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If you are planning to write the Massage Therapy business plan on your own, then this sample Massage Therapy business plan can be great for guidance. However, if you are looking for a professional business plan writer for a business loan, SBA loan or to find out the possibility of success for your new business then let’s talk!  

Executive Summary

Overview: In the town of Unity, Saskatchewan, you’ll find Sunrise Wellness Spa. Geraldine Barrett, RMT, SMT, owns and runs the business. Geraldine sought a new challenge in her job after 20 years of Massage Therapy practice and treatment for her psoriasis. The clinic delivers massage therapy services in a secure, friendly, and professional setting. To our patients, we provide the greatest level of care. Each session is done to your unique needs, utilizing a range of soft tissue treatments most suited to you. Sunrise Wellness Spa exclusively uses the best goods from around the globe, including Eminence Organic Skin Care from Hungary, Dead Sea products from Israel, Moor products from Austria, and our Canadian-made products.

Mission: The Sunrise Wellness Spa’s mission is to bring value to our guests’ experiences by delivering the best treatment and healing atmosphere in the spa business, ensuring that they leave feeling refreshed and beautiful.

Vision: To be the preferred Wellness Spa, providing a preventative lifestyle that benefits our customers and our employees.Industry Overview: Since 2012, the massage service industry in the United States has grown year over year, reaching almost $17 billion in 2019. Despite a bit of decline in 2020 due to the coronavirus (COVID-19) pandemic’s impacts, the sector has shown recovery in the past two years. In 2022, the Massage Services sector will have a market size of $16.6 billion, based on revenue. In 2022, the market for Massage Services is estimated to grow by 2.6 percent. Massage Services have risen at a slower rate than the general economy in the United States. Massage Services grew faster than the Consumer Goods and Services sector in the United States. High competitiveness and low entry barriers are the two main negative aspects hurting this market. Individuals aged 20 to 64 make up the great majority of people who use massage therapy services, according to statistics from the American Massage Therapy Association (AMTA). As a result, a rise in this age group’s population would boost industry revenue. While the number of persons aged 20 to 64 is predicted to rise in 2021, the sector may have a chance.

Financial Overview:

Massage Therapy business plan financial overview

Financials is one of the most important sections of a Massage Therapy business plan. You can get an idea of your projected revenue, required investment amount, is the business sustainable without additional funding, etc.

Financial Highlights:

Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency
Interest coverage ratio8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Fund Usage

Massage Therapy investment Capex

Industry Analysis

The industry analysis section of the Massage Therapy  business plan will help you get better insights into competitors, market growth, and overall industry prospects. You can order a custom market research report for your Massage Therapy business.

The worldwide massage and relaxation sector (a significant segment of the wellness services industry) is profiting from a growing customer base ready to de-stress from high-stress occupations and hectic home life. Massage is the most popular therapy in salons and spas. High-end resorts that provide various spa treatments fuel the worldwide massage and relaxation sector. Massages at smaller local beauty shops are also available at a lower cost.

While the COVID-19 epidemic significantly impacted massage therapy, the field has recovered well. Most massage therapists are back on the field with more stringent safety procedures. Based on the most current results from AMTA’s recent surveys, the condition of the massage therapy profession seems to be bright in 2021. Massage use varies depending on gender, age, and wealth. Men are now more likely to have a massage than women since the epidemic started. 25% of males and 21% of women last year received a massage. Customers who have children under 18 at home are more likely to have a massage than those who do not.

Massage Therapy business plan industry analysis
Market size of the massage service sector in the
United States from 2021 to 2022 (in billion U.S. dollars)

While working on the industry analysis section of the Massage Therapy business plan make sure that you add significant number of stats to support your claims and use proper referencing so that your lender can validate the data.

One’s income influences the likelihood of getting a massage. Only 19% of individuals earning $50,000 or less had a massage last year, compared to 36% of those earning $100,000 or more.

•  In 2021, 46% of female customers and 23% of male customers had a spa massage.

