Gael Wood, LMT, Esthetician - Massage And Spa Success

Small Business Taxes For Dummies by Eric Tyson 475 Tax Deductions for Businesses and SelfEmployed Individuals: An Ato-Z Guide to Hundreds of Tax Write-Offs by Bernard B. Kamoroff C.P.A. Online Resources Entrepreneur Magazine Small Business Administration Tax Tips 46

The Internal Revenue Service 47

Insurance What types of insurance will you need to be a massage business owner? 48

Liability Insurance Professional Liability Insurance usually covers malpractice (should you injure or be accused of injuring a client), general liability (such as a client getting hurt if your massage table breaks), and product liability (for reactions to products used on clients). Some companies no longer cover hot stone massage or cupping; be sure your policy covers everything that you do! This insurance is normally 99- 300 49

per year, depending on which organization you choose and what additional benefits they provide. There are many choices for massage liability insurance; some even have a monthly premium instead of yearly if you need to watch your cash flow. Do your research in this area! Renter’s Insurance These policies cover natural disasters, such as a fire burning 50

down your unit, or water damage. The liability sections protect you if a customer trips and hurts himself on the premises. If theft or crime in the area is a concern, you can purchase a policy covering those aspects. Insurance agents can create a policy to meet your needs. This will usually be required by the bank if you have a business loan. Disability insurance This kind of insurance pays you 51

part of your income in the event that you become injured and are unable to work. As a business owner, you are responsible for all of your business overhead as well as your personal bills. Being properly insured can prevent you from losing everything you have worked so hard for until you can get back to work. On the other hand, disability insurance can be quite expensive, and you may be better off just having an 52

emergency fund. That way you are not spending money on premiums that you can never get back. Car insurance If you do outcalls or use your car for everyday business you may be able to cover it in your Business Owners Policy. This way you will pay your car insurance with pre tax money. Business Owners Insurance 53

This is probably a good and affordable way to go for most small business owners, a business owners policy covers many of the same things as renters insurance, give you additional liability insurance (sometimes called “slip and fall” insurance), and you can often include your car here as well. Most insurance companies like Nationwide, Progressive, and State Farm write business policies. Personally, I prefer to go into an 54

office and talk to an insurance agent, read the paperwork, and go over everything. Ask around for recommendations from friends or family members in your town. Insurance Tips Shop around for price Make sure you understand what your insurance covers Use a reputable licensed insurance agent Go over your policies each year. 55

Things change, and you don’t want to pay for more than you need. Insurance Resources Organizations Associated Massage and Bodywork Professionals American Massage Therapy Association Insure Bodywork Massage Magazine Insurance 56

Plus Articles on Massage Liability Insurance Comparing ABMP and AMTA Chart Comparing ALL of the Massage Liability Options Articles on Business Owners Insurance What does a Business Owners Policy Cover? Types of Business Insurance 57

(SBA) Articles on Disability Insurance What Factors Should I Consider Before Buying Disability Insurance Tips for Buying Disability Insurance 58

How Should Your Massage Business Be Legally Structured? 60

There are a couple of ways you can set up your business. If the business consists only of you, a sole proprietorship is probably the most common and simple way to go. Many therapists also form a limited liability corporation, as it has some tax advantages, and can limit your personal liability should you get sued. Other legal entities include Partnerships, Corporations, and S-Corporations. This is an area where you will 61

really need to do some research and get some advice from a lawyer and a CPA. If you do decide to incorporate, you can usually file the papers yourself online and save several hundred dollars in lawyers’ fees. If you can start this research, you will really be ahead of the game and prepared when you get ready to go ahead with your business! 62

Legal Structure Resources Articles Choose Your Business Structure (SBA) Choosing a Legal Structure (Findlaw) How Business Legal Structures Work (How Stuff Works) The Basics of Business Structure (Entrepreneur Magazine) Online Resources 63

MyCorporation.com LegalZoom.com If you are a member of ABMP, one of your member benefits is a discount on legal services, so be sure to check into that if/when you need legal advice. 64

Location: Finding a Home for your Massage Practice 65

Your location is probably one of the most important decisions you can make when starting your new business. Ideally, you will want it to be convenient for your clients, affordable, quiet, safe, and easy to find with good parking. It can be a challenge to find all of those things, especially if you don’t want to do a renovation. Then you will also be looking for a space that is already set up to work for a massage space. 66

Sharing a space with another practitioner or business is an option. In that case you would probably only be responsible for your massage room, and share a reception area and bathrooms. In this situation, find out what is included in your rent and what responsibilities you will have for the common areas. This is a common rental situation, and you would work for yourself. A good place to start looking 67

into options is your local Craigslist and classified ads. Also just drive around your area and look for “for rent” signs. Local real estate agents sometimes handle rental properties as well. Go ahead and look at a few places to get an idea of what you can get for your money in your area. This will really help you with your business planning. Even if you aren’t ready to rent a space yet, it’s good to look and ask questions. 68

