therapy business plan example

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How to Build a Business Plan for Your Therapy Practice

Starting a therapy practice can be incredibly rewarding, but it also comes with its challenges. 

Beyond clinical expertise, you need a solid business plan to succeed. Picture your business plan as a practical road map, designed to support your journey through the uncertain and unpredictable world of business ownership.

Taking the time to do it now will help you create the practice you want now, rather than compromising and having to pivot later. 

When the challenges of entrepreneurship seem overwhelming (and they will), this plan stands as your reliable guide, helping you make decisions aligned with what you want for your business.

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Embrace the CEO role

I hate to be the one to tell you this, but nothing you read in the remainder of this article matters if you don't accept this hard truth: Being a clinician is no longer your main job.

You are the CEO of your therapy practice. You are also sales, HR, IT, marketing, admin, manager, and yes, CFO. 

Accept that being a clinician and running a profitable therapy practice are two very different things that require two very different skill sets. Write your vision down. Get clear on your values. Step into your CEO role.

Define your personal goals

Start with your personal goals. They drive your business aspirations. Maybe you want to only work three days a week so you have time to spend with your family. Living abroad and having the flexibility to see clients from anywhere in the world may appeal to you. Getting clear on what you value and your personal goals helps you to structure a business that best serves you.

Consider factors like:

• Family commitments
• Community involvement

By aligning your business with your personal aspirations, you create a practice that truly suits you. This alignment between your personal and business aspirations isn't just beneficial—it's a pivotal factor for achieving a fulfilling practice that doesn't feel like the agency job you left.

Create your business goals

Answer fundamental questions such as:

• What's your therapy practice's purpose?
• Will you specialize?
• Will you offer additional services?
• Are you aiming for a solo practice or planning to expand into a larger group practice ?
• How will you define your services?
• How will you plan your marketing strategy ?
• How will you set your fees ?
• What is your revenue goal?

You may aspire to have a waitlist of dream clients, hire staff, or hit $20K months. Whatever you desire can be achieved by answering these foundational business questions.

Manage your cash flow

Ensure financial stability with a clear cash flow plan, consisting of two parts.

Projections: Predicting income and expenses

Begin with projections, estimating when money comes in and goes out based on past financial data. It's like foreseeing your financial path, and here's where using the financial reports provided by Heard becomes especially meaningful. These reports serve as your compass, guiding you through the intricate landscape of your practice's finances.

System: Implementing your plan

With projections in hand, it's time to execute. Decide how much you'll allocate to different areas, like expenses, payroll, taxes, savings, and your earnings. Keep track of these allocations and adjust as needed. This structured approach transforms your projections into actionable financial decisions, making sure your practice thrives. Businesses don't go out of business due to lack of profit, they go out of business due to lack of cash. By monitoring and reviewing your cash, you set your business up to not run out of money.

Maximizing your profit

Maximizing your profit is about adopting strategies to increase your earnings. This could mean enhancing your services, adjusting fees effectively, and streamlining operations for better efficiency. You should also focus on key profit drivers like your sales conversion rate and the number of potential clients who engage with your services. To maximize profit, it's essential to understand the nuances of sales and marketing , as they drive revenue growth. Additionally, keep an eye on your expenses to make sure you're not outspending what you're earning. This balanced approach ensures your practice remains financially healthy.

Stay on track

After crafting your business plan, regularly review and adapt. Keep a close watch on your progress. Ensure your income aligns with your needs, and make tweaks along the way.

If a marketing strategy falls short, switch it up and pivot. Closing new clients left and right and now you have a full caseload of dream clients, amazing! Your business plan will change as you grow and become more successful. It's important to review your progress, celebrate your wins, and adjust the plan along the way.

A simple and executable business plan is the foundation of a thriving mental health practice. As you embrace your CEO role, set personal and business goals, manage cash flow, and maximize profit, you pave the way for success. Regular monitoring and adjustment keep you on track as this is a continuous process you will redefine many times. 

With this actionable plan, you're equipped to impact your clients and live the life you desire. ‍

Want to learn more? Click here to watch “How to Build a Business Plan for Your Therapy Practice" presented by Ashley Harlan, MBA.

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult their own attorney, business advisor, or tax advisor with respect to matters referenced in this post.

Ashley Harlan, MBA is a Chief Financial Officer, Founder, and CEO of The Concierge CFO. She’s passionate about partnering with mental health and wellness professionals to help you reach your mission through financial freedom. Her focus is on guiding you to earn what you deserve, achieve your goals, and not burn out. If you're ready to build a practice you enjoy, serve the clients you feel called to, and not have to sacrifice your lifestyle, join her Profitable Practice Accelerator —a 6-week program that enhances your financial stability and gives you the freedom to live the life you want. Ashley can be found on Instagram , Twitter , and LinkedIn .

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Here is a free business plan sample for a therapy practice.

If you're passionate about helping others and want to start your own therapy practice, but feel uncertain about the first steps, this is the place for you.

In the content that follows, we will present you with a comprehensive sample business plan tailored for a therapy practice.

As you may already understand, a thoughtfully constructed business plan is a cornerstone of success for any professional in the field of therapy, as it assists you in articulating your mission, objectives, and approach for your practice.

To craft a robust plan with clarity and precision, you are welcome to utilize our therapist business plan template. Additionally, our specialists are available to offer a complimentary review and refinement of your plan.

How to draft a great business plan for your therapy practice?

A good business plan for a therapy practice must reflect the unique aspects of mental health and wellness services.

To start, it is crucial to provide a comprehensive overview of the therapy market. This includes current statistics and identifying emerging trends in mental health, as illustrated in our therapy practice business plan template .

Then, you should articulate your practice's mission clearly. This encompasses your therapeutic approach, defining your target clientele (such as individuals, couples, families, or specific demographics), and your practice's distinctive services (cognitive-behavioral therapy, mindfulness-based therapy, etc.).

The next section should delve into market analysis. This requires a thorough understanding of local demand, competitor services, and potential gaps in the market that your practice could fill.

For a therapy practice, it is vital to detail the services you plan to offer. Describe your range of therapeutic modalities - individual therapy, group sessions, workshops - and explain how they cater to the needs and challenges of your target clients.

The operational plan is equally important. It should outline the location of your practice, the setup of your therapy rooms, administrative processes, and client management systems.

In a therapy practice, it is essential to emphasize the qualifications and credentials of the therapists, confidentiality policies, and adherence to professional ethical standards.

Then, address your marketing and outreach strategy. How will you engage and retain clients? Consider referral networks, community involvement, and online marketing strategies.

Having a digital presence, such as a professional website or social media engagement, is also crucial in the modern healthcare landscape.

The financial structure is another critical component. This includes the initial investment, projected income, operating expenses, and the point at which the practice becomes profitable.

In a therapy practice, understanding the nuances of insurance billing, private pay, and sliding scale fees is important for accurate financial planning. For assistance, you can refer to our financial forecast for a therapy practice .

Compared to other business plans, a therapy practice must pay special attention to client confidentiality, ongoing professional development, and the potential for offering teletherapy services.

A well-crafted business plan will not only help you clarify your vision and strategies but also attract investors or secure loans.

Lenders and investors are looking for a solid understanding of the market, realistic financial projections, and a clear plan for client care and practice management.

By presenting a thorough and substantiated plan, you demonstrate your professionalism and dedication to the success of your therapy practice.

To achieve these goals while saving time, feel free to complete our therapy practice business plan template .

A free example of business plan for a therapy practice

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a therapist .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The therapy and mental health services market is experiencing a significant growth phase, reflecting the increasing awareness and acceptance of mental health issues.

Recent estimates suggest that the global market for mental health services could be worth over $200 billion, with expectations for continued growth as more individuals seek professional help for mental health concerns.

In the United States alone, there are over 500,000 practicing therapists, contributing to an industry that generates substantial revenue and plays a critical role in the health and well-being of the population.

These statistics underscore the vital presence of therapy services in American healthcare and their substantial economic impact.

Current trends in the mental health field indicate a move towards more personalized and accessible care.

Teletherapy and online counseling platforms are expanding rapidly, providing clients with the convenience of receiving therapy from the comfort of their own homes.

There is also a growing emphasis on holistic and integrative approaches, combining traditional therapy with complementary practices like mindfulness, yoga, and nutrition.

Mental health apps and digital tools for self-management are becoming increasingly popular, supporting individuals in their mental health journeys.

Moreover, destigmatization campaigns and mental health advocacy are promoting open discussions about mental health, encouraging more people to seek help.

These trends highlight the evolving landscape of mental health services, aiming to meet the diverse needs and preferences of modern clients.

Success Factors

The success of a therapy practice hinges on several critical elements.

First and foremost, the quality of care and the therapist's expertise are paramount. Clients who experience meaningful progress and empathetic support are more likely to continue therapy and refer others.

Innovation in therapy techniques and the therapist's ability to specialize in certain areas, such as cognitive-behavioral therapy or trauma-informed care, can also distinguish a practice in a crowded field.

The location and ambiance of the practice can affect accessibility and comfort, influencing a client's choice of therapist.

Exceptional interpersonal skills and the ability to build trust are essential for fostering a therapeutic alliance and ensuring client retention.

Lastly, effective practice management, including the use of technology for scheduling and billing, as well as a commitment to ongoing professional development, are key to the sustainable success of a therapy practice.

The Project

Project presentation.

Our therapy practice project is designed to address the increasing need for mental health support in our community. Situated in a central location with easy access for clients, this practice will offer a range of therapeutic services, including individual counseling, group therapy, and specialized treatments for anxiety, depression, and stress management. Our services will be provided by licensed professionals with expertise in various therapeutic modalities, ensuring personalized care tailored to each client's unique needs.

The focus will be on creating a welcoming, confidential, and healing environment where clients can feel safe to explore their thoughts and feelings.

This therapy practice aims to become a cornerstone of support within the community, enhancing the mental and emotional well-being of our clients.

Value Proposition

The value proposition of our therapy practice is centered on delivering compassionate, effective, and evidence-based mental health services. Our commitment to client-centered care, confidentiality, and professional excellence offers a supportive pathway towards personal growth and healing.

We are dedicated to fostering a therapeutic space where individuals can find relief from psychological distress, gain insight into their behaviors, and develop coping strategies to improve their quality of life.

Our practice strives to be a beacon of hope and transformation, empowering clients to navigate life's challenges with resilience and self-awareness.

Project Owner

The project owner is a seasoned therapist with a profound commitment to mental health advocacy and support.

With a background in clinical psychology and a wealth of experience in various therapeutic settings, they are driven to establish a practice that stands out for its empathetic approach and dedication to client well-being.

With a vision of holistic care and community engagement, they are determined to offer services that not only address immediate psychological concerns but also promote long-term mental health and wellness.

Their dedication to the field of therapy and their desire to make a positive impact on individuals' lives are the motivational forces behind this project, aiming to enhance the mental health landscape within the community.

The Market Study

Target demographics.

