Exploring the Independent Contractor Concept
As an independent contractor (or "self-employed practitioner") massage therapist, you are a small business owner. You have the distinctive opportunity to run your massage therapy practice the way you want to, while also assuming all of the risk and reward that comes with self-employment as a massage therapist. Your success as an independent contractor is directly tied to how many hours you work, and how efficiently you run your massage therapy business.
Although you have the freedom to run your business as you like , there are a lot of responsibilities that come with being an independent contractor. Your clients expect you to provide them with an exceptional experience that makes them want to come back again and again (which means that you have to hustle to find new clients on a continuous basis). You have to pay all of your own expenses (which are usually considerable in the beginning) and you have limited control over your schedule (although you do have more flexibility compared to an employee).
It’s not all bad though! For many massage therapist, being a self-employed business owner is extremely rewarding. You have the ability to set your own hours, provide your services in a way that makes you happy (e.g. working less and making more money!), and determine exactly how you’d like to interact with your clients. Being an independent contractor is like being in charge of your own little world; it’s up to you how successful (or not) you would like to be.
The Perks of Being an Independent Massage Therapist
Being a massage therapist who is paid as an independent contractor rather than as an employee has it’s benefits. However, there won’t be a benefit if you don’t know you are a contract massage therapist and don’t exercise your rights under the massage therapist independent contractor status law.
Flexibility is one of them. If you are an independent massage therapist you will have the flexibility to set your own hours for your massage therapy business. You can work as few or as many hours as you want, even changing your schedule every week if you want. Flexibility does not only apply to your hours. You can more easily change your location or add multiple locations as your client base grows or your personal or family situation changes.
Another benefit is that you can enjoy the level of control you have over your clients and your work environment. As a contract independent massage therapist you can refuse to work with clients you do not mesh with allowing you to maintain a client base you feel comfortable with. You can also create an environment that works best for you. If you like to play soft music while you work, you can. If you prefer silence, no problem. You may prefer to be quiet and let your massage therapy work speak for you, rather than conducting small talk as you work. The choice is yours.
You likely have more income potential being paid as a massage therapy independent contractor than if you were paid as an employee. As an employee, the decision of how much you are paid is made by your employer. As an independent massage therapy contractor you make that decision. Of course, you will want to forge a good relationship with your client base so you can garner repeat business. Many massage therapists find that an independent contractor status is the best of both worlds.
Legal Aspects for Independent Contractors
There are a host of legal considerations that every independent contractor massage therapist must be cognizant of. These considerations can even go beyond licensing requirements, which have already been covered.
You will also want to be aware of the business structure you wish to adopt, as well as the implications of such a structure on your taxes and liabilities. For example, if you plan to lease office space for your practice, or hire employees, you will likely want to organize as an LLC, corporation, or other formal business structure that limits your personal liability. Similarly, you will need to check with the county and state that you work in to determine what local and/or state licenses you may need to obtain. All of these items will incur costs, so be sure to plan accordingly.
Regarding contract agreements, unless you are seeing clients at their homes only, you will likely end up entering into a contract agreement with another business. Such agreements typically allow you to operate under the other business’s roof, but only if you first obtain all necessary licenses, meet your contractual obligations, and pay any agreed-upon fees.
Such contract agreements will specify when you can come in, accounting procedures, responsibility for certain expenses, and how to settle disputes should they arise between you and the owner of the primary business. Negotiating these contracts becomes easier with experience, and while some providers take a waiting list of clients with them when starting out with a new business, it’s unlikely that most massage therapists find consistent clientele who spend more than a year within their regular rotation. The majority of your clients are going to stay with you for only a few months or less, and as a result, the risk of a lease or similar agreement between you and the primary business owner becoming less advantageous will be high. Business agreements – and your practice as a whole – will feel more secure if these contracts are flexible and allow for easy transition and transfer of the client base.
While the decision to become an independent contractor is one that should not be made lightly, it should not be significantly more expensive and time-consuming than launching a regular employee practice.
Securing and Marketing Your Massage Therapy Clientele
When it comes to building a clientele, those who opt out of the typical salon or spa structure have a unique opportunity to set themselves apart. However, in order to do this successfully, you need to understand where your clientele is located, how to reach them, and what types of clients are going to benefit from your services. The first step is getting to know who your ideal clients would be.
