Starting a new business

[snvffy]

I know many of you may be tired of this question, but I was hoping you could give me some pointers on starting a new business.  Are small business loans the way to go? Should I focus on massage or offer spa treatments as well? What is the most important item (other than a table,oils,etc) needed before satarting a business? What is the best way to advertise? How much money is needed to start up?Any and all help is appreciated.

 

[Senor Cardgage]

Many questions.  What are you "qualified" to do?  Spa treatments?  Massage?  Do you have marketing experience?  Do you have an accountant?  Not that you need one, maybe.  Do you have a business plan?  I don't.  If you go to get a loan, you will have to have one.  Do what you love, love what you do.  Sounds cliche', I know.  I am new to the business;  worked out of my house for 6 months, with my one client.  Took over a business in a chiropractors office, then moved into a salon environment when that lease ran out.  If you move into such an environment, knowing the spa services will be beneficial to you.  Being able to offer some other services, like waxing seems to be gender specific.  That said, I'll tell you that I do Swedish massage, with some myotherapy and myofascial release and maybe a tiny bit of craniosacral therapy.  Could say integrative.  I make soap, but am just now taking it to the salon.  Bodyworkbiz.com  courses are great, have a look.  Good luck Mick

 

[AlwaysBored]

Starting your own business is complex in itself, but I agree with Mick that you should do what you love, love what you do.  I started offering foot reflexology treatments in my massage business after I was told by many of my clients and LMT's to offer it, because they enjoyed it so much.  So I think it's best to focus on offering services that you enjoy & other's complement you on. I did not start out wih a small business loan, mainly because like yourself I wasn't sure exactly what I wanted to offer. I think that the most important item needed for starting, is (your vision) of the business you want to create! Iv'e meditated a lot about my own pracice, and it has all come together.  I started  without any start up $$$ - part-time while I had another job, and when I finally decited I was ready to do bodywork full time (2 yr's later) I did some direct mail advertising, and had such a great response that I went full time with my practice!  Start visualizing what you want! Best,  :

 

[hellokitty]

Starting a new business

Stacy,

Here are a few replies to your questions.

Are small business loans the way to go?  

If you are going to get a business loan, I'd suggest finding a CPA who can help you with this. Cost could range anywhere from $200 - $800.  You should be able to find a CPA practice that is not too large and he/she can help you make a business plan etc - etc.

You'll need to check with your lending agency to see what info they require and if you need collateral backing you.

A loan can help when you don't have a part-time job or money backing you.


Should I focus on massage or offer spa treatments as well?

Depends on where you practice and the room you have.  If you have a wet area (shower/bath) of course it will make it easier to offer these treatments.  

There are some spa things you can do without water and only moist towels. (Parafango comes to mind.)

There is also a steam cabinet you might want to use.  

http://www.steamywonder.com/SteamyWonder.html

http://www.newlifesystems.com/Merchant2/merchant.mv?Screen=PROD&Store_Code=NLS&Product_Code=SW107&Category_Code=5

What is the most important item (other than a table,oils,etc) needed before starting a business?  

Table, lotion, sheets, pillows, a gown or two, some towels, music, foot stool, radio/CD player. Those should be enough to get you going.

Consider getting a receipt book system for your customers too.  They may want to use you as a write off on their taxes, or even submit your services to an insurance company for reimbursement.


What is the best way to advertise?  

Word of mouth seems to be best, but this is slow at the start.  

Hand out those business cards and link up with some special people who will refer to you.  

You can also sometimes get a fairly inexpensive add in a local paper or holistic magazine.


How much money is needed to start up?  

A fair estimate so you are not in a huge pinch would be somewhere in the neighborhood of ~$10,000.00  (but this highly depends on where you are and what you want to do - you would have to sit down and make your own evaluation of your pocketbook, needs and wishes).

On a serious budget, it will all depend on if you rent, if you use your home, if you pay a split fee, things like that.

Let's look at some generalized costs and then you can see where you fit in.

