Start a reiki business by following these 9 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple step guide to starting your reiki business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
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 are the startup and ongoing costs?
- Who is your target market?
- How long it will take you to break even?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a reiki business?
Building a successful Reiki healing center takes time. To save on overhead expenses, many start out practicing out of their homes. Should you decide to have a workspace outside of your home, research each area you’re considering to ensure you set up in a prime location.
Below is a list of basics you’ll need to get started:
- A workspace that is free of outside noises. Decorate the room with calm, soothing colors
- Reiki table: 80-$500
- Pillows, linens, and blankets: $100 per set
- Colored fabric for healing: $5-10 per square yard
- Music and a CD player
- Business management software—this program will assist you in managing every aspect of your business. There are a number of options out there to choose from. If you purchase the software outright, the cost is usually between $1,200 - $3,500. Hosted software will set you back $70-$135/month.
- An attorney and/or CPA to help ensure you have a solid business plan that's carried out smoothly. If you plan on accepting medical insurance, seek advice from an experienced professional before getting started.
- Insurance—liability insurance will vary in cost, depending upon a number of factors.
- Website - $1,500 - $5,000, depending upon how complicated of a website you desire. We recommend starting out with a basic site; you can always expand it later.
What are the ongoing expenses for a reiki business?
Since your primary tool is your hands, your overhead expenses will be fairly minimal. In addition to the standard business expenses, below are a few items you’ll want to budget for monthly:
- Laundering of linens, etc
- Purchasing and ongoing maintenance of equipment
- Advertising and website maintenance
- Payroll expenses—you could reduce this expense by hiring practitioners on a 1099 basis
- Travel expenses and registration fees for conventions, continuing education, and speaking engagements
Who is the target market?
You’ll find that your customer base is a very diverse group of individuals. They all, however, have one thing in common—they’re seeking your assistance in healing their ailments. They believe, on some level, in the power of energy and are hopeful that this is a healthier alternative to Western medicine.
How does a reiki business make money?
Your organization will generate revenue through each patient treated. Sessions typically last from 45-90 minutes and are priced accordingly. Your business will collect all patient fees, passing on a portion of each payment to the practitioner who treated said patient.
How much can you charge customers?
Your fees depend upon the length of time for each session and your professional experience. Sessions last anywhere from 45 - 90 minutes, with fees typically starting at $50/hour.
A Reiki practitioner can charge between $25 and $100 per session, depending on location and experience.
How much profit can a reiki business make?
Reiki therapists report making an annual premium of between $39,000 and $73,000, depending upon their level of training, experience, and demand for Reiki in the area. As the business owner, you’ll collect client fees and disburse payments to each practitioner, based on the work done, setting aside a portion of that fee for the business itself. Therefore, each service you offer your clients increases the potential to elevate your profit.
How can you make your business more profitable?
The following are a few strategies other Reiki businesses have implemented to ensure a more profitable business:
- Include services such as massage therapy and acupuncture
- Become a Reiki coach
- Become a Reiki instructor
- Host speaking engagements, both locally and nationally
- Open a Reiki school
- Approach a hospital and discuss opening a program there
- Host events where fees can be reduced or at no charge. While the business might lose money initially, the goal is to educate others on the benefits of Reiki and to help spread that work throughout the community. A few ideas are: create a healing service at your church, volunteer to do treatments at hospice centers, drug and alcohol treatment centers, hospitals, or with therapist.
- Offer to write for The Reiki News—again, this might not generate much profit initially, but it will help establish you as a leader in the Reiki community.
What will you name your business?
Choosing the right name is very important. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your reiki business is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.
You should also consider using a registered agent service to help protect your privacy and stay compliant.
For most small businesses forming an LLC is a great option, but if you still want to weigh all your options check our our article, What Structure Should I Choose for My Business?
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!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
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
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment 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.
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 reiki business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
In addition, certain local licensing or regulatory requirements may apply. Check with your town, city or county clerk’s office for more information about local licenses and permits. You should also get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
Informed Consent Agreement
It is advisable to provide clients with informed consent agreements to decrease legal liability and encourage transparency. An example of an informed consent agreements can be found here.
Recommended: Rocket Lawyer makes it easy to create a professional Informed Consent/Release of liability form for your reiki business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.
Certificate of Occupancy
A Reiki business is generally run out of a physical location. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a Reiki business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your Reiki business will be in compliance and able to obtain a CO.
STEP 7: Get Business Insurance
Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
How to promote & market a reiki business
Like most small businesses, word of mouth will be one of your greatest marketing tools. In fact, many practitioners rely heavily on word of mouth as part of their strategy.
