Mentoring Reflections

 Business mentoring

In summarizing my mentoring experiences, I met with several different people and learned a good deal.  I met with Dr David Lawhead, a chiropractor in West Point, who offered me a great startup opportunity.  I met with Linda Schmuecker, L.M.T. who has an established massage business in West Point.  This was helpful in learning more about the demographics of a massage business in West Point as well as offering a great opportunity to see and feel her establishment.  I met with my friend Randy Wattermann who has been a SBA loan officer and currently sells loan management software to banks.  He is an expert on the viability of new businesses.  His inputs were encouraging.  I met with my accountant Ron Porter, CPA and received valuable advice on business startups.   I met with Briana Cudly, L.M.T.  in Blair NE by chance and gained some great insights on being in busisness with a chiropractor.  Last I met with Janet Hagerbaumer, L.M.T. and was able to glean some do’s and don’ts from her massage business in Freemont NE.  The following entries are more detailed reflections made after each of these meetings.

1-26-11

I met with Linda Schmuecker (L.M.T.)  today,  1-26-11.  She has a small 2 room store front for massage just one block off Main Street.  She has been in this location for 5 years and was previously offering massage in the back of a hair salon. Her tenure in of business in West Point has been 11 years. She graduated from Gateway School of Massage located in South Sioux City in 2000.  She currently serves a client base of about 100 people at a rate of about 10-15 massages per week.  She reported a steady decline in business over the last two years.  She stated that she had no interest in growing or gaining any new clientele as she has arthritis.  Her current rate is $45.00 for a one hour massage, and $25 for a Half hour massage.  She said her main demographic was women, 40 60 years of age, and that they came from as far as Pender and Dodge (about 35min).  She massages a few men, but not with any consistency.

She only offers Swedish massage.  At one point she offered chair, but discontinued due to lack of customer interest.  She offered to sell me her chair cheap.  She also used to do some hot stone treatments, but no longer does them either.  In general, she was not very enthusiastic.  She said that business in West Point has been difficult.  She has maintained an advertisement in the local newspaper which she did not feel was very effective.  She has offered $5.00 off specials which she said were positively responded to, but then she would not see that client again, or until the next special.  Her store was warm feeling and her massage room pleasant.  Parking was very convenient and adequate.  Linda seemed to be a nice person, but not a people person.  Overall my impression was that Linda’s greatest hindrance in business was her lack of enthusiasm.  It was her opinion that more clients were out there.

1-25-11

I stopped in to meet the new chiropractor in West Point this morning.  He wasn’t busy so I was able to spend a good hour with him.  His name is Dr. C. David Lawhead.  He had an open house just last week and has only been open for business for about a month.  He is the second chiropractor in town.  He was working in Norfolk for an office that decided to expand.  He bought one of their new franchises.  He didn’t say how extensively his research had been, but indicated the statistics showed that there was ample market in West Point for an additional chiropractor.  He used a figure of 1 chiropractor per 1000 people.  He had a nice manner about him.  His receptionist was friendly.  His waiting room was spacious and comfortable.  His facilities were very nicely done giving a slight clinical flavor, but also welcoming and relaxed.  He offers a unique non surgical herniated disc treatment that is sold on a one price for life basis.  This training is new for him, but was used extensively in the Norfolk office where he worked for 8 years. 

He is currently looking for a massage therapist to occupy an empty room he has.  He hopes to grow into this room, but has another that still needs renovating.  He is currently hoping to receive $200.00 per month which would include all utilities and the use of his receptionist.

Today he has 2 scheduled appointments and one call in.  He said he was surprised at how fast he was gaining clients, but declined to say just what the rate was.

As his facility was once part of a car dealership he has ample parking.  He is sharing the facility with a dance studio.

1-26-11

Meeting with Ron Porter, CPA is always fun.  We’ve been good friends for many years.  Ron’s main suggestion was to start out as cheaply as possible, i.e. sole proprietorship, and to incorporate later after getting established.  He thought the importance of being incorporated would be somewhat proportionate to my own level of personal involvement as a therapist.  For example, it would be more important to be incorporated if I did not work in the clinic as a therapist than if I was providing all the massage therapy.