Defining Your Ideal Clientele
It’s important that you get away from the idea that your every potential client is going to love the services you provide. You need to know who specifically is going to benefit from those services; this will help you focus on the ideal clientele rather than trying to attract everyone. Finding your niche here, you will be able to develop your messaging and speak to those clients directly, making your marketing efforts much more successful.
Finding Your Ideal Clients
Once you have a good idea of who your ideal clientele will be, it’s time to find them . In order to do this, you’ll need to know where they are currently being served. Prime locations for the types of clients you are interested in serving will help you identify where you should be marketing and building relationships.
Social Media Marketing
No matter your age, if you’re not on social media you’re missing a huge opportunity to build both your clientele and your business. As an independent contractor massage therapist, you can use social media to create a larger circle of influence that will help to attract new clients to your practice. Building relationships through social media is an easy way to grow your clientele base while increasing brand and business awareness at the same time.
Networking and Referrals
Combine social media marketing with networking and you’ll be able to reach a much larger audience. The salons, spas, gyms, chiropractors, and other places your ideal clients frequent are all places you should be networking your services – and encouraging those businesses to refer clients to you.
The Finances of Being Your Own Boss
Often times those who are new to the independent contractor massage therapy life underestimate the cost of doing business. As an employee you don’t have to think about things like insurance, taxes, or equipment replacement. But as a self-employed professional, these additional costs and responsibilities can all add up very quickly. Because of this it’s essential that you take the time to create a budget for your self-employed lifestyle. Accurate budgeting helps ensure that you never run out of money ($0 in the bank is not a secure job, even if your boss IS you). The budget should include: For help creating a realistic budget for your massage therapy business we highly recommend taking a Dave Ramsey class. Both his Financial Peace University and The Total Money Makeover Courses helped teach us how to have a healthy financial outlook for business ownership. Income is another area that can be tricky when you’re just starting out. If you have a full time position as a therapist or you have been an independent contractor for a while and have an end date for that contract, then budgeting can be easier than if you are brand new. But how can you know how much income to make as an independent contractor? The answer is straightforward, but can be a little difficult to stomach: Whatever you make, it’s probably not enough. When you are in charge of your own business expenses they ALWAYS seem to creep up. Expect the unexpected (think: car trouble, equipment replacement, rise in living expenses, inflation, etc.) and make sure your budget is flexible enough to adapt. Because budgeting is tricky, and because you don’t always know how much you’ll be spending or making, you’ll want to revisit this topic regularly. Set up a system where you can easily check in with your finances every month. No luxury service buyer wants to hear that your hourly rate is $30 an appointment for a 10-minute session, or that you don’t have a cancellation policy. Make sure you have thoroughly researched your competitors as well as your expenses and you know what your rates need to be.
Achieving Work, Family, and Personal Balance
Maintaining work-life balance is an ongoing challenge every self-employed massage therapist faces. Independent contractor massage therapists can have a difficult time putting barriers around their work schedule, especially when a reliable income depends on responsiveness to last-minute appointment requests. Research shows that work-life imbalance can affect health, satisfaction within relationships, workplace apathy, and work-life balance. Below are tips for creating healthy boundaries around your work schedule that allow you to maintain your quality of life.
Safeguard your schedule. Whether you compare your independent contractor role to that of an employee within a salon/spa or attending to clients in a residential setting, there will be pressure to squeeze in one more client… How else will you make a living? Unfortunately, it’s difficult to build a professional practice with this approach because you’ll be pressured to work whenever the customers need you. Conversely, take an intentional approach to how many hours you are willing to work. Consider strategic scheduling based on the clients you can count on. This may mean working toward a full-time commitment with a few select clients, rather than squeezing clients into every available hour on your calendar .
Prioritize your self-care. Massage therapy is demanding work. The focus is almost always on your client, but what about you? Be sure that you take the time to schedule time for your personal self-care. Whether it’s a professional massage or quiet time for meditation, consider how you can recharge physically, mentally, emotionally, and spiritually. You’ll be more efficient and present when you have your needs met.
Set good boundaries around your home office. Many independent contractors work from home, but most online resources provide clear instructions for establishing good boundaries with your family members, friends, and clients. In short, set hours of availability, cultivate a home office space away from the family hustle and bustle, and communicate with everyone in your household about your work.
If you find yourself in a consistent pattern of overcommitting to clients, ask yourself if this reflects your perceived need to please someone or to create as much revenue for yourself as possible. You may find that resenting the clients you feel obligated to accommodate is a signal that you need to revisit your boundaries with work.