Table of Content

    Reiki Business Plan for starting your own business

    Are you planning to start a reiki business? Reiki is a technique to heal emotional, mental and physical ailments by activating the natural healing process of a person using energy transfers through palms and touch.

    Before actually opening your reiki center, you have to make a comprehensive reiki business plan, enlisting your major decisions and preparations. If you have little or no experience of writing a business plan, hiring an expert for making a business plan will be the best option. Otherwise, you can take help from sample business plans like the one we are providing here for a reiki startup named, ‘Sandra Reiki Center’.

    Executive Summary

    2.1 The Business

    Sandra Reiki Center will be a licensed reiki business owned by Sandra Chastain, located in Dallas, Texas. Business will be aimed at helping people healing their ailment, alleviating depression, reducing their stress, improving their sleep, boosting their immune function, enhancing their mental skills by activating their natural self-healing system and rebalancing. The business will be started in an existing therapy center which ceased to function two months ago.

    2.2 Management

    Before starting a reiki business, you have to decide that on which scale will you be able to manage your business. Will you be able to manage your startup at a larger scale or not?

    Sandra Reiki Center will be managed by a hired manager. Sandra is a licensed reiki minister and master, she is involved in reiki practicing and teaching for about 20 years. She along with some of her trained reiki practitioners will hold the reiki sessions.

    2.3 Customers

    If you are thinking about how to start a reiki business and gain customers in the very start. Don’t worry, reiki business is one of those businesses which keep blooming throughout the year, provided that you manage and market your business effectively.

    Considering the present situation, where every second person is in depression, this business has a lot of market. Sandra Reiki Center will initially be serving the ailed and stressed in Dallas only.

    2.4 Target of the Company

    Sandra Reiki Center aims at becoming the most renowned reiki center in the whole Dallas. Our target is to ensure that all our clients are leaving our center in a fully satisfied and relaxed state.

    Our financial targets include balancing the cost of the startup with the profits earned just within the eight months of the launch.

    Bank/SBA Business Plan
    Document for raising debt funding from financial institutions to meet the expectations of the banks, SBA, and government agencies.

    Company Summary

    3.1 Company Owner

    Sandra Chastain will be the owner of Sandra Reiki Center. Sandra has done her M.A. in metaphysical science from the University of Sedona. Sandra herself is a licensed master of reiki, certified in Emotion Freedom Techniques and advanced energy healing techniques. From the past five years, she is servicing as a reiki practitioner and teacher in different centers. Due to her exceptional research in metaphysical sciences, she was awarded the membership of International Association of Reiki Professionals.

    3.2 Why the Business is being started

    Sandra has been practicing her exceptional skills in different centers for about 20 years, now she thinks that starting my own reiki business  would increase the chance to serve more people and learning. This will also allow her to make a profit by providing unparalleled service to her clients.

    3.3 How the Business will be started

    After great research about how to start a reiki practice business, Sandra has decided to hire an experienced manager to schedule appointments, registrations reiki license and dealing with inquiries in order to make sure that all the operations are running systematically and efficiently.

    For providing healing services to patients, she, her students, a hired reiki practitioner, massage therapist, and other staff will be there in the reiki center during the working time.

    The costs for the startup are as follows:

    The detailed startup requirements are given below:

    Start-up Expenses  
    Legal $55,300
    Consultants $0
    Insurance $32,750
    Rent $32,500
    Research and Development $32,750
    Expensed Equipment $32,750
    Signs $1,250
    TOTAL START-UP EXPENSES $187,300
    Start-up Assets $0
    Cash Required $332,500
    Start-up Inventory $32,625
    Other Current Assets $232,500
    Long-term Assets $235,000
    TOTAL ASSETS $121,875
    Total Requirements $245,000
    START-UP FUNDING $0
    START-UP FUNDING $273,125
    Start-up Expenses to Fund $11,875
    Start-up Assets to Fund $15,000
    TOTAL FUNDING REQUIRED $0
    Assets $23,125
    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
    TOTAL ASSETS $0
    Liabilities and Capital $0
    Liabilities $0
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $0
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $0
    Capital $0
    Planned Investment $0
    Investor 1 $332,500
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $695,000
    Loss at Start-up (Start-up Expenses) $313,125
    TOTAL CAPITAL $251,875
    TOTAL CAPITAL AND LIABILITIES $251,875
    Total Funding $255,000

    Any questions? Get in Touch!

    Services for customers

    Plans like how to advertise reiki services or how much does reiki cost or how to devise the pricing strategy can only be decided after deciding the services you are going to provide in your healing center.

