How to Start a Reiki Business

Start a reiki business by following these 10 steps:

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

We have put together this simple guide to starting your reiki 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 Reiki 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 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
• Insurance
• 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.

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 reiki 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 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.

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

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?

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:   

• Meditation
• 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.