The target demographics for this therapy practice are segmented into various groups.

Firstly, there are individuals experiencing mental health challenges such as anxiety, depression, or stress, who require professional support to improve their well-being.

Additionally, there are people seeking personal growth, improved relationships, or coping strategies for life transitions.

The practice also caters to couples or families looking to enhance their communication and resolve conflicts.

Lastly, healthcare providers, such as general practitioners and psychiatrists, represent a significant segment as they can refer patients who would benefit from therapeutic services.

SWOT Analysis

A SWOT analysis of this therapy practice highlights several key points.

Strengths include specialized training in therapeutic modalities, a compassionate approach to client care, and a confidential and supportive environment.

Weaknesses might involve the challenge of building a client base in a competitive market and the need for ongoing professional development to stay current with therapeutic techniques.

Opportunities can be found in the growing awareness of mental health and the increasing acceptance of therapy as a vital component of healthcare.

Threats may include changes in healthcare regulations, insurance reimbursement policies, and competition from other therapy providers and online therapy platforms.

Competitor Analysis

Competitor analysis in the therapy sector indicates a diverse range of providers.

Direct competitors include other private practice therapists, counseling centers, and online therapy services.

These entities compete to offer accessible, effective, and personalized mental health services.

Potential competitive advantages include specialization in certain therapeutic approaches, a strong reputation in the community, flexible scheduling, and a welcoming practice environment.

Understanding the strengths and weaknesses of competitors is crucial for carving out a unique position in the market and for client acquisition and retention.

Competitive Advantages

Our therapy practice's dedication to personalized care and evidence-based treatment modalities stands at the forefront of our competitive edge.

We offer a range of services, including individual therapy, couples counseling, and family therapy, all tailored to meet the unique needs of each client.

Our commitment to ongoing education and use of the latest research in psychology allows us to provide the most effective interventions.

We pride ourselves on creating a safe and non-judgmental space for clients to explore their thoughts and feelings, which fosters a strong therapeutic alliance and promotes healing and growth.

You can also read our articles about: - the customer segments of a therapy practice - the competition study for a therapy practice

The Strategy

Development plan.

Our three-year development plan for the therapy practice is designed to establish a strong foundation and expand our reach.

In the first year, we will concentrate on building a robust client base by providing exceptional care and establishing a reputation for effective therapeutic outcomes.

The second year will focus on expanding our services to include online therapy sessions and workshops, allowing us to cater to clients beyond our immediate geographic location.

In the third year, we aim to collaborate with healthcare providers and insurance companies to increase accessibility to our services and integrate holistic care approaches.

Throughout this period, we will remain dedicated to professional development, evidence-based practices, and client-centered care to adapt to the evolving needs of our clients and the therapy field.

Business Model Canvas

The Business Model Canvas for our therapy practice targets individuals seeking mental health support, including those with specific therapeutic needs such as anxiety, depression, or relationship issues.

Our value proposition is centered on personalized care, confidentiality, and a commitment to helping clients achieve their mental health goals.

We offer our services through in-person sessions at our clinic, as well as through secure online platforms, utilizing key resources like our professional expertise and therapeutic tools.

Key activities include individual and group therapy sessions, continuous professional training, and community outreach.

Our revenue streams are derived from session fees, workshops, and potentially, partnerships with healthcare organizations, while our costs are associated with clinic maintenance, marketing, and professional development.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is focused on building trust and demonstrating the effectiveness of our therapeutic approaches.

We plan to engage our target audience through educational content on mental health, wellness workshops, and testimonials from satisfied clients.

We will establish a referral network with other health professionals and engage in community events to increase visibility.

Additionally, we will leverage social media and content marketing to share valuable insights and connect with potential clients, while emphasizing our commitment to confidentiality and personalized care.

Risk Policy

The risk policy for our therapy practice is designed to mitigate risks associated with confidentiality breaches, professional liability, and client satisfaction.

We adhere to strict confidentiality protocols and ethical standards, ensuring all client information is securely managed.

Regular supervision and peer consultations are conducted to maintain high-quality therapeutic services. We also have a clear cost management strategy to sustain financial health.

Furthermore, we maintain professional liability insurance to protect against any potential legal claims. Our priority is to provide safe, effective, and ethical therapy services to all our clients.

Why Our Project is Viable

We are committed to establishing a therapy practice that addresses the increasing demand for mental health services.

With our dedication to client well-being, professional integrity, and continuous improvement, we believe we can make a significant impact in the lives of those we serve.

We are prepared to adapt our strategies to meet the challenges ahead and are excited about the potential to grow a successful and respected therapy practice.

We look forward to the opportunity to contribute positively to our community's mental health and to the success of our therapeutic endeavors.

You can also read our articles about: - the Business Model Canvas of a therapy practice - the marketing strategy for a therapy practice

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a therapist and our financial plan for a therapist .

Initial expenses for our therapy practice include leasing a suitable office space, creating a calming and confidential environment for clients, obtaining necessary licenses and professional liability insurance, investing in office furniture and therapeutic materials, as well as costs related to brand creation and launching targeted marketing campaigns to reach potential clients.

Our revenue assumptions are based on a careful analysis of local demand for mental health services, considering the increasing awareness of mental health issues and the need for professional support.

We anticipate progressively increasing client sessions, starting modestly and growing as the reputation of our therapy practice develops.

The projected income statement indicates expected revenues from our therapy services, operational costs (rent, utilities, office supplies), and operating expenses (marketing, salaries, continued education for therapists, etc.).

This results in a forecasted net profit crucial for evaluating the profitability of our business over time.

The projected balance sheet reflects assets specific to our practice, such as office furnishings, therapeutic tools, and liabilities including debts and anticipated expenses.

It shows the overall financial health of our therapy practice at the end of each period.

Our projected cash flow budget details incoming and outgoing cash flows, allowing us to anticipate our cash needs at any given time. This will help us effectively manage our finances and avoid cash flow problems.

The projected financing plan lists the specific financing sources we plan to use to cover our startup expenses.

The working capital requirement for our therapy practice will be closely monitored to ensure we have the necessary liquidity to finance our daily operations, including office maintenance, inventory management, and salary payments.

The break-even point specific to our project is the level of sessions needed to cover all our costs, including startup expenses, and start making a profit.

It will indicate when our business will be profitable.

Performance indicators we will track include the average revenue per client session, the client retention rate to assess our service quality and client satisfaction, and the return on investment to measure the effectiveness of our capital invested in the practice.

These indicators will help us evaluate the financial health and overall success of our therapy practice.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a therapy practice .

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Private Practice Business Plan Template – Free Download

What is a private practice business plan.

Not to be confused with a business case , a private practice business plan is a document that acts as the backbone of your business model and is a crucial step in establishing your mental health practice. Business plans are truly the foundation for any business, and are important for setting benchmarks to measure success. It’s a tool that will give you the opportunity you need to walk through every stage of your practice development to help you clarify your goals and identify your needs. With the information and outcomes it provides, you’ll be better prepared to handle any complications or challenges that may arise as a business owner. 

Off-the-shelf business plan templates can be helpful resources, but often aren’t effective for actual private practices. At Valant , we want to make establishing your mental health business plan easier and more successful. That’s why we’re sharing a private practice business plan template for behavioral health practices like yours! 

Benefits of Developing a Private Practice Business Plan

There are many benefits to developing a private practice business plan . To name a few, a business plan can:

• Help you identify weaknesses and opportunities, giving you a more comprehensive understanding of the market and your place in it.
• Analyze your business model and necessary operations, enabling you to streamline processes more effectively.
• Establish your services and unique value proposition, enabling you to set yourself apart from your competitors and offer your clients distinct value.
• Set your financial goals, helping to build a stable, successful business.
• Create marketing strategies, offering insight as to which channels may produce the greatest number of dedicated patients. 
• Identify opportunities to attract and retain clients, allowing you to find and successfully treat the kind of patients you’d like to most.
• Stay accountable to your goals, keeping your practice focused in its intent.

Using our detailed and comprehensive template will allow you to jumpstart the startup process and help you maintain your momentum as you move towards launching your practice. 

What’s Included In Our Private Practice Business Plan Template

Our business plan template includes several categories of questions aimed at simplifying and clarifying your plan for your behavioral health practice. Included in this document are questions about your mission statement, description of your practice, legal framework, operations, EHR system , marketing, organizational structure, and finances. Our business plan template will help you answer all the questions while thinking critically about your business, services, customers, and goals.

We hope the information provided in our template will help you lay the foundation of your successful mental health practice. Understanding the basics of starting a practice is crucial to your future success as a mental health provider. Download our comprehensive private practice business plan PDF template now.

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Starting an ABA Therapy Clinic – Step by step how to, ABA Business Plan and Checklist

‍ Most Applied Behavior Analysis (ABA) clinic owners specialize in behavioral analysis, not business management. Explore this guide and get advice from real ABA owners on every step in setting up a new clinic. Learn how to register a business, attract clients, and grow your practice. ‍

Inside this article:

• How to organize and plan your ABA clinical processes
• Expert tips for starting an ABA practice
• Answers to common FAQs
• Why ABA practice management software is a must-have tool for new ABA clinic owners ‍

Steps to Start a New ABA Clinic

‍ To start an ABA clinic, you’ll need to incorporate your business. Then, you’ll create robust clinical procedures before accepting clients. The length of the entire process depends on your preparation level and whether you want to enroll with insurance providers.

Deciding to open a new Applied Behavior Analysis (ABA) clinic is the first step in an exciting phase of your career. But the process can feel overwhelming. Like any new business owner, you’ll need to create a robust business plan, save money, and go through the steps of registering your business. To top it off, you (or your staff) need to receive the licenses and credentials required of a Board-Certified Behavior Analyst (BCBA).

Most BCBAs start in the field because they want to make a social impact and help others. Many like the idea of opening a clinic because they want to expand their reach and be their own boss. However, some BCBAs make the mistake of underestimating how much business, marketing, and non-clinical work goes into starting an ABA practice.

Aaron Tucker, founder and CEO of Forward Family Services , three ABA and behavioral health clinics in central California, recounts his motivation to start an ABA clinic.

‍ “I wanted to do something socially impactful and rewarding, which also allowed me to make a living.”

But Tucker warns that BCBAs might be surprised at how much business management can be involved in starting an ABA clinic. “Many people are used to focusing on case management and interacting with kids. They may not realize that, as a business owner, you don’t get as much of that experience anymore.” ‍

Tucker sums it up nicely, saying, “if you want to be a business owner, are a confident leader, embrace teamwork, and want to help others, opening an ABA clinic will be right up your alley. To be successful, a new ABA owner must be resilient.”

With the proper support and preparation, the result will be worth it: your own clinic where you can use your unique skill set to improve your patients’ lives. ‍ ‍

Steps to Set Up a New Business

‍ Setting up a business is straightforward, but steps vary based on state and business type. Start by creating a business plan and securing funding. Then, think of a name that encapsulates the spirit of your business. Finally, register your business.