    Sandra Reiki Center will provide the following services initially:

    • Usui Reiki: Reiki technique involving the transfer of healing energy through movements of fingers and palms making specific patterns on the body being treated. As it is the most useful and commonly used reiki technique, so we have decided to hold different sessions ranging from 30 minutes to 4 hours for it.
    • Holy Fire Reiki: A 30 and 45-minute session depending on your needs for healing worries and stress spontaneously.
    • Reiki Drum Technique: A 30-minute session in which drumming technique is adopted for emotional and mental reprogramming through gentle drumming followed by normal hand operations over the client’s body.
    • Crystal Angel Bed Session: Healing session by using different crystals and a 30-minute session on crystal bed based on vibrating frequencies of crystals.
    • Massage Therapy: Massage session for different ailments ranging from 30-minutes to 2 hours.

    Sandra Reiki Center will be providing these services for 18 hours a day. To facilitate our clients, we will allow our customers to make reservations online via our website.

    Marketing Analysis of Reiki Business

    Before you open center reiki, the first step you will have to take is to make a comprehensive business plan, including the detailed and accurate marketing analysis. It is advisable to hire marketing experts along with the services of reiki practitioners too if you yourself have no idea about starting a reiki practice business basics.

    Note

    Only a person with a strong background of metaphysics and reiki techniques can give you reiki room ideas  because he/she can tell which positions and environment will be the most suitable for the practitioner as well as the patient.

    As Sandra, herself is an experienced reiki expert and has worked in several centers before, so she has decided to seek the services of just a marketing expert for helping her make an effective marketing plan.

    If you want to know how to get reiki clients just with the startup, you have to do a little effort before devising your policy for reiki marketing. It is recommended to study other reiki business examples and observe what others are doing before writing your own plan. The sample marketing plan Sandra Reiki Center has made is given here for your help.

    Strategic/Operational Business Plan

    5.1 Market and Industry Trends

    Before starting any business, it is important to study the market trends through manual surveys and online research. In the United States, there still are many people who prefer to heal their disorders by alternative ways other than taking medicines. According to a survey of 2007, around 1.2 million adults tried reiki and other therapies of its kind once every year. This can be better understood by analyzing the stats given by IBISWorld, according to which alternative healthcare centers have generated a total of $17 billion in 2018 and their number is increasing by the rate of 3.8%.

    Also, more than 60 hospitals in the United States have adopted reiki as a part of their service, these stats show massage therapy has a lot of markets and it can prove to be immensely profitable provided that you plan and market it successfully.

    5.2 Marketing Segmentation

    Dividing the customers for your service into different segments and then studying the demands of each of these segments separately will help you a lot in making success during a very short period of time. The first step to being successful in business is to know the type of target audience which can become your future customers.

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

    • Stressed and Depressed: This group will be the biggest consumer of our services, and will include the highly stressed and tensed persons such as the one whose loved ones have died, or who have experienced a big failure and want to have relief, peace and mental refreshment by reiki.
    • Adults with emotional and mental imbalances: Adults and young facing the challenges of life and imbalances during their work or relationships will often require our service for having relaxation and energy to start again.
    • Clients with chronic diseases: Old and weak clients whose ailment can’t be cured by eating medicines will also require our services for getting healing energy for keeping their immune system alive. Such clients, if they have some type of pain will also be a consumer of our massage therapy services.
    Any questions? Get in Touch

    The detailed market analysis of our potential clients is given in the following table:

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Stressed/ Depressed 32% 11,433 13,344 16,553 18,745 20,545 13.43%
    Emotionally/ Mentally Imbalanced 48% 22,334 32,344 43,665 52,544 66,432 10.00%
    Chronic Diseased 20% 12,867 14,433 15,999 17,565 19,131 15.32%
    Total 100% 46,634 60,121 76,217 88,854 106,108 9.54%

    5.3 Business Target

    Our target is to better the lives of the ill and stressed people around us by serving them with our best. We want each of our customer to leave our center in a fully relaxed state.

    Our financial targets to be achieved over the course of the 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 eight months of the launch

    5.4 Product Pricing

    Sandra Reiki Center doesn’t only aim to just earn more and more profits; our main purpose is to serve the community. Besides the fact that demand of our services is really high in the market, we still have priced our services low as compared to our competitors. We have different prices for the same service depending upon how long your reiki session lasts.

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    Strategy

    Sales strategy is also an important factor in deciding the success and failure of a startup. It includes the details that how would people know about you and your services and why would they choose your services over others. In simple words, it comprises of a detailed competitive analysis and your advertisement strategy for business. It also includes your search for reiki healing business names and finds one for yours that compel the people to come inside.

