The basics of business boil down to income and expenses. You collect money as payment for your services and products, and you pay for everything it takes to keep the business going. There is understandably a lot of concern among therapists about how much a massage practice actually costs to start and run.
Let's simplify it.
Part 1: Types of Costs
There are different types of expenses: start up costs and operating expenses; also fixed and variable costs.
You've heard of startup costs - that's the initial investment to get your business up and running. It includes purchasing equipment, signing a lease on office space, licensing fees and advertising.
Then you have your ongoing/operating expenses. These regularly occur and include things like rent payments, software leases, and lotion/oil.
Some of these costs are considered fixed and some are variable.
Fixed costs are predictable and unlikely to change significantly. Your fixed costs include rent payments, licenses, insurance, software leases and telephone bill.
Variable costs are less predictable and likely to vary significantly. Your variable costs include things like advertising, marketing and professional fees.
Part 2: Startup Budget
Startup costs are probably the most daunting to overcome. Here's my method for understanding your options and making financially strategic choices for your new business.
When you look at the initial investment of starting your practice, you should come up with a range of estimated expenses. I recommend creating a 3 column spreadsheet with categories of high, medium and low cost options.
You can find prices for a lot of items online. For example, when purchasing a massage table you'll see a wide range of choices and prices. When you budget strategically, you must have real data to consider.
When you create high, medium and low ranges for expected expenses you have a clear idea of how much it will really cost you to get your business started Also, if you have a tight budget and want to save every penny then you can always start with choices in the low category and upgrade as you grow.