Before starting the journey, it’s worth noting that the entire process might require a mind shift. Dr. Brandon Herscovitch, clinical assistant professor of ABA at Truman State University and co-owner of Partners Behavioral Health , offers this advice:

‍ “Think like both a BCBA and a businessperson. For example, being an ethical and caring businessperson can help provide a platform for you and your clinicians to serve your clients inside a sustainable model.”

Whenever you decide that you are ready, here’s a step-by-step guide detailing how to set up your ABA business. Click here to download our checklist for starting an ABA clinic.

Map out the process Before jumping full steam ahead, research the process diligently. In many cases, you can work on two steps concurrently, saving time and money. Plus, you may identify weaknesses that you’ll need outside help to tackle. For example, most experts advise speaking to a lawyer and an accountant at the beginning of the process.

Consider your finances and make a budget An accountant or business coach can help you with the subtleties of strategic financial planning. Don’t underestimate this stage: Proper planning will help you identify how much upfront capital you’ll need to get your business going and how long you’ll run in the early stages when you only work with a few clients. In fact, according to the Small Business Administration (SBA), one of the top five reasons a business fails is because they lack the capital to operate in the early stages.

Starting a business has an upfront cost. Ask yourself if you have enough money to absorb these costs or if you will need to borrow money. Consider that you may be unable to keep your day job while simultaneously opening a business. Estimate your startup cost and how long you can run your business without turning a profit. The number will vary based on your goals and whether you want to run an in-house or virtual practice. Split up your expenses into fixed costs(e.g., rent, web hosting services) and variable costs (e.g., anticipated staff hiring, etc.).

This process will also help you determine a wage for yourself and your staff. This number will vary based on whether you will predominantly be paid through insurance carriers.

Herscovitch owned his own ABA clinic from 2006 to 2019. When asked about critical concepts he wished he knew more about before starting, Herscovitch stresses that “cash flow is an important concept to understand. People often focus on profitability, which is important too, but cash flow is also an essential concept to understand and plan for. Likewise, having a business plan and financial projections will help you succeed.”

Brainstorm your business name Your business name will follow you everywhere you go – from your registration forms to your website – so think carefully about your choice. Try encapsulating your business's spirit and speaking to your unique mission. Your business name should be easy to remember because it will be the centerpiece of your marketing campaign. Finally, check your state’s business registry website to ensure the name is available.

Write your business plan Your business plan will outline your goals and how you will achieve them. You’ll also outline business milestones you hope to reach, helping you identify and prepare for potential roadblocks. Finally, potential investors will expect a well-written business plan if you are seeking any outside funding. There are seven broad parts of a business plan. You should organize your business plan from general to specific. For example, start with an executive summary containing your business name, description, and team biographies. You then walk the reader through the specifics of your funding and marketing strategies. In the end, you will discuss the levels of growth you hope to achieve and how you will reach these milestones. For example, if you want to expand to many clinics, you should organize your plan around that goal. Download our ABA clinic business plan template to learn more.

Pick your business location Your state and region will determine specific regulations, license requirements, and expenses. For ABA providers, consider that different states offer different rates and have various rules and licensing requirements. Also, your location will affect fixed costs like rent and utilities.

Determine business structure (LLC vs. SCORP vs. CCORP) Your business structure affects how much you pay in taxes, your funding ability, the paperwork you need to file, and your liability. Before registering your business, you must choose a business structure. Many decide to discuss the relative pros and cons with their certified public accountant (CPA).

Sole proprietorship: You are immediately considered a sole proprietorship if you don’t register as any other business. In a sole proprietorship, your business assets and liabilities are not separate from your assets and liabilities. If you need a loan, consider that banks rarely lend to sole proprietorships. On the other hand, sole proprietorships can be a good idea if you just want to test your idea before forming a more formal business or branching out to include multiple clinics.

Limited liability company (LLC) LLCs separate your personal and business assets. If you operate an LLC, personal assets won’t be at risk if your business faces financial issues. You will need to pay self-employed text contributions toward Medicare and Social Security. ‍ ‍

Corporation – SCORP and CCORP

Corporations have shareholders, officers, and a board of directors. SCORPs and CCORPs are the two major types of corporations. They differ in terms of their federal tax structure. Both corporations provide excellent protection against personal liability, allow you to sell stock, and are more expensive to set up than an LLC.

CCORP:  Owners of CCORPs must pay corporate-level income taxes and can experience double taxation if they make a profit by selling shares.

SCORP: SCORPs have a special tax status. In SCORPs, losses and profits pass through to the individual shareholders, who are then taxed individually. SCORPS don’t pay federal income taxes. This option can be attractive to ABA owners, but be aware that you must meet some requirements to file as an SCORP.

- Register your business If you conduct business under your legal name ,you don’t need to register with the federal or state government. But, without registration, you won’t get personal liability protection and tax benefits.

Federal: Most businesses simply need to receive a federal tax ID to register with the federal government and become a legal entity. Small businesses sometimes register for trademark protection or tax-exempt status. If you want to trademark your business, brand, or product name, file with the U.S. Patent and Trademark Office. Register your business as a tax-exempt entity with the IRS if you want that status for a nonprofit corporation.

State: If you’re an LLC or corporation, you must register with any state where you conduct business. For an ABA clinic, this will typically be the state where you have a physical presence.  Some states allow you to register online, while others require paper documents in person or by mail. Usually, the cost to register your business is less than $300, but fees vary depending on your state and the business structure.

Registered agent: You need a registered agent for an LLC or corporation. All this means is you must name a registered agent when filing business formation paperwork with your state. You must have a registered agent in every state where you register your company. Some owners choose to assume this role if they work only in one state. The job is simple: Receive documents on behalf of the business and pass them on to the appropriate individual. This procedure exists for lawsuits, subpoenas, and notices that legal personnel must serve in person. You want someone you trust to pass the information along promptly.

- Receive federal and state tax IDs Your employer identification number (EIN) is your federal tax ID. Right after you register your business, apply for an EIN for free. Most, but not all, states require a state tax ID if your business involves hiring employees or selling goods and services. Check with your state to learn more about the requirements and procedures for receiving a state tax ID. State income taxes differ by state. Research your state’s income and employment tax laws or ask your accountant to ensure you comply with all tax regulations.

- Open a business bank account You can open a business bank account once you’ve received your federal EIN. You should not accept or spend money on your business with your personal account. Most banks offer additional perks to business bank account holders, like personal liability protection. Business accounts also convey a level of professionalism to paying customers. Finally, with a business credit line, you can amass a credit history that might be handy later when you want a loan to make a large purchase. Finally, you need a business bank account if you want to credential with any insurance carriers.

Get complete guidance on collecting, analyzing, and using ABA data for practice growth.

Setting up an aba practice.

‍ You will need to take additional steps to set up an ABA practice, like securing necessary licenses and insurance. If you want to enroll with insurance, you must undergo insurance credentialing.

Here’s a step-by-step list of what you need to do to set up your ABA practice.

- Decide whether you will offer in-home or clinical therapy Some ABA providers offer in-home services, where clinicians travel to the patient’s home. This option can provide several benefits. For example, the overhead cost is far less because you do not have to locate a center or pay rent. Some clinicians prefer to work in-home because it allows more opportunities to treat patients in their natural environments. However, expanding and growing your practice has obvious limitations if you offer only in-home services.

A clinic setting lets you and your staff treat more patients and offer options like group therapy and increased socialization.  Opening a clinic can be a smart way to increase your client load and grow your staff, but it comes with expenses like rent, utilities, and more.

- Create a CAQH profile CAQH stands for “Council for Affordable Quality Healthcare” and is an online data repository that insurance companies access to gain information about practitioners. The CAQH system allows insurance companies to use a uniform application for credentialing, expediting the process. You will need a CAQH profile to enroll with insurance companies. Many BCBAs already have a CAQH profile. If you sign up, be sure you don’t already have a profile because you cannot have duplicate accounts.

- Insurance credentialing Experts describe insurance credentialing as the proverbial black hole in starting an ABA Clinic. The process can take up to90 days, especially if you hope to go in-network with insurance companies in your area. Be aware that you will need to submit the policies and procedures for your organization with your paperwork. If you want to register as a group provider, you will need two to three other BCBAs, depending on the state.

Tucker, CEO of Family Forward Services, points out that in the insurance and billing world, “everything moves slower than you think it will. Credentialing will lag, and billing will take 30 to 40 days – and that’s if you’re fast. These delays represent significant challenges in the industry.” Strongly consider outsourcing the process to a professional, so you can focus on starting and promoting your new business while they manage insurance credentialing. If you decide against insurance credentialing, identify your funding source. Will you be a private pay-only clinic or contract with schools?

- Negotiate your rates Determining your wage and that of your staff can be difficult when contracting with insurance carriers. You do not have much negotiating power at the early stages.

Tucker recalls that “when you start out in the business, insurance companies set the rates. Later, as you demonstrate a track record of success and growth, you will have more control over your rates. Basically, if you demonstrate that you can take care of their paying customers and members, they will be more willing to negotiate.”

But, Tucker notes, there is some hope: “In the ABA and mental health space, there is increasing pressure on the insurance to increase their rates. The cost of giving care has exploded, and the carriers are not giving up. Millions of providers and practice owners have demanded that insurance carriers should be increasing their rates commensurate with inflation. Hopefully, that change will happen soon.”

- Get your National Provider Identification (NPI) Number: All BCBAs already have an NPI to bill insurance companies for services. If you are the sole provider in your ABA clinic, you won’t need more than your individual NPI (also called a “Type 1” NPI). Otherwise, you’ll need a group NPI (“type 2”NPI). You can get either NPI type at the National Plan and Provider Enumeration System.

- Get insurance Opening, managing, and working at an ABA clinic present various risks. Consider the following insurance policies to protect yourself and your employees:

• Workers’ compensation If one of your employers experiences an accident on the job – from an aggressive patient to carpal tunnel from deskwork – workers’ compensation insurance will cover your employees' medical costs and lost wages. Paying for these costs yourself would be a financial disaster. Additionally, some states mandate that you provide workers’ compensation, even for part-time workers. ‍
• Professional liability insurance (malpractice insurance) Professional liability insurance (malpractice insurance)Professional liability insurance protects you when a client claims you made a mistake while providing care. When setting up your insurance policy, try to define the type of care and services you provide. This strategy will increase the chances that the policy will cover you in the event of an issue.
• General liability Insurance General liability insurance protects bodily or property damage because of your business operations. General liability insurance can also protect against miscommunication arising from false or unclear advertising.
• Auto liability insurance If you use a car in your business, purchase a comprehensive auto insurance policy.

- Consider accreditation Behavioral Health Center of Excellence (BHCOE) accreditation is an earned certification and distinction among ABA Providers that demonstrates an organization’s commitment to quality and improvement in ABA. ‍

Steps for Setting Up an ABA Practice

‍ You’ll need to gather the necessary hiring documentation and create robust collection and treatment plans to set up your practice. Also, make sure you know how you plan to intake clients, hire staff, and market your business. Here's an overview of what you need to consider when setting up an ABA practice.

