Massage Business Experts Inc.

Selling a business

My business partner and I tried to sell our business for three years.  We spent time at first trying to sell it ourselves.  We talked to a lawyer and got a contract and it covered our leases and agreements with our vendors and generally made sure we were covered if a new person came into our business these were the things they would have to take over.  We paid about 1500 dollars for this piece of paper but it was very detailed.  We then advertised it in massage magazine as we were a massage business.  We had some hits of people interested in buying we even had one couple from out of town come and say they were going to buy it.  They put down 2,000 dollars and said they would be there in September.  We never heard from them again.  A little discouraging to say the least.  One day we had a man come into get massage while he was waiting for his wife at the chiropractors office.  He started saying his wife was about to finish massage school and he wanted to set her up in business.  So my business partner asked him if he would be interested in buying this place.  He said yes he would love to.  So the initial talks began.  He brought his father in from Florida to talk to us and see the place as his father was going to give them the money.  We talked and then they backed out and then a few months later wanted to talk again.  Eventually they backed out and were never seen again.  Finally we decided to hire a broker.  We really wanted our business to sell and we found we could not do it ourselves.  So we started talking to some brokers in our town.  We went to the biggest firm and they wanted us to pay them 500 dollars a month.  We were not able to do that.  We started talking to some other brokers in town and finally found one who would give us a fair price for our business and we could pay him 10% at the end of the transaction.  We listed with him under a six month agreement.  At the end of six months we had not had any real takers so we listed again for another six months.  This time we talked to several people who were interested but nothing really happened.  At the end of this six month term we decided to sign one more time but if it did not sell we would take it off the market.  We were really getting discouraged by this time.  About one month after we signed we talked to a couple who seemed very excited about buying our business as they were here on vacation and loved the area.  We started talking back and forth over several months.  They did decide to buy the business but now they have 90 days to find financing.  So they talked to the SBA and found it very hard to get financing through them.  They talked to several banks and finally got the money from their parents.  The first 90 days went by and they asked for more time which we were willing to give since nobody else was knocking down our door to buy the business.  It all finally happened about six month after our first meeting.  We had a closing in December after meeting in June.   We both were excited and thrilled that it closed.  Hooray for us to finally sell.

Writing a Book

My business partner and I decided to write a book about a year and a half ago.  It has been really exciting and really exasperating at the same time.  We spent a year gathering information from our massage center that we previously owned.  We put all the information in a notebook.  We are now using the information to write a business textbook for massage therapists.  This book will be a reference manual for when the graduating therapists go out to start their own businesses.  We are starting to see how complicated it is to put a book together.  We have a few chapters done but we are still getting together the other chapters and trying to find information to enhance what we have pulled form our own references.  We would like to see more progress.  Some days I am really not feeling creative and it is hard to get the ball rolling.  My business partner has already moved on to the next book.  She feels this book is done already and is ready to start creating a new book on a totally different subject.  We barely have anything together and she is already selling it to a publisher.  I know it sounds strange but this is why we work so well together.   She is the vision and the foresight of our little duo.  I am the task master.  I am feeling a little intimidated because I have never written a book before and I really don't know what to say.  I try to talk about my experiences from our business time together but it all sounds so childish.  I am really trying to get over my fears and know that I do have the knowledge and the power to get this book on the shelf.  I have to get over myself and let the universe help me get what I want, which is for all massage therapists to have access to the ins and outs of running your own business.   Everybody deserves to be entrepreneurs and experience total control of their own lives.

More on Proposals...