Reiki practices have found success implementing the following marketing strategies:
- When first starting out, treat friends, family, and acquaintances at no cost. Follow up with them after their appointment and ask for input and constructive criticism.
- Ask clients who have found success through your treatment to write a testimonial. Build a portfolio that can be shared both online and on paper. Ask clients to answer common questions in the body of their testimonial, e.g. "What was the initial session like?" "What was the treatment like?" "Did you find relief and, if so, was it immediate?"
- Host free talks at local health food stores, the library, or community organizations.
- Attend and participate in Holistic Health Expos and Fairs.
- Join networking groups such as International Association of Reiki Professionals.
- Advertise in new age and holistic magazines and network with other holistic healers in the area.
- Make your website informative. Provide answers to prospective customers’ most burning questions, even offering tips on things they might not have thought of.
- Utilize social media regularly.
- Be sure to track how people learned about your healing center, so you know which marketing strategies are most effective.
Recommended: Get started with local advertising for your business with a $300 credit from Yelp.
How to keep customers coming back
While Reiki has become a widely accepted practice, there are still a lot of skeptics out there. It’s important that you maintain a professional air at all times and are enthusiastic about educating others on its benefits. For many, this is a very personal treatment plan—their triumphs are your triumphs—and they will tell everyone they know about it.
STEP 9: Establish your Web Presence
A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
Start A Reiki Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
While everyone has the ability to learn the techniques, the practice of Reiki requires an open, balanced mind and a passion for healing. Those who are disciplined enough to handle the day-to-day activities of running a business, while always striving for growth in their practice, would be best suited for this career.
What happens during a typical day at a reiki business?
Your business’ success is dependent upon the balance of energy within yourself and how you’re able to transfer that energy to others. Therefore, when not seeing patients, most practitioners spend time working on themselves through:
- Focus on alignment and spiritual intention
- Daily affirmation and prayer
- Demonstrations at public gatherings to share Reiki with others
Additionally, you’ll want to spend a substantial portion of each day working to cultivate your business. There will be administrative duties to attend to and a marketing strategy to manage. Once you’ve achieved some of your outlined growth goals, it might be cost-effective to delegate these responsibilities to a trusted staff member, offering you more time to focus on your true passion—healing others.
What are some skills and experiences that will help you build a successful reiki business?
Given the work you do, it’s very easy to get caught up in the healing aspect, brushing off your business obligations. To realize long-term success, it’s important that entrepreneurs strike a balance between the two. If keen business sense isn’t your strong suit, consider taking a few classes at your local college to sharpen your skills.
Strong communication and listening skills are also critical. As the owner, it’s your job to pair each patient with the right practitioner. You’ll need to listen to the needs of the client, drawing much of your information from subtle comments by the client. Remember, clients are coming to your facility for help; many of them will be in pain. Everyone on your team must be caring and nurturing, eager to provide healing energy.
However, none of these skills will benefit the center if you don’t have the proper Reiki training. The International Center for Reiki Training can assist you in finding teachers in your area. Along with attunement, be sure you attend a training session that shows you how to give treatments and allows you the opportunity to practice your treatment before certification is complete.
What is the growth potential for a reiki business?
Your company’s growth potential is directly tied to saturation of the market, the needs of the area you serve, and the number of practitioners you’re able to hire. Innovative entrepreneurs in this field strengthen their business by offering a well-rounded practice that combines multiple types of therapy to meet all their client’s needs.
TRUiC's YouTube Channel
For fun informative videos about starting a busines visit the TRUiC YouTube Channel or subscribe below to view later.
Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a reiki business?
The following are some insider tips from individuals who have found success in this growing industry:
- Volunteer at a local hospital, nursing home, or clinic. The experience you’ll gain will prove invaluable.
- Keep in mind that your practice is centered around energy. Whether you have one client or fifty, keep a calendar for appointments and write down the times you’re available. This builds intention and energy around your Reiki practice.
- Never rush a session or treat only the symptom.
- Try to find someone with experience to apprentice with before opening your own practice.
- Practice Reiki on yourself regularly.
- Continue your Reiki education.
- Learn how to educate others on the benefits of Reiki. This transfers best through verbal communication. Find out what the common misconceptions are and be able to communicate with all types of audiences.
- Network within the community.
How and when to build a team
As previously mentioned, many Reiki business owners start out practicing from their own homes. As your client base starts to grow, you’ll want to move into a larger space and begin hiring additional Reiki practitioners for your team. If your vision entails building a more complete healing center, consider hiring practitioners who have studied alternate therapies. This will help build a name for your center, as patients will think of you for all their healing needs.
Given the nature of your business, carefully consider each new team member. Thirty years of practice will mean nothing if they don’t have the personality to gel with your customers and staff.