1-27-11

I spent an enjoyable time with my good friend Randy Wattermann.  Randy is an expert in the viability of small businesses.  He has worked as a loan officer in two different banks, and as a consultant for investors interested in purchasing small businesses.  He is also the owner and operator of two successful small businesses. 

Randy was very encouraging.  He knows and understands the demographics of West Point well. His advice was to start in the shadow of an already accepted CAM modality in West Point, i.e. a chiropractor, then after establishing a good name, look into growing into a separate clinic.  This separate clinic could incorporate some of my outdoor garden ideas.

2-7-11

I just spent a delightful hour speaking with Janet Hagerbaumer a former UCHA student from Sept of 2010.  She had initially planned to restore an historic building in Hooper Nebraska to use for holistic center.  That part of her dream is on hold at the moment as the building is priced too high to be financially feasible.  Instead she is currently building her clientele in a rented room at a hair salon in Freemont.  Her rent is $250.00 per mo and this includes scheduling by the receptionist at the hair salon. Due  to a variety of setbacks she was only able to get started in the first part of December.  In that time she has been able to build her clientele up to about 25.  She feels that it is necessary to have about 80 before she can quit her job at Wal-Mart.  She has used a couple of neat marketing ideas.  First she sent thank you notes to all the people that supported her while in school and offered them a $10.00 off thank you on a massage if they brought their letter in. She is currently charging $50.00 /hr massage.  The second marketing strategy she has offered is to give out her business card as a referral token.  She tells whoever receives her card to write their name on the back of it and give it away.  If someone brings the card in when they come to get a massage the person who’s name is on the back will receive $5.00 off on a massage.  She is also offering a special military discount of $30.00 for a one hour massage to any immediate family member of a deployed soldier. She is getting clients who want to come get a massage and then have their done.

Janet is currently working 7 days a week and giving between 3 and 10 massages a week.  Janet felt like it would be extra important as a male therapist to be exceptionally professional and yet very personable at the same time.  She said that she has already heard from several clients who received treatments from a male therapist in Freemont, that it “didn’t feel right”.  Her current demographics are about 40% male and 60% female with ages ranging from 16 to 87.

Janet was very excited about my massage travel idea and wanted to get together and dream about it more.  I’m hoping to go and see her massage room and talk to her some more on Weds. She thought the offer at the chiropractor was a great opportunity and way to get started in West Point.

2-11-11

I met again with Dr Lawhead today and also received a chiropractic adjustment from him. I hurt my back yesterday, so this provided a perfect opportunity to see Dr Lawhead in action.  I must say, I was very impressed.  I was greeted warmly and immediately by the receptionist, as was the client who came in after me, both of us by our first names.  I was given some paperwork to fill out that was fairly comprehensive.  The other client was taken right into his treatment room without having to wait.  I also was taken to my treatment room as soon as my paperwork was done.  The receptionist who showed me to my room took my blood pressure after we got there.  She also serves as an EMT on the local volunteer fire dept.  Within two minutes Dr Lawhead was in the room.  He was both relaxed and professional.  There were no more clients waiting so he didn’t seem rushed.  I don’t know how he would be if the schedule were full.

After my treatment we talked some more about renting a room from him to do massage.

Further reflecting on this visit, I need to include that I received a letter thanking me for choosing his office for my chiropractic needs about 4 days later.  I also noted that the receptionist took some business cards with her when she went to McDonalds for her coffee break.

