Do you want to start a medical spa business? If YES, here is a detailed guide on how to start a medical spa business with no money and no experience.
Okay, so we have provided you an in-depth sample medical spa business plan template. If you are a medical practitioner and you are interested in the Health and Wellness Spas industry, then you can start your own niche business.
Trust me, this line of business is a money spinner both in the United States of America and all around the world. Please note that when it comes to starting a medical spa business, you are required to first look at the existing laws in the country or the State you reside in.
The health industry is usually highly regulated so as to guard against the infiltration of quacks. You need to pay a visit to the health and medical regulatory body in your country to get all the needed information before you can legally start your own medical spa business in your city.
How to Start a Medical Spa Business – A Detailed Guide
Table of Content
- 1 Industry Overview
- 2 Market Research and Feasibility Studies
- 3 List of Well – Known Brands in the Industry
- 4 Buying a Franchise vs Starting a Medical Spa from Scratch
- 5 Possible Threats and Challenges You Will Face
- 6 Best Legal Entity to Use for this Type of Business
- 7 Insurance Policies
- 8 Is Professional Certification Needed to Run a Medical Spa?
- 9 List of Legal Documents You Need to Run a Medical Spa Business
- 10 Financing Your Medical Spa Business
- 11 Choosing a Location for your Medical Spa
- 12 Technical and Manpower Details
- 13 The Service Delivery Process of a Medical Spa Business
- 14 Marketing ideas and Strategies for a Medical Spa Business
Medical spa treatments unlike the regular spas pay detailed attention on more difficult issues like wide spread discoloration and wrinkles. They include treatments like deeper chemical peels, injections (such as Botox), and laser treatments.
Medical spa is a niche idea in the Health and Wellness Spas industry and businesses in this industry offer spa services such as massages, facials and body treatments. The industry includes day spas, spa resorts, hotel spas and medical spas.
A close study of the Health and Wellness Spas industry shows that the industry is truly thriving in the United States. The Health and Wellness Spas industry posted strong growth over the five years to 2018. The majority of services that industry operators offer, such as massages and other bodywork services, are discretionary.
As a result, industry performance is tied to fluctuations in consumer disposable income and confidence. Demand for industry services has grown amid favorable economic conditions. To generate growth, spas have expanded their array of service offerings, particularly their range of anti-aging treatments and medical treatments.
These services like Botox, laser hair removal and teeth whitening, have represented strong sources of industry growth over the past five years. Over the next five years, improving economic conditions will continue to sustain industry growth.
A recent report published by IBISWorld shows that the Health and Wellness Spas industry is anticipated to post strong growth over the five years to 2020. The industry includes a variety of health and wellness facilities such as day spas, spa resorts, hotel spas and medical spas.
The majority of services that industry operators offer such as massages and other bodywork services, are discretionary. As a result, industry performance is tied to fluctuations in consumer disposable income and confidence.
Demand for industry services has grown amid favorable economic conditions. As per capita disposable income continues to rise, industry revenue is expected to grow at an annualized rate of 2.1 percent to $19.8 billion over the five years to 2020, including 2.0 percent growth in 2020.
The Health and Wellness Spas industry is a thriving sector of the economy of the United States of America and they generate over $20 billion annually from more than 23,007 registered and licensed health and wellness coaches cum health spas.
The industry is responsible for the employment of over 393,523 people. Experts project the industry to grow at a 2.2 percent annual rate within 2015 and 2020. It is important to state that there is no single organization that has a lion share of the available market in the industry.
It can’t be over emphasized that the demand for the services offered by health and wellness spas grow because spa operators will benefit from continued growth in per capita disposable income, fostering increased consumer spending on discretionary and luxury goods and services, including spa treatments and massages.
Lastly, the key attributes needed to make good success from the trade is robust knowledge, patience, enthusiasm, passion about the specific area to be handled, and constant positivity. You are also expected to be highly proactive; you would need to be good at planning, preparation, and certain other organizational skills.
Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographic composition of those who require the services of medical spas cut across people of different races, sex, careers, age, tribes and economic backgrounds who need detailed attention on more difficult issues such as wide spread discoloration and wrinkles.
