How to Start a Hypnotherapy Business

Start a hypnotherapy business by following these 10 steps:

1. Plan your Hypnotherapy Business
2. Form your Hypnotherapy Business into a Legal Entity
3. Register your Hypnotherapy Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Hypnotherapy Business
6. Get the Necessary Permits & Licenses for your Hypnotherapy Business
7. Get Hypnotherapy Business Insurance
8. Define your Hypnotherapy Business Brand
9. Create your Hypnotherapy Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your hypnotherapy business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a hypnotherapy business?

The startup expenses for a hypnotherapy business are manageable, with the biggest expense being office space’s cost. Regus has some day office space for $300, but this is the low end of the price range. A dedicated office space available to you 24/7 can cost as much as $900 per month or more.

Other marketing expenses include building a website, purchasing marketing materials, and advertising. World-famous hypnotist Igor Ledochowski has lots of tips on how to operate a low-cost hypnotherapy practice. For example, Igor uses an intake form and uses it as a session agreement (contract) to get paid upfront. Igor also makes session recordings, from a smartphone app, and sells those to his clients for an added amount. Igor also sells packages of sessions over a single session to ensure he’s booked solid with clients.

Business owners who have limited funds can lower the cost of operating a hypnotherapy practice by starting out of their house at first. After saving up, they can transition to a rented office space. The other expenses are minimal, especially if business owners keep things simple.

What are the ongoing expenses for a hypnotherapy business?

A hypnotherapy business’s ongoing expenses are minimal. They include regular advertising, ongoing marketing expenses, and the monthly office rent for making bookings.

Who is the target market?

A hypnotherapy business’s most steady work usually comes from smoking cessation clients, so smokers wishing to stop and people with other habits are a good target market to focus on initially. As a business grows, business owners can add other services, like weight loss hypnosis, pain management hypnosis, stress reduction hypnosis, and so many more.

How does a hypnotherapy business make money?

A hypnotherapy business makes money by charging clients a fixed rate per session. It usually takes 4-6 sessions to help a client stop smoking. Fees are usually charged per session.

How much can you charge customers?

The going rate for hypnotherapy varies but is reported to be $75 per session, although this may vary some by location. A well established and credible hypnotist receives up to $250 per booking for a 45-minute hypnosis session.

How much profit can a hypnotherapy business make?

A successful hypnotherapy business can bring in sizable revenue. In just one day, a business owner could have ten 45-minute bookings. At a rate of $75 per hour, income from this day would be $750. Even working just weekends, a hypnotherapy business could make $1,500 per week.

A booking rate of $250 per hour is exceptional but shows how much the most successful hypnotherapists can earn.

How can you make your business more profitable?

Hypnotherapy business owners have found many ways to diversify and increase revenue. Igor Ledochowski has written books, has numerous training courses, and does live hypnotherapy training for aspiring hypnotherapists. Other methods include offering hypnosis downloads for sale and selling “skypnosis” sessions (online bookings).

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your hypnotherapy business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a hypnotherapy business business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Anyone who enjoys hypnotizing others and helping people overcome personal hurdles may like running a hypnotherapy business. Much of the work involves talking to people in a private office setting.

While big-name trainers like Igor Ledochowski dominate the industry, anyone with a desire to hypnotize others and help them can also start this type of business. There are challenges for any new business owner who enters the multiple-therapy-dominated industry, but several hypnotists are having success. Hypnotherapists don’t take insurance like so many other psychotherapeutic workers. However, the rate that a hypnotist charges is much less, and the time needed to help the client is much faster, so this is one reason hypnotists can excel in this profession.

What happens during a typical day at a hypnotherapy business?

Attending a hypnosis session involves much more than simply showing up for the booked time. A hypnotist must prep themselves, drive to the location, and meet the client (going over an intake form) before the session starts. After going through the intake form, learning what the client’s desired outcome happens to be, the next phase is to start the hypnosis session. This involves having the client relax through a guided meditation, then providing some hypnotic suggestions to the subject, and then bringing them out of hypnosis. 

Once the session is finished, the hypnotherapist has the client wait until the client has fully resumed consciousness while talking them through how the session went. After seeing clients, the hypnotist files away their notes and goes home.

On a fully booked day or weekend, hypnotherapists might do all of this multiple times. Igor Ledochowski, perhaps the world’s most successful hypnotherapist, did up to twenty sessions in a single day, seeing hundreds of clients.

What are some skills and experiences that will help you build a successful hypnotherapy business?

Working as a hypnotherapist is more than simply hypnotizing people or relaxing them with a smooth voice. Business owners need to cultivate a hypnotherapist character with their own professional dynamics, personality, and a willingness to want to help people. General hypnosis experience helps with this, as does hypnotherapy-specific experiences.

To get general hypnotherapy training, business owners can enroll in a program and attend classes in person or online. Many hypnosis schools, online courses, and trainers have great programs, and in-person programs are often preferable to online classes as you get feedback from a live person helping you.

For hypnotherapy-specific tips, there are several resources to consult. Igor Ledochowski has an in-person training program, and various hypnosis schools, like Igor’s, sometimes offer regular classes for hypnotherapy enthusiasts. Additionally, Igor’s hypnotherapy books and training courses have helpful tips.

Along with learning hypnosis proficiently, hypnotherapists must be savvy business people. Hypnotherapists are not only hypnotizing people, but they must also educate the public about hypnosis and sometimes be an advocate for the profession. Moreover, the work is done from the office, which requires creating an environment conducive for doing hypnosis (i.e., a calm and peaceful place).

What is the growth potential for a hypnotherapy business?

Most hypnotherapy businesses remain small businesses because they usually consist of one person seeing clients in a local vicinity. When the time is right, business owners might increase their fees or seek more high-profile clients to grow their business. This strategy has proved successful for Steve G. Jones, who makes appearances around the world, and has hypnotized many famous people, like the original actor who played Superman.