How To Make Money Doing Reiki

Start a reiki business by following these 10 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 guide to starting your reiki business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Check out our How to Start a Business page.

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 much can you charge customers?
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
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.

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.

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.

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

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

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

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?.

Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.

Small Business Taxes

Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).

You can learn more about small business taxes in these guides:

LLC Taxes
Sole Proprietorship vs LLC
LLC vs Corporation
LLC vs S Corp
How to Start an S Corp

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.

Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.

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.

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Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.

Open net-30 accounts

When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.

Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.

Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.

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. C heck with your town, city or county clerk's office for more information about local licenses and permits. You should also g et 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.

For information about local licenses and permits:

Check with your town, city or county clerk's office
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.

Learn more about General Liability Insurance.

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.

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.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

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.

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.

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Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it's out of their reach because they don't have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn't delay building your website:

All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don't need to hire a web developer or designer to create a website that you can be proud of.

Using our website building guides, the process will be simple and painless and shouldn't take you any longer than 2-3 hours to complete.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That's not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We've reviewed the top companies and rated them based on price, features, and ease of use.