Massage Business proposals are a very important part of keeping a business going.  Business owners are constantly looking for new ways to get income.  Professional proposals are a great way to get your information to the right people so your service can be offered at their place of business.    Most business owners have many opportunities to get new business but don't have the professional know how to write a great proposal.  It is very important that you look professional.  When you hear of an opportunity you must jump on it and put your writing hat on.  The proposal needs to be clear concise and to the point.  Sometimes it is easy to let things go by the wayside when we let fear run our lives.   As a business owner you have already surpassed the fear and are on the edge of fulfilling the dream, so new business is always on the front line.  So how to get that business will be based on how you present yourself and your company.  The presentation of your proposal will set you apart from your competition.  While I was running the massage center my business partner and I found out a local hotel was considering adding massage as a service for their guests.  They had just built a new addition to the hotel with an indoor swimming pool.  So we invited the hotel management to sit down for a meeting to find out what they were expecting.  Once we had an idea of what they wanted to see we wrote a proposal around their expectations.  We tried to work out what would the plan be that would help them and gain us new business?  We figured a schedule, an amount of therapists required, the amount of rent to pay based on gross sales.  How much of a percent of the people who come to his business are going to get a massage?  We did an analysis based on 1%, 5%, 10%, of the people who come into the hotel.  Then we used these numbers in our proposal to approximate the amount of money we would make on massage in the hotel.  During the writing of a proposal you will have to take some educated guesses.  Sometimes you can base things on actuality and propose that you will see a percentage of the hotel guests.   We also proposed to use the front desk people in the hotel to ask if they would like a massage and make appointments.  Then it was our job to get a therapist there to do the massage.  Business inside of another business is a great way to get exposure and gain trust in the community.  And the best part is making more money.........

Business Proposals Too

I think you are getting the idea of what you should include in a business proposal.  Most of the proposals I have shown you so far are for doing on-site massage. I am going to give some examples for setting up a business inside a business.  You must first go to the management and propose what you want to do.  You might have run into this person at an event or you may go door to door to sell your idea.  You are going to present your idea to any one who will listen.  Once you have found a business owner who is in a position to put your idea in motion you will then need to get your business proposal together.  You should then make it accustomed to what would fit in their business.  It is possible that you will be recommended by a friend to someone who wants to add your service to their business.  Take advantage of any situation you can.  Present your business proposal so that it fits with their business.  You need to do some research and ask them questions about their business so you can get an idea how you can work together.  I am going to give you an example that I did for putting my massage center in  a hotel.  A friend of mine who had done some work for this hotel had told the general manager about when he mentioned wanting to put massage inside the hotel and I then called him and set up a meeting.  After getting some general information from him about the hotel we put together a proposal this is the beginning of it the business description.

Description of the Business

(Name of establishment) is a massage Center, service business. We are right on the cutting edge of the industry. Mostly in the industry massage therapists are in private practice or working in a spa setting. (Name of establishment)  sets itself apart because we are a massage center focused only on massage, meaning we offer only massage services and not hair, nails and water treatments.  Massage is by far the most requested service in spas and resorts and alternative health treatments.

We are looking forward to the opportunity at the (Name). This will be a new facility for (Name of establishment) to offer massage to the guests and the public.

The legal structure of (Name of establishment) is an s-corp with two shareholders, (Business owners names).  We started the business with a start-up loan from the micro-mountain enterprise loan and help with their business expertise. We are after 3 years debt free.

When will the business open?

We would like to propose to be opened by (Date) barring any unforeseen obstacle from build out and city requirements.

Hours of operation:

We would like to propose the hours to be open

10am to 8pm, seven days a week, 52 weeks a year. It has been our experience that these are the best hours of operation for massage, however the hotel business will dictate the hours after we have been there long enough to see when the guest request the massages, which will help us cover the seasonal hours.

MORE TO COME SOON!!!!!

On-site conventions

The example shown below is something you might send out to convention planners in your area.  Getting on the list so to speak is a great way to get your business off the ground.  Be sure to make the proposal as professionally as possible.  Be open to changes that may be asked for and always show up when you say you will.  Promptness and professionalism will get you return visits.

TO BE TYPED ON COMPANY LETTERHEAD

Date: __________

Business name and address

Dear Convention Planners,

     Hello, I am (owners name) of (business name) and I have exciting news.  I would like to introduce you to our new on-site service program.  (Company Name) is now offering convention packages which include the services of our team, 12 nationally certified massage therapists, for one day or extended duration programs.  You can make our program an option for each convention or you can set us up on a retainer program to service all of your conventions.  Make your hotel or convention center more appealing; attract executives and anyone with stress in their everyday life.  By providing massage therapy services you enhance the overall convention package, address the physical and emotional needs of your guests and insure a return visit to your establishment.  Our massage therapy program helps reduce stress, improve circulation, relieve pain, and relax and rejuvenate the whole body.  We can work as a team or individually based on your needs.