Office space: $900/mo.  You will need first and last months rent.

Business owners insurance: $50/mo.- You'll need this if you rent space.

Malpractice: $200/year

Flood Insurance: $350/year If you are in a flood plane.

Phones: $40 - 120/month Depending on if you use cell or straight office phones.

Air/Heat: $250/month

Supplies: $1,500 Things like - table, lotions, sheets, lamp, pens, pencils, appointment book, folders, computer program (if you use a comp), etc.

Laundry Detergent $15.00/month - hard to say on that one, I buy "Sun" detergent at Wal-mart for really cheap and it does a great job and lasts a long time, longer than a month I know... so hey, you can save a few bucks there and eat out!

Water for clients: $30/month

A few chairs for your clients to sit in: $60

Desk: $100

~~~~~~~~~~~~~~~~~

And of course, you can do all of this a lot less expensive, if you just don't have the money - especially by looking at the thrift stores and whatnot.  


Hope that helps.

 

[Kristin B]

Starting a new business

What a great reply, Texas gal. Thanks so much.Don't forget marketing startup costs... business cards, brochures, website, advertising, etc.

 

[Tmucho]

These are great replies!  Try not to get overwhelmed with how much it might cost.  My advice is to start slow and small.  I started 5 years ago with a massage table, half a gallon of Almond Oil and $180.  I rented space from a hair salon and negotiated a very reasonable rent of $150 per month, to be reconsidered after a year.  It was a run down beauty shop and the room was literally a storage closet.  You would be amazed at what you can do with determination and creativity on a shoe string budget.  I charged very low fees and large referral incentives.  My clientelle base grew quickly and they were so happy with the value the received that they overlooked the run down shop.  After 1 1/2 years I moved into a proffessional complex with two treatment rooms, and 2 years after that moved into a lager suite with 4 treatment rooms.  Have faith, it can be done.   The only thing that worries me with a buisness loan (I never had one) is that your company starts out in the negative.  I was concerned with diminishing returns...meaning if I started out with all the bells and whistles, if for any reason my income could not maintain my investment, then the returns would continue to diminish, leaving me further in debt.I do however, wish I had found this board several years ago, when I was getting started!  What a wealth of information.  If you take a little of what everyone here says, use what appeal and applies to your situation, you will feel comfortable with it.  What worked for me may not work for anyone else.  (doesn't stop me from talking about it, now does it?! )Also check out http://www.bodyworkbiz.com for their Fill Your Practice 101 course.  Worth every single penny.That's my ramble....

 

[zaza]

Starting a new business

Owww... I completely forgot about the "paper" things... thanks for reminding us of that Ego!

And, wonderful reply Kneadfulthings!

I see I failed to mention what I did, as well.

I kept working part-time and part-time and part-time (day spas/ other offices / hotels / etc.), until I was able to get my business off the ground.  Since I knew I was in it for the long haul, for me that meant we're looking at a good five years to actually stabilize.   Could be quicker for someone else.  Depending on how much I worked to pay the bills with other jobs, would obviously depend on how many people I was able to accomodate at my business.  There was definitely a fine line at the point where I had to give up one of my part-time jobs.  Questions like: "Would I have ehough clients coming in to justify quitting? Would I be able to pay the rent?" -- And, at the same time, I had too many clients to only see during the hours I was offereing. --- Then I'd think, "But maybe just not quite enough (clients) to pay the rent."  .... and the circle of questions would begin again.  But, you figure it out and it does all end up working just fine!

Which brings up another point.  Everyone's circumstances ARE different, and everyone's approaches may be a little different, so what Kneadfulthings says is exactly correct.  

If you take a little of what everyone here says, use what appeal and applies to your situation, you will feel comfortable with it.

I SOOO agree.  I learn something from everyone here, even though I may decide to do something different.  There seems to always be a bit of information that I can incorporate into my own practice.

I love these boards.

I hope everyone will just keep on replying with what works for them, so we all get more and more ideas!!!!

 

[Megan !]