2-17-11

I spent some good time with Janet Haegerbaumer again yesterday, including receiving a massage treatment from her.  Her place is the front room of a hair salon.  There is another massage therapist in the back of the same salon.  This other therapist does between 5 and 6 massages per day.  She has been in business for about 8 years in the same location.  Unfortunately I was not able to meet her.  Janet’s set up seemed a bit awkward to me, as her room formed one side of a hallway that all the clients of the hair salon would have to go through.  There was also no good waiting area.  When I arrived, on time, I was ignored for about 5 min while the lady who seemed to be the receptionist continued to arrange appointments on the phone.  I had to stand in the little hallway as there were no chairs while waiting.   I was finally greeted when all the phone work was done by the receptionist, who turned out to be Janet.  Janet turned out to be personable enough and invited me into her massage room.  She promptly sat down, but seemed content to leave me standing.  As the only other chair was in very close proximity to the chair she was sitting in, I didn’t feel comfortable sitting there without invitation.  This awkwardness aside though, her room was very nicely set up, and had a warm feel to it.  The only put off was the rather large Buddha that sat presiding over the room surrounded by lighted candles.  Her intake form was good; only the muscle man pictures were confusing as they were surrounded by labels for all the names of the muscles and there were no clear directions indicating that I should mark on them my areas of concern.

Janet was very professional giving the massage, but did not give good instructions regarding her expectations of me as a client.  For example she just held the sheet and expected me to just know to turn over and scoot up.  It was the same with handling the bolster. The massage itself was good.  The noise level in the room was disconcerting as I could clearly hear the conversations going on in the hair salon.

The main thing I learned from this experience was really a reminder that the whole experience is important and not just the massage.

2-25-11

I met with Briana Cudly L.M.T. who has a practice in the chiropractic office of Dr. Hanson in Blair NE.  It was a per chance meeting, but turned into a good hour of good advice.  Briana had some good insights into working with a chiropractor.  She has been there 6 years.  She suggested working out details about joint advertising ( any advertising she does benefits him as his office name is on all of it), who will be responsible for washing machines, vacuuming, printer paper, etc…and to get it all in writing. She gave me her recommendations about sheets and oils, told me when the busy months are and the slow ones, and shared some of her marketing ideas.  These included a punch card that gets punched after every massage.  After 5 punches the recipient receives a free massage either for themselves or to give away.  She was very enthusiastic about me starting something in West Point, and wanted to trade massages after I got going.  She said only about 25% of her clients come as a result of chiropractic referrals.  She charges $35.00/half hour, and $60.00 for a full hour.

 

Business Plan

Business plan for

Dale Hipps L.M.T.

1126 N Lincoln street

West Point Nebraska

Table of contents:

1.     Executive summary

2.     General company description

3.     Products and services

4.     Marketing Plan

5.     Operational plan

6.     Personal financial statement

7.     Start up expenses

8.     One year projection

Executive Summary

I propose to open an establishment in West Point, Nebraska offering massage therapy to the citizens of West Point, Lyons, Wisner, Oakland, and the surrounding areas.  I plan to start this business in a rented room in the currently established Creekwood Chiropractic Clinic located at 1126 N Lincoln Street.  This business will offer various modalities of massage including Swedish massage in a professional manner and environment.  It will service those who would benefit from massage in conjunction with chiropractic treatment, as well as those solely seeking the benefits of massage.  This can be done with minimal start up costs and a minimal customer base.  I hope to commence on this venture shortly after graduation from massage school at the end of April.

General company description

This business will be a place that provides different modalities of massage therapy.  My goal is that there will be at least two therapists and at least one female therapist.  Modalities beyond Swedish massage will depend on the skill set of the individual therapists.  I plan to personally offer Swedish massage one or two days a week, or possibly several partial days per week.  I also plan to manage the property.  This business is not intended to be my main source of income.

The goal of this business is to serve God, to be His hands meeting the needs of so many to be lovingly touched with all the blessings of massage.

One of the objectives of this business is to strive to have every costumer leave feeling wonderful.  It is also an objective to provide a positive fulfilling work environment for therapists and employees. My goals include being self supporting in 3 months, having a client base sufficient to fully support one therapist in one year and to support two therapists in two years.

It is very important that the activities of this company be glorifying to God.

