Massage therapy practice business plan for your own salon

Are you planning to start a massage therapy business? Well, massage therapy business is a profitable business that offers healthcare related services to help heal people from some ailment or help them in soothing their muscle soreness, improving their sleep, boosting their immune function, enhancing their mental skills, aiding headache sufferers, alleviating depression, and reducing stress and anxiety. And considering the present situation, where every second person is in depression, this business has a lot of market.

So, before you move on to opening your therapy clinic, you will have to prepare a comprehensive business plan which will establish the basis of your company’s future operations and decisions. If you are wondering how to write an effective business plan then here we are providing you a sample physical therapy clinic business plan of a startup named ‘HealCo Relaxing Center’.

Executive Summary

2.1 The Massage Therapy Business

HealCo Relaxing Center will be a licensed massage therapy center located in the Manhattan borough of the New York City. The business will be started in an existing therapy center which ceased to function two months ago.

2.2 Management of Massage Salom

HealCo Relaxing Center will be a sole proprietorship owned by Susan Frank. Susan is a licensed massage therapist from Florida who has been in this industry for the last ten years. Due to her extensive experience in the industry, Susan knows everything about how to open a massage therapy business.

2.3 Clients of Massage Salom

We will provide therapeutic massage to the people with ailments so as to help them cure faster, and relaxation massage to relax the people who are in stress, depression or anxiety.

2.4 Target of the Massage Salom

The business plan for physical rehabilitation center or massage therapy center outlines the company’s three years target as follows:

Massage Therapy Business Plan - 3 Years Profit Forecast

2.5 Keys to Success

  • Professionalism: We’ll maintain a professional approach as well as good boundaries between therapists and the clients.
  • Individual Attention: We’ll go the extra mile to customize the experience of our clients according to their preferences.
  • Client Satisfaction: We’ll ensure that our clients are always satisfied with us and leave our center in a fully relaxed state.
Massage Therapy Business Plan Example 1
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Massage Salom Summary

3.1 Company Owner

HealCo Relaxing Center will be a sole proprietorship owned by Susan Frank. Susan is a licensed massage therapist from Florida who has been in this industry for the last ten years. Susan is adept in a variety of massage styles, and in tailoring each massage to the specific needs and preferences of clients. She is particularly expert in Integrated Breathing, Shiatsu, Sports Massage, Deep Tissue, Reiki, Watsu, Reflexology, and Acupressure.

3.2 Why the Massage Therapy Business is being started

The business is being started due to Susan’s passion to serve the society by using her exceptional physical therapy skills. The second reason is to make profits in this industry by providing unparalleled massage therapy services to the clients.

3.3 How the Massage Therapy Business will be started

The first thing to do before you start thinking about how to start a physical therapy business is to develop a business plan. You can also take help from this business plan template massage therapy. After this phase, you can start executing the planned steps. As the next phase, Susan will procure and enhance an existing therapy center in downtown Manhattan which ceased to function two months ago. Since the facility was previously used as a therapy center so the cost of inventory is cut down and the biggest expense will be incurred on the renovation work. The costs for the startup are as follows:

Flower Shop Business Plan - Startup Cost

The detailed startup requirements are given below:

Start-up Expenses 
Research and Development$32,750
Expensed Equipment$32,750
Start-up Assets$0
Cash Required$332,500
Start-up Inventory$32,625
Other Current Assets$232,500
Long-term Assets$235,000
Total Requirements$245,000
Start-up Expenses to Fund$11,875
Start-up Assets to Fund$15,000
Non-cash Assets from Start-up$18,750
Cash Requirements from Start-up$0
Additional Cash Raised$18,750
Cash Balance on Starting Date$21,875
Liabilities and Capital$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Planned Investment$0
Investor 1$332,500
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$313,125
Total Funding$255,000

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Services for customers


After you have planned how to start up a massage therapy business, the next step is to plan what services will you provide to your clients.

This step is extremely important because all the subsequent things will depend on your services so make sure to plan it before starting your own physical therapy business.
HealCo Relaxing Center will be a massage therapy center which will provide therapeutic massage to the people with ailments so as to help them cure faster, and relaxation massage to relax the people who are in stress, depression or anxiety. We will provide following types of therapies and massages to our esteemed clients.

  • Riekie Therapy
  • Aroma Therapy
  • Acupuncture
  • PDSD Therapy
  • Driving Therapy
  • Physiological Therapy
  • Mobility Therapy
  • Gym Therapy
  • Water Therapy
  • Mobility Therapy
  • Physical Therapy
  • Massage Therapy
  • Occupational, Physical, and Speech Therapy
  • Reflexology
  • Hot Stone Massage
  • Deep Tissue Work Sports Massage
  • Traditional Swedish Massage

HealCo Relaxing Center will operate 24/7 to attend to clients round the clock. We will also offer home services to the clients who are severely ill or can’t make it to our center due to their busy routine. To further facilitate our clients, we will arrange transportation facilities for them and allow them to make reservations online via our website or our official App.