- Client intake Have a step-by-step process detailing your intake process and your methods for determining how you will assess new clients for eligibility.

- Recruiting, hiring, and training staff Provide policies that outline how you will ensure that all your staff has been trained. Understand how you will support employees to receive training as needed. Consider how you will train your staff in cultural sensitivity, safety techniques, HIPAA, agency records management, and ethics. Create training materials, job descriptions, and hiring forms. Decide what type of benefits package you will offer and whether you want a Registered Behavioral Technician (RBT) to assist your BCBAs. Consider whether you will provide training for RBTs or whether you will expect to hire someone with experience. Create a payroll system.

- Clinical procedures Treating patients is why most ABA owners get into the business. Have a collection of pre-planned treatment plans and create a robust data collection system, ideally one that is supported by powerful ABA practice management software. Have policies and procedures for clinical management and case supervision for home-based and clinic-based services, depending on your specialty.

- Billing and compliance Your billing processes will vary based on your major funding source. If you mostly rely on insurance carriers, you must navigate the complex world of insurance reimbursements and compliance.

Thomas John, Founder and CEO of Plutus Health, Inc. states, “A new ABA agency must ensure upstream activities like credentialing and contracting with major players as a first step in setting up a good billing process. You must check for patient eligibility and get prior authorization before scheduling a session. To get reimbursed promptly, make sure the claim has accurate modifiers, session times, and signatures.”

You will need to develop methods to understand and meet the terms of your contracts and stay up to date with any changes to provider requirements. Provider network requirements, compliance procedures, and contract changes vary based on the carrier and your status (in-network or not). The best way to deal with billing and compliance is to partner with a trusted billing solution service as part of your ABA practice management software solution. ‍

Expert Tips on Starting a New ABA Clinic

‍ Experienced ABA owners offer this essential tip for starting an ABA clinic: Choose the right people for your team. Make sure they are high-quality specialists who fit your business plan. Two other tips: Consider outsourcing administrative tasks and join professional associations to network.

Here's a detailed list of tips on starting an ABA clinic:

- Build a team of professionals with diverse strengths Every ABA expert stresses one key piece of advice: Pick the right team.

Herscovitch emphasizes that “effective and strategic business people often don't do everything themselves. They hire specialists in each of their areas or required expertise. The CEO is not also the CFO and the CCO in successful large corporations. They know the importance of building great teams around them. Consider those details in building your organization.” ‍

‍ Tucker, CEO and founder of Family Forward Services, also stresses the importance of teams. He emphasized that “you must recognize your limitations and strengths.” Before starting an ABA clinic, Tucker, an experienced MBA, felt comfortable with insurance companies and revenue cycling. But he notes, “I am not a clinician. I couldn’t have grown our practice into a 150-employeepractice without my COO, a BCBA with 30 years of experience in mental health and ABA. I lean on her for the clinical operations side. My CAO oversees the onboarding, training, people, and culture management. This dynamic allows everyone to support one another and helps the business flourish.”

- Join professional associations Consider joining the Association for Behavior Analysis International (AIBA) group and the Association of Professional Behavior Analysts (APBA). Joining these groups will affiliate you with an extensive network of other BCBAs and give you access to essential resources and conventions. Plus, membership will show your commitment to the profession. Finally, registering with these groups will help get your name out to potential customers.

- Take your website seriously Invest in a modern, sleek, and informative website. Use this space to talk about your mission and establish a brand identity. Consider hiring a graphic designer to create an original, creative, and recognizable logo.

- Outsource administrative tasks Most BCBAs study behavioral analysis, not accounting, business operations, and marketing. Don’t try to wear all the hats at once. Instead, hire a CFO, accounting firm, and bookkeeper. Also, consider aligning with the payroll company. Invest in a comprehensive ABA software solution covering your business operations from head to toe.

- Utilize marketing material and get social media Define your target market, including demographics and psychographics. Consider hiring a marketing expert to help you get the word out and convert interested clients into paying clients. These days, social media is a must-have for any business. Classic marketing material like flyers and posters in doctors’ offices and schools can still have a broad reach. You can also host an open house event so families can see your offer.

When marketing, Herscovitch says, “consider why a customer or employee should collaborate with you rather than one of the (possibly) many other options they have. To increase the likelihood of success in today's market, have a unique value proposition. Think about what makes you special. Be honest and creative. For example, are you filling a gap in the market? Maybe you have experience with or are an expert with certain behaviors, client personas, or specialty areas/services. Maybe you represent a specific group of people with whom prospective customers can associate or that they'd want to support.”

-  Attend local events and network in-person Don’t underestimate the power of organically meeting with colleagues and potential clients in your area. Because ABA relies on authentic connections, people may weigh your in-person presence more strongly than your social media campaign. Consider meeting with social workers who work in the school district near you.  You can also meet with local pediatricians to solicit referrals. Attend different events to spread the word. Also, tell your BCBA colleagues about your new business. Chances are, they will refer new clients to you if they don’t have the space or specialty to treat them.

-  Monthly payroll Most insurance companies take 30 to 90 days to pay you. Setting up monthly payroll guarantees payday will intersect with an influx of funds from insurance providers.

- Sign up with a clearing house Some ABA owners choose to hire a clearing house to review their health insurance claims before sending them to the clearinghouse.

- Learn how to be a good boss Cultivating an effective leadership style will help build a positive, respectful working culture. ‍

‍ Herscovitch has simple advice for leaders: “Treat your staff how you’d want to be treated. Furthermore, understand that advocacy is and will be an essential element of his field moving forward.”

Starting an ABA Clinic FAQs

We asked ABA experts to weigh in on some common ABA FAQs. Find answers to topics like the profitability of ABA clinics, how best to grow your business and more.

Are ABA Clinics Profitable?

‍ In general, ABA clinics that follow the best practices of starting a business will make a profit. However, those profits depend entirely on the market in your area and which type of clients you accept, such as insurance, private pay, and school contracts.

The demand for ABA clinics will only grow. According to the Bureau of LaborStatistics (BLS), ABA therapists will experience more than a 20% job growth by2029. In 2021, entry-level BCBA therapists made $60,000 annually, whereas more experienced therapists could earn over $70,000 annually. Though starting abusiness will eat up costs up front, with the proper marketing and budgeting for overhead, you should be able to reach these metricsand grow beyond them. Plus, salaries and clientele will grow along with demand. Within a few years, Tucker’s three ABA clinics, Family Forward Services, have provided him and his team with a “hard-fought 10-15% return on investment.” Tucker also commented that “in this industry, demand will only grow. We are only scratching the surface when it comes to accurately diagnosing mental or behavioral health disorders.” ‍

How Do I Grow my ABA Clinic?

‍ The best way to grow your clinic is to attract new clients. Strategies vary based on your location and regional demand. Consider expanding the services you provide along with your hours of operation. Another option is to contract with a marketing firm. Tucker has firsthand experience in growing ABA clinics: He expanded his single office into three regional offices, supporting 150 clients in central California during the coronavirus pandemic. Tucker notes that he couldn’t have been successful alone. “If you’re looking to grow a business to have a bigger impactor operate on a regional scale, you need to recognize your limitations and build a team whose strengths make up for your weaknesses. Then, you can be confident that you will get there together.” ‍

How Much Does It Cost to Set Up an ABA Clinic?

‍ It costs an average of $300,000 to $350,000 to set up an ABA clinic, according to one expert. However, Brandon Herscovitch, Ph.D., notes that “overhead costs depend on various considerations like your funders, staff salaries, additional expenses, business model, business structures, client number, and more.

He adds: “Your average number of clients and the anticipated time to payment from payers are also important considerations. On average, I would estimate an overhead cost of $300,000 to $350,000, but the number could be much more or much less. ‍

Should I Offer ABA Virtual Care?

‍ The growing wave of telehealth services won’t slow down anytime soon. Increased convenience and lower cost led many ABA clinics to offer telehealth. However, remote practice isn’t for every provider or every patient. Your best bet might be a hybrid of remote and in-person.

Tucker opened his first clinic in Fresno, CA, in 2020, at the beginning of the pandemic. Where other businesses closed or only offered telehealth, Tucker and his team continued to provide in-person services – a decision which he says may have helped his business grow. “We doubled in size in 2020-2021, when many clinics were shuttering. Meanwhile, we had tearful parents, thanking us for still providing the in-person care they needed.”

Still have questions in mind on how to start an ABA clinic?

How aba practice management and emr software simplifies opening a new clinic.

‍ ABA practice management software streamlines business operations so you can concentrate on providing care. You can focus on clients and business growth by handing off administrative tasks to the software.

James Vrtis, CEO of Artemis ABA Inc., a technology software company focused on ABA, points out that new ABA clinics have opportunities and challenges distinct from already established clinics. For Vrtis, software can help leverage these opportunities and close the gaps.

“New ABA clinic personnel tend to wear multiple hats as they try to get their business up and running. ABA software alleviates this strain and helps create operational workflows that ensure best practices. The software gives you a roadmap to intake a client, schedule them, provide therapy, and get paid for that session. These tools keep you focused on what matters. Think of ABA software as the guardrails that keep you centered on clinical care.” ABA therapy revolves around long, intense one-on-one sessions with clients. The best BCBAs take detailed notes, collect data to track their client’s progress, and tailor plans as needed. A BCBA that takes these notes manually will waste hours and make typical errors associated with manual entry and copying. In anew clinic’s early, vulnerable stages, this time lost can spell burnout and disaster.

On the other hand, new clinics that use practice management software from day one will also facilitate report gathering claims transmissions and have a clearer sense of their financial perspective. These processes will alleviate huge administrative burdens from the backs of budding ABA businesses, allowing them to flourish and focus more on customer care. By eliminating many small inefficiencies, ABA practice management and electronic medical record (EMR) software can spell the difference between success and failure for a small clinic. Tucker, CEO and founder of Family Forward Services, advises new owners to“ choose your software and billing partners carefully. These are critical choices if you want to be successful in ABA.” ‍

ABA software differs in functionality. Look for the following features:

- Client onboarding: Management software for intake forms, registration, and more makes HIPPA-compliant documentation easier. ‍

- Scheduling: The best software allows for automated scheduling, with the ability to edit appointments manually. Automated scheduling facilitates communication with patients and therapists and makes rescheduling or canceling appointments hassle-free.

- Insurance claims processing and payment Automated insurance workflows alert therapists to upcoming expiration dates for prior authorizations. This system helps reduce therapy interruptions due to a lack of payment. ABA systems provide detailed insight into the status of claims. Denial management solutions help you reduce your number of denied claims and get the revenue you earned. Evaluate denials for errors and makeappeals all through the software. Automating the claims transmission process through an integrated clearing house will make processing and up your percentage of clean claims faster.

