could be. But in January, they got a letter from the company that insures him and his neighbors, saying his policy was being canceled, even though it wasn’t as though they’d just been hit by some giant storm.

So then what was the reason they gave?

They didn’t give a reason. And I think people might not realize, insurers don’t have to give a reason. Insurance policies are year to year. And if your insurance company decides that you’re too much of a risk or your neighborhood is too much of a risk or your state is too much of a risk, they can just leave. They can send you a letter saying, forget it. We’re canceling your insurance. There’s almost no protection people have.

And in this case, the reason was that this insurance company was losing too much money in Iowa and didn’t want to keep on writing homeowner’s insurance in the state. That was the situation that Dave shared with tens of thousands of people across the state that were all getting similar letters.

What made Dave’s situation a little more challenging was that he couldn’t get new insurance. He tried for months through agent after agent after agent. And every company told him the same thing. We won’t cover you. Even though these homes are perfectly safe in a safe part of the state, nobody would say yes. And it took them until basically two days before their insurance policy was going to run out until they finally found new coverage that was far more expensive and far more bare-bones than what they’d had.

But at least it was something.

It was something. But the problem was it wasn’t that good. Under this new policy, if Dave’s street got hit by another big windstorm, the damage from that storm and fixing that damage would wipe out all the savings set aside by these homeowners. The deductible would be crushingly high — $120,000 — to replace those roofs if the worst happened because the insurance money just wouldn’t cover anywhere close to the cost of rebuilding.

He said to me, we didn’t do anything wrong. This is just what insurance looks like today. And today, it’s us in Cedar Rapids. Everyone, though, is going to face a situation like this eventually. And Dave is right. I talked to insurance agents around the country. And they confirmed for me that this kind of a shift towards a new type of insurance, insurance that’s more expensive and doesn’t cover as much and makes it harder to rebuild after a big disaster, it’s becoming more and more common around the country.

So, Chris, if Dave and the people you spoke to in Iowa were really evidence that your hunch was right, that the problem is spreading and rapidly, what are the possible fixes here?

The fix that people seem most hopeful about is this idea that, what if you could reduce the risk and cause there to be less damage in the first place? So what some states are doing is they’re trying to encourage homeowners to spend more money on hardening their home or adding a new roof or, if it’s a wildfire zone, cut back the vegetation, things that can reduce your risk of having really serious losses. And to help pay for that, they’re telling insurers, you’ve got to offer a discount to people who do that.

And everyone who works in this field says, in theory, that’s the right approach. The problem is, number one, hardening a home costs a fantastic amount of money. So doing this at scale is hugely expensive. Number two, it takes a long time to actually get enough homes hardened in this way that you can make a real dent for insurance companies. We’re talking about years or probably decades before that has a real effect, if it ever works.

OK. So that sounds not particularly realistic, given the urgency and the timeline we’re on here. So what else are people looking at?

Option number two is the government gets involved. And instead of most Americans buying home insurance from a private company, they start buying it from government programs that are designed to make sure that people, even in risky places, can still buy insurance. That would be just a gargantuan undertaking. The idea of the government providing homeowner’s insurance because private companies can’t or won’t would lead to one of the biggest government programs that exists, if we could even do it.

So huge change, like the federal government actually trying to write these markets by itself by providing homeowner’s insurance. But is that really feasible?

Well, in some areas, we’re actually already doing it. The government already provides flood insurance because for decades, most private insurers have not wanted to cover flood. It’s too risky. It’s too expensive. But that change, with governments taking over that role, creates a new problem of its own because the government providing flood insurance that you otherwise couldn’t get means people have been building and building in flood-prone areas because they know they can get that guaranteed flood insurance.

Interesting. So that’s a huge new downside. The government would be incentivizing people to move to places that they shouldn’t be.

That’s right. But there’s even one more problem with that approach of using the government to try to solve this problem, which is these costs keep growing. The number of billion-dollar disasters the US experiences every year keeps going up. And at some point, even if the government pays the cost through some sort of subsidized insurance, what happens when that cost is so great that we can no longer afford to pay it? That’s the really hard question that no official can answer.