    6.1 Competitive Analysis

    To survive and excel in a competitive environment we have come up with a series of competitive aspects which others in this market lack. First, we have a low pricing strategy than our competitors. Secondly, we have an excellent location nearer to the residential communities as well as the professional institutes. Our biggest competitive advantage will be the services of our highly qualified and affectionate staff. We will provide a pleasurable and peaceful environment by soothing lighting, sounds and smells with an incredible reiki healing service to our clients which will make them to visit us over and over again. Lastly, for our client’s convenience, we are developing a website for making online appointments and payments before having a session with us.

    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 arrange informational sessions for increasing public awareness about the health benefits of reiki healing techniques
    • We will provide free service to the first 25 appointments after our launch
    • We will establish a strong online presence by using SEO techniques

    6.3 Sales Monthly

    6.4 Sales Yearly

     

    6.5 Sales Forecast

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Usui Reiki 1,887,030 2,680,320 2,588,240
    Holy Fire Reiki 802,370 815,430 823,540
    Reiki Drum/ Crystal Angel Bed 539,320 770230 1,002,310
    Message Therapy 265,450 322,390 393,320
    TOTAL UNIT SALES 3,494,170 4,588,370 4,807,410
    Unit Prices Year 1 Year 2 Year 3
    Usui Reiki $140.00 $150.00 $160.00
    Holy Fire Reiki $600.00 $800.00 $1,000.00
    Reiki Drum/ Crystal Angel Bed $700.00 $800.00 $900.00
    Message Therapy $650.00 $750.00 $850.00
    Sales
    Usui Reiki $2,149,800 $2,784,000 $3,383,200
    Holy Fire Reiki $120,050 $194,500 $268,500
    Reiki Drum/ Crystal Angel Bed $50,110 $71,600 $93,000
    Message Therapy $139,350 $194,600 $249,850
    TOTAL SALES
    Direct Unit Costs Year 1 Year 2 Year 3
    Usui Reiki $0.70 $0.80 $0.90
    Holy Fire Reiki $0.40 $0.45 $0.50
    Reiki Drum/ Crystal Angel Bed $0.30 $0.35 $0.40
    Message Therapy $3.00 $3.50 $4.00
    Direct Cost of Sales
    Usui Reiki $989,300 $1,839,000 $2,679,700
    Holy Fire Reiki $66,600 $119,900 $173,200
    Reiki Drum/ Crystal Angel Bed $17,900 $35,000 $52,100
    Message Therapy $19,400 $67,600 $115,800
    Subtotal Direct Cost of Sales $1,294,100 $1,699,400 $2,104,700

     

    Any questions? Get in Touch!

    Personnel plan

    Before starting a spiritual healing business, you have to gather a team with deep knowledge and practice of healing techniques and meditation. Hiring the right person before the actual launch of the business will help you after as well as before initiating your business. They can give meditation business ideas and ideas about creating a soothing environment for the patient.

    7.1 Company Staff

    Sandra herself is a master of reiki techniques, she has decided to hire some reiki practitioners along with a massage therapist to help her running her center. But Sandra has no idea about the management systems thus she has decided to hire an experienced General Manager for organizing and systemizing all the matters.

    The company will hire the following persons initially:

    • 1 General Manager for managing tasks
    • 1 Front Desk Officer for acting as a receptionist, receiving calls and making reservations
    • 1 Accountant for maintaining financial records
    • 2 Sales Executives responsible for marketing and discovering new ventures
    • 4 Reiki Practitioners for providing healing energy transfer to clients
    • 1 Massage Therapist for holding massage sessions
    • 4 Cleaners/Assistants for cleaning the facility and assisting with day-to-day operations
    • 1 Technical Assistant for managing company’s web pages and social media accounts
    • 1 Driver for transportation tasks

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    General Manager $85,000 $95,000 $105,000
    Front Desk Officer $42,000 $45,000 $48,000
    Accountant $45,000 $50,000 $55,000
    Sales Executives $145,000 $152,000 $159,000
    Reiki Practitioners $345,000 $352,000 $359,000
    Massage Therapist $45,000 $48,000 $51,000
    Cleaners/Assistants $145,000 $152,000 $159,000
    Technical Assistant $42,000 $45,000 $48,000
    Driver $45,000 $48,000 $51,000
    Total Salaries $894,000 $939,000 $984,000

     

     

    Financial Plan

    The last step before starting any business is to make its financial plan. A financial plan enlists all the details about how will you adjust the expenditures and costs of the startup with the profits earned. Setting the budget for your business isn’t enough for managing the company’s finances effectively. It is strongly recommended to make a thorough financial plan for achieving the goals you have set for your business.