     The program works like this:

1.      You include our brochure in your convention package

2.      When convention planners call to book a space, they can request our services and pay for our package depending on how many hours and days they need us

3.      You book the sates with us

4.      You provide us with the space and equipment needed.

5.      We provide additional massage therapists if needed

OR

6.      You pay us a flat rate and keep us on retainer, this includes a room set up

7.      We set up a regular schedule available to all guests

8.      You get a predetermined percentage of the monies

We hope you are as excited about this innovative new program as we are.  To set up an appointment for a presentation at no cost to you, please call (phone number) and ask for (owner’s name).  Thank you for the opportunity, we will be in touch soon.

                                                                                    Sincerely,

                                                                                                                        

                                                                                    Owner’s name

On-site Business Proposals

This is an example of how to write an on-site business proposal for an apartment complex.  You may ask the property managers just to let you do an informaitonal forum for their residents and be able to talk about your business and hand out flyers and business cards.  At least a free talk will get you in the door and let the residents know who you are especially if your office is close by.

TO BE TYPED ON COMPANY LETTERHEAD

Date: ___________

Business name and address

Dear Property Managers,

     I am (owners name) of (company name) and I am very excited about our new on-site therapy program.  In looking for ways to expand our client base and educate our community about the physical and emotional benefits of massage therapy, we came up with and innovative way for us to help each other.  We understand as property managers, you are looking for ways to improve your services to current residents and attract potential residents.  At (company name), it is our goal to build a reciprocal relationship with you and your residents.  Our massage therapy program helps reduce stress, relax muscles, improve circulation, relieve muscle spasms from overexertion and injury, increase flexibility, improve muscle tone, reduce fatty tissue, and relax and rejuvenate the whole body.  By letting us use your club house or recreation center, you allow us to reach and educate more people in a central location and make ourselves readily available to our participants.

     The program works like this;

1.      You select a time for us to come and provide us with a room or clubhouse

2.      You let your residents know when and where we will be

3.      Attendees sign up for and hour, 45 minute, or half hour session

1 hour = $65; 45 min = $50; 30min = $30

4.      They pay directly to the therapist

5.      The property receives 15% of the monies

Business Proposals

How to write a winning proposal?

     As you are investigating writing a proposal for putting your business inside another business you would need to meet with the owners of that business to find out about what their needs are before you can propose how you would do business.  When you have done some of the research and have talked with the owners about their expectations you can then gather the information for your proposal. 

     The components of a proposal are as follows: 

·       Executive Summary

·       Project Description

·       Budget

·       Organization Information

·       Conclusion

In the executive summary you want to distinguish yourself from other potential candidates.  Talk about unique assets of your company and how you can perform the service especially well and address any concerns they may have like professionalism, timeliness, privacy of the clients, and flexibility.

     In the project description you will want to give the nuts and bolts of how the project will be implemented.  This is where you give them the how to and what for of how you see the operation running once started and what will take it to the next level.  Be clear when you are writing and remember to work your strategy in throughout the text including, figures, graphs to help it flow smoothly and look good.

     In the budget section you need to give facts and figures about how you expect to be paid and how you expect the company to benefit from your service and show them some examples based on 1% of their customer base and 10% and 20%. This will give them an idea of how the profit margin will increase as the potential customer base goes up for them and for you.

   In the organization information section you should give a detailed description of the structure of your company, your management style, the companies primary activities such as a day in the life of my business who you primary target market is and what services you offer.  You will want to give as much detail in this section as possible so they can get a feel for your companies structure and if they will be able to work with your guide lines or not.

     In the conclusion you should summarize the main points of the proposal.  Be sure to reiterate all of the points you want them to take into consideration and be sure to give more examples so that they will see your company as the best fit.

     After you have completed the proposal you need to have professionals and friends look over it and proof read it and give some input for changes.  You will be made to look foolish or seem as though you are not paying attention to detail if things are misspelled or grammar is not correct.