- Payroll and human resources ABA software lets you easily manage timesheets and keep up with employee performance. A responsive customer support team distinguishes between mediocre and excellent software support.

- Clinical data collection and analysis Reputable ABA software provides on-demand reports for various key performance indicators (KPIs). It has a system for therapists to take notes once, eliminating the inefficiencies of manually transcribing notes. Support improved patient outcomes with trackable analytics that allow you to get a first-hand look at a client’s response to treatment ABA software with cloud support and mobile solution enables you to collect data from anywhere quickly–whether in the office, at a school or off-site.

- Reporting and analytics Comprehensive dashboards with reports and alerts drive our attention to critical indicators for all facets of your business, letting you better manage your business. ‍

Some of the critical benefits of ABA software include:

- Improved patient care: You won’t lose any important notes with secure data reporting. As a result, generated visuals, analytics, and reports will be more accurate and robust, improving patient outcomes. Improved patient outcomes and less stress associated with day-to-day operations create a positive environment and a more productive clinic.

- Increased revenue : Automating the processes allows you to save time and money, letting your BCBAs increase their caseload and optimize their sessions. Plus, with help understanding and processing insurance claims, you can quickly identify when an insurance company wrongly rejects your claims. Finally, productivity increases your bottom line by saving time on non-billable hours and reducing costs.

- Happier employees: No one likes to spend hours on tedious, non-billable tasks. When you give your employees more tools to help their patients – and don’t waste their time on administrative tasks – they will be less prone to burnout. ‍

How Artemis ABA Helps New Clinics Succeed

‍ New ABA owners need comprehensive support from an expert team. Artemis ABA software optimizes business operations so you can focus on patient care, not office work. The company’s customer-first approach sets the software apart from its competitors.

“Artemis approaches their customers looking for a true partnership,” says Tucker, an Artemis customer. “Not only do they provide dependable, top-notch, excellent support, but they value my feedback and set about instantly integrating my suggestions.”

Tucker relates this example: “Our clinic got hit with a prepayment audit review from Anthem, who asked that we make changes that put a new burden on our notetaking and data collection processes. We reached out to Plutus and Artemis, who immediately took our feedback into account and quickly collaborated to create an automated system with fields that we can auto-populate. This new system saves us up to 15 minutes per session and helped us successfully navigate the pre-payment review. Now, thanks to Artemis and Plutus, we go above and beyond in terms of compliance in a way that doesn’t place an additional burden on our team. I am certain that, without Artemis, the entire situation would have been much more stressful.

You are free to focus on clinical care because Artemis handles the burden of administrative tasks. Whether it’s keeping track of treatments or handling billing, Artemis has you covered. Plus, the software enforces a best-practices workflow that allows you to schedule clients, set up appointments, and conduct therapy.

Unlike other ABA software, Artemis directly aligns clinical operations to a software-controlled workflow, so practice operations align with best practices. Artemis provides a seamless workflow between software, billing, and revenue cycle management with a single cloud solution. These practices will reduce your risk and speed up payments. Set, track, and meet your revenue cycling management goals with automated monitoring and report generation. In contrast, other providers create a gap between clinical operations and billing. With Artemis, you don’t have to rely on multiple vendors and software, eliminating inefficiencies and streamlining operations. Along with its comprehensive software, Artemis provides its customers with complete support from a professional billing services group. These professionals demystify the complex process of medical billing services for ABA. These billing services create robust, HIPAA-compliant processes that exceed the most stringent industry standards. For Tucker, this level of support “helped us regain our footing when we made mistakes.” Finally, Artemis supports session management with comprehensive reporting and analytics, a 360-degree client care view, and a patient portal. With robust data collection and analytics, you can confidently track your patients’ progress, tweak their programs, and schedule new treatment plans. With an AI scheduler and predictive analysis, you’ll get the relevant feedback and reports you need to sharpen your business strategy. Artemis is reliable, easy to use, and secure. Join the 800+ providers supported by Artemis ABA and start your business off on the right foot with an invested, expert partner by your side.

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Autism innovation Advisory board

A One Page Business Plan for Your Therapy Practice

Profitability

THIS POST INCLUDES:

1. Keep Your Business Plan Simple 2. Parts of a Business Plan 3. How to Complete a Business Plan 4. Sample Business Plan: Art Therapy Practice 5. Additional Business Planning Information 6. Free Download Business Plan Checklist

KEEP YOUR BUSINESS PLAN SIMPLE

Many people have a perception of what a business plan entails. They may think business plans are only useful for large companies or businesses you want to get a loan from a bank and need to explain their financial position.

A business plan involves much more than looking at the financial aspects of your business. It involves defining your clients, assessing your strengths and weaknesses in your business, and identifying the resources you need to execute your goals for your business.

Your business plan should be written using simple language. A business plan should be written so that it encourages you to take action on developing parts of your business that need your attention such as resourcing, marketing , and financial planning.

Many business plans are written for the benefit of a board of directors, however, if you are a private practice therapist, your board of directors is you. Therefore it is important to write your business plan using language that will motivate you and help you solve problems that may exist in your private practice.

If you are running a private practice and you are the sole employee, it is easy enough to create a business plan using a one-page process. While it is important to undertake these important administrative and planning aspects of your business, it’s also important that you keep momentum on running your business so that you don’t get too distracted by onerous administrative tasks.

It’s also important to remember that a business plan is often a changing process. As your private practice develops, you may want to change parts of your business that suit your goals at that time.

It’s a good idea to review your business plan at least once a year so that you can make any amendments and future goals for the year ahead. In the first year of your business, you will want to pay close attention to your business plan and possibly review it every month, however, once your practice is established you can undertake a review process less frequently.

A business plan is simply about being prepared.

PARTS OF A BUSINESS PLAN

The content of your business plan should always be based on providing information that helps you progress in your private practice. It is good to include information that is simple, concise and provides actionable steps.

GENERAL BUSINESS PLAN

Essentially, the most important parts of your business plan will include:

• Why do you want to start a private practice
• What are the mechanics of your private practice – income, expenses, staff, administration etc
• What are your strengths, weaknesses, opportunities, and threats (SWOT analysis)
• What is your marketing plan

These 4 areas are fundamental parts of your business plan. Your business plan should be specific to your private practice, however, we’ve created a sample outline below of the most important details that you should consider based on the above 4 fundamental parts.

DETAILED BUSINESS PLAN

• Private practice name:
• Date of this plan:
• My mission for my private practice:
• My business goals (should be specific and measurable):
• Income avenues:
• Initial cost set up:
• My strengths:
• My weakness (and how to manage them):
• Opportunities for my private practice:
• Threats to my private practice succeeding:
• Marketing Plans:

HOW TO COMPLETE A BUSINESS PLAN

Completing a business plan takes some time and effort. Essentially you are working on a document that is based on goals, expectations, and unknowns. It can feel difficult to determine exact details to include in your business plan when there are so many unknown variables.

From this perspective, your business plan is simply a guideline to get you started. It should always be viewed as a process that requires adaptability and flexibility as you become more experienced in running your private practice.

The business planning process can be overwhelming especially if you are more interested in client work instead of administrative work. In many ways creating your business plan is an introduction to running your private practice.

At times when running your private practice, you will be required to do administrative work that feels more tedious compared to the client work that you want to do. It is good to note any resistance you feel when creating your business plan as it may be a good way to assess your desire to run your private practice with many of the non-client work tasks that you will be required to undertake.

Set a time limit on creating your business plan. We’ve introduced 13 sections above in the detailed business plan. You could dedicate an individual time slot for each detailed item so that you don’t get too overwhelmed with researching a lot of information at once.

The first 3 items are simple information recording items and should only take you seconds to record. If you haven’t already named your business or subsequent website name, then you may want to spend some time on working out what your private practice should be called.

Whenever you name anything whether it be your private practice, services types, products, or workshops, you should always name items from your client’s point of view. Any names should be easy to spell, pronounce, remember, and understand in terms of purpose. Consider the demographics of your ideal clients and be guided by what language and words might mean to them. For example, if you want to appeal to elderly clients, you may not want to name your business: Artz4U

As you work through each item on your detailed business plan, remember to record all information in one central area. A lot of software integrates, so you should be able to combine both word processing documents and spreadsheet documents in one primary document. A program such as Evernote is a good tool to use for creating your business plan because you can access it at any time across multiple devices. Evernote is fairly robust in creating written text, tables, checklists, audio, and more.

Evernote is a useful program to record all of your business information in as a central database. This means you can access information about your private practice at any time. Evernote is also a great way to store and record information from external sources (eg. Internet) that you can use to help develop your business.

You may want to read our previous post about using Evernote for blogging to see how you can also use Evernote for your business planning process. 10 Useful Tips to Use Evernote for Blogging

Evernote is free for a basic account, however, you can purchase a premium subscription for additional features. You will easily be able to use a free Evernote account to create your business plan.

SAMPLE BUSINESS PLAN: ART THERAPY PRACTICE

Included in this section is a sample of how to create your business plan using the parts of a business plan listed above. This sample is simplified to give you an idea of how each section should be used.

It’s important to note that your financial information such as income, expenses, and initial set up are usually specific to your first year. Each additional year after will be different as you may not have the same ongoing costs as you did in your first year. You will also most likely have your lowest income year in your first year until your practice becomes more established.

It is is a good idea to extrapolate your financial calculations out for at least the first 5 years so you can get some perspective over the short and long term success of your private practice. This will also help you plan for any initial savings that you need to inject into your business in the first year. Being financially prepared will help reduce the stress that you feel around meeting income goals.

The more elaborate your business goals are, the bigger your business plan will be. This business plan is a simplified version to get you moving and taking action on establishing your private practice.

All names, websites, and financial information is fictional for illustration.

PRIVATE PRACTICE NAME ABC Art Therapy

WEBSITE www.abcarttherapy.com

DATE OF THIS PLAN January 2019

MY PRIVATE PRACTICE MISSION To help clients experiencing anxiety and depression. A focus on adolescents and building self-esteem.

MY BUSINESS GOALS

• Become an expert in art therapy and anxiety/depression in my area.
• Create workshops for adolescents and building self-esteem
• Develop a workbook for adolescents that can be purchased online and at workshops

INCOME GOALS (per year)

• General client sessions – 4 clients per day x 4 days x 50 weeks x $80 per session = $64,000
• Workshops – 4 per year x 10 clients each x $80 = $3200
• Workbook – $20 x 200 sales per year = $4000

TOTAL INCOME YEAR 1: $71,200

NOTE: Your income will most likely be more varied as you may choose to take on reduced fee clients or charge more for additional services such as report writing etc. You may also set initial client session goals for the first year and increase them each year after.