    You will only be able to balance your startup costs and earning a large amount of profit if your desired customers come to visit you. To attract them just after the startup, you have to first go through for reiki business name ideas and select a few holistic healing business names, which appeal you the most. After you have decided the suitable name for your business, your advertisement techniques will make a difference for your business.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 10.00% 11.00% 12.00%
    Long-term Interest Rate 10.00% 10.00% 10.00%
    Tax Rate 26.42% 27.76% 28.12%
    Other 0 0 0

     

    8.2 Brake-even Analysis

     Brake-Even Analysis  
    Monthly Units Break-even 5530
    Monthly Revenue Break-even $159,740
    Assumptions:
    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 1 Year 2 Year 3
    Sales $309,069 $385,934 $462,799
    Direct Cost of Sales $15,100 $19,153 $23,206
    Other $0 $0 $0
    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%
    Expenses
    Payroll $138,036 $162,898 $187,760
    Sales and Marketing and Other Expenses $1,850 $2,000 $2,150
    Depreciation $2,070 $2,070 $2,070
    Leased Equipment $0 $0 $0
    Utilities $4,000 $4,250 $4,500
    Insurance $1,800 $1,800 $1,800
    Rent $6,500 $7,000 $7,500
    Payroll Taxes $34,510 $40,726 $46,942
    Other $0 $0 $0
    Total Operating Expenses $188,766 $220,744 $252,722
    Profit Before Interest and Taxes $105,205 $146,040 $186,875
    EBITDA $107,275 $148,110 $188,945
    Interest Expense $0 $0 $0
    Taxes Incurred $26,838 $37,315 $47,792
    Net Profit $78,367 $108,725 $139,083
    Net Profit/Sales 30.00% 39.32% 48.64%

    8.3.1 Profit Monthly

    8.3.2 Profit Yearly

    8.3.3 Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    8.4 Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 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
    Expenditures Year 1 Year 2 Year 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
    Dividends $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      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $184,666 $218,525 $252,384
    Accounts Receivable $12,613 $14,493 $16,373
    Inventory $2,980 $3,450 $3,920
    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 LONG-TERM ASSETS $980 $610 $240
    TOTAL ASSETS $198,839 $232,978 $267,117
    Liabilities and Capital Year 1 Year 2 Year 3
    Current Liabilities
    Accounts Payable $9,482 $10,792 $12,102
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $9,482 $10,792 $12,102
    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
    Earnings $100,709 $119,555 $138,401
    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 1 Year 2 Year 3 Industry Profile
    Sales Growth 4.35% 30.82% 63.29% 4.00%
    Percent of Total Assets 4.35% 4.71% 5.80%  9.80%
    Accounts Receivable 5.61% 4.71% 3.81% 9.70%
    Inventory 1.85% 1.82% 1.79% 9.80%
    Other Current Assets 1.75% 2.02% 2.29% 27.40%
    Total Current Assets 138.53% 150.99% 163.45% 54.60%
    Long-term Assets -9.47% -21.01% -32.55% 58.40%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.68% 3.04% 2.76% 27.30%
    Long-term Liabilities 0.00% 0.00% 0.00% 25.80%
    Total Liabilities 4.68% 3.04% 2.76% 54.10%
    NET WORTH 99.32% 101.04% 102.76% 44.90%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.18% 93.85% 93.52% 0.00%
    Selling, General & Administrative Expenses 74.29% 71.83% 69.37% 65.20%
    Advertising Expenses 2.06% 1.11% 0.28% 1.40%
    Profit Before Interest and Taxes 26.47% 29.30% 32.13% 2.86%
    Main Ratios
    Current 25.86 29.39 32.92 1.63
    Quick 25.4 28.88 32.36 0.84
    Total Debt to Total Assets 2.68% 1.04% 0.76% 67.10%
    Pre-tax Return on Net Worth 66.83% 71.26% 75.69% 4.40%
    Pre-tax Return on Assets 64.88% 69.75% 74.62% 9.00%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 19.20% 21.16% 23.12% N.A.
    Return on Equity 47.79% 50.53% 53.27% N.A.
    Activity Ratios
    Accounts Receivable Turnover 4.56 4.56 4.56 N.A.
    Collection Days 92 99 106 N.A.
    Inventory Turnover 19.7 22.55 25.4 N.A.
    Accounts Payable Turnover 14.17 14.67 15.17 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 1.84 1.55 1.26 N.A.
    Debt Ratios
    Debt to Net Worth 0 -0.02 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $120,943 $140,664 $160,385 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.45 0.48 0.51 N.A.
    Current Debt/Total Assets 4% 3% 2% N.A.
    Acid Test 23.66 27.01 30.36 N.A.
    Sales/Net Worth 1.68 1.29 0.9 N.A.
    Dividend Payout 0 0 0 N.A.

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