Free Massage Therapist Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a massage therapy practice while showcasing the expected financials and operations over the next three years. Massage Therapist, Inc. (“the Company”) is a New York based corporation that will provide massage therapy services to patients in its targeted market. The Company was founded by Mr. John Doe.
1.1 Products and Services
The primary revenue stream for the business will come from the sale of massage therapy services rendered by Mr. Doe. According to several medical studies the effects and benefits of massage therapy are well documented, and they provide several medical benefits to patients. The business will also generate secondary streams of revenue from the sale of medicinal herbs and other products associated with the practice of massage therapy. The third section of the business plan will further describe the services offered by the Massage Therapy.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the Company’s Massage Therapy location. • Financing for the first six months of operation. • Capital to purchase equipment needed to render massage therapy services. Mr. Doe will contribute $10,000 to the venture.
1.3 Mission Statement
The Massage Therapist’s mission is to become the recognized local leader in its targeted market for massage therapy services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience as a licensed massage therapist. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Massage Therapist, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Massage Therapist requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Massage Therapist, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Massage Therapist, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings. Mr. Doe would need to find a massage therapist practitioner to take over the practice. This transition period could take up to one year’s time.
3.0 Products and Services
Below is a description of the massage therapy services and products offered by the Massage Therapist.
3.1 Massage Therapy
The primary source of revenue for the business will be the sale of massage therapy services rendered to Mr. Doe’s patients. Mr. Doe will perform all types of massage therapy including deep tissue massage, general massage, specific muscle massage, and other services that relate to his practice. In time, the business may hire additional massage therapists that will be able to provide services to clients of Massage Therapist, Inc. This will greatly increase the gross billings of the business.
3.2 Sales of Herbal and Eastern Medicine Products
To a limited extent, the business will carry a small inventory of herbal medicines and Eastern medical products that will be used in conjunction with the treatments rendered by Mr. Doe. Management expects that this aspect of the business will generate approximately 10% of the business’s aggregate revenues while producing contribution margins of 70%.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the massage therapy industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue for a significant period of time, at which point the economy will begin a prolonged recovery period. However, businesses, such as massage therapy practices, tend to operate with substantial economic stability as many people consider these treatments to be essential to their well being.
4.2 Industry Analysis
Within the United States, there are approximately 10,000 businesses that specialize in providing massage therapy to the general public. Each year, these businesses aggregately generate $2.7 billion of revenues while providing jobs to more than 31,000 people. Over the past five years, annual payrolls have exceeded $900 million. This is a mature industry, and the anticipated future growth rate of the industry is expected to equal that of the general economy. However, some economists have predicted that the industry will grow faster than the general economy as the Baby Boomer generation begins to demand more massage therapy services.
4.3 Customer Profile
The Massage Therapist’s average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include: • Annual household income exceeding $50,000 • Lives or works no more than 15 miles from the Company’s location. • Will spend $20 (via co-pays) or $150 per visit to the Massage Therapist.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Massage Therapist, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Massage Therapist.
5.1 Marketing Objectives
• Establish relationships with referring physicians within the targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Massage Therapist to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The business will also use an internet based strategy. This is very important as many people seeking local services, such as massage therapists, now the Internet to conduct their preliminary searches. Mr. Doe will register the Massage Therapist with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing Mr. Doe’s expertise, services rendered, location/contact information, and preliminary pricing information. Finally, Massage Therapist, Inc. will work closely with referring physicians and allied health professionals that will provide the Company with its initial customer base.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Massage Therapist, Inc. will have an annual revenue growth rate of 10% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the Company will not see a major decline in revenues. Massage Therapist services are in demand regardless of the general economic climate as they are an essential service for health.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis