How to Recession-Proof Your Business

By Kristine Shultis, LMT, NCTMB
May 29, 2009

How to Recession-Proof Your Business

By Kristine Shultis, LMT, NCTMB
May 29, 2009

What is a recession? A recession is defined as a period of time during which the economy not only stops growing but actually shrinks for at least two consecutive quarters. As you can see from the definition, recession is only really defined after it has already happened! You have probably noticed that even discussion of a recession sends people and the stock market into a panic. But you don't have to panic. Keeping your focus and proper preparation can keep you ahead of difficult economic times.

Consider Your Client's Needs

In uncertain economic times many people cutback on spending. They focus on things they perceive that they "need." By figuring out how massage therapy can fit into the client's needs, you can present your services in a way that will make sense to the client and cents for you! The following is a "hierarchy of needs," the five-level pyramid developed by psychologist Abraham Maslow:

  • Physiological Needs: Survival; food, water, clothing and shelter. How does massage therapy fit in here?
  • Security Needs: Safety. Here massage practitioners can focus on how massage therapy keeps clients healthy and allows them to live happier more productive lives.
  • Social Needs: Community, love and friends. Do you give classes and workshops? Do you offer gift certificates? These are ways to connect with this needs level.
  • Esteem Needs: Self-respect, reputation and status. Massage therapy makes people feel good about themselves. On-site massage boosts morale in office settings.
  • Self-actualization Needs: Inner meaning, personal growth and self-fulfillment. Massage therapy helps people relax, release stress and heals physical pain. It can be a tool for anyone who wants to achieve more with their lives.

15 Ways to Security

When business is slow you will want to consider your client's needs and focus on low-cost ways to keep your current clients happy as well as attract new clients. And when attracting new clients the most important thing is to get the word out. From keeping your clients happy with a fairly inexpensive (or free) chair massage to passing out business cards, read these 15 ways to secure your business during an economic down-turn.

  1. Get the word out. It is said that customers need to see your name at least seven times before they are likely to call you. Getting your name and face in front of your potential clients is what it is all about. ALWAYS pass out your business cards when meeting new people and network with health care practitioners in your area.
  2. Diversify. The more services you can offer, the more clients you will be able to find. Offer massage therapy, stone massage, reflexology, classes and chair massage. From this you will attract more clients than if you offered massage therapy alone.
  3. Contact past clients and leads. Go through your files and contact your past clients and leads from sources such as classes, workshops, mailing lists, etc. Let these customers know about new products and services you have added. Tell them about your classes, workshops, and Web site. Massage businesses can also focus on individual results such as the decreased pain felt after treatments or relaxation and other health benefits. Keeping clients informed is a good way of keeping them coming to your practice.
  4. Offer a variety of services at a variety of prices. Instead of lowering your rates consider offering a variety of treatments to accommodate a variety of prices. Offer a sliding scale where clients can choose their own rates.
  5. Give clients a discount for prepaying for services. For example, if your regular rate is $60 per hour, then charge $50 per hour if the client purchases a five-treatment package for $250. This way you know they will be coming back in regularly.
  6. Offer your clients a product or service for free when scheduling regular treatments.
  7. Start a referral program and reward clients for these referrals. Start an online newsletter and have a sign-up form on your Web site.
  8. Keep your customers happy. Find out what your clients really like about your practice and give them more of it! This doesn't mean forcing a long questionnaire form either; even through casual conversation you can get a sense of a few of your clients' favorite things.
  9. Make your business unique. First ask yourself how is your business unique? Then make sure potential clients know by including this in all of your advertising.
  10. Find out what's out there. Visit other therapists and find out what you like or dislike about the "competition." Can you adapt things you like to your practice? Read massage trade publications for a other ideas.
  11. Build a cash reserve fund. Save. Save. Save. Keep a "business slowdown" fund for your business. Remember, recessions are temporary, soon you will be back up and running better than before.
  12. Look closely as your finances and where the money is going. Reduce or cut down on unnecessary expenses.
  13. Renegotiate your lease, move to a less expensive building or share space with other therapists to reduce expenses.
  14. Reward your loyal customers with discounts, programs, freebies, handwritten thank-you notes, etc.
  15. Build value in your practice. Persuading clients to purchase premium services at premium prices can be difficult during challenging economic times. However, building value in your business means offering clients a selection of high-quality services and products, while educating your clients about the importance of this therapy. For example: If you are just selling a "$90 per hour massage," you may have a problem. However, if you are offering the client a lifestyle which will lead to increased health, decreased stress and better mental clarity, etc. you are selling something that everyone needs!

Note on Small Businesses

Small massage businesses have an advantage over large corporate businesses when it comes to changing advertising focus or changing messages because they can refocus more quickly.

Whatever your business size, stay focused on your goals and don't give up! Recessions eventually end and your practice will be ready to take off.