Marketing Analysis of massage therapy business

The most important component of an effective massage therapy business plan is its accurate marketing analysis that’s why Susan acquired the services of marketing experts to help her through this phase. It is only after this stage that a good physical therapy clinic business plan could have been developed. If you are starting your therapy clinic on a smaller scale then you can carry out the marketing analysis of your business yourself by taking help from this massage therapy business plan sample or other massage therapy business plan examples available online. On the other hand, if you are starting on a larger scale, you can seek help from marketing experts and can develop your own massage therapy business plan template. In any case, you should pay special attention to this part of your physical therapy business plan.

Business Plan for Investors

The four main steps to carry out an accurate marketing analysis are to identify the current market trends, identify your target audience and potential clients, set out the business targets to achieve, and finally set the prices of your products and services.

5.1 Market and Industry Trends

Market trends can be analyzed in various ways such as by manual surveys, online research or even from guessing the pattern from any sample physical therapy business plan available online. You can also take help from the marketing trends given in this physical therapy business plan template. Massage therapy industry generated about $12.1 billion in revenue in 2015 while it is expected to reach $16 billion this year. On average, the revenue growth is projected to increase at the rate of 3.6 percent per year through 2020. There are more than 300,000 massage therapists present across the United States and their number has increased from 14 to 19 percent over the course of just 4 years from 2011 to 2015. The number of American adults who had a massage at least once between July 2015 and July 2016 is roughly around 50 million. Furthermore, the number of therapists is increasing throughout the United States as well as in Manhattan. These stats show massage therapy has a lot of market and any business in this industry can prove to be immensely profitable provided that you plan and market it successfully.

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5.2 Marketing Segmentation

A good physical therapy business plan sample also categorizes its target market into various groups or segments after which different strategies are devised to target each group in accordance with its specific needs and requirements.
Our target market is the residential community as well as the working-class community living or working near us. The community consists of all types of people from varying backgrounds. As per the financial position, nearly half of the community has a monthly income ranging from $40k to $50k while nearly 10% people have incomes even around $100,000. There are currently more than 738,000 households in Manhattan out of which 17.1% have children under the age of 18 living with them, 25.2% are married couples living together and 12.6% have a female householder with no husband present. 59.1% are non-families, out of which 48.0% of all households are made up of individuals and 10.9% have someone living alone who is 65 years of age or older. A successful and efficient marketing strategy can only be developed after we completely know our potential clients. Our experts have identified the following type of target audience which can become our future consumers:

Massage Therapy Business Plan - Marketing Segmentation

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Clients Needing Therapeutic Massage

This category includes all those clients who need therapy for some medical purposes such as for relieving pain or chronic health issues. The therapy is done by using advanced techniques such as trigger point therapy and deep tissue massage. The clients lying in this category will make the biggest contribution to our revenue since they frequently need therapy on a regular basis as a part of their medical treatment. This category is further divided into following groups:

  • Clients with injuries: This group includes those clients who have incurred an injury in some accident or by any other means. They need therapy as a part of their medical treatment, for proper muscle repair and for relieving severe pain. This group may include individuals from all age groups and backgrounds. Sportsmen and athletes are also included in this group who regularly take therapies for addressing the minor/major injuries they usually face.
  • Clients with chronic illnesses: This group includes those clients who are fighting with or have just recovered from chronic illnesses such as cancer, arthritis, backbone problems or other similar ailments. This group mostly include the senior citizens.
  • Clients with disabilities/issues: This group includes those clients who have either some sort of disability like Down’s syndrome and Autism, or the clients who have other body problems like posture and weight issues. This group mostly include children and teens.
  • Expectant mothers: This group includes expectant mothers who are prescribed to take a therapeutic massage (both Prenatal and Postnatal Massage Therapy) for addressing any issue with them while they are in labor or after their delivery.

