top of page
Search
Felicia Garcia

Which Business model do I go with?

Updated: Mar 17


So you’ve decided massage was the path you’re going to take but you aren’t sure how to make a career out of it. There are many options regarding the direction you want to take your talents. I imagine this is the same across most provinces in Canada.


If you decide to run your own practice or work as a contractor, your income is solely dependant on how many people you see. As a new graduate, that can be kind of scary, especially if you have a lot of expenses you need to pay already, you have children, or you have goals of moving out or buying a car.


As a massage therapist, you can be an employee, an independent or sub contractor, or a sole-proprietor / business owner. There are many different places that will house the structure that works best for you, but it's important for you to know what your options are so you can plan the life of your dreams.


Even if massage therapy isn’t something you see yourself doing full time or for the long term, it is important to know how you can make it work into your life... you didn’t go through all this schooling for nothing.


I will break down each model to the best of my knowledge.


Employee


I know some people who are employees at a clinic or spa. This is a good option for people who don’t want to worry about providing their own supplies, want group benefits and a pension, and will get paid no matter the amount of clients they see. The only downside with this model is the lack of freedom.


With this structure, you are still expected to come into work and stay at work even if you don’t have clients (unless your employer says otherwise). You might be told how to run your practice as well. I’ve heard of clinics telling their employees not to assess their clients before treatments. If you choose to work at a spa, you might have to include hot towels or stones, aromatherapy or other spa additions into your treatments.


I got the chance to tour a spa that offered massage when I was a massage student. The massage department of this spa was managed by an aesthetician. Aestheticians, in Manitoba at least, do learn how to do full body relaxation massage however, they don’t learn remedial massage so their main intent is relaxation and moisturizing skin. An aesthetician in that case, wouldn’t necessarily fully understand your expertise and the business side of massage. But they will be able to provide you with guidance on how to incorporate new relaxation techniques into your treatments.


If this is the direction you’re leaning towards be mindful of the background of who your immediate boss will be. You want someone who understands your needs and your expertise as a massage therapist.


Sub or Independent Contractor


I am a sub-contractor or independent contractor whatever you want to call it. This type of structure allows me freedom to make my own schedule. I work at a clinic that takes a commission.


For me, this commission is 30%. Some clinics can take 40-50% commission. The higher the commission, the more clients you will have to see to make a decent wage. Some down sides to this structure are:

  • No insurance benefits or group pension plans

  • No tax deductions (be prepared to pay about 30% of your income to the government after your first full year of working)

  • You only get paid when you see clients. No sick time pay and no vacation time pay.

  • You will likely have to provide your own linens and supplies (possibly a table too)

The commission I pay covers reception, advertising, and the room I work in. I feel like my commission is reasonable for my needs but that is something you need to consider. If your clinic needs you to do your own laundry, scheduling and billing, make sure you are paying a lower commission. If your clinic provides all that plus providing you with supplies, its reasonable to expect a higher commission.


Personally, I love this model. I really like the freedom it gives me in terms of adjusting my schedule to accommodate my needs. If say, I am feeling depressed and my energy is low, I can adjust my schedule so I see less people to allow me the time I need to recover. If I know I am going to take a vacation, I can adjust my schedule to see more people and make more money to make up for the lost time before I leave.


Another reason I love this model is because I don’t have to do any advertising. The clinic I get to work for provides me with clients. I technically pay for this advertising in my commission but I find it very much worth it for me. Of course this will vary depending where you work, if you don’t want to do a lot of your own advertising make sure you consider this when looking for a place to work.


Sole Proprietor or Business Owner


If you are someone who wants to own their own practice and work out of their home or rent an office space, you would be considered a “sole proprietor”.


You get to keep 100% of your earnings and you get to claim a lot of things as tax write offs. You will have to provide all of your supplies, including a table. You will have to come up with your own business name and do a lot of self promotion. Business in the beginning will be very slow but you will pick up in a year or 2.


If you want to rent an office space, prices will really depend on location and what the building can provide. Things to think about when looking for a space to run your practice are:

  • Location - is this place easy for people to get to and find. Also take a peak at the nearest massage therapist. You might have a hard time building clientele if there are 20 other RMT's in the area.

  • Accessibility - you will be seeing clients who are coming to you in pain, make sure you find a place where they can easily get into your treatment room.

  • Cost - if you are just starting your practice, you won't be seeing a lot of clients. Make sure the rent can be roughly covered by the amount of clients you will be seeing. In the beginning, you might want to have a part-time gig as back up.

  • Laundry - does the building have in-suite laundry, a laundromat in the building, or located close to a laundromat? You will need to wash your linens a few times a week so it is handy to be close to a place where you can take your linens. If you can take your linens home to wash them, don't forget to write off the cost of your detergent and hydro.

  • Parking - does the building have its own parking lot or have free parking on the street? People might be deterred to book again if parking is an issue.

As with an independent contractor, you won’t get paid sick time, no paid vacation time, and no group benefits or pension plans. You will have to do your own billing and scheduling but you will have full freedom with your schedule.


Part of your job will also be marketing. You will have to do your own advertising if this is the path your choose to take. One difference in being an independent contractor versus a business owner is your time spent working. As a business owner, your day doesn’t end after your last client. Expect to spend many hours outside of your treatment time on marketing and advertising. Building your business from scratch involves more time dedicated on your part to network and advertise your practice. This might mean going to events and doing chair massages, going door to door handing out business cards or brochures, and even reaching out to medical doctors, chiropractors, physiotherapists etc. to ask them to refer patients to you. It is easier to keep a client once you get them but it is 10x harder to gain a new client. Over time, word of mouth will be your best friend but it takes many many years to get to that point.


Each type has its own ups and downs and perhaps you might find out there are more or less than what was written in this post. At the end of the day, you need to choose the option that is best for you and your needs. I think it's also super important to find a mentor in this field who works within the business model you are considering and someone you trust. It’ll definitely help having that extra support as you enter this career.


Which model are you leaning towards and why? Comment below!


Are you an employee, contractor, or business owner? Did I miss anything? Leave it in the comments!


Thanks for reading!


~Felicia

23 views0 comments

Recent Posts

See All

Comments


Post: Blog2_Post
bottom of page