My initial market will be those interested in massage as a means of relaxation and preventative health care.  Although I will provide massage to those who need it for purposes of healing, this will not be the main focus.  There is an ever expanding base of people seeking alternative means of preventative and alternative health care.  The pace of our society is a natural cauldron for breeding stress.  Massage is a natural antidote.  All massages are not equal.  As massage mills continue to expand, this business will flourish by focusing on massage quality, attention to detail, and excellent customer rapport.

I hope to commence business as a sole proprietorship and also as the sole therapist for ease of start up, but will plan to look at becoming a LLC in a year or so.

Products and services

Initially this business will offer Swedish massage.  Depending on modalities that might be made an option by other therapists, other types of treatments might be offered as well.  Hot stone treatments and various other forms of hydrotherapy may be added depending also on the facility acquired.  I will not offer energy treatments.

I would like to experiment with 1 hour and 45 min, and 2 hour time slots for 1 hour treatments.  The fee for a one hour massage will be $65.00 and for a .5 hour treatment, $37.50.  Fees for other treatments will be assessed as more experience is acquired.

I would like to add in the future a line of massage creams and oils, but this will not be part of the initial start up.

Marketing plan

West Point Nebraska has a population of 3,660 according to the 2004 census.  Cumming County has a population of 9,786.  Only about 2500 of Burt County’s population would be inclined to use services in West Point, including the populations of Lyons and Oakland.  This would leave a rough estimate of 7500 people that would regularly seek services in West Point.

Spa Capsule reports that in the last 12 months 24% of Americans sought a massage.

According to the AMTA  http://www.amtamassage.org/articles/3/MTJ/detail/1837

“Consumer use of massage is expected to stay the same or grow slightly next year, with 26 percent of consumer respondents expecting to get a massage next year as compared to 23 percent reported last year.

Additionally, more women expect to receive massage next year, up to 33 percent, while men’s use of massage therapy may hold steady at 18 percent. The expected use of massage therapy for younger consumers, those 18 to 34 years old, dropped considerably—from 58 percent last year to 35 percent in 2009.

However, more consumers in non-metro areas plan on getting a massage next year, up from 12 percent in 2008 to 26 percent in 2009.”

Using an average figure of 25% of the population seeking to receive a massage, 1875 people will seek a massage in West point at least once this next year.  This translates into 37.5 massages per week for 50 weeks if nobody received more than one massage this next year.  This market would need to be shared with the existing massage therapist in West Point that currently gives 15 massages per week.

I currently have been offered a room for massage in an existing chiropractic office.  The rent for this room has been set for $200.00 per month.  This includes all utilities and the services of the receptionist.  This is an ideal start-up situation with very low overhead.

The current massage therapist has a client base of about 100 people, 90% women between the ages of 40 and 65.  I would like to reach a broader age and gender spectrum.  I think men would be more likely to seek massage if its benefits can be quantified.  For example if it can be shown that a $65.00 monthly investment in massage will yield overall lower yearly health care costs, this will have appeal to men.  I hope to develop brochures and other forms of advertising to appeal to the male population on this basis. I think the younger population has less expendable income, but more stress.  The value of massage will need to be quantified for them also, but with more emphasis on the improved quality of life with less stress.  I intend to also appeal to those in the upper class with more expendable income on the basis of pampering oneself with massage.

I have approached both chiropractors in West Point, and both are interested in reciprocating referrals.  However based on the experience of the current massage therapist, I expect this will be less than 10 % of my client base.

I believe that a person who receives a massage will likely be a return customer.  Strategies to procure the opportunity to give that first massage will include, but not be limited to half hour upper body treatments, 2 for 1 deals, and possibly chair massage.

My major competitor will be Linda Schmuecker LMT who owns and operates “Touch of Paradise Massage”.  She is located one block west of Main Street on the north side of town.  Her office is very small and somewhat obscure.  She is not interested in expanding and is currently only serving 20% of the potential market.  While she is more competitive in price, $50.00 vs. $65.00 for a 1 hour massage, I will be more accessible due to having a receptionist.  Being in the office of a chiropractor will put a more professional face on my services.  She has more experience, but is not very personable or excited about life.  I think I will have a better presence with clients.  The smallness and feel of her office is welcoming only to those who are already familiar with massage where the feel of the chiropractic office is much less intimidating for those receiving massage for the first time.