Commercial property rental is very different from renting a house or apartment where there are regulations about what has to be included (like heat and safe livable conditions). With commercial property, sometimes what you see is what you get, and any upgrades or changes are your responsibility. Imagine my surprise upon moving my things into a new office only to realize there was no hot water heater! If I had noticed that before 69

signing the lease, I might have been able to negotiate to have one included. Don’t be too shy to ask for what you want and to have some upgrades included or money off your rent for fixing up a space. Commercial properties need to keep rent coming in and will often work with you. 70

Questions to ask about office rental 1. What is included in the rent: Any utilities? Any maintenance? Trash pickup? Snow removal? Landscaping? Outside maintenance? 2. Is the unit rented As-Is? 3. What changes are you allowed to make? 4. Who are the neighbors? 5. Are you allowed to sublease? 71

This might include having another therapist use the office if you can’t work or decide to share. 6. What kinds of signs can you put up? 7. What are the local utility companies? 8. Are you required to carry any insurance? 9. What deposits are required? 10. When is the rent due? Are there late fees? 72

11. Are there telephone lines? 12. Is the electrical up to code? 13. Is there hot water? 14. How long of a lease will you need to sign? Questions to ask about sharing space options 1. When can the room be used? 2. Will you have your own keys? 3. Can you decorate and arrange things however you would like? 73

4. Will noise be kept to a minimum? 5. When is the rent due? Weekly? Monthly? 6. How much notice should each person give to cancel the arrangement? 7. Will clients be referred to you? 8. What is included in the rent? Utilities? Internet? Reception? 9. Who is responsible for the common areas and supplies? 10. Who will draw up the paper 74

work? Do not rent anything without a written agreement! 11. Can you sell retail products? 12. Is there any limit on services that you can offer? If you are renting a room, you should be able to come and go as you please. No one should tell you what to do or how to run your business, as long as you are paying the agreed-upon rent. In my opinion you will grow your business faster if you show up and 75

are available for clients as much as possible. However, a Chiropractor or Salon owner cannot tell you what to do in any kind of rental or independent contractor agreement. 76

Choosing a Name for Your Massage Business This is a fun and exciting thing to 77

do! Some therapists just go with using their own name, and that is fine. If you think you might ever expand and add more therapists, it is a good idea to pick a professional-sounding business name. This gives you more options, especially if you might sell your business in the future. My best advice on choosing a business name Use the words “Massage,” 78

“Massage Therapy,” “Day Spa,” or “Therapeutic Massage” in your name. This way no one will wonder what it is that you do. It is a good idea to get your location or neighborhood in the name as well. Alternatively, you can use your location in your tag line. For example, a Littleton business might say: “Balance Massage Therapy, serving the Littleton Community since 2003” or simply use the name “Littleton 79

Therapeutic Massage Specialists.” This will really help your website in the search engines too. Know that if you choose a more alternative name like Peaceful Mountain Zen Massage or Balance Massage and Energy Works some people might be a little put off and not call you. That is totally ok. If your name will attract your ideal client, go for it. Just be aware how others might perceive your name choice. 80

Google it! Make sure no one else in your area is already using the name you want or one very similar. See if you can get a domain name and go ahead and buy it! It is a good idea to add your location to your domain name as well. So if balancemassagetherapy.com is taken, try balancemassagetherapylittleton.co m or massagelittleton.com. Try some different options until you can get a good domain name that 81

is easy to remember. While you are at it, create your Facebook page. I recommend including your name and location in that as well. You don’t have to do anything with it yet. You don’t even have to publish it until you are ready. 82

Independent Contracting As you move into being selfemployed, being an independent 83

contractor for other businesses can help you to bring in the income you need as you build up your clientele. You may even be able to “fill in” at your current job occasionally if they need extra help, so don’t burn any bridges on your way out! Call local day spas, resorts, and bed and breakfasts and offer your services on an appointment-only basis. Decide what dollar amount feels fair for you to travel and give 84

a massage. For me, the amount worth my while is 40 plus tips. I always ask that they try to book an additional appointment for me if I’m driving more than 15 minutes. Sometimes it works out that I will have 2 or more extra appointments. Don’t worry about percentages; just make sure you are getting what you need/want. Additionally, if you need extra help, keep a list of therapists you know, and call them for couples 85

massage, spa parties, and trade referrals. If you arrange the appointments, there is no reason why you shouldn’t pay them a fair percentage and make some money for your work. The percentage will depend on a number of factors, but the higher it is the more likely they are to help you again in the future. 86