EXPENSES (ongoing per year)

• Bank Fees $100
• Accounting/Legal $200
• Education/Courses $300
• Telephone/Internet $500
• Insurance $320
• Office Supplies $800
• Art supplies $2500
• Professional fees $150
• Repairs and maintenance $150
• Subscriptions $150
• Advertising $1500
• Wages (inc. Tax, superannuation/401k, retirement) TBA

TOTAL EXPENSES: $14,470

NET PROFIT: $71,200 – $14,470 = $56,730 (allocated to wages, taxes, retirement planning etc)

NOTE: In the expenses section, we’ve written TBA under Wages etc. You may want to calculate the wages you pay yourself as a set amount at the start and then your income and expenses will need to allow for that level of wages to be paid. Alternatively, you may want to calculate your income and expenses initially, and then allocate the remaining profit to pay your wages.

INITIAL COST SET UP

• Plastic desks x 5 $100
• Plastic folding chairs x 10 $100
• Lounge chairs x 3 $500
• Art room decor $200
• Desktop computer $1200
• Printer/scanner $300
• Art room supplies $1000
• Website and general admin $500

TOTAL SET UP COST: $5,100

• Writing content – good for creating workshops and workbooks
• Public speaking – good for public marketing and networking
• Specialty in working with adolescents (note various training obtained)
• Setting procedures
• Financial acumen – need to hire a bookkeeper/accountant. Set a schedule for reviewing data
• Marketing – undertake a free online course to determine the best methods of marketing online and offline
• Easily distracted – can become distracted by pursuing multiple goals. Set a plan and meet with an accountability partner to stay on track
• I am a sole practitioner – investigate income insurance

OPPORTUNITIES FOR MY PRIVATE PRACTICE

• There are 3 high schools in my immediate area where I could offer my workshops or work with the school counselor on developing programs.
• There are only 2 other therapists who deal specifically with adolescents in my area – neither of them provides art therapy services.

THREATS TO MY PRIVATE PRACTICE SUCCEEDING

• There are 8 other therapists who focus on anxiety/depression treatments. Approach each of them to network for referrals.
• Illness and professional burnout – implement regular self-care and supervision
• Cash flow problems – develop a nest egg to pay bills

MARKETING PLANS

• Networking with other therapists in my area
• Contact GP’s and other allied health professionals
• Network with high school counsellors for workshops
• Facebook advertising
• Art therapy association directory
• Counselors association directory
• Build website content and create email list with newsletter
• Social media posting – establish social media plan

ADDITIONAL BUSINESS PLANNING INFORMATION

Below is a list of previous blog posts that will supplement the information about business planning in this blog post. Read these blog posts to dig deeper into each aspect of running your art therapy practice.

ADMINISTRATION

• How to Backup Your Important Business Files
• Practice Management Software to Use as an Art Therapist
• 10 Steps to Set Up Your Art Therapy Practice

ART THERAPY HELP

• How to Set Up Your Art Therapy Room
• Link List: Useful Therapy Resource Websites for Forms, Templates and Tools
• Excel (spreadsheets) vs Accounting Software To Record Financial Information
• How to Record Income and Expenses for your Art Therapy Practice
• Strategies to Increase Profit For Your Therapy Practice
• 10 Ways to Increase Your Therapist Income
• How Do I Create an Ecourse for my Therapy Practice
• How To Organise an Art Therapy Group
• What to do when you have no clients booked
• Where to find Clients for your Art Therapy Practice
• 5 Essential Marketing Templates for your Therapy Practice
• Create A Sales Funnel for an Art Therapist
• Design a Simple Layout for Your Art Therapy Website Design
• How to Build an Email List for your Therapy Practice
• How to Create a Free Offer to Build Your Email List
• How to Create an Annual Social Media Plan in 60 mins
• How to Get Started With Google Analytics in 5 Easy Steps
• How to Plan Your Marketing Strategies
• Link List: Online Marketing Courses to Improve Your Marketing Skills
• Review of Free Social Media Schedulers
• The Best Marketing Methods for Art Therapists
• Tools for Organizing Your Social Media Content
• Understand the Marketing Cycle of Your Art Therapy Practice
• How to Establish Your Business Network
• Professional Networking for An Art Therapist
• 10 Useful Planning Tools for Your Business
• 10 Useful Tips to Use Evernote for Blogging
• How to Plan A Productive Year as a Therapist
• Planning Template for Your Art Therapy Practice
• Task Management Software For Art Therapy Planning
• Self-care for the Art Therapist
• Using Art Therapy For Your Own Self-Care

———————— Need help with setting up your Therapy Practice admin policies and procedures? If you need help to set up your Therapy Practice business, we have an Admin Package in the store which contains a collection of essential business documents.

The Admin Package is available in 3 formats, including:

• Microsoft Word

You can read more about the packages in our store HERE . 

BUSINESS ADMIN

• Business Details
• Fee Schedule
• Cancellation Policy
• Refund Policy
• Disclaimers
• Terms of Use
• Privacy Policy
• Business Trackers
• Social Media Tips
• Business Admin Maintenance

BUSINESS DEVELOPMENT

• Business Goals
• Project Template

CLIENT ADMIN

• Client Intake Checklist
• Client Call Log
• Consent for Services
• Client Privacy Policy
• Authorisation to release information
• Social Media Policy

EMAIL & LETTER TEMPLATES

• Inquiry Reply
• Referral Request
• Reminder Late Payment
• Response for psychological report
• Response to subpoena

FREE DOWNLOAD: Free Download Sample Business Plan

SIGN UP below to download the FREE Sample Business Plan to help you create your own business plan for your art therapy practice.

BUILD YOUR ART THERAPY REFERENCE MATERIALS: Pin this image to your Pinterest board.

SHARE KNOWLEDGE & PASS IT ON: If you’ve enjoyed this post, please share it on Facebook, Twitter, Pinterest. Thank you!

How to Write An Effective Massage Therapy Business Plan

Learn how to create a business plan for your massage therapy practice.

May 20, 2013

There's that line from Field of Dreams that most everybody knows, even if they've never seen the movie: if you build it, he will come. Though in the movie the phrase relates specifically to baseball, many people have since assigned a more general meaning to the expression—don't worry about the outcome, because simply making the effort will produce results.

And there is something to be said for passion driven by blind faith.

But, particularly in business, there’s also something to be said for taking the time to outline where you are now and where you want to be—and how exactly you plan to get from point A to point B. In other words: writing a business plan.

The topic of writing a business plan can bring a wide variety of reactions, most of which range somewhere between reluctance and fear. The process, however, doesn’t have to be painful. Here are some tips to help you make the most of this important business tool.

Part of the reluctance to write a business plan might come from some misconceptions surrounding the practice. Many people think of these documents as long and complicated, taking days and months to write and finalize. But that doesn’t have to be the case, according to Kelly Bowers, a licensed massage therapist in Washington, D.C.

In fact, for most massage therapists, a one-page business plan is probably sufficient. “What most of us think of when we say business plan is what I call the standard or large business plan, but it’s not what most of us are going to want to work with,” she says. “We’re going to want to work with a simplified form of the standard business plan.”

To get to a clear understanding of how elaborate your business plan needs to be, Bowers suggests asking yourself some basic questions: How specific are your goals? How long-range are they? Are your goals ambitious? Are they a stretch? Do you really just want to make enough money to live comfortably and peacefully? Do you already know how much money that will take?

Also, consider your own personality. Are you a planner, for example? Do you tend to live in the moment or are you always looking down the road, thinking about where you want to be in two, five or 10 years?

“The more you want to move outside the simple or outside your comfort zone, the more you’ll benefit from having a business plan,” Bowers says. “If you are a planner, you will benefit from a business plan. If you tend to be overwhelmed by too many choices, a business plan can help you stay focused.”

Bowers quickly cautions, too, that simple isn’t going to work for everyone, and she encourages massage therapists to remember this rule of thumb: “The more people that are engaged in your practice and the more of someone else’s money you’ll be asking for, the more involved your business plan needs to be,” she says.

When Bowers decided to leave her job as a technical writer and pursue massage therapy full time, she started having lunch with a group of women who were starting their own businesses. “They were all big proponents of using business plans,” she says. “They kept pushing me to write one.”

Bowers didn’t follow their advice right away, however. Then, finally, she took herself on a business retreat one January and worked her way through Jim Horan’s “The One Page Business Plan,” a book her friends she lunched with had recommended to her.

She learned a few lessons from her first attempt. “My first business plan was, ah, optimistic, to say the least,” she recalls. “It turns out that making $50,000 a year requires more than writing it down confidently in your business plan! But I was hooked on the process.”

Some of why writing a business plan is helpful comes from being able to clarify your vision. “Having a clear sense of my personal vision and my practice’s mission has made a big difference for me,” Bowers explains. “It’s given me a clarity and focus I probably never would have found otherwise.”

In addition to more focus, writing a business plan gives Bowers a way of evaluating any new opportunities that might arise. “Does this opportunity I’m considering or being offered line up with my mission and vision?” she asks herself. “There are a lot of things I could do as a small business. But, as a very small business, I want to focus my time, energy and money on those things that help me bring my vision to life and fulfill my mission as I understand it.”

Bowers has advice that is quick and to the point for those reluctant to start writing a business plan: “Give up any idea that you aren’t smart enough or educated enough to write a business plan,” she says. “If you’re smart enough to do the work, then you’re smart enough to explain it in a business plan.” That’s not to say you might not need a little help, Bowers adds.

First, relax a little. You might find a different perspective helpful, like thinking of writing a business plan as having a conversation. “A business plan, at its most basic, is a conversation,” Bowers explains. “The conversation might be between you and an investor or business partner. For most of us, it’s a conversation we’re having with ourselves.”

Bowers elaborates on this idea, suggesting you look at the business plan as a kind of conversation between your present self and future self. “These two selves are working out what they want to build together and how they’re going to move that thing from today to the future you want to have,” she adds.

You might also find that imagining yourself sitting with a friend describing what you envision your practice looks like is a good way to approach writing a business plan. “Imagine describing, with passion, the practice you want to have,” Bowers says. “Imagine the two of you brainstorming what it would take, in some detail, to make that happen. If you wrote that down, you’d have a basic business plan.”

Remember, too, that writing a business plan shouldn’t be something you do once and never revisit. “As long as your business is alive, your business plan needs to be alive,” Bowers explains. “That means you need to be looking at and updating your business plan regularly.” For Bowers, that happens every January, when she takes her annual business retreat.

Writing a business plan might not be at the top of your priority list—and that’s OK. You don’t have to dedicate months to the process. But engaging in the process of putting your plans in writing can be a great exercise, and help you increase business and clarify your own vision. “I think getting clear on your vision and mission are the two biggest benefits of a business plan,” Bowers says. “Writing a business plan is a way to tell the story of your passion and how you’re going to make that passion sing.”

Anatomy of a Massage Therapy Business Plan

Though many massage therapists may not need to create an in-depth standard business plan, knowing what this document comprises is a good idea. You also might find that at least some of these elements will be included in your own business plan, no matter how simple.

Executive summary . Here, you’ll summarize the key points of the rest of the plan. “It lets you highlight the exciting parts,” says Kelly Bowers, a licensed massage therapist in Washington, D.C.