Word of mouth is a powerful advertising tool in a small town.  Also having a very prominent location on the main thoroughfare through town will be good advertising.  I also hope to put some ads on the local radio station.

Operational Plan

Initially this business will operate from within an existing chiropractic office.  The chiropractic office is a new business of only a few months.  It is located in the previous Chevrolet dealership building on Hwy 275 (Lincoln Street).  This is the main thoroughfare through town with two lanes of traffic in both directions.  This building now houses Creekwood Chiropractic and Paula’s Dance Studio.  McDonalds is located adjacent.  The chiropractic office maintained much of the original street facing glass as part of the reception area and waiting room.  This room is spacious and comfortable.  There are potentially 2 rooms available for use as massage rooms.  One room is already finished and the other needs to be finished.  Both rooms are 12’X12” an ideal size for massage.  The rooms rent for $200.00 ea per/month including utilities and receptionist services.  Either room will need to be equipped with approved storage for linens and pillows, a small stereo system, a massage table, chairs, and a closet for client’s clothes.  A small space heater and alternate lighting will also be required.  Both rooms have excellent privacy and access.  The unfinished room will require opening a new doorway into the main hallway, carpet and painting.

The budget for these items and the finishing of the room is $2000.00.  There is currently a large kitchen that is shared with the dance studio. I would propose to put a washer and dryer in this room.

There is no expectation for any setbacks in meeting the requirements of the Department of Health and Human Services as the facility is already being used for chiropractics.

I plan to renew my liability insurance with ABMP at a cost of $180.00 per year.   In addition a total State license fee of $137.00 will be required this year.  There is no business license requirement in West point or sales tax requirement for massage.

All additional therapists will be independent contractors paying 25% of client fees.  This will require 12 massages monthly for ea additional room to break even.  There will be no employees.

Inventory and associated operations will be evaluated at a later date and will not be a factor in business start up.

There will be no credit extended to clients or insurance billing offered.  Payment will be expected upon completion of services.  Two no call/no shows will be permitted before payment in advance will be required.

Personal Financial Statement

 Assets Amount in Dollars

Cash –                                                                      $3,500.00

Checking accounts                                                   $ 150.00

Savings accounts

­Personal property (autos, jewelry, etc.) ­           $5,000.00

Retirement Funds (eg. IRAs, 401k)

 ­Real estate (market value)                              $150,000.00

 ­Other assets (tools and tractors)                     $15,000.00

 ­ ­

Total Assets                                                         $173,650.00

­

Liabilities Amount in Dollars

Current Debt                                                           

(Credit cards, Accounts)

 ­Notes payable (describe below)

­Taxes payable ­                                                       $1,200.00

Real estate mortgages (describe)

 ­Other liabilities (school)                                      $1,000.00

 ­Other liabilities (specify) ­

Total Liabilities                                                       $2,200.00 ­

Net Worth                                                          $171,450.00 ­

Signature:

 Date: 2-4-11

Start up expenses

Decorate room                                       $2000.00

Bolsters 2 @ $30.00 ea                                  60.00

Massage oil, cream, gel, etc..                   250.00

Cds                                                                   30.00

10 sheet sets w/ face cradle covers         325.00

2 chairs-used                                                150.00

Locking cabinet                                            450.00

Cleaners                                                          50.00

Lamp                                                                30.00

Cd player                                                         75.00

Washer & dryer used                                  700.00

TOTAL                                                       $4120.00

One year projection

Given start up expenses at $4120.00 one would need $345.00 monthly to recoup costs in one year.  The following ongoing monthly expenses would also be incurred:

Rent                  $200.00

Laundry costs      50.00

Massage oils       20.00

Advertising        100.00

Total monthly costs    $370.00

This totals a monthly outgo of $715.00 to break even in one year.  At $65.00 per massage this equals 11 massages per month or approximately 3 massages weekly.