With a budget of $150,000 or more, you can can successfully set up a small but standard medical spa in the United States.
It is important to note that there are certain vital factors that can determine the amount it will cost you to start your own medical spa business, and that is what we will discuss in this article.
Starting a medical spa goes beyond the desire to make money, it is an avenue to express one’s passion and desire for the medical spa industry.
A medical spa is a business that combines the relaxation and pampering environment of a traditional spa with medical treatments and procedures which are typically performed under the supervision of a licensed medical professional.
Medical spas offer a range of cosmetic and medical services designed to improve the appearance and overall well-being of their clients. With an understanding of what a medical spa is all about, it will be safe to say that starting a medical spa is capital-intensive.
Factors That Influence the Cost of Starting a Medical Spa Business
Licensing and Permits
Without licenses and permits, you will not be allowed to legally start your medical spa business. The costs associated with obtaining the necessary licenses and permits can vary from one city state or country to another. It is advisable that you research the requirements specific to the location you intend to start your medical spa business.
The licenses and permits needed to operate a medical spa business in the United States include a business license, medical spa license (varies by state), physician or medical director license (if applicable), facility license, health department permit, DEA registration (for controlled substances),
CLIA certification (if offering lab testing), controlled substance registration (if applicable), medical waste disposal permit, building permit, zoning permit, fire department permit, OSHA compliance, hazardous waste generator ID number (if applicable), and certificate of occupancy.
Please note that in the United States, you should have an estimate of $2,000 to $5,000 for all the needed licenses and permits to start a medical spa business.
The Cost of Purchasing Medical Spa Equipment and Supplies
You will need treatment tables, examination chairs, microdermabrasion machines, laser hair removal machines, IPL (Intense Pulsed Light) devices,
Botox and dermal filler supplies, chemical peel equipment, cryotherapy equipment, ultrasound machines, body contouring devices, skin tightening machines, laser tattoo removal machines, autoclave sterilizers, facial steamers, medical-grade skincare products, computer systems for patient records, medical-grade aesthetic devices, etc.
From experience, you should have a budget estimate of $30,000 to $60,000 or more to purchase the needed medical spa equipment and supplies to get the business up and running.
The Location You Want to Start the Business
As expected, different cities have different rental and leasing rates. For instance, if you have plans to start your medical spa business in New York City, then you must be ready to spend far more than is required to start the same business in Silver City, New Mexico.
This is because New York City, New York is one of the most expensive cities in the United States, and Silver City, New Mexico is among the least expensive cities in the United States of America.
The Cost of Marketing and Advertising
Trust me, establishing a strong online presence, creating a website, developing marketing materials, and advertising your medical spa business and services offering will attract reasonable expenses. In essence, you should have a budget that will take care of your business website design, online marketing campaigns, printed materials, and business cards.
Depending on how big you want to announce your presence in the market, you should have a budget estimate of $2,000 to $5,000 or more.
The Cost of Purchasing Insurance Policy Covers
In order to protect your business and clients, you will need insurance coverage such as general liability insurance, health insurance, and professional liability insurance.
The costs of purchasing insurance policy coverage for your medical spa business will depend on your location and the coverage options you choose. But generally, you should have a budget estimate of $1,200 to $3,000 per year.
Recruitment and Staffing Cost
You cannot run a medical spa without having employees. You should hire key employees such as a medical director, nurse practitioner or physician assistant, licensed esthetician, registered nurse (RN), front desk receptionist, and certified medical assistant (CMA).
You should have a reasonable budget estimate that can cover this cost because it varies based on staff size and salaries.
Operational Costs or Ongoing Expenses
Although, there is no fixed amount you are expected to spend when it comes to operational costs, but the truth is that it can be a significant part of your budget. Please note that your operation costs include ongoing expenses such as office supplies, utilities, transportation, and maintenance expenses for your equipment and tools.
We cannot give an estimate of what you should budget for your operational costs because it will vary based on your business size and the volume of clients you handle.