So that’s pretty doomsday, Chris. Are we looking at the end of insurance?

I think it’s fair to say that we’re looking at the end of insurance as we know it, the end of insurance that means most Americans can rest assured that if they get hit by a disaster, their insurance company will provide enough money they can rebuild. That idea might be going away. And what it shows is maybe the threat of climate change isn’t quite what we thought.

Maybe instead of climate change wrecking communities in the form of a big storm or a wildfire or a flood, maybe even before those things happen, climate change can wreck communities by something as seemingly mundane and even boring as insurance. Maybe the harbinger of doom is not a giant storm but an anodyne letter from your insurance company, saying, we’re sorry to inform you we can no longer cover your home.

Maybe the future of climate change is best seen not by poring over weather data from NOAA but by poring over spreadsheets from rating firms, showing the profitability from insurance companies, and how bit by bit, that money that they’re losing around the country tells its own story. And the story is these shocks are actually already here.

Chris, as always, terrifying to talk to you.

Always a pleasure, Sabrina.

Here’s what else you should know today. On Tuesday, the United Nations has reclassified the number of women and children killed in Gaza, saying that it does not have enough identifying information to know exactly how many of the total dead are women and children. The UN now estimates that about 5,000 women and about 8,000 children have been killed, figures that are about half of what it was previously citing. The UN says the numbers dropped because it is using a more conservative estimate while waiting for information on about 10,000 other dead Gazans who have not yet been identified.

And Mike Johnson, the Speaker of the House, gave a press conference outside the court in Lower Manhattan, where Michael Cohen, the former fixer for Donald Trump, was testifying for a second day, answering questions from Trump’s lawyers. Trump is bound by a gag order. So Johnson joined other stand-ins for the former president to discredit the proceedings. Johnson, one of the most important Republicans in the country, attacked Cohen but also the trial itself, calling it a sham and political theater.

Today’s episode was produced by Nina Feldman, Shannon Lin, and Jessica Cheung. It was edited by MJ Davis Lin, with help from Michael Benoist, contains original music by Dan Powell, Marion Lozano, and Rowan Niemisto, and was engineered by Alyssa Moxley. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for “The Daily.” I’m Sabrina Tavernise. See you tomorrow.

• May 24, 2024   •   25:18 Whales Have an Alphabet
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• May 22, 2024   •   23:20 Biden’s Open War on Hidden Fees
• May 21, 2024   •   24:14 The Crypto Comeback
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• May 17, 2024   •   51:10 The Campus Protesters Explain Themselves
• May 16, 2024   •   30:47 The Make-or-Break Testimony of Michael Cohen
• May 15, 2024   •   27:03 The Possible Collapse of the U.S. Home Insurance System
• May 14, 2024   •   35:20 Voters Want Change. In Our Poll, They See It in Trump.
• May 13, 2024   •   27:46 How Biden Adopted Trump’s Trade War With China
• May 10, 2024   •   27:42 Stormy Daniels Takes the Stand

Hosted by Sabrina Tavernise

Featuring Christopher Flavelle

Produced by Nina Feldman ,  Shannon M. Lin and Jessica Cheung

Edited by MJ Davis Lin

With Michael Benoist

Original music by Dan Powell ,  Marion Lozano and Rowan Niemisto

Engineered by Alyssa Moxley

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music | YouTube

Across the United States, more frequent extreme weather is starting to cause the home insurance market to buckle, even for those who have paid their premiums dutifully year after year.

Christopher Flavelle, a climate reporter, discusses a Times investigation into one of the most consequential effects of the changes.

On today’s episode

Christopher Flavelle , a climate change reporter for The New York Times.

Background reading

As American insurers bleed cash from climate shocks , homeowners lose.

See how the home insurance crunch affects the market in each state .

Here are four takeaways from The Times’s investigation.

There are a lot of ways to listen to The Daily. Here’s how.

We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

Christopher Flavelle contributed reporting.

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Christopher Flavelle is a Times reporter who writes about how the United States is trying to adapt to the effects of climate change. More about Christopher Flavelle

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