Chapter 21

1. PowerPoint to accompany New Foundations in Therapeutic Massage and Bodywork First Edition Jan L. Saeger • Donna Kyle-Brown Chapter 21

2. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION Learning Outcomes • Chapter Objectives • Identify your attitude toward and attraction quotient for money. • Determine strategies required for developing, marketing, and creating a massage practice. • Recognize pitfalls of starting a business and how to avoid them. • Write a draft of a business plan that includes goals. • Know what questions to ask yourself before starting your own business. • Design a business card and brochure for your business.

3. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION Keys to Success • The principles of a successful business and those of a healing arts practice often seem at odds with one another. • We often think we cannot do good work and make money at the same time. • This stems from a historical view that helping or charity work is altruistic and meant to embrace poverty or at the least a lower standard of living. • People in religious orders such as monks or individuals like Mother Theresa come to mind. • You can incorporate into your business plan those general rules of operation for a successful business that match your personal philosophy and ideology. • These qualities, which originate from your intent, set you apart from others in practice. • Most people who are successful hold a good sense of self. • They know who they are and where they want to go. • Successful people are knowledgeable and well-acquainted with every aspect concerning their business, from accounting to marketing.

4. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Their attitude toward money is appropriate. • If you don’t respect money, it doesn’t respect you. • The universe has a funny way of handling attraction. • Positive attitudes attract; negative do not. If you hold a negative view of money, whether it be fear of handling it or believing everyone else has it and takes it from you, it will never come to you. • Financial planners have pointed out that our relationship with money is related to our attitude toward it. • There are several indicators of your attitude toward money, such as • The manner in which you physically handle your money. • Are all of the bills (paper currency) in your wallet in order from least denomination to highest? • Are the bills all “face up”? • Or do you wad up the bills and stuff them in your pocket or purse? • Do you have excess debt or obligation that burdens every thought? • If you respect money, it respects you.

5. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION Entrepreneur or Employee • Is entrepreneurial management for you? • Not all of us possess the personality and skills required for entrepreneurial work. The term “entrepreneur” has many meanings, but it usually refers to one who is • ideologically a capitalist or industrialist • has a high tolerance for risk • and enjoys being his or her own boss • Any business venture has risk. • According to the Small Business Administration, only two out of six small businesses survive for at least six years. • All business owners need to follow one basic edict of life: • “Know thy self!” First and foremost, you must decide what type of business you want to run or work in. • As a massage therapist, you have many options, such as a spa, massage center, chiropractic office, physical therapy facility, gym, airport staff room, professional office, health food store, or home-based business with out-calls.

6. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • The massage therapist must examine all aspects of the customer’s needs. • Owner/operators of massage practices must ask crucial questions such as • What separates your massage products and services from the competition? • What is the quality, service, and cleanliness value of their business? • What should you charge for your services. • The answer to most pricing objectives is what the market will bear. • Take the time to do research in your area. • Find out what other therapists are charging for comparable services and set your fees accordingly. • Also, consider the socioeconomic level of your area: a neighborhood with a high standard of living (above-average income level) may accept a higher price structure than a working- or middle-class area. • What kind of environment would your clients find pleasing or comfortable? • Some clients prefer intimate rooms that are warm, with soft light and candles, aromatherapy, and relaxing “new age”music, while others prefer a more clinical setting for therapeutic massage. • Injury and rehabilitation facilities may appear sterile by comparison, but they serve the community and can be very lucrative.

7. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Additional Questions to Ask Yourself • You will need answers to many detail-oriented questions. Ask yourself the following questions to ensure you cover all bases: • What credentials and licenses will you need (federal, state,municipal, etc.)? • What form of payment will you accept (cash, credit card, checks, insurance, barter)? • What system of accounting will you use (computer-based or traditional accounting ledger), and how will you report income? • What forms will you need to track finances and client information (client intake, SOAP notes, etc.)? • What will be the structure of your business (corporation, sole proprietorship, partnership, etc.)? • What knowledge and skills do you need to successfully administer the day-to-day operations of the business (scheduling, hiring, purchasing, marketing, and bookkeeping)?

8. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • The external communication model you choose will be a key component of your massage business. • If you choose a simple model, all you have to do is list your phone (cell or landline) number on your business card and you’re in business. • More complex models may include e-mail or a website and multiple phone lines for networking personal computers with DSL. • You will have so many choices, but so little time and resources when you first start out. • You can always grow into the business—if flexibility and tenacity are characteristics you possess. • When cash to start a business is low, you must rely on strong communication and negotiating skills.

9. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • The Business Plan • If you choose to open your own business, you must create and write a business plan. The “business plan” is the map you need for setting up your massage business. • It will identify the goals that will provide direction and landmarks for your massage achievements. • It will help you identify the opportunities and obstacles you may encounter. • Development of a business plan can start at school, using your instructors, peers, and school library to help you chart your course and explore career options. • Visiting existing institutions such as a day spa, chiropractic clinic, and private massage establishment will give you a snapshot of those markets. • Focusing on only those markets that appeal to you will help you follow your dream from the onset. • Learning to recognize what you resonate with allows you to manifest it as reality. • Belief in yourself and your ideals dictates your uniqueness in this field, which in turn translates into success.

10. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Anatomy of a Business Plan • Whether you are writing a business plan strictly for yourself or for potential investors, consider it both a sales pitch and something that will hold you to your dreams. • The business plan document should be typewritten, double-spaced, and placed in a cover. • It should include the following: • Title page • with business name and your name, address, and phone number • Description page • with a description and details of the business • Goals page • with projected outcomes and reasons for believing the business will succeed • Marketing page • with a description of your clientele or who you expect to reach and acquire as clients • Specify what makes your business different from others in your area. • Spell out what your marketing strategy will be for achieving this. • Financial analysis page • with a description of your income potential and current financial status

11. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Goal-Setting • Think about and write down in positive “I am” terms what you want to achieve. • Don’t be afraid of deciding on a time frame. • Life—and success—is an ongoing process: you will frequently review, revise, or completely alter your goals. • It does not mean you are wishy-washy or a failure. • Writing out your goals gives them a sense of validity and more weight. • It gives you something concrete to look at when you find yourself saying,“Why am I doing this?” • Keep goal writing simple and to the point. • It is easy to be overwhelmed by goals. • Five or 10 life-altering points are not what you are going for here but rather a step-by-step approach to creating the business you see in your mind’s eye.

12. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • The Small Business Administration is an excellent source for general information and prospects for loans. • An accountant or financial planner will also be a valuable source of information. • Goal-setting becomes easier when the steps to creating your business are defined. • Think of setting and attaining goals as part of your life’s voyage. • Make the goals attainable and realistic. • As with any voyage, plan for stops and rest periods to maintain a fresh and positive outlook for you and your client base. • These stops may include educational seminars for synergy purposes. • Designate some “ports of call” for recreation and reenergizing, and others for revamping or re-creating your business and changing crews! • Planning these aspects of the voyage kindles the financial spark required to determine start-up costs.

13. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Start-Up Costs • Start-up costs for a massage business would consist mainly of the basic equipment and facilities. • A portable massage table (used or new) can range from $300 to $900. • Administration forms, business cards, brochures, client intake forms, and other necessary items will cost $300 to $500. • Communication devices such as landline, cell phone, fax, photocopier, and personal computer with a scanner can total from $1000 to $2500. • Membership in a professional association that provides liability insurance will be approximately $300. • Renting office space can be quite costly, ranging from $500 to $1000 per month, depending on location and size. • For example, in South Florida a C class building is approximately $10-$12 sq/ft, in a B class building $15-$20 sq/ft, and in an A class building $22-$27 sq/ft. • Common area and maintenance fees can differ greatly for a new building versus an older one. • Do not lock in the lease for more than one year unless your business plan calls for long-term growth in that specific market. • Total start-up costs can range from $2100 to $7100 monthly.

14. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • When renting or leasing a facility, it is important to secure a facilities and service agreement that outlines the terms between you as the tenant and the landlord. • Remember, you must ensure the unit is yours and know what the cost of operating out of that unit will be in the short- and long-terms. • Who is responsible for leasing improvements? • Is it a one- or two-year agreement? • Are utilities and water covered in the fee, or must you pay those separately? • What is the common area cost if the space is part of a strip mall or other complex? • Does the rental agreement include a “no compete” clause to ensure you are the only massage therapist in the complex? • Consider all these factors, and, if necessary, consult a business associate or attorney before you commit money or time to the facility.

15. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Insurance • In some states, the individual business owner, proprietor, or independent contractor is required to have liability insurance and sometimes workers’ compensation insurance. • The amount of insurance depends on your level of risk, but often a minimum amount is required by state law. • Seek out the information through your local health department before purchasing insurance. • Many professional organizations, such as American Massage Therapy Association, Associated Massage & Bodywork Professionals, International Myomassetics Federation, and International Massage Association, offer lower group rates. • Another avenue to explore for reduced rates is through your local state chapter, such as the FSMTSA (Florida State Massage Therapy Association). E X A M P O I N T Depending on state law, massage therapists may be required to have insurance before they can work for or with any employer. Even if you are an independent contractor and self-employed, in most states you must have your Establishment insurance and license displayed in the office or with you when practicing massage.

16. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION Marketing Yourself • The employment status of each massage therapist is directly related to his or her motivation, passion, and commitment to excellence. • Your résumé is a snapshot for potential employers, investors, or partners. • The résumé should reflect your previous jobs and educational accomplishments. • Experience in related fields such as physical therapy and personal training is important; however, the emphasis should be on your hands-on experience with specific massage modalities. • Continuing education units (CEUs) you have earned illustrate your experience with advanced classes and should be included.

17. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Cards and Brochures • Design and produce a business card, brochure or both advertising your skills and services. • Use a professional graphic artist and printing company if you do not have an “eye” for marketing materials or are not proficient in using a personal computer. • These professional services are not necessarily cost-prohibitive. • Check with local print shops and quick print shops such as Kinko’s. • If you use a personal computer, there are many publisher programs that have templates for business cards and brochures. • For the brochure and card, a high-quality paper stock will accommodate the wear and tear of daily storage and handling of these vital links to the outside world.

18. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • A full color (four-color) brochure is desirable when economically feasible. • If you can afford only a black-and-white (two-color) brochure, consider using a color instead of black with the white. • White space is very important, and less is more when making an impression on potential clients. • When giving out business cards, always give theclients two cards, one for the client and one for their associate or friend. • The back of a business card is another marketing tool that is often overlooked. • Use it to record subsequent appointments by adding lines for date and time. • It can offer a discount on the next visit or a free consultation for the recipient. • Get creative and play with the format, color, font style and size, and logos. • All of these elements are important when designing a business card or stationery for your business.

19. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • The brochure should maintain continuity by following the same design established by the business card. • This primary tool to educate the public and potential clients should include the following five main elements: • The nature of the services you offer • Description of all services offered • Credentials and qualifications of the practitioner • Client fees and relevant times associated with each modality • Address, phone number, fax number, e-mail address, and website, if applicable, plus hours and days of operation

20. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Marketing Yourself Through Chair Massage • One of the best ways to market your services is through chair massage. • Whether you perform pro bono (free) work or make visits to company offices, chair massage is a great way to break up the routine of the normal work week for both you and the recipient. • Corporate offices throughout North America are awakening to the rewards of chair massage in the workplace. • Companies are looking for ways they can better serve their employees as well as their customers. • One way is by giving employees the rewards of a 15-minute chair massage in the office. • Whether the chair massage is an occasional thank you to staff or part of a weekly wellness program, clinical tests have shown that massage increases alertness and productivity.

21. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Corporate Stress Management • A key point to include when marketing chair massage to potential corporate clients is the prospect of more alert, productive, healthy, and happy employees with less absenteeism through stress management. • Of utmost importance is showing employees that they are genuinely valued as human beings with top-of-the-line treatment. • The following suggested wording could work as you market this service: • “In less time than it would take for the average coffee break, show your employees how valued they are.What a difference 15 minutes can make!” • The use of chair massage has been a staple in the massage therapy program for many years. • This unique modality incorporates Swedish, deep tissue, shiatsu, and a myriad of stretching techniques associated with relaxing the neck and back. • The body mechanics for chair massage need to be emphasized more so than for any other form of massage.

22. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Benefits of Chair Massage • Chair massage serves many purposes in the workplace. • Benefits to the employer include: • More productivity • Less absenteeism • Better employee-employer relations • Lower health care costs • Lower turnover • Reduce desk rage • Benefits for employees are: • Renewed alertness • Greater vitality • More creativity • Better decision making • Boost in morale

23. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Marketing Via Local Media • The print media can be a very effective means of marketing yourself within a specific time frame, especially during your grand opening. • Local papers enjoy running stories about a new business or service being offered in their community. • Often, a local paper will accept a piece you have written in a news release format for publication. • One of the most effective and least costly means of advertising is to perform chair (or table) massage pro bono at charity walks or runs. • These events get you in front of the public while reaping the benefit of contributing to the community. • Make use of gift certificates and coupons. • These can be printed separately from or along with your brochure for distribution in neighboring locations.

24. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Mailings can take the form of many different offerings for various reasons. • A postcard introducing you and your massage services to the neighborhood is a very inexpensive and effective way of getting your name and face out to the community. • Include a black-and-white photo and brief list of your credentials. • Be sure to specify “free consultation” or “limited time offer” to spur a “call to action” for the consumer. • Any and all materials sent via mail or published in a newspaper are considered advertising and should be budgeted in the initial start-up costs. • If you have a place of business, an establishment number is also required. • Check the requirements of your state, municipality, and county before going to print any advertising for your business. E X A M P O I N T In most states, the law requires the therapist to have a license, or at least be registered, and therefore, a license number must be included on all advertising materials that are circulated to the public.

25. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Networking “Networking” has become the key element to marketing yourself in any business. • Joining the local Chamber of Commerce, Rotary Club, massage association chapter, or other professional associations will enhance your image and directly increase the revenue of your business. • The Business Network International (BNI) has many chapters throughout the United States and Canada, and around the world. • This well-structured networking group is an excellent resource for getting, tracking, and following up on referrals for your massage business. • Unfortunately, BNI chapters usually require owner/operators to be in business a minimum of two years before they are accepted into the chapter. • In the BNI philosophy, you are gifted with a code of ethics and the relationship management idea of “givers, gain.” • The more you give, the more you gain. • All relationships are founded on trust. • Just as each client requires your confidentiality and trust, your word is your bond in the business community, and the integrity of the actions you take and display dictates your success. • Other networking opportunities come from involvement in religious, sports, or other social groups. • Look to your immediate circle of friends and acquaintances as a great place to start getting your name out to the public. • Remember that volunteering time doing chair massage at the local senior assisted-living center or charity events benefits others in your community as well as yourself.

26. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION Type of Business • Now that you have your résumé, business cards and brochures, stationery, appropriate license, insurance, and networking group in place you must decide how you want to work—whether as an • employee • everything is done for you—all the marketing, cleaning, booking, and so on • you will not have to worry about setting up a practice, acquiring clientele, or paying business expenses • sole proprietor • you can set your own schedule, work as much as you want, take off when you want, answer to no one but yourself, and have simple governmental regulations to follow • the disadvantages of a sole proprietorship are long hours, no one to share the workload with, and bearing the full financial burden • co-owner • you will have someone with whom to share the responsibilities and workload • The simplicity of forming a sole proprietorship versus a corporation has many advantages and disadvantages, depending on the level of risk you want to take with personal liability.

27. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION E X A M P O I N T You will probably work as an independent contractor; as such, you will be responsible for paying your own taxes, health insurance, and workers’compensation insurance. • Sole Proprietorship • Most self-employed massage therapists operate as independent contractors and own their business as sole proprietors. • This is the simplest form of business organization. • In some states, you can be a single member (sole proprietorship) limited liability corporation (LLC). • A LLC may offer you corporate-type protection. • You must check with your state for details. E X A M P O I N T In a sole proprietorship, one person has ownership and liability of the business. E X A M P O I N T As a sole proprietor, you will file a Schedule C tax form to report business losses or profits and a Schedule SE form to report self-employment tax if there are net earnings.

28. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION E X A M P O I N T A general partnership has partners that share ownership and liability, whereas a limited partnership has partners who are invested in the business but do not play an active role. • Partnership • Limited partners have a liability only up to the amount of their investment. General limited partners play an active role and have unlimited liability. • Forming any type of partnership allows therapists to build a larger practice. • An agreement is signed or corporation papers are drawn up by an attorney, and the business’s name is registered with the proper authorities. • A business license is obtained if required by law. E X A M P O I N T Often seen today is the limited liability corporation (LLC), which is permitted in most states and generally must have at least two owners. The owners are taxed as a partnership, while their liability is limited as in a corporation. E X A M P O I N T If you are a partner in a business, you will file a Schedule K-1 (form 1065) to report your share as a partner of income, deductions, credits, and other items.

29. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Corporation A “corporation” is a legal organization whose assets and liabilities are separate from those of its owners. • Each state has different laws and requirements. • These requirements include filing papers called articles of incorporation, electing officers, and obtaining an employer identification number from the Internal Revenue Service (IRS). A “C corporation” is a separate entity from its owners or stockholders formed in accordance with state regulations. • The corporation pays income tax, and the owners pay tax on any dividends. E X A M P O I N T You will file a C corporation form 1120.

30. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION An “S corporation (Subchapter S corporation)”is a corporation that meets IRS size and stock ownership requirements. • If the corporation qualifies, the shareholders may request S corporation status. • This type of corporation pays no taxes. • The profit or loss is passed on to the shareholders, who pay taxes on their individual tax returns but retain the advantages of a corporation. A “professional corporation”is a C corporation that is taxed at a higher rate than other corporations and has limited liability for its owners. E X A M P O I N T You will file an S corporation form K-1 (1120s). E X A M P O I N T This type of corporation files like a partnership.

31. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • If you find it necessary to go after venture capital, meaning you will have investors’ money for which you will be responsible, make sure all expectations are spelled out in a contract. • Additionally, make sure to include an “exit clause” or exit strategies for both parties, should you need to end the business relationship. • You may also buy an existing practice. • Make sure it is a practice comparable to what you would offer. • If the existing business and your particular talents do not blend well together, the client base will not stay with you. • It could be an expensive lesson to learn that you have bought equipment and assumed rental space for more than you would have paid for starting new.

32. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Selecting a Business Name • In choosing a name for your business, select one that represents your profession but is not too “far out.” • You can do a name search online with the state agency that registers corporations (often the secretary of state’s office). • If the name is not currently in use or has not been used within the past year, it is up for grabs. • You can also trademark your business name for a hefty fee of $325. • A DBA is also known as a fictitious name. • Contact the agency that registers corporations in your state. E X A M P O I N T Most states require that you file a DBA (doing business as) name if the business name is different from your own name.

33. CHAPTER 21: BUSINESS DEVELOPMENT, MARKETING SUCCESS AND COMMUNITY EDUCATION • Chapter Summary • Whether you choose to open your own business or work for someone else, launching your career as a massage professional is an exciting time in your life (both personally and professionally). • There are benefits and complications that go hand-in-hand with any type of business. • Weigh each question and concern, as well as anticipated hopes, carefully and give yourself honest responses to all. • Intent paired with knowledge and expertise will ensure success.