How to Start a Reiki Business

Frustrated with traditional medicine, more and more Americans have turned to alternative medicine in recent years. The industry is forecast to expand four-fold by 2028, and all-natural methods like Reiki, which involves the application of healing energy, are seeing explosive growth. 

Developed in Japan, Reiki has been proven to alleviate stress, promote relaxation, and foster self-healing. Becoming a Reiki practitioner will require study and certification, but getting there can be both rewarding and lucrative. 

If you’ve been feeling the powerful pull of Reiki, starting your own practice will allow you to live your passion and make good money along the way. This guide contains all the insight and information you need to channel your energy into a successful new business. 

Step 1: Decide if the Business Is Right for You

Pros and cons

Before you commit to building a Reiki business, decide if it’s a good fit for you.

Psychic Services industry trends

Reiki practices fall within the industry category of complementary and alternative medicine. 

Industry size and growth

• Industry size – The US alternative healthcare industry is worth $22 billion in 2022.((https://www.ibisworld.com/industry-statistics/market-size/alternative-healthcare-providers-united-states/))
• Growth forecast – The global alternative medicine industry is expected to grow a stunning 22% each year through 2028.((https://www.grandviewresearch.com/industry-analysis/complementary-alternative-medicine-market))

Trends and challenges

Trends within the Reiki industry include:

• Some clients have begun to accept virtual or remote healing, known as “distance Reiki”. This enables practitioners to work from anywhere in the world.
  
• Many practitioners combine Reiki with other healing services, such as massage therapy, sound healing, healing crystals and spiritual counseling.

Challenges in the field of Reiki include:

• Although becoming a Reiki master involves training, the practice is unregulated, which could lead to hesitation in clients. Other alternative medical practices like acupuncture require specific board licensing.
  
• The varied experiences of clients: one might feel real and immediate relief, while the next feels the therapy has made no impact. 

What kind of people work as Reiki practitioners?

• Gender – 85.8% of Reiki practitioners are female. 14.2% are male.((https://www.zippia.com/Reiki-practitioner-jobs/demographics/))
• Average level of education – The average Reiki practitioner is college educated, with 54% holding a bachelor’s degree. 
• Average age – The average age of a Reiki healer is 38.2 years of age.

How much does it cost to start a Reiki business?

Startup costs for a Reiki practice range from $2,450 to $7,500. Costs vary depending on the level of certification you obtain, but you can begin providing services at a beginner’s level. To keep overhead low, you can start by practicing out of your home or traveling to clients. Marketing will be your main cost, ranging from $750 to $1,500. 

A great resource for training and certification is The International Center for Reiki Training, which offers in-person and online courses.  

You’ll need a handful of items to successfully launch your Reiki business, including: 

• A distraction-free workspace
• Reiki table
• Linens
• Healing crystals and fabrics
• Reiki certification

How much can you earn from a Reiki business?

The average cost of a Reiki session is around $100. After costs, your profit margin should be around 90%.

In your first year or two, you could do two Reiki sessions five days a week, bringing in $52,000 in annual revenue and $47,000 in profit, assuming that 90% margin. As you build a reputation and gain referrals, you might do four daily sessions. This would result in annual revenue of $104,000 and a strong profit of nearly $94,000. 

What barriers to entry are there?

There are a few barriers to entry when starting a Reiki business. Here’s what to expect:

• Learning Reiki healing and obtaining certification
• Competition from other practitioners

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Step 2: Hone Your Idea

Now that you know what’s involved in starting a Reiki business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Why? Identify an opportunity

Research Reiki practitioners in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing group Reiki healing sessions or Reiki services for children or unwell adults.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as combining Reiki with massage therapy or acupuncture.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

Your Reiki healing sessions will last 45 to 90 minutes. You could also add other services if you’re qualified, such as acupuncture and sound healing.

How much should you charge for Reiki?