Company description . This description tells people what kind of practice you’re creating. You can detail the legal structure of the company, for example, as well as how management will work, if you’ll have a management team in place. “This is also a summary of things you’ll get into in greater detail later in the plan,” explains Bowers.

Product/service . Obvious, perhaps, but in this section you’ll detail what products or services your practice will offer.

Target market . When thinking of who your target market will be, Bowers suggests thinking of these questions: Who is going to buy your products or services, and why would they buy your products and services?

Competitive analysis . No matter how simple you make your business plan, you should have a good idea of who in your area may serve as competition for business and clients. “Who is already selling your product or service?” Bowers asks. “How are you going to be able to compete with them?”

Marketing and sales plan . Here, you are going to outline how you’ll reach potential clients and get them to buy your product or service. In today’s world, there are a lot of different ways you might choose to market your practice, so take some time to think about what might work best for you.

Related: Marketing Tools for Massage Therapists

Operations plan . How does your company run? Where is your practice located? What equipment do you need? All of these are questions you’ll answer in this section, Bowers says.

Management team . If you plan on setting up business with other people, or going into business with a fellow massage therapist or someone from a complementary profession, you’ll need to outline leadership roles. Who will be in charge, for example?

Development plan  and milestones . This section will work through some of your future plans, as well as how you’ll measure if you’re on track or not. You might also think about exactly how you plan to grow your practice, if growth is indeed a goal.

Financials . Money is sometimes the last thing you want to talk or think about when you’re excited about starting your own business, but especially if you’re looking for investors or need a loan, you’ll need to have a good idea of where you’re starting financially, what you expect to make and what you’ll need to spend in overhead, for starters.

“Each of these sections answers specific questions about business,” explains Bowers. “Even if you aren’t writing a standard business plan, it’s worth it to at least look at the questions and think about them.”

Business Plan Mythbusting

Whether you’re just starting out or you’ve been in business for 10 years, you can probably benefi t from writing a business plan. To help you get over any hesitation you might feel, we’re busting some of the common myths that seem to surround this practice.

No. 1: You need a formal business education to write a business plan—False.

“For the kind of businesses most of us are running, what we need is a guide that is written to our level of business knowledge,” explains Kelly Bowers, a licensed massage therapist in Washington, D.C. Now, she adds, you might have to look up a few terms in the dictionary, but if you have a solid vision for your practice, that’s the important piece to the business plan writing puzzle.

Related:   It's Your Business: Understanding Business Concepts | 3 Credit Hours

No. 2: You should never start a business without writing a business plan—False.

Contrary to what some people might think, writing a business plan doesn’t have to be the fi rst thing you do when you’re thinking of starting your own practice. Much of what a business plan is designed to do is give you a clear direction and focus your efforts. “When you want to get clear with yourself about what you’re doing, why you’re doing it, and how you’re going to do it, a business plan can help,” explains Bowers.

But, Bowers says, though many people come out of school believing they know what their practice will look like and the types of clients they’ll work with, many don’t really know. “For a lot of us, it makes more sense to write a business plan after we’ve been in practice a year or three,” she says. “A few years of practice will tell us what our reality actually looks like, making writing a more realistic business plan easier to do.”

Times of change, too, are natural places to create a business plan. “Times of change are great times to work on a business plan to help you chart your new course,” says Bowers. “If you’ve worked in a spa for five years, for example, but now want to go out on your own, that’s a good time to write a business plan.”

There is one caveat to this advice, however: “If your starting point is a big plan that requires borrowing money, bringing in partners and things of that nature, your fi rst step should be to write a detailed business plan,” Bowers explains.

No. 3: Business plans are all about numbers and money—False.

“The heart of a business plan, any business plan, is what you want to build (vision) and why it’s worth building (mission),” Bowers says. “Everything else in the plan needs to be detailed enough to help you get there.”

That’s not to say you don’t need any information about financials, because you will definitely need to have an idea of what you want to make and what you’ll spend. “This information only needs to be as detailed as you personally need it to be,” Bowers says.

Related Resources

Massage therapy journal 3 tips for starting a massage practice.

When you first start thinking about opening a massage therapy practice, your natural inclination might be to focus primarily on the positive aspects of business ownership.

Continuing Education Attracting Business Clients: Part I-Start-up & Retention

Massage Therapy Business Tips

How To Create A Massage Therapy Business Plan

August 9, 2023

Starting a massage therapy business can be an exciting and rewarding venture. That’s why a lot of massage therapists choose to go into business for themselves. You might think all you need is a place to work and your and in some respects, that’s true. However, if you want your business to reach its full potential, you need a massage therapy business plan .

In most cases, you don’t need a whole lot of capital to start a massage therapy business. Service based businesses usually don’t have a lot of overhead, especially when your hands are the most valuable pieces of equipment. If you’re working as an independent massage therapist, your business plan doesn’t need to be too complex. It just needs to lay out your intentions, goals and a plan for reaching them.

If you plan on bringing in partners, hiring staff or borrowing money, then your business plan will need to be more extensive. Your lenders will want to see your business plan before offering you any sort of financing. You don’t need a business degree to create a business plan . If you need help, there are a lot of free resources available. For additional resources check out the SBA or find and work with a business mentor.

It’s never too late to create a business plan for your massage therapy business. If you’ve been in business for a while and you don’t have one, now’s the time to create one . In fact, you should be reviewing your business plan on a regular basis.

What’s The Biggest Thing To Consider Before Creating A Massage Therapy Business Plan?

Creating a massage therapy business plan requires aligning your life goals and business expectations. Get clear on what you want in life. Then, craft a plan to support your desired lifestyle and fulfill financial obligations, without exceeding your physical limitations. Plan for balance, happiness, and sustainability.

When you’re a business owner, it’s easy to get caught up in the tasks of taking care of clients and keeping the clinic clean. Sometimes you get so busy, the business becomes a part of who you are. So, before you start creating a plan for your massage therapy business, you first need to have a plan for your life . 

It’s important to know what you want your days, weeks and years to look like before you throw all your time and energy into your business. Your massage therapy business should support the lifestyle you want and help fulfill your financial obligations. Get clear on what your business needs to provide you, before you create a plan for your business.

Your massage therapy business plan needs to be realistic. So, be honest with yourself about how much time you can invest into your business, what you’re physically capable of, as well as what your true motivations are. There are no right or wrong answers here. 

Questions To Ask Yourself Before Creating Your Massage Therapy Business Plan

• What are your current financial obligations, and how do you expect them to change over the next 1, 5, 10+  years?
• What are your current family and social obligations, and what changes do you anticipate in the future?
• What sort of lifestyle do you want to have?
• How much free time do you need to be happy and healthy?
• When do you want to retire? 
• If you could create the perfect weekly plan for yourself, what would it look like?
• What are your health needs, and what does your overall well-being require?
• What sort of fulfillment do you want to get from your work or business?
• What contributions do you want to make to your family, community and the world?
• What are your core values? What’s most important to you?

You’ll be spending A LOT of time in and on your business. So create the culture, work ethic and identity of your massage business intentionally . Ideally, your business reflects your own values and intentions. Don’t waste the opportunity to create the perfect workplace. Your massage therapy business plan will lay out how exactly you intend to do that, plus a whole lot more.

How To Create A Massage Business Plan That Supports Your Goals

Once you’re clear on what your business needs to provide you, it’s time to create some goals, if you haven’t already. Your business plan needs to be realistic; so keep your personal needs, abilities and limitations in mind when creating goals for your business.

Also, it’s not enough just to have goals. You need a specific, actionable plan for achieving them AND a deadline for getting them done. This is exactly what your massage therapy business plan is for.

One of the best goal setting strategies is the creation of SMART goals. SMART goals are specific, measurable, achievable, relevant, and timely.

Here’s an example of a SMART goal.

Within 2 years, my clinic will gross $75,000 annually by treating a total of 83 clients a month, with an average cost of $75.00 per session.

Let’s break this goal down. This is what makes this goal a SMART goal.

• SPECIFIC :   $75,000 annual gross income
• MEASURABLE:  83 clients a month at $75 a session
• ACHIEVABLE:  83 clients a month is a realistic number of clients for a full time therapist to see
• RELEVANT:  How much money you make matters
• TIMELY:  This goal will be reached within 2 years

Once you have a goal like that, you then need to create an actionable plan that will attract enough clients to your business to reach those numbers. And that’s just the tip of the iceberg! 

For every idea, plan or goal you create, you also need to create a strategy and a timeline for turning those ideas into accomplishments.

Every goal you set for your business should help create the work culture you want, reflect the identity of your brand, and add value to yourself, your business and your customers. If it doesn’t, you need to rethink your strategy.

Each goal needs a plan and a timeline. Having these benchmarks gives you something to measure your progress against.

Your goals should cover a variety of different timelines. Set short term goals that serve your needs today and lay the foundation for achieving bigger goals. Mid term goals help you reach new levels of growth and success over the next 1-3 years. Your long term goals will guide you toward achieving what you ultimately want to create.

Once you have a list of short term, mid term and long term goals, you’re ready to start creating your massage therapy business plan.

What’s Supposed To Be In Your Massage Therapy Business Plan?

The purpose of creating a business plan for your massage therapy business, is to have a written explanation of:

•  WHAT your business is
•  WHY it exists
•  WHO it helps
•  HOW it works
•  WHERE it is going

You can make this as simple or complex as you need. The ultimate goal is to create a plan that you are convinced will work.

How extensive your business plan needs to be depends on how many hands are in the mix. You’re primarily creating this plan for yourself. In some cases, there may be people you need to share your business plan with. If that’s the case, you need to elaborate more than you would otherwise. 

10 Essential Things To Include In Your Massage Therapy Business Plan

Follow this list step-by-step to create your massage therapy business.

1. Executive Summary

This is a summary of your entire business plan. If someone reads only one section of your business plan in order to understand your overall strategy and identity, it should be the executive summary. The executive summary highlights the most important details of all the other sections in your massage therapy business plan. This section could be a few paragraphs or a few pages, depending on the depth of the plan you’re creating. Tip:  Write this section first to create an overall plan for your massage therapy business. Then build out each individual section using the executive summary as a guide. ALTERNATIVELY, you can write the executive summary last by simply combining the most important details from all the other sections.

‍ 2. Overview & Objectives

In this section, you deep dive into the mission of your company. First you describe your brand, which is basically “who” your company is and who it serves. Then you list out what your company plans to accomplish right now and in the future. This is a good place to highlight goals, values and your target market. All the details about who your ideal clients are and the value your business provides its staff, clients, vendors and the community can be included here. Be specific. Use this section to create a niche and a purpose for your massage therapy business. Tip:  Now is a good time to take a look at the SMART goals you created. Include the goals you created for your business here. Focus on the goals that are geared towards your mission, style and purpose. The financial goals will go in a different section.

