The Rise of the Medical Spa
As more people become concerned with remaining healthy and happy, medical spas have become popular. Its unique combination of aesthetic spa treatments and health-focused services provides an all-in-one convenient location to rejuvenate yourself. In fact, the American Med Spa Association reported that there were 8,841 medical spas throughout the country in 2022 alone. If you’re considering opening your own medical spa location, then there are a few different steps that you’ll need to take.
It All Starts with a Business Plan
A business plan should be thought of as a roadmap or blueprint for your future business. This plan needs to outline your vision for the company and include crucial information. There are several common elements of a solid business plan.
Executive Summary
Your executive summary is going to be the very first thing that a potential investor or lender is going to see. It should nicely describe what your medical spa is, what services you’re going to offer clients, and why your new business is going to succeed. Think of this executive summary as similar to an elevator pitch. Grab their attention and make them want to read more.
Company Description
The description is where you can go into more detail regarding your medical spa, its services, and so forth. Be sure to address your target clientele and how you’ll be able to fulfill their specific needs. Be sure to include your ownership type and overall business structure.
Management Organization
This is where you outline the actual organizational structure of your business. Be sure to provide a description for each key role in your company.
Market Analysis
Analyzing your industry and competitors is the key to understanding how you’ll succeed. This part of your business plan is where you get to know your potential clients, their needs, and how you’re going to satisfy them. You’ll review what makes other medical spas successful and learn what you can do differently to provide better service for your prospective customers. This competitive edge is something that you’ll need to develop early on.
Services Provided
In this section of your business plan, you’ll want to cover the main services that your medical spa will offer. Some of the most common include Botox injections, facials, and laser treatments. You may choose to offer these services separately or together in a combined service package. Be sure to take the time to describe each service and how it will benefit your clients.
Sales and Marketing Strategies
You can have a solid idea of your services and clients, but to be successful, you need to have a solid plan for attracting them to your new medical spa business. In this section of your business plan, you’ll describe the marketing strategies that you plan on utilizing to attract new clients. This should talk about sales tactics, techniques, branding, and customer engagement plans.
Financial Projections
The thought of correctly forecasting the finances of your new business can take time and effort. However, this process is necessary to have a realistic financial perspective. Consider how much your startup costs are going to be and what you’ll likely be paying each month in ongoing expenses. Consider staff, location, and product costs. Determine when your business will likely break even and how much you can expect to profit after you start to make money.
The business plan is intended to help you stay on track with your vision and goals as you bring your company to life. It also serves as a useful guide to help investors decide whether or not they want to contribute financially to your new company. Take your time and make it count. And remember that your business plan can be adjusted as your company changes.
Establish an Entity
In most cases, you’ll likely want to establish an entity for your medical spa. An entity is a type of business, such as a limited liability company, a corporation, or even a partnership. You’ll need to file for an entity license with your local state government. Information regarding this business licensing is typically available on your Secretary of State’s website.
As you register your new business, you’ll need to pay a one-time registration fee to your state. Additionally, you’ll need to obtain a federal tax identification number from the Internal Revenue Service (IRS) so that you can properly file your new business’s taxes. Be sure to take your time and decide on a business name that helps to explain the services that you’re going to offer and is memorable for prospective clients.
Obtain Necessary Licensing
Your state is likely going to require some licensing to operate a medical spa. This requirement can include operating permits, a business license, and other provisions. Some states, like Pennsylvania, may require that a medical spa be owned by a physician or a physician group. You’ll want to check for both state and local municipality licensing and permitting requirements to ensure that you will be operating legally.
Secure Funding
Once you have your business entity registered and you’ve obtained the necessary licensing to operate in your state, it’s time to seek out funding. Most new business owners are going to need more capital to establish their business than they have on hand. In fact, most will look for investors and unsecured business loans to help fund them. With your business plan in hand, it’s time to lock in funding so that you can proceed with finding a location and hiring valuable employees.
Find a Location
Once you secure the necessary funding, it’s time to start looking for your business’s new location. It’s important to remember that the location of your medical spa is going to have a huge impact on your client base. If you have a location that is convenient to get to and within a short drive from the main areas of a town or city, then you’re going to bring in more customers.
One of the best ways to start finding where the perfect location for your new medical spa is to think about your desired clients. Where do they work? Where do they travel? You want to be able to position your new business directly in front of these individuals. The closer your location is to your target clients, the more likely they will become long-term customers.
You’ll also want to consider what size facility you are going to need. How many rooms will you need? How big does each room need to be to accommodate the services provided in it? And don’t forget about parking. You can have the best location along the busiest route in town. However, if you don’t have easily accessible parking in a city that is dominated by vehicle traffic, you’re going to have a hard time bringing in clients. No one wants to struggle to find a street parking space or walk multiple blocks to get to your medical spa.
Finalize What Services You’ll Be Offering
Now that you have your ideal location, it’s time to finalize your service list. This process will help clarify what rooms will be designated for which services. You’ll better understand what personnel you need to hire and what type of equipment you need to purchase. Do yourself a favor and write down all the services that you want to offer at your medical spa.
Purchase Your Equipment
Next comes all the shopping fun. At this point, you should have a long list of equipment that you’re going to need for your new business location. Apart from equipment for the actual services you provide, remember that you will also need administrative equipment. This includes things like phones, credit card processing equipment, and even computers.
It’s a good idea to decide on the quality level of equipment that you want to provide your clientele. This way, you have a guiding light when making individual purchasing decisions. Also, realize that a lot of the medical equipment you’ll need for your new medical spa can be financed or leased. You don’t have to always pay cash for equipment.
Hire Staff Members
Now that you have your equipment purchased, it’s time to start recruiting staff members. From receptionists and nurses to estheticians and medical directors, there are many different positions that you may need to fill at your new medical spa. It’s highly advisable to write down a list of jobs and what requirements you need each applicant to have. Taking the time to look over potential hires and choosing individuals with relevant experience and solid qualifications will go a long way in setting your new business up for future success.
Get Insurance
Insurance is a must for any business that is in operation. You need to insure your operating location, assets, business, and employees. Determining the amount of insurance to get for these items can be easily done with the help of a qualified insurance professional. Some of the most common types of insurance that you’ll need to have for your business include general liability insurance, professional liability insurance, worker’s compensation insurance, and even property liability insurance.
Get Your Marketing Underway
Once everything else is set up, it’s time to start marketing. You should have already outlined your marketing strategies in your business plan. Now, it’s time to put those strategies to work. In most cases, you’ll likely need to hire a marketing firm to handle the day-to-day tasks of introducing your new business to your target market. Digital marketing firms are a great place to start, as they can help establish your website and set up social media marketing campaigns.
Starting your own medical spa can be a great lifelong adventure. To make the process a little smoother, consider obtaining an unsecured business loan from American Business Credit.
