Massage Therapy Business Plan is an outline of your overall Massage Therapy Business. The business plan includes a 5 year projection, marketing plan, industry analysis, organizational overview, operational overview and finally the executive summary. Remember to write your executive summary at the end as it is considered as a snapshot of the overall business plan. The creation of a Massage Therapy business plan requires careful consideration of various factors that might impact the business’s success. Ultimately, a Massage Therapy Business plan serves as a roadmap to guide the company’s direction.
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.
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.
|Interest coverage ratio||8.2||11.1||14.2|
|Debt to asset ratio||0.01||0.01||0.2||0.18||0.16|
|Gross profit margin||51%||51%||53%||53%||53%|
|Return on asset||5%||6%||13%||14%||14%|
|Return on equity||5%||6%||16%||17%||17%|
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.
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.
A marketing plan of a Massage Therapy business plan outlines the company’s strategy to promote its products or services to its target audience. It includes specific tactics and channels the business will use to reach potential customers. This section defines the company’s unique value proposition, identifies the target market segments, and discusses the competitive landscape. It also includes insight into budget allocation, projected outcomes and key performance indicators to measure success. Marketing plan helps businesses demonstrate their understanding of the market dynamics, their positioning within the industry and their approach to driving customer engagement and sales.
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.
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.
A financial plan of a Massage Therapy business plan provides a comprehensive projection of a company’s financial health and its anticipated monetary performance over a specified period. This section encompasses a range of financial statements and projections such as profit and loss statements, balance sheets, cash flow statements and capital expenditure budgets. It outlines the business’s funding requirements, sources of finance and return on investment predictions. The financial plan gives stakeholders particularly potential investors and lenders a clear understanding of the company’s current financial position. A financial plan helps businesses demonstrate their financial prudence, sustainability, and growth potential.
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.
|Total annual revenue||47,985||301,236||882,211||2,057,189||3,837,842|
|COST of REVENUE|
|Total Cost of Revenue||285,560||615,220||987,794||1,455,612||1,935,625|
|as % of revenue||595%||204%||112%||71%||50%|
|SELLING & ADMIN EXPENSES|
|Total selling & admin expenses||166,464||363,924||500,428||576,525||695,230|
|as % of revenue||347%||121%||57%||28%||18%|
|Accumulated net profit||-404,039||-1,081,947||-1,687,957||-1,662,905||-455,918|
Cash Flow Statement:
|CASH FLOW from OPERATING ACTIVITIES|
|Net profit before tax||-$404,039||-$677,907||-$606,011||$25,052||$1,206,987|
|change in payables||$25,917||$25,250||$22,000||$25,417||$24,417|
|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|
|Net cash flow/ (outflow) from investing activities||-$180,000||-$167,200||-$150,040||-$159,720||-$175,692|
|CASH FLOW from FINANCING ACTIVITIES|
|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|
|Net non-current assets||$135,733||$217,600||$247,136||$248,729||$224,909|
|Total current assets||-$113,856||-$408,380||-$537,927||$43,349||$1,884,214|
|Accumulated net profit||-$404,039||-$1,081,947||-$1,687,957||-$1,662,905||-$455,918|
|Total liabilities & equities||$21,878||-$190,780||-$290,791||$292,078||$2,109,122|