You go Texas Gal!  ;DWasn't that the scariest time...when you finally decide to take the leap and do massge full time - with out a part time job to provide steady income?  For me it was both terrifying and exciting at the same time. (I bartended to bring in money while I got started)I am addicited to this board!  I check it almost every day to see everyone's issues and perspectives and advice and just plain SUPPORT!  Sometime you can feel very alienated when you are self employed, business owner...and this helps me to feel connected again.  Thanks Guys!  :-*

 

[Ali G]

I came across this thread and thought it was filled with great information - so I am going to bump it forward.

 

[goddesskieryn]

A co-worker/friend (the same one I keep mentioning in all my other posts) and I are getting together this weekend to talk about moving out on our own. Very scary, very exciting! So this thread was what I was looking for. Thanks, I'm looking forward to hearing other's experiences!

Steph!

 

[Bigz]

Starting a new business

Hi Stacy, and welcome to the board

The answers to your questions vary WIDELY, to say the least What works for one, may not for another. What's true for one may not be for another. There's a wide variety of arrangements/situations/options out there. I can only speak from my own experience, which in massage therapy is rather limited, but I grew up in a self-employed environment all my life, so hopefully I can help

I know many of you may be tired of this question, but I was hoping you could give me some pointers on starting a new business. Are small business loans the way to go?

First, I'm personally NOT sick of this question. I think it starts some good discussion every time it comes up. Few people COULDN'T use a little advice on this.

I personally did NOT get a small biz loan. I try to avoid debt where possible, and I don't like the idea of paying interest! That's just money down the drain. Plus, you'll be adding to your monthly bills at a time when you need to conserve--let's face it: there are a lot of start-up expenses that add up quickly, and you don't exactly have clientele banging down your door yet! Keep your budget slim, save where you can, except when it comes to hiring a CPA, which I've elaborated on below.

Should I focus on massage or offer spa treatments as well?

What are you licensed to do? What is your facility set up to easily accommodate? If you don't have a sink or shower, that may limit your ability to provide spa services. What do you WANT to do? Would you rather work on whiplash victims, put people to sleep for an hour, do a salt or sugar scrub, or an herbal body wrap? What clientele do you want? What demographic are you going for? There are pros and cons to dealing with all those I listed above. Choose the modalities, and the clientele/demographics, that fit you best.

What is the most important item (other than a table,oils,etc) needed before satarting a business?

In my experience so far, candles and good tunes! Pay close attention to what you play in your practice. Match it to your clientele/demographic. Match it to the mood you want to create. Make sure it's appropriate; background music for a body wrap and that for a massage are TOTALLY different. Choose your music carefully. Also, I picked up a good-sounding stereo that plays mp3 cd-r's. This is particularly good if you do longer sessions, outcalls, or multiple massages at one location. That way, neither you nor your client gets sick of hearing the same songs for the 4th time in a 90-minute session! lol I mention candles, cuz nothin' beats the elemental glow of a few candles.

What is the best way to advertise?

Word of mouth is best. Your clients are already a known quantity, so you can feel safer with their family or friends than with a stranger. The ppl they refer are more likely to be satisfied with you and be compatible with you, because their trusted loved one talked you up enough to get them to come to you. They did your advertising for you, and you didn't pay a thing!

When you're first starting up, though, you'll have to build up those that will refer others. Advertising is necessary. I have not yet paid for any advertising. I list myself online, on a couple of selectively-chosen websites that emphasize the THERAPEUTIC part of therapeutic massage These are all free listings. Never pay to be listed on web sites. There are enough good free ones out there, and most of the time, they show up first on the search engines, above the ones you have to pay for! I'll be getting large decals/stickers for my truck, made up just for our practice. These may cost a chunk, but they're local advertising for the entire time I'm on the road, which is plenty. I'll be seen by everyone, at any time. For a one-time cost, I'll have something constantly advertising for me for years. Forget the yellow pages, newspapers, TV, and radio. There's too much other junk out there competing for peoples' attention, and it's way too expensive. Instead, put the money toward making up business cards you can hand out, or polo shirts with your logo on them, which make great conversation starters.