List of Niche ideas Within Medical Spa Business That One Can Specialize In
Interestingly, there are no niche ideas that a medical spa business can specialize on because medical spa is a niche idea in the health and wellness industry.
The Level of Competition in the Health and Wellness Spas Industry
The competition that exists in the medical spa line of business goes beyond competitions amongst medical spa operators in your location; you are expected to compete with other health and wellness spas that has the capacity to offer detailed attention on more difficult issues such as wide spread discoloration and wrinkles. Thus, it will be right to say the competition in the medical spa line of business is tough.
The truth is that no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your services or business properly, you will always make headway in the industry. Just ensure you can help your clients glow, stay healthy and fit, you can deliver excellent customer care services, get testimonials from your clients and you know how to attract and reach out to your target market.
List of Well – Known Brands in the Industry
In every industry, there are always brands who perform better or are better regarded by the customers and general public than others. Some of these have been in the industry for a long time, while others are best known for how they conduct their businesses and the results they have achieved over the years.
These are some of the leading health and wellness spas in the United States of America and also in the globe;
- L’Amore Laser & Medical Spa
- 30a Medical Spa
- Rousso Facial Plastic Surgery Clinic
- Melindas Med-Spa And Salon
- Advanced Medical Spa & Laser Center
- Infinity Med Spa
- Trifecta Med Spa Downtown
- Cadella Medical Spa and Wellness Center
- SOLUX Med Spa
- Georgetown Allure Medical Spa
- The Natural Look MedSpa
- Persona Medical Spa
- Radiant Skin
- Simply Beautiful Medical Spa
- Reverse Laser and Medical Aesthetics, LLC
- Lake Austin Spa Resort
- We Care Detox Spa
- The Lodge at Woodloch
- Miraval Resort & Spa
- Rancho La Puerta
- Sundara Inn & Spa
- Spa at Chiva Som International Health Resort
When it comes to starting a medical spa firm, you just have to get your feasibility studies and market research right before venturing into the business. It is good to mention that medical spa business is not for rookies; it is for professionals who have successfully gathered the required experience and expertise to proffer solutions to people’s health and wellness concerns.
Starting this kind of business entails that you acquire the required degree and professional certifications and also build good working relationship with stakeholders in the industry. If you are already a major player in the industry before starting your own, this might not be an issue.
Depending on the scale at which you want to start from, you might require as much as thousands of dollars and at the same time you might need far less than that if you choose to start the business from an existing business facility.
You will be expected to hire the services of experts that will help you with a comprehensive economic and cost analysis. If you get your economic and cost analysis right before launching the business, you may not have to stay the long before you breakeven.
Buying a Franchise vs Starting a Medical Spa from Scratch
When it comes to starting a business of this nature, it will pay you to buy the franchise of a successful medical spa as against starting from the scratch. Even though it is relatively expensive buying the franchise of an established medical spa firm, but it will definitely pay you in the long run.
But if you truly want to build your own brand after you must have proved your worth in the industry, then you might just want to start your own medical spa firm from the scratch. The truth is that it will pay you in the long run to start your medical spa firm from the scratch.
Starting from the scratch will afford you the opportunity to conduct thorough market survey and feasibility studies before choosing a location to launch the business. Please note that most of the successful medical spas around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success.
Possible Threats and Challenges You Will Face
If you decide to start your own medical spa firm today, one of the major challenges you are likely going to face is the presence of well – established medical spa firms and other related businesses who are offering almost same services that you intend offering. The only way to avoid this challenge is to create your own market.
Some other threats that you are likely going to face as a medical spa firm operating in the United States are unfavorable government policies, the arrival of a competitor within your location of operations and global economic downturn which may affect your business. There is hardly anything you can do as regards these threats other than to be optimistic that things will continue to work for your good.
Best Legal Entity to Use for this Type of Business
When considering starting a medical spa firm, the legal entity you choose will go a long way to determine how big the business can grow. You have the options of either choosing a general partnership, or limited liability company for your medical spa firm.
Ordinarily, general partnership should have been the ideal business structure for a small – scale medical spa firm especially if you are just starting out with a moderate startup capital. But if your intention is to grow the business and have clients from all across the United States of America and other countries of the world, then choosing general partnership is not an option for you. Limited Liability Company, LLC will cut it for you.
Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for general partnerships. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholder meetings and other managerial formalities.
These are some of the factors you should consider before choosing a legal entity for your medical spa firm; limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and of course taxes.
If you take your time to critically study the various legal entities to use for your medical spa firm, you will agree that limited liability company is most suitable. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.
Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your medical spa firm so as to compete with major players in the industry; you will be able to generate capital from venture capital firms, you will enjoy separate tax structure, and you can easily transfer ownership of the company
Catchy Business Name ideas Suitable for a Medical Spa Firm
When it comes to choosing a name for a business, it is expected that you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. If you are considering starting your own medical spa firm, here are some catchy names that you can choose from;
- Richards Beckley & Co® Medical Spa, LLC
- Laura Greene® Medical Spa, LLC
- Santiago Group of Medical Spas, LLP
- Deb Rosen® Health & Wellness Coaching Services, LLP
- Jake Lee© Medical Spa, Inc.
- Aaron Smiths & Associates® Medical Spa, LLP
- Green Power® Medical Spa, Inc.
- West Coast® Medical Spa, LLC
- Phil Nelson & Co Medical Spas, LLP
- Louis® Medical Spa Services, Inc.
In the United States of America and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is imperative to create a budget for insurance policy covers and perhaps consult an insurance broker for the best insurance policies for your medical spa firm.
Here are some of the basic insurance policy covers that you should consider purchasing if you want to start your own medical spa firm in the United States of America;
- General insurance
- Risk Insurance
- Financial reinsurance
- Health insurance
- Liability insurance
- Workers compensation
- Overhead expense disability insurance
- Business owner’s policy group insurance
- Payment protection insurance
Intellectual Property Protection/Trademark
If you are considering starting your own medical spa firm, usually you are required to file for intellectual property protection/trademark. This is because the nature of the business makes it possible for you to challenge organizations and individuals in court for illegally making use of your company’s intellectual properties.
So also, if you want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection. If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO.
Is Professional Certification Needed to Run a Medical Spa?
Aside from the results you produce as it relates to timely and result oriented medical spa services, professional certification is one of the main reasons why some medical spa firm stand out. If you want to make an impact in the, you should work towards acquiring all the needed certifications in your area of specialization.
You are strongly encouraged to pursue professional certifications; it will go a long way to show your commitment towards the business. Certification validates your competency and shows that you are highly skilled, committed to your career, and up-to-date in this competitive market.
These are some of the certifications you can work towards achieving if you want to run your own medical spa firm;
- Wellness Program Certifications
- Cosmetology Certification
- Health Coach Certifications
- Fitness/Personal Training Certifications.
- A bachelor’s degree in Exercise Science, Health Science, Nutrition or other health-related major
Please note that you cannot successfully run a medical spa firm in the United States and in most countries of the world without necessarily acquiring professional certifications and business license even if you have adequate experience cum background in the industry.
List of Legal Documents You Need to Run a Medical Spa Business
It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long hand of the law catches up with you. These are some of the basic legal documents that you are expected to have in place if you want to legally run your own medical spa firm in the United States of America;
- Certificate of Incorporation
- Federal Tax Payer’s ID
- State Permit
- Business License and Certification
- Building Permits
- Business Plan
- Non – disclosure Agreement
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Consulting contract documents
- Apostille (for those who intend operating beyond the United States of America)
- Company Bylaws
- Insurance Policy
- Memorandum of Understanding (MoU)
Financing Your Medical Spa Business
Aside from the required certifications and hands-on experience, starting a medical spa firm can be cost effective. Securing a standard spa facility in a good location, equipping the spa, buying supplies and paying your employees are part of what will consume a large chunk of your startup capital.
No doubt when it comes to financing a business, one of the first things you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business or to partner with you.
Here are some of the options you can explore when sourcing for startup capital for your medical spa firm;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for loan from your bank
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source for soft loans from your family members and your friends.
Choosing a Location for your Medical Spa
Medical spas requires that you see physically with your clients hence it must be located in good location; a location that is prone to both human and vehicular traffic if indeed you want to attend to loads of clients and maximize profits from the business.
