Download Report

STARTING YOUR OWN BUSINESS
by Robin Anderson
I.
BUILD YOUR CLIENTELE FIRST
A.
As a free-lance yoga instructor, I built up a student-base, by teaching at a number of
different locations in the area. By doing this, people get to know you. You can begin to expand
your mailing list, by adding your clients into your personal mailing list. Anytime anyone shows
interest, in what you do, ask them if they would like to be added to your mailing list. Don’t wait
until you have 100 names to put them into your computer.
II.
DETERMINE HOW MANY CLIENTS YOU WANT TO SERVE IN A WEEK
A.
Back-to-back clients can be good, but be sure to allot yourself time between clients or
before you need to be somewhere else, so that you have plenty of time to talk to your clients on
an individual basis at the end of session. I suggest planning at least 15 minutes to half-an-hour
between clients.
B.
Remember to plan on meals at appropriate intervals with enough time to digest before
each session!
C.
It’s generally best not to overload yourself with clients in the beginning. Start with less
so you can determine what you can handle.
III.
DETERMINE WHAT HOURS YOU WOULD BE OPEN
A.
What hours would you like to be available for clients?
B.
What hours do you expect to spend on Accounting, Marketing, Correspondence, Booking
Appointments, Cleaning/maintenance?
IV.
DETERMINE HOW MUCH YOU WANT TO CHARGE
A.
The cost of Massage Therapy can vary from place to place. Check out the going rates in
your area.
B.
Check out the websites and specials offered by other establishments.
V.
DETERMINE WHEN TO OPEN
A.
January may be a good month to open, because it gives a clear tax cut-off from one year
to the next. Any annual fees you pay will also cover you for that entire year. September may
also work well, as that’s the time when people are signing up for new activities. But whenever
you plan to open, plan about 2-4 months to find a location and one to two months to renovate and
prepare the space.
VI.
DETERMINE WHERE YOU WANT TO OPEN YOUR BUSINESS
A.
If you find you have a lot of clients in a particular area, it’s probably a good location.
But consider how much competition there is in the area. Will you be able to offer them a better
environment than they are presently in?
B.
Do you want to be located on a main street or would you rather trade off some of the
visibility aspect for a more serene environment?
VII.
BEGIN THE SEARCH FOR THE IDEAL LOCATION
A.
Begin to search the area for signs that say, “Space for Lease” and call on them. Tell your
clients, your family, your friends and anyone else you can, that you are looking for a space and
would appreciate any leads they can give you. Check Craig’s List. You can contact a realtor, but
you may find that it takes more time for them to come up with a space that will work for you and
you may find yourself on a wild goose chase.
VIII. WHAT TO ASK WHEN CHECKING OUT A SPACE
What is the square footage? Know what you’re looking for - i.e. 1-3 Treatment Rooms and an office or
reception area. (Figure out how much space you want per Treatment Room)
A.
What does it consist of? For instance 11,000sf may consist of one large area and an
office.
B.
Can it be changed? Can walls be removed to open the space up or constructed to create
an office, entryway or treatment rooms?
C.
What is the lease per month? This may be negotiable. Find out what the going rates per
square foot are in the area and know how much you want your lease amount to be.
D.
How would it increase? It’s best to ask for a fixed rate.
E.
What would be the length of the lease? Check out the last line in my sample lease if you
are considering a long-term lease.
F.
Does that include Triple Net? Triple Net refers to Property Tax, Insurance, and Common
Area Upkeep, such as snow removal and salting.
G.
Does it include utilities? How much do utilities typically run?
H.
Will they allow you a month (or two, particularly if you’re opening in January) rent-free
to renovate?
I.
Will they allow subletting for workshops, etc.?
J.
If there is additional adjoining space you can ask for first right of refusal on that space meaning that before they lease that area to someone else, they would need to check with you first
to see if you want to lease it at that time.
K.
BE SURE TO HAVE ESTIMATES as to what the build-up of the space will cost
BEFORE signing the lease!
IX.
OTHER THINGS TO CONSIDER
A.
Noise Level
B.
Neighboring businesses – do they draw the type of clientele you want for your business?
C.
Parking
D.
Can you dim the lights?
E.
Can you adjust the heat?
F.
Is it clean and free of clutter?
G.
Are candles allowed
H.
How is the location with regards to home, other jobs, your child’s school, etc?
X.
DETERMINE THE TYPE OF BUSINESS YOU WANT TO OPEN (LLC or DBA)
A.