5.2.2 Clients Needing Relaxation Massage

This category includes all those clients who just want to relax after a hectic day at work. Relaxation massage can greatly reduce the anxiety and depression of a person thus this massage is very popular with the working-class community especially the senior level executives of various businesses who often lead a stressful life. This massage is relatively simpler and straightforward as compared to the therapeutic massage and includes classic Swedish massage techniques along with a mud or cream application, a sea salt or sugar body scrub, or a paraffin hand treatment to the body. Since this massage is just intended to relax the clients and isn’t as much needed as the therapeutic massage, the revenue contribution from the clients taking this massage is relatively lower.
The detailed market analysis of our potential clients is given in the following table:

Market Analysis
Potential CustomersGrowthYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5CAGR
Clients with injuries20%11,43313,34416,55318,74520,54513.43%
Clients with chronic illnesses20%22,33432,34443,66552,54466,43210.00%
Clients with disabilities/issues18%12,86714,43315,99917,56519,13115.32%
Expectant mothers7%8,3229,45510,65512,86714,43310.00%
Clients needing relaxation message35%10,65511,22112,86714,43315,48516.32%

5.3 Business Target

We aim to become the best massage therapy center of Manhattan within next five years of our startup. Our main business targets to be achieved as milestones over the course of next three years are as follows:

  • To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
  • To balance the initial cost of the startup with earned profits by the end of the first year
  • To open up a second massage therapy center by the end of three years in San Francisco, and a third one by the end of five years in Los Angeles

5.4 Product Pricing

After considering the market demands and the current competition, we have priced our services in the similar ranges as of our competitors. As of our relaxation massage, it will be charged on the basis of time, and clients can choose one of these three options—a 30-minute ($60), 50-minute ($95) or 75-minute ($135) massage. The price of every therapeutic massage will vary on the type of treatment and the condition of the patient but as a general rule, they will cost approximately 30 percent more than the relaxation massage. After analyzing all physical therapy business ideas and going through the market trends, the market demand, and the potential clients of the startup, the next step is to develop an ingenious strategy to attract those clients toward us.


Like marketing analysis, sales strategy is also an important component of a physical therapy business plan so it must be given proper attention before you think about how to start a massage therapy business. That’s why Susan carried out an extensive research about various marketing strategies and went through a couple of physical therapy business plan example templates before she decided on how to make a business plan for massage therapy along with an effective marketing strategy.


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6.1 Competitive Analysis

As mentioned earlier, there are more than 300,000 massage therapists located across the United States. Similarly, there are hundreds of massage therapy centers located in Manhattan and their numbers are still on the rise. To survive and excel in such competitive environment, it is essential for a startup to work on its competitive aspects which will give it an advantage over the rest of the similar businesses in the locality. Considering the importance of the competitive advantage for a startup, we have come fully prepared to enter the market.
Our biggest competitive advantage will be our high-quality and unparalleled services where the environment in which the services are offered – lighting, sounds, smells, oils and linens as well as the emotional presence of the therapist – all will contribute to the best possible experience. Our staff is highly trained and well-groomed in all aspects of therapy, and we are exceptionally adept at providing customized service to our clients. We will ensure maximum client retainage by offering them pleasurable experiences that will make them come back over and over again. We will ensure that our therapists use quality supplies (such as lotions and massage oil) and create a friendly, relaxing and welcoming environment for our clients.
In addition to providing quality services, we will launch an App where our clients can make their reservations with us or can even pay online by linking it to their bank or PayPal account. This App will also remind them of their appointments with us by sending them timely notifications. This App will make it easier for our clients to connect with us and will give us an extreme advantage over other competitors since no massage therapy center within 10 km radius of our center has launched a similar App. Lastly, we will also provide home-therapy services which is also not provided by most of our competitors.

6.2 Sales Strategy

After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.

  • We will carry out a large-scale social media campaign for our advertisement.
  • We will establish a strong online presence by using SEM/SEO techniques.
  • We will arrange seminars and informational sessions for increasing the public awareness about health benefits of massage and therapies.
  • We will launch an App which will be used for online reservations, making payments and much more.
  • We will offer a 25% discount on our services for the first three months of our launch.

6.3 Sales Monthly

Our monthly sales, as forecasted by our experts, are as follows:

Massage Therapy Business Plan - Sales Monthly

6.4 Sales Yearly

Our yearly sales, as forecasted by our experts, are as follows:

Massage Therapy Business Plan - Sales Yearly

6.5 Sales Forecast

Considering our innovative app, the quality of our services, and our unparalleled client service, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted in detailed the following sales on a yearly basis which are summarized in the column charts.