Budget There are different ways to create your monthly business budget. The basic idea, though, is 87

to know your monthly expenses and the amount you need to cover those. After the expenses are paid, you start making money that you can take home! Knowing your set expenses will help you to set your goals for how many massages you need to do each week and each month. This will also help you to figure out what you need to charge for your services, so you can earn what you need for your take home pay. 88

Your prices should not just be the average price in your area. The first thing that I would do is figure up the minimum price you can charge to meet your expenses. For example if your total monthly overhead is 1,000 you would need to do 20 massages at 50 to break even. If you charge 75 you would need to do 14 massages to break even. Then, add on your take home pay. To take home 700 a week 89

plus your overhead is a total of 3,800 so at 50 per massage that is 76 clients, or 19 per week. At 75, it is 51 clients, or an average of 12 clients per week. Keep in mind, this doesn’t include any vacation time or discounts. People love their discounts, so you might want to set your prices with that in mind. In my opinion 70- 85 per hour will earn you a decent living. It all depends on your overhead. Keep in mind periodic costs. For 90

example, when you are getting started, you will need a bigger advertising and equipment budget. Run different numbers and scenarios. This will help you to figure out how much rent and everything else you can pay. You shouldn’t be intimidated by making a budget; it is simply a plan for how you will spend your money. With a good plan you will be able to pay all of your expenses, and pay yourself too! 91

Business Budgeting Form Here is a free downloadable business budgeting form for your practice budgets: http://www.vertex42.com/ExcelTe mplates/business-budget.html Business Expenses Checklist Use this list to help create your monthly budget so that you don’t forget anything. 92

Rent Utilities, electric, water, heat fuel Phone Internet Website fees Bathroom supplies Cleaning & laundry supplies Massage supplies, cream, essential oils, sheets Replacing equipment and/or buying new Music subscription Business license 93

Local taxes Continuing education Online scheduling program Books Liability insurance Renters Insurance Dues for networking groups Window washing Printed business materials Advertising Bookkeeper or Accounting fees Supplies for any specials or spa services 94

Bottled water, if you provide those Tea and other hot beverages, if you provide those Credit card processing fees License renewal Retail products & bags Gift certificates, supplies and processing (if you sell online) Seasonal plants and decorations Outside stuff – snow shoveling, salt, yard work, plants 95

Money Saving and Budgeting Tips Start out in a shared space or office that includes utilities. Look for good deals on EVERYTHING! (See the section on Money Saving Tips for Supplies) Price shop, and don’t be afraid to negotiate pricing. Barter for professional services that you need. Save a little each month toward 96

your yearly expenses, such as continuing education and insurance. Keep track of all money coming in. Pay your business bills and then yourself. 97

Bookkeeping and Massage Practice Software 98

Bookkeeping Every business needs a bookkeeping system of some sort. Some massage office software has this included if you check your clients out through that system. If your office software doesn’t include this, or you still use a paper appointment book, you will need a bookkeeping system. This will allow you to keep track of all income and expenses, print checks 99

for your expenses, run reports such as profit and loss, income by week or month, and expense reports. It’s a good idea just to keep up with this each day. It will only take a few minutes and then you will have the information you need when you need it. I like Wave online, because it’s free, and you won’t have to worry about losing your information if your computer dies. You also have the option of letting your 100

accountant log in and take care of figuring up your sales tax, quarterly, and yearly taxes. There is also a good program called BookKeeper for instant download—it has all the capabilities of the desktop Quickbooks for a fraction of the cost. Whatever system you choose, just be sure to keep track of your money and save your receipts, and you will save many hours of 101

research and stress at the end of the year! Massage Business Software You will also probably want a computer program to schedule your massage appointments, keep SOAP notes or client notes, and keep up with your gift certificate sales & prepaid packages. There are many options available! You will probably want to shop around 102

and test out a few different systems. Most companies will offer a free 15 to 30 day trial. Trying out software is something you can do even if you aren’t starting your business right away, and it will save you time down the road. Some features you might want to look for in your massage business software are: Online Scheduling 103

Multiple therapist scheduling SOAP Notes Client information tracking, such as number of visits and birthday Client notes Online Gift Certificate sales Credit card processing Client newsletter service Financial Reports Appointment reminders Device compatibility Referral trackin

massage business, this guide will give you the information you need to get you going in the right direction. 2 Idecidedtowritethisguideto helpmassagetherapistswhoare . Marketing Plan Everybusinessneedsa marketingplan!Peoplecan'tcome. 108 seeyouiftheydon'tknowabout youandyourwonderfulservices.A