LLC – meaning Limited Liability Company. Signing your lease as a Limited Liability
Company will mean that if you should go under, the leaser or other debtors could take what is in
your bank account to cover what you owe them, but couldn’t attach your home or other personal
assets. The cost is $500 annually. Check with your Accountant and Business Lawyer.
*Any Advertising you do and any time you use your company name, you need to add LLC,
and when you sign a lease you need to sign it as “MANAGER” of the LLC!
B.
DBA means “Doing Business As”. The phrase "doing business as" (abbreviated DBA,
dba or d/b/a) is a legal term used in the United States, meaning that the trade name, or fictitious
business name, under which the business or operation is conducted and presented to the world is
not the legal name of the legal person (or persons) who actually own it and are responsible for it.
XI.
LOANS
A.
Determine if you need a loan and how much – see Start-up Costs and calculate monthly
expenses
B.
Compare the rates - Small Business Loan and Home Equity Loan
C.
Appraisal Fee - You may need to pay an Appraisal fee to the bank if your home has not
been recently appraised
XII.
START-UP EXPENSES
A.
LLC or DBA
B.
Plumber
C.
Electrician
D.
Painter or Paint and Supplies
E.
Carpet or other Flooring
F.
Tenant’s Share of RE Taxes
G.
Tenant’s Share of Operations Costs
H.
Lawyer Fees
I.
Accountant Fees
J.
Appraisal Fee for loan
K.
Security Deposit
L.
First and Last Month’s rent
M.
Registration – you’ll need to register with the Town Clerk’s Office as a business
N.
Sign – check with local ordinances to be sure the sign you plan to use meets the local standards,
and check with your landlord to be sure it meets his/her criteria
O.
Fliers – you’ll want to have enough flyers to cover your mailing list and to hand out at your Grand
Opening (
1.
I create them in Microsoft Word 2010 and order them online using Staples
2.
I also use Constant Contacts and send them out by email to my address list
P.
Open House – Food, Drink, etc. as well as paper goods and decoration
Q.
Calendar – I sync my iPhone with Microsoft Outlook 2010 using the iCloud
R.
Desk, Chair and Computer - Let your friends know what you need, you’ll be surprised how the
universe provides for you
S.
Business Phone Hook-up and Voice Mail
T.
QuickBooks or other accounting program
U.
Things to have on hand:
1.
Money Box or pouch
2.
Bathroom supplies
3.
Coat Rack (Hangers)
4.
Shoe Rack
5.
Lamps
6.
Candles
7.
Linens, Pillows, Bolsters, Oils
8.
Water
V.
Monthly Expenses [include estimates for the following]:
1.
Advertising
2.
3.
4.
Bank Service Charges
Cleaning/Maintenance
Contractor Fee
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Contributions
Discount Expense
Dues and Subscriptions
Insurance
Licenses and Permits
Miscellaneous
Office Supplies
Printing and Reproduction
Professional Development
Professional Fees
Rent
Repairs
Supplies
Taxes
Telephone
Utilities
XIII.
MARKETING
A.
Start a Contact List with Mailing Address, Home and Cellphone #s, and Email
Address even before you open your own center. Anytime a friend or acquaintance says,
“Let me know where you’re teaching”… get their contact information. SAt other classes,
At your Open House, have attendees sign in if they are interested in being on my Mailing
List.
B.
Don’t wait until you have 100 names before putting them into the computer! It’s
easier to add a few at a time.
C.
Send out a mailing at least three times a year with your new schedule, directions
to the locations where you are available, and your contact information. I use Microsoft
2010 to create my brochures in a tri-fold format, or 2-sided handbills, which I am able to
send online to Staples for printing.
D.
Create a website. You can check mine out at www.yogawithrobin.com and note
how my contact information is on every page and there are links to other areas of the
website for easy navigation.
E.
Business cards are a necessity. I create mine through Vista Print where I can get
200 cards FREE and just have to pay for the shipping. And I am able to insert my own
logo.
XIV. BUSINESS PLAN -Look for FREE Business Plan templates and choose one
to download, then you can edit it to make it your own! This was very helpful to me in
coming up with a Business Plan.
PREPARING FOR YOUR GRAND OPENING
I.
DETERMINE COST OF GOODS/SERVICES – how much to charge for services or
other items you will be offering
II.
DETERMINE WHAT YOU WILL CHARGE to sublet space and how much you will
pay other therapists
III.
CLIENT HEALTH FORMS – see Sample
IV.
SET UP SIGN-IN SHEET
V.