Massage Therapy Business Plan - Unit Sales

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

Sales Forecast   
Unit SalesYear 1Year 2Year 3
Therapeutic Massages1,887,0302,680,3202,588,240
Relaxation Massages802,370815,430823,540
Traditional Swedish Massage265,450322,390393,320
TOTAL UNIT SALES3,494,1704,588,3704,807,410
Unit PricesYear 1Year 2Year 3
Therapeutic Massages$140.00$150.00$160.00
Relaxation Massages$600.00$800.00$1,000.00
Traditional Swedish Massage$650.00$750.00$850.00
Therapeutic Massages$2,149,800$2,784,000$3,383,200
Relaxation Massages$120,050$194,500$268,500
Traditional Swedish Massage$139,350$194,600$249,850
Direct Unit CostsYear 1Year 2Year 3
Therapeutic Massages$0.70$0.80$0.90
Relaxation Massages$0.40$0.45$0.50
Traditional Swedish Massage$3.00$3.50$4.00
Direct Cost of Sales
Therapeutic Massages$989,300$1,839,000$2,679,700
Relaxation Massages$66,600$119,900$173,200
Traditional Swedish Massage$19,400$67,600$115,800
Subtotal Direct Cost of Sales$1,294,100$1,699,400$2,104,700

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Personnel plan

Personnel plan, like all other plans, is an important component of an effective business plan physical therapy. Its importance is due to the fact that success of any business significantly depends upon its employees. It is never easy to estimate the number and type of staff needed for a company before it is even launched therefore it is always better to seek the help of HR experts to get through this phase. However, you can have a rough idea before you decide on how to start your own massage therapy business. Susan acquired the services of HR experts to help her develop the following personnel plan for her physical therapy business model.

7.1 Massage Salon Staff

Susan will act as the General Manager of the HealCo Relaxation Center and will manage its overall operations while the company will initially hire the following people:

  • 1 Accountant for maintaining financial records of the therapy center
  • 2 Sales Executives responsible for marketing and discovering new ventures
  • 15 Massage Therapist for giving therapeutic as well as relaxation massages to the clients
  • 5 Exercise Physiologist for helping sportsmen, athletes and other injured persons with various exercises
  • 6 Cleaners/Assistants for cleaning the facility and assisting with day-to-day operations
  • 1 Inventory Manager for managing/procuring the stock needed for merchandise
  • 3 Drivers for providing transportation facility to the clients
  • 1 Technical Assistant for managing company’s App as well as web pages and social media accounts
  • 1 Front Desk Officer for acting as a Receptionist, receiving calls and making reservations

All the professionals needed for starting a physical therapy business will be hired by following strict testing procedures. After the selection of employees, the Massage Therapists and Exercise Physiologists will be trained for one month under the direct supervision of Susan herself so as to enable them to provide the highest quality of services possible.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for next three years. These salaries are estimated by financial experts and are expected to deviate but the overall expenses will be more or less the same.

 Personnel Plan   
Year 1Year 2Year 3
Sales Executives$45,000$50,000$55,000
Massage Therapists$550,000$650,000$750,000
Exercise Physiologist$410,000$440,000$480,000
Inventory Manager$145,000$152,000$159,000
Technical Assistant$87,000$94,000$101,000
Front Desk Officer$42,000$45,000$48,000
Total Salaries$562,000$599,000$646,000

Financial Plan

Just like the other plans, you must also prepare a detailed financial plan covering all financial aspects of your startup before you move on to starting a physical therapy business. The financial plan should craft a detailed map about the costs of startup, inventory, payroll, equipment, rent, utilities and how these costs will be covered by the earned profits. Before getting to think about opening massage therapy business, make sure to carry out a detailed profit and loss analysis. The HealCo Relaxing Center financial plan outlines the development of the company over the next three years and is specifically developed to achieve the company’s short-term as well as the long-term objectives.

8.1 Important Assumptions

 General Assumptions   
Year 1Year 2Year 3
Plan Month123
Current Interest Rate10.00%11.00%12.00%
Long-term Interest Rate10.00%10.00%10.00%
Tax Rate26.42%27.76%28.12%

8.2 Brake-even Analysis

Massage Therapy Business Plan - Brake-even Analysis

 Brake-Even Analysis 
Monthly Units Break-even5530
Monthly Revenue Break-even$159,740
Average Per-Unit Revenue$260.87
Average Per-Unit Variable Cost$0.89
Estimated Monthly Fixed Cost$196,410


8.3 Projected Profit and Loss

 Pro Forma Profit And Loss   
Year 1Year 2Year 3
Direct Cost of Sales$15,100$19,153$23,206
TOTAL COST OF SALES$15,100 $19,153 $23,206
Gross Margin$293,969$366,781$439,593
Gross Margin %94.98%94.72%94.46%
Sales and Marketing and Other Expenses$1,850$2,000$2,150
Leased Equipment$0$0$0
Payroll Taxes$34,510$40,726$46,942
Total Operating Expenses$188,766$220,744$252,722
Profit Before Interest and Taxes$105,205$146,040$186,875
Interest Expense$0$0$0
Taxes Incurred$26,838$37,315$47,792
Net Profit$78,367$108,725$139,083
Net Profit/Sales30.00%39.32%48.64%

