Starting a Psychic Business

Once in a while I get a call from someone who is hugely gifted, above and beyond the average intuitive. It's not uncommon that the conversation will turn, and the caller will as me, "how did you get started doing this?"

Well, like many small businesses, the first years were touch and go financially. I have learned many valuable things about running a business over the years and am happy to share those with you.

1) In this business, your clients will be about 95% women, usually between the ages of 21 and 59. Keeping track of their names and addresses and sending out a letter or postcard to them at least every 4 months or so is a really good idea. The more personal this connection, the better.

2) In your first 3 years, at least 33% of your budget MUST go to advertising expenses. Other expenses like telephone, office rent, utilities, supplies, pay to yourself, taxes, etc., are above and beyond this one huge chunk.

3) Your own city will NOT be big enough to support you at any more than about minimum wage unless it contains more than two million people. IF your skills allow, I suggest that you offer work over the phone as well as in person. This can vastly increase your demographics from a thirty mile radius to the entire planet.

4) Here and now in 2008, unless you have a website that is well designed with good photos and a web master who knows his or her stuff in getting your website ranked highly on the search engines, you won't be found on the Internet. If you Google the word "psychic" you bring up 32 MILLION sites! A search for "clairvoyant" brings up 2.7 MILLION sites! Most people search through about 3 pages of listings before they stop. This means if your website doesn't show up in the top 60 listings, more than likely you won't be noticed. This is where 90-95% of your advertising dollar needs to go!

5) Get both a business phone and a sales tax id number before you open your doors! Most states in the United States consider "psychic" work something that is for "entertainment purposes only." Because of this, you are subject to charging sales tax and reporting it monthly or quarterly. Do NOT delay either getting your sales tax license or paying your sales tax on time every time!!!

6) To consider having a really quality professional photo taken of yourself for your business cards, stationary, or website. A picture is worth a thousand words and several thousand dollars in business if someone can look at it and automatically feel a connection with you.

7) Have a good long discussion with a CPA about your taxes and what you can and cannot claim. Consider a home office and putting advertising via magnetic signs on the doors of your vehicle. Educate yourself about business taxes and what is and is not deductible!

8) DO NOT expect your business to support you and pay your bills at any time in the first 9 months! You WILL need another income source in year one and possibly year two to start this kind of business up from ground zero.

9) Expect to work 7 days a week, and an average of 60 hours per week of actual business work or planning and even more hours "on call." At anytime you are self employed, take the call and the business whenever you can get it, even if it's 2 AM.

10) Work like each and every client is your boss. If you meet clients in your home or office, act like the boss is showing up and make sure everything looks, feels and smells wonderful! If you are working on the phone, act like the caller is your supervisor or the person who signs your paychecks and treat them with that sort of respect. Always remember, the phrase "self employed" is a bit of a misnomer. The entire world is your employer...never forget this!