SCHEDULE WORKSHOPS and be prepared to accept registration for them
VI.
PREPARE FLIERS - I have found Constant Contacts to be easy to use and well-received
by my students and clients
VII. CREATE AND UPDATE WEBSITE –
A.
Visitors to your website are likely to go on to the next one if it is difficult to
navigate or information is not up-to-date
B.
*Be sure to put your location and contact information on every page of your
website and every flier that you create
VIII. PREPARE INVITATIONS to your Grand Opening and send out to Yoga Instructors,
Fitness Directors, family, friends, co-workers, neighbors and anyone else you can think of
IX.
PREPARE CASH BOX – Be prepared to take registration or payment the day of your
Open House with a safe place to keep the cash
X.
CHOOSE A MISSION STATEMENT – Mine is “Come find the Peace within You” and
the Mission Statement for my Yoga Teacher Training is “He who brings peace to one person,
brings peace to the World.”
GOOD BUSINESS PRACTICE
I.
THE CUSTOMER (CLIENT) IS ALWAYS RIGHT - be a better listener than a talker
II.
WORK WITH YOUR COMPETITION RATHER THAN AGAINST THEM – the
hydraulic-exercise studio opening down the street from me wanted to offer yoga to their clients.
They wanted to provide yoga for the unconditioned person, who may have health issues or even
be handicapped, so we agreed to advertise for one another and I will help them to find a Yoga
Instructor to meet their needs
III.
KEEP YOUR WEBSITE AND PHONE MESSAGES UPDATED – This lets people
know that you are still in business and it represents your organization
IV.
KEEP YOUR CHECKBOOK AND ACCOUNTING UP-TO-DATE – carbon checks are
helpful and I highly recommend QuickBooks
V.
KEEP TRACK OF ACTUAL START-UP COSTS FOR ACCOUNTING PURPOSES
VI.
SEND SCHEDULES OUT FREQUENTLY- people need reminders. I used to send them
by snail mail, but now just send them by e-mail
VII. HAVE PERIODIC OPEN HOUSES – This gives people a chance to come check out the
space and see what you have to offer without committing to anything
VIII. BACK-UPS - Keep a list of other Massage Therapists in the area with their phone #s and
e-mail addresses. You never know when you will need a someone to fill in for you in a pinch. I
Keep a list of your fellow-students and set up a Distribution list, so you can e-mail several at
once.
IX.
PREPARE GUIDELINES FOR INSTRUCTORS AND THERAPISTS - it will help them
to know what’s expected of them
X.
BE RESPONSIVE – Call people back promptly, send what they ask for and in personal
contact take time to talk with people… Let them know that you are there for them
XI.
LIVE BY YOUR MISSION STATEMENT AND CODE OF ETHICS – you will become
known by them
October 30, 2001
Local Real Estate
123 Main Street
Lowell, MA 01852
Attn: Real Estate Agent’s Name
Proposal for Massage Therapy Establishment
I am forming a Limited Liability company, which will most likely be named “Your Choice Massage Therapy” and I
would be interested in leasing the space at 4556 Main Street, Lowell, MA to use as a Massage Therapy Center
beginning January 2002.
My immediate plans would be to do approximately 20 Massages a week during the following hours:
Monday - Friday:
9:00 am - 8:30 pm
Saturday:
9:30 am - 9:00 pm
Sunday:
Closed
Offering the following services:
• Swedish Massage
• Deep Tissue Massage
• Foot Reflexology
• Hot-Stone Massage
• Chair Massage
There would be 1-3 Licensed Massage Therapists offering services at this location.
I would also use the space for Reiki treatments, an occasional Open House to promote the business and and for
various workshops.
I propose a 3-year lease at the fixed rate of $10/sf, utilities at $230/month, and a Triple Net expense of $187/month,
bringing the total monthly payment to $1337/month, with an option to renew the lease at the end of the three years.
I would also like 2 months rent-free to renovate beginning in November 2001. The renovation would consist of the
following:
Removal of office walls within the larger room
Replacement of carpeting
Painting of walls
I am also asking for right of first refusal on the adjoining 900sf of space on the same terms.
I agree to pay the first and last month’s rent up front and understand that I would forfeit the last month’s rent if I
find it necessary to break the lease.
Respectfully submitted,
Your name
Your Street
Home Address
Phone Number
E-mail:
KEY ELEMENTS TO BUILDING A SUCCESSFUL YOGA STUDIO
From Bob Silverman
“From personal experience as a studio owner, I have compiled some of my
secrets to success. The following tips helped my wife and I make a living at
the world's greatest job!” Bob Silverman
Bob Silverman
http://www.TheRoadToWellness.com
http://www.ChiRoller.com
200 E. Ocean Ave Suite 203
Melbourne Beach, FL 32951
321-693-4636
Toll-free 888-274-1688
I.
KNOW YOUR OVERHEAD AND KEEP IT LOW
Big, beautiful retail space and gold-embossed business cards are great for
the ego but not for the bottom line. If you do not already have a large
following from teaching around town, you cannot afford more than $10 per
square foot for studio space. If you can't find it, you are not looking
hard enough. Students are not going to just walk in the door, so location
is not that critical. Look for lofts and warehouses and don't give up until
you find it.
II.
AVOID PRINT, RADIO, NEWSPAPER AND ALL PAID ADVERTISING
These are great when you have a large studio and can afford it, but they add
too much to the bottom line in a new business and do not give you a great
return. It is like trying to hit a mosquito with a shotgun.
III.
FIND EVERY FREE PROMOTIONAL LISTING YOU CAN
Community newspapers, school and company bulletin boards, the internet,
natural food stores, and co-ops all offer great free promo to people
interested in your services.
IV.
PRINT HANDBILLS AND GIVE THEM AWAY EVERYWHERE YOU CAN
Every month print your schedule and any free promos on one half of a 8.5x11"
sheet of colored paper (you get two handbills for each copy) and make a few
hundred copies. Twice a month spread them around town to every place you
frequent. My favorites are Health food stores, Medical buildings,
Lunchrooms, and coffee joints, but I am sure you can come up with some great
ones. The interesting thing you will find is that your clients will come
more often from the employees in these places than from their customers.
Remember it sometimes takes 7-10 times that a person sees an ad for them to
act.
V.
GIVE IT AWAY NOW!
You are the single greatest and cheapest form of advertising you have. Once you get a client in the door to a class
they are many times more likely to sign up. Some great promos that we utilized to go from 0 to 200+ students in 3
months were:
A.
Free Yoga Week--designate one week a month for free yoga classes for new students. Remember your expenses are fixed, it costs you the same to teach 2 or 20 students.
B.
FREE YOGA MAT with a one month unlimited membership. If you order our factory 2nd mats
(at $6.45 each by the roll) it costs you less than $7.00 per new student! This was the single best promo we
did and it brought new students in every month.
C.
Bring a Friend for Free Week
VI.
BUILD COMMUNITY!
Anything that brings Yogis together will help you build a large following.
We used to hold a Trance Dance every full moon to get our hearts and souls
together. Nothing promotes like excitement.
VII.
AVOID CONTRACTS AND PROMOTE AUTOMATIC PAYMENTS
This was the single greatest factor in making our studio successful.
People hate contracts. We had no contracts but had over 100 students on
automatic payment. This will help you to know that your overhead is covered every month and will help you get
through slow times that come during Holidays and unforeseen dips in attendance. You need a credit card
processing system to do this. You can get one started with a "virtual
terminal" if you have a personal computer. You DO NOT need to purchase or worse yet lease a credit card terminal.
These can be very pricey and add to overhead and work. You can get set up for processing through a company
called Trustcommerce for only $100. You can find them at trustcommerce.com or the following link:
http://www.trustcommerce.com/creditcards.php
VIII.
*Another alternative is PAYPAL.com
Once you get setup you can charge the monthly fees to your clients one day a
those trips to the bank, and saves your clients from
having to write checks each month. They can also charge any purchases for
products from you to their account.
month! This saves all
H) STOCK PRODUCTS THAT YOUR CLIENTS WOULD LIKE
You can add this moneymaker to your studio with little space or investment.
We would utilize wall space for displays and order as needed. Buy extra
stock for the Holidays. Your students love to support your business and
would prefer to buy from you than the local TAR-JAY!
I) ENJOY YOURSELF!
Too many of us take on too much in an effort to please everyone and then
burn out quickly. Treat yourself to a day at the spa every once in a while.
Robin’s final comment: My daily practice of Yoga helps me to take care of my Body, Mind, and
Spirit and doing Bodywork and running your own business requires all of these to be nurtured
and well-balanced. Go Confidently in the Direction of your Dreams, and take good care of
yourself in the process.
Robin A. Anderson
Owner/Manager
1565 Main Street/Unit 1D
Tewksbury, MA 01876
(978) 851-9911
Http://www.yogawithrobin.com
[email protected]