•  34% of customers visited a massage therapist’s office for a massage.

•  In 2021, 24% of customers went to a massage franchise or chain, with 13% getting their last massage   at a name-brand chain.

• In 2021, 7% of customers had a massage at their own or a friend’s house.

More than half of all massage customers had their most recent treatment for health and well-being. Only 16% of customers say pampering was their main reason for getting a massage last year, while 30% say they had a massage for pampering in the previous year. Last year, over half of customers had a massage for stress relief or relaxation. Massage treatment is more likely to be discussed with a doctor or health care professional by males than by women. In 2021, 63 percent of customers who had a massage for health and wellness purposes said it was part of a treatment plan from a doctor or medical professional. Massage treatment patients seeking to recover after surgery or physical damage, utilizing massage to tone muscle and increase mobility and flexibility, make up a significant portion of the massage market sector. Massage therapists operate in various settings, including gyms, shopping malls, spas, hospitals, and private offices, in both the private and public sectors. Massage therapists may also work remotely, visiting patients at their homes or places of business. Yoga, pilates, meditation, outdoor activities, organic living, and nutrition are part of the relaxation market.

Sections of the Market

According to data, the worldwide yoga and pilates industry has grown rapidly in recent years. These activities, formerly popular only among younger women, are now drawing a growing number of male practitioners and baby boomers. Fitness clubs that provide yoga and pilates programs have driven dedicated yoga and pilates businesses to compete.

According to Global Industry Analysts, the US chiropractic care business will produce about $13 billion by 2015. Positive public attitude, an aging global population, and increasing demand for non-surgical, non-medical therapies are all driving market expansion.

According to studies conducted by The International SPA Association, the US spa business produced about $13 billion in 2010. Following the recession, which saw individuals cut down on discretionary spending, the sector is in a phase of recovery. Customers are returning to the spa, but they choose less costly services this time. As the economy improves, demand will most likely increase. Meanwhile, industry participants are using advertising tactics, including online discounts, package promotions, and social media, to engage with customers in local communities to entice them back to the spa. Because the pace of economic recovery has been insufficient to maintain the number of spas in operation, the number of spas operating in the United States has decreased by 3%. Even though employment in the spa business has been increasing, competent therapists are in short supply to match the demand for high-quality service.

Marketing Plan

A key part of the marketing plan in a Massage Therapy business plan is the marketing budget. The growth in the number of customers is proportional to the budget and dependent on the CAC.

Massage Therapy business plan promotional budget

Content Marketing: Create a blog about The Sunrise Wellness Spa on the website with material catering to prospective customers.

Discounts: The Sunrise Wellness Spa will provide multiple rewards or incentives where members get a deal if they successfully recommend someone.

Social Media: Engage and promote The Sunrise Wellness Spa on Twitter, publish news on Facebook, and utilize Instagram to promote curated photos of The Sunrise Wellness Spa.

SEO (Search Engine Optimization) Local SEO makes it easier for local consumers to find out what you have to offer. It creates trust with potential members seeking what your place offers.

Email Marketing: Sending automated in-product and website communications to reach out to consumers at the right time. Remember that if your client or target views your email as really important, they are more likely to forward it or share it with others, so include social media share buttons in every email.

Promotional Brochure: Brochures with The Sunrise Wellness Spa logo. The leaflet contains thorough information about The Sunrise Wellness Spa.

Organogram

Massage Therapy business plan organogram

Financial Plan

This section of the Massage Therapy business plan helps your lender figure out whether you will be able to pay off the loan, whether the business is sustainable, what are the growth prospects, etc.

Earnings:

Break-Even Analysis:

Massage Therapy business plan break-even analysis

Income Statement:

2020A2021A2022F2023F2024F
ANNUAL REVENUE
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase528%193%133%87%
COST of REVENUE
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
CASH FLOW from INVESTING ACTIVITIES
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
CASH FLOW from FINANCING ACTIVITIES
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet:

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
CURRENT ASSETS
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
LIABILITIES
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
EQUITIES
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122