3. Products & Services

This is perhaps the easiest and most straightforward piece of your massage therapy business plan. List out every service you offer and what it costs. If you sell products, include them here too. Explain what each product and service is, what it does, and the benefit it provides.

Don’t forget to include things like spa packages and membership plans. Now’s the time to think through what you’re able to offer by yourself or if you need a team of practitioners to provide the services you want to offer. Tip:  If you have designed a massage therapy website , you probably already have a list like this. Copy the list from your website to save time.

4. Massage Therapist & Practitioner Staffing

If your massage therapy business is a solo practice, you can skip this part of the business plan. If you plan to hire a massage therapist or other practitioners, you need a detailed plan for that. That goes here. This section is for listing the members of your team, their roles and responsibilities. You can include a short bio for each person that highlights their background, education and expertise.

One of the most common things massage business owners debate is whether to hire employees or have independent contractors . The decision is up to you, but it will impact your business model.

Tip:  Before you hire anyone, create a Standard Operating Procedure (SOP) for all the tasks that need done in your business. Document SOPs in writing and use them to train new team members. ‍

5. Business & Compensation Model 

After carefully considering multiple wellness business ideas , you must settle on a single business model. That business model may be a membership based massage franchise, multi-disciplinary practice, or just a solo-practitioner. Whatever it is, describe the structure of the business and how it’s organized in this section.

Also, explain how you’ll compensate your staff (and yourself). Outline the details of the pay structure for practitioners , admin staff, contractors, ect. Include things like commission, tips and salaries. You should also create a plan for how you’ll implement pay increases over time and the benchmarks for being eligible for a raise.

Tip:  Consider short-term abilities and long-term objectives before making a decision about business and compensation models. It’s hard to change structure down the road, so start where you want to end up. If you can’t afford to start there, create a plan for how and when you’ll transition later.

6. Sales And Marketing

In this section, explain how you will sell your services and promote your massage therapy business . Break down exactly how you’ll reach the clients your business was designed to serve, and how you will get them to buy from you. List all your massage marketing strategies , and then explain how you will implement them. Include things like your company website, social media marketing, email marketing, networking, paid advertising and so on. Also consider the massage marketing software tools you will need to make this happen, and make a budget around them. Tip:  Think about the ideal client you described in your Overview and Objections section. Consider what this person’s struggles, desires and spending habits are. Then build your sales and marketing plan around that.

7. Competitive Analysis

Every business has some sort of competition. In this section, make a list of all your competitors. Make note of who they are, what they do and who their customers are. Next describe how you intend to compete with these businesses. Set yourself apart by describing what makes your business different from competing companies. This may be something that makes you unique, better or more specialized than the competition. Tip:  Other massage therapists are not your only competition. What other services or products may your potential clients be using instead of massage therapy?

8. Operations

This section breaks down how you do what you do. Organize everything involved in running your business here. Including, but not limited to, how you interact and engage with clients, maintaining your office space, and how you write your SOAP Notes. Go into detail about everything. Explain how your business takes care of laundering linens, keeping the office clean, answering the phone, greeting clients, filing intake forms, and the methods of payment that are accepted. Write out all of the things you’ll do to manage your client files, or simply indicate if you’ll use a program like ClinicSense to stay organized and automate the work for your business. Tip:  If you make this section a detailed step by step guide, you can use it to create training manuals for staff later.

9. Tech Stack To Run Your Business

Technology will be instrumental in managing and growing your business. List the software you’ll use for things like scheduling, charting, review collecting, and marketing in this section. Create a plan for leveraging technology to streamline your processes, cut costs, improve productivity, and increase sales. 

 Your technical stack of tools might include: Scheduling Software, Accounting Software, Marketing Software, EMS & Charting software, or an all-in-one software solution for massage businesses .

Tip:  Research the wide variety of medical spa software available to you. Choose one that fits your budget and the needs of your practice. Make sure it’s a system you’re comfortable using and easy to use for client communication.

10. Financial Analysis

This section is all about the numbers. Create a budget for your massage therapy business , and list the details here. Be realistic, and plan for unforeseen setbacks. In addition to your current budget, you should also include future projections. As your business grows, its financial blueprint will change as well. It may not be possible to have exact numbers for future year sales, but it is possible to create future financial sales goals and estimations. Tip:  Review your SMART goals, and use the ones that relate to money here. Create benchmarks for your financial progress.

What Do You Do When Your Massage Business Plan Is Finished?

A business plan isn’t something you do just once. Your business will change overtime. As things change, you’ll find that some parts of your business plan are no longer in line with your current goals. That means you need to update your massage therapy business plan on a regular basis.

Now that you have a business plan for your massage therapy business, you can use it to keep your business on track. It’s easy to waste time thinking up the same ideas again and again. All your ideas are now written down and organized. So now you can focus on getting things done, rather than wasting time thinking about how to get things done.

Use your business plan as a guide and a reference when you lose your way. It should ultimately be your map of how to get you from where you are now, to where you want to be . Maps are only effective if you get them out and study them. So don’t file your business plan away and never look at it again. Creating it is only the first step towards making it work for you.

It’s a good idea to set aside time once or twice a year to review and update your massage therapy business plan. When you do this, don’t forget to consider your own life, well being and personal goals, as well as your business goals. Make sure your business plans and your personal circumstances are still in alignment. If something is off, it’s time to make some changes.

Key Takeaways 

The effort you put into creating a business plan for your massage therapy business should inspire you to take action and reach your true potential. A business plan can keep you from wandering astray, because the plan for getting from point A to point B is already mapped out. Keep it somewhere easily accessible so that you can pull it out whenever you need it.

Use the benchmarks in your business plan as a ladder you can climb. Each benchmark is a step towards achieving your goals. With each one reached, you gain momentum. Keep climbing to reach your biggest and loftiest aspirations.

Remember, your business should be designed to support your personal goals and values. Creating a business plan is an efficient way to think through and plan exactly what needs done to have the type of business you want. Once that’s in writing, it’ll be clear what your next action steps are, no matter where you are in your journey.

Your business plan should be dynamic, which means it changes with you and your massage practice. As you execute your plan, you and your business will undoubtedly evolve. That means you need to periodically make the time to sit down and update your massage therapy business plan. You don’t need to start completely over each time. You only need to revise the parts that are out of date. That part will be easy, because by then you'll really know what you’re doing.

Ready To Start Building Your Massage Therapy Business? We Can Help!

ClinicSense is an all-in-one software solution designed to help massage therapists manage and grow their business. We help you lay the foundation for your practice by giving you the tools you need to get your practice off the ground and keep it running smoothly for years to come. 

We’ll help you get more clients with online scheduling, collecting & publishing reviews, and digital marketing. You’lll make a good impression with automated appointment reminders and digital intake forms. You’ll save time by using ClinicSense features to automate daily admin tasks.

Best of all, ClinicSense is designed to grow with you. We offer multiple pricing plans and packages Choose the plan that fits the needs of your business right now, and upgrade as your business grows. Try it for FREE and cancel anytime.

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Massage Therapy Business Plan

After  getting started with Upmetrics , you can copy this massage therapy business plan example into your business plan and modify the required information and download your massage therapy business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

Download a sample massage therapy business plan

Need help writing your business plan from scratch? Here you go;  download our free massage therapy business plan pdf  to start.

It’s a modern business plan template specifically designed for your massage therapy business. Use the example business plan as a guide for writing your own.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Executive Summary of a Massage Therapy Clinic: Template & Example

• January 3, 2024
• Business Plan , Executive Summary

A massage therapy clinic business plan needs a straightforward executive summary . This part of your plan is the first thing investors and partners see, and it should clearly outline what your massage therapy clinic is all about. It’s where you explain what makes your massage therapy clinic different and worth investing in.

We recommend using a two-slide PowerPoint format for this summary. The first slide should cover the basics of your business and the market you’re entering. Here, you detail your clinic’s services, location, and what sets you apart from others. The second slide focuses on your management team and your financial plans, highlighting the people behind the business and how you expect the massage therapy clinic to grow financially.

This simple, two-slide approach ensures that your executive summary is easy to follow and covers all the essential points about your massage therapy clinic business.

Massage Therapy Business Plan

Download an expert-built 30+ slides Powerpoint business plan template

Massage Therapy Clinic Executive Summary: Page 1

Business Overview

A concise overview is pivotal, introducing essential details like the clinic’s name, location, and a snapshot of its core services.

These details set the stage for your massage therapy clinic, framing its unique characteristics. A unique selling proposition (USP) distinguishes your clinic. Whether it’s expertise in therapeutic techniques, a focus on holistic wellness, or a commitment to personalized care, highlight this USP in your executive summary to showcase your clinic’s distinctive value proposition.

Example: “Serenity Wellness Spa & Massage Clinic,” situated in the serene heart of Tranquil Town, occupies a spacious 2,500 square feet area on Blissful Street. We specialize in a diverse array of massage therapy services, including Swedish massage, deep tissue massage, sports massage, and prenatal massage. Our USP lies in blending therapeutic massage techniques with personalized care, fostering relaxation and healing for each client.

Market Overview

Understanding market dynamics and your position within it is crucial. This section should underscore the potential of the local massage therapy market, supported by relevant data such as market value and growth rates. Discussing trends, such as the growing demand for alternative and complementary therapies or the focus on stress relief and wellness, illuminates your clinic’s positioning within the evolving landscape.

Additionally, it highlights the competitive landscape. Identify key competitors and elucidate how your clinic stands out amidst competition. Whether through specialized techniques, a serene ambiance, or a focus on holistic healing, emphasize how your clinic differentiates itself.

Example: In the local massage therapy market of Tranquil Town, valued at $2.5 million annually with a 10% growth rate, Serenity Wellness Spa & Massage Clinic leads with a focus on therapeutic wellness and a comprehensive range of services. Amidst competition, our commitment to personalized client experiences positions us as the preferred choice for clients seeking relaxation and healing.

Massage Therapy Clinic Executive Summary: Page 2

Management Team

Highlight the expertise and background of your management team, showcasing their capabilities in driving clinic success.

This could include your clinic director’s extensive experience in massage therapy or your operations lead’s proficiency in healthcare management. Demonstrating the team’s competency builds credibility and assures potential investors and partners of your clinic’s potential for success.

Example: At Serenity Wellness Spa & Massage Clinic, Emma Johnson, with over two decades in massage therapy and holistic health practices, leads operations. Supported by a team of licensed massage therapists and a healthcare management director experienced in complementary therapies, the clinic maintains a focus on delivering holistic wellness and healing to every client.

Financial Plan

Provide an overview of your financial goals and projections, offering insights into revenue targets, profit margins, and anticipated growth trajectories.

Example: Serenity Wellness Spa & Massage Clinic aims for a projected revenue of $1.2 million annually, targeting a 20% EBITDA profit margin. Investment in top-quality massage equipment and a strong focus on personalized client care, complemented by wellness program offerings and community engagement, drives anticipated growth and profitability within the local market.

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