8.3.1 Profit Monthly

Massage Therapy Business Plan - Profit Monthly

8.3.2 Profit Yearly

Massage Therapy Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Massage Therapy Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Massage Therapy Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Flower Shop Business Plan - Projected Cash Flow

 Pro Forma Cash Flow   
Cash ReceivedYear 1Year 2Year 3
Cash from Operations
Cash Sales$40,124$45,046$50,068
Cash from Receivables$7,023$8,610$9,297
SUBTOTAL CASH FROM OPERATIONS$47,143 $53,651 $59,359
Additional Cash Received
Sales Tax, VAT, HST/GST Received$0$0$0
New Current Borrowing$0$0$0
New Other Liabilities (interest-free)$0$0$0
New Long-term Liabilities$0$0$0
Sales of Other Current Assets$0$0$0
Sales of Long-term Assets$0$0$0
New Investment Received$0$0$0
SUBTOTAL CASH RECEIVED$47,143 $53,651 $55,359
ExpendituresYear 1Year 2Year 3
Expenditures from Operations
Cash Spending$21,647$24,204$26,951
Bill Payments$13,539$15,385$170,631
SUBTOTAL SPENT ON OPERATIONS$35,296 $39,549 $43,582
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out$0$0$0
Principal Repayment of Current Borrowing$0$0$0
Other Liabilities Principal Repayment$0$0$0
Long-term Liabilities Principal Repayment$0$0$0
Purchase Other Current Assets$0$0$0
Purchase Long-term Assets$0$0$0
SUBTOTAL CASH SPENT$35,296 $35,489 $43,882
Net Cash Flow$11,551$13,167$15,683
Cash Balance$21,823$22,381$28,239

8.5 Projected Balance Sheet

 Pro Forma Balance Sheet   
AssetsYear 1Year 2Year 3
Current Assets
Accounts Receivable$12,613$14,493$16,373
Other Current Assets$1,000$1,000$1,000
TOTAL CURRENT ASSETS$201,259 $237,468 $273,677
Long-term Assets
Long-term Assets$10,000$10,000$10,000
Accumulated Depreciation$12,420$14,490$16,560
TOTAL ASSETS$198,839 $232,978 $267,117
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities
Accounts Payable$9,482$10,792$12,102
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
Long-term Liabilities$0$0$0
TOTAL LIABILITIES$9,482 $10,792 $12,102
Paid-in Capital$30,000$30,000$30,000
Retained Earnings$48,651$72,636$96,621
TOTAL CAPITAL$189,360 $222,190 $255,020
TOTAL LIABILITIES AND CAPITAL$198,839 $232,978 $267,117
Net Worth$182,060$226,240$270,420

8.6 Business Ratios

 Ratio Analysis    
Year 1Year 2Year 3Industry Profile
Sales Growth4.35%30.82%63.29%4.00%
Percent of Total Assets
Accounts Receivable5.61%4.71%3.81%9.70%
Other Current Assets1.75%2.02%2.29%27.40%
Total Current Assets138.53%150.99%163.45%54.60%
Long-term Assets-9.47%-21.01%-32.55%58.40%
TOTAL ASSETS100.00%100.00%100.00%100.00%
Current Liabilities4.68%3.04%2.76%27.30%
Long-term Liabilities0.00%0.00%0.00%25.80%
Total Liabilities4.68%3.04%2.76%54.10%
NET WORTH99.32%101.04%102.76%44.90%
Percent of Sales
Gross Margin94.18%93.85%93.52%0.00%
Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
Advertising Expenses2.06%1.11%0.28%1.40%
Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
Main Ratios
Total Debt to Total Assets2.68%1.04%0.76%67.10%
Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
Pre-tax Return on Assets64.88%69.75%74.62%9.00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin19.20%21.16%23.12%N.A.
Return on Equity47.79%50.53%53.27%N.A.
Activity Ratios
Accounts Receivable Turnover4.564.564.56N.A.
Collection Days9299106N.A.
Inventory Turnover19.722.5525.4N.A.
Accounts Payable Turnover14.1714.6715.17N.A.
Payment Days272727N.A.
Total Asset Turnover1.841.551.26N.A.
Debt Ratios
Debt to Net Worth0-0.02-0.04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios
Net Working Capital$120,943$140,664$160,385N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales0.450.480.51N.A.
Current Debt/Total Assets4%3%2%N.A.
Acid Test23.6627.0130.36N.A.
Sales/Net Worth1.681.290.9N.A.
Dividend Payout000N.A.

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