Depending on your experience, you can charge $50 to $150 per session. Your rate should increase as you progress toward mastery, or if you provide specialty services. If you’re working out of home or traveling to clients, you should aim for a profit margin of around 90%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

The ideal customer for your Reiki business is likely someone who is in touch with their spiritual side and seeking healing. Your clients are also likely to be searching for relief from their ailments outside of traditional medicine. 

Reiki is appropriate for all ages, so you should spread your marketing across top social media sites including TikTok, Facebook, LinkedIn and Instagram. 

Where? Choose your business premises

In the early stages, you may want to run your Reiki business from home to keep costs low. You can also rent space at local Reiki schools as needed, or travel to client’s homes. 

As your business grows, you’ll likely need to hire workers for various roles and may need to rent out a dedicated studio. You can find space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Dedicate private rooms to be used for Reiki sessions
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “Reiki master” or “energy healing”, boosts SEO
• Name should allow for expansion, for ex: “Jim’s Bakery” over “Jim’s Cookies”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Brief overview of the entire business plan; should be written after the plan is complete.
• Business Overview: Overview of the company, vision, mission, ownership, and corporate goals.
• Product and Services: Describe your offerings in detail.
• Market Analysis: Assess market trends such as variations in demand and prospects for growth, and do a SWOT analysis.
• Competitive Analysis: Analyze main competitors, assessing their strengths and weaknesses, and create a list of the advantages of your services.
• Sales and Marketing: Examine your companies’ unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
• Management Team: Overview of management team, detailing their roles and professional background, along with a corporate hierarchy.
• Operations Plan: Your company’s operational plan includes procurement, office location, key assets and equipment, and other logistical details.
• Financial Plan: Three years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash flow, and balance sheet.
• Appendix: Include any additional financial or business-related documents.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist at Fiverr to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to Reiki healing. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your Reiki practice will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using ZenBusiness’s online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have. 

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist, and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a Reiki business. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Licenses/Permits

Starting a Reiki business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your Reiki business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as Mindbody, Theranest, and Phorest, to book appointments, keep client records, and manage payments.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Marketing

Some of your business will come from the casual passerby or online visitors, but you should still invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness. 

Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products:

• Facebook: Great platform for paid advertising, allows you to target specific demographics, like men under age 50 in the Cleveland area. 
• Instagram: Same benefits as Facebook but with different target audiences.
• Website: SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Schedule Now”. This can sharply increase appointments booked.
• Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers.

Kickstart Marketing

Take advantage of your website, social media presence and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include: 

• Competitions and giveaways – Generate interest by offering prizes for customers who complete a certain action, such as offering a free Reiki treatment for those who reshare a social media post from your page. 
• In-Person Sales – Offer your Reiki healing at local markets, trade shows.
• Post a video – Post a video about your Reiki business. Use humor and maybe it will go viral!
• Email marketing/newsletter – Send regular emails to customers and prospects. Make them personal. 
• Seek out referrals – Offer incentives to generate customer referrals to new clients. 
• Influencer marketing – Pay people with large social media followings to promote your Reiki. You can find micro-influencers with smaller followings and lower rates.
• Do a webinar – Share your Reiki expertise online with a video seminar.
• Testimonials – Share customer testimonials about how your Reiki helped them.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your Reiki services meet their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your Reiki business could be:

• Relax, restore, rejuvenate — Reiki
• A safe space to find balance and inner peace
• Energy healing for mind, body, and soul

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a Reiki business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in energy healing for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in Reiki healing. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a Reiki business include:

• Receptionist/Administrative Assistant: greet customers, manage appointments, take payments
• Additional Reiki Practitioners: provide energy healing services
• Marketing Manager: manage social media, lead generation, business development
• General Manager: scheduling and accounting

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

In today’s fast-paced, stressful world, there’s never been a better time to do some healing. Alternative medicine and holistic healing are seeing explosive growth, and you can ride that wave as a Reiki practitioner — helping others relax, destress, and recover while making an excellent living. 

Now that you’re familiar with the fundamentals, it’s time to rub those hands together and start your Reiki business!