How much money is needed to start up?Any and all help is appreciated.

That all depends on a LOT of things. Do you have a friend who's an attorney, a CPA, etc? You'll save there. My momma makes cloth face cradle covers, sheets, eye pillows, herbal compresses, hot packs, etc, so I save there. I buy plain grapeseed oil in bulk from a health food store, not a massage supply store, so I save there. I added another cell phone to my existing plan instead of buying a whole separate plan. I work out of my house instead of trying to rent/lease/buy space, which is a nightmare, so I save at LEAST $500 every month there.

To start up, I needed $2500 for school, another $500 for textbooks and supplies, $200 for the cell phone itself, $100 for some furniture, $500 for my table, $500 for my chair, $200 for CDs (at first), etc. It adds up quick, but if you plan well and play it smart, it doesn't have to eat you out of house and home.

General pointers for starting a business:
--For financial planning, add up a realistic snapshot of your anticipated expenses, overestimate where possible, and then when you have the grand total, double it. Most of the time, expect to spend double what you had anticipated.
--Hire a good CPA! They're not cheap, but they'll pay for themselves and then some. Don't skimp on this expense. Many self-employed ppl try to save money by doing their own taxes. Don't do this! It's not worth the headache. You'll probably miss some good write-offs and end up costing yourself more than you would have paid the professional. Find a good one, though. Do some checking around. And if you're not happy with the one you have, do not be afraid to fire them! After all, they're working for YOU!
--You'll put in some long hours, especially at first. Be prepared; being self-employed is freedom....to a point. You can set your own hours, within reason. It's not a get-rich-quick thing, unfortunately. It takes a lot. So be PATIENT with yourself, and the most important thing I've learned is not to panic when I have a lean week or month, or even season. Things fluctuate. You trade security for potential and freedom. Likewise, don't let it get to your head when you have a gangbuster month and make tons of money. Things have their way of evening out. The key is discipline. Take the surplus and start a savings account to get you thru the lean times. Handle money with maturity and you should be fine. And never lose the focus on your clients! Always remember that they're why you're in business

Hope that helps!
Hugs,
~Jyoti

 

[Tye Tye]

The best advice I ever had on starting my own business was to think of the business as a separate person, from the start.

Get the business its own bank account. Give it some of your own money (your 'share' in the business), and/or have the business borrow some from a bank.

Whenever the business needs to buy stuff, have it use money from its own account, not yours (or if you use your own money, the business has to pay you back).

Whenever the business makes a sale to acustomer, the money goes into the business's account, not your pocket.

At the end of the month, the business can pay your wages. At the end of the year, the business can pay taxes and pay you a bonus/dividend, depending on what assets the business has.

Thinking this way helps keep the business separate from you. You can easily see whether the business is profitable, you can work out what taxes the business has to pay, and you see clearly whether the business is paying you a decent wage. It also helps on the bad days, when the business is not doing so well, to separate yourself, and realise that you personally are OK, even if you are working for a business that is having some troubles. On the good days, it helps you realise that you have helped grow your business from a baby to a full grown independent person with a life of its own!

 

[Theandysullivan]

I always recommend that someone concidering opening their own business, go to the Small Business Development Center near them. This is part of the SBA and they will give you advice for free. They also have a series of classes that are great for someone 'taking the plunge' for the first time. I know they pride them selves on how many of the students survive in business. I can call my SBDC office now and talk to someone whenever I need to (during regular business hours..) They can help you with a business plan, finances, proposal, etc. I recommend them to all prospective business owners. Out of the classes I took, 11 businesses are still going strong and one couple decided they did not want to go into business, so they never started (they do tell that the classes saved them a lot of time and money, because they didn't want to work that hard...)

SBDC's are usually associated with a college and have one or two employees per center. The rest of the teachers are volunteers from community that teach each specific class. (ie and banker teaches the finance)