The fact that you can operate your medical spa firm from any part of the world does not mean that location has little influence on the success of your business. If you have taken your time to study medical spas, you will realize that they usually pay expensive rents in order to stay in a busy business district; a place where business activities and healthcare provider activities are at its peak.
If you are looking for a location for your medical spa firm, ensure that it is a place that is located in a business district in your city, a place that is visible and easily accessible. Of course, you would not want to locate this type of business in the outskirts of town. Your clients should be able to drive down and locate your office with little or no difficulty.
Most importantly, before choosing a location for your medical spa firm, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out.
These are some of the key factors that you should consider before choosing a location for your medical spa firm;
- The demography of the location
- The demand for the services of medical spas in the location
- The purchasing power of residents in the location
- Accessibility of the location
- The number of medical spas and related health and wellness spa services in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
Technical and Manpower Details
On the average, the equipment typically needed for a medical spa includes massage tables, intense pulsed light, laser hair removal, long- and short-pulse lasers, laser cellulite treatment, manicure and pedicure stations, and reclining facial chairs. Hydrotherapy equipment may include a Scotch hose, a hydrotherapy tub, a sauna, a Swiss shower, a Vichy shower, a Jacuzzi/whirlpool tub and a steam cabinet.
You will also need customized health and wellness spa software and other related software apps and social media management software applications. Also, you will definitely need computers/laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves).
When it comes to choosing between renting and leasing a spa facility, the size of the medical spa you want to build, and your entire budget for the business should influence your choice. If you have enough capital to run a standard medical spa then you should consider the option of leasing a facility.
As regards the number of employees that you are expected to kick start the business with, you would need to consider your finance before making the decision. Averagely, you would need a Chief Executive Officer / Lead Health and Wellness Coach (You can occupy this position), Health and Wellness Coaches, Nutritionist & Dietician, Accountant, Customer Service Executive/Front Desk Officer.
Over and above, you would need a minimum of 3 to 7 key staff to effectively run a medium scale but standard medical spa firm.
The Service Delivery Process of a Medical Spa Business
When clients visit a medical spa and pay for the services, they expect you to offer any or all of these services; facials, chemical peels, and microdermabrasion, facial fillers and Botox injections, permanent makeup and tattoo removal, medical pedicures and customized foot treatments, laser hair removal, varicose and spider vein treatment and reflexology.
Depending on the agreement reached by both parties, you are expected to come up with measurable indices that will show that the services you offered is indeed producing results. In some cases, the agreed consulting fee will be paid in part and in some cases, it will be paid in full and upfront.
Marketing ideas and Strategies for a Medical Spa Business
As a medical spa firm, you would have to prove your worth over and over again before attracting corporate organizations and individuals to pay for your services. So, if you have plans to start your own medical spa firm, it will pay you to first build a successful career in the health coaching and wellness industry.
People and organizations will only pay for your services if they know that you are going to solve their health and wellness – related challenges. So, when you are drafting your marketing plans and strategies for your medical spa firm, make sure that you create a compelling personal and company’s profile.
Aside from your qualifications and experience, it is important to clearly state what you have been able to achieve in time past as it relates to the industry and the organizations you have worked for. This will help boost your chances in the market place when sourcing for clients. Here are some of the platforms you can utilize to market your medical spa firm;
- Introduce your business by sending introductory letters alongside your brochure to all the businesses involved in healthcare such as hospitals, physicians, pharmaceutical companies, households, offices and schools et al within and outside your city
- Advertise your business in relevant healthcare and wellness magazines, radio and TV stations
- List your business on local directories / yellow pages
- Attend international health and wellness spa expos, seminars, and business fairs et al
- Create different packages for different category of clients
- Leverage on the internet to promote your business
- Join local chambers of commerce and industries around you with the main aim of networking and marketing your services; you are likely going to get referrals from such networks.
- Engage the services of marketing executives and business developers to carry out direct marketing
Factors That Will Help You Get the Right Service Pricing
One key factor that will help you offer your services at a price that is highly attractive is to ensure that you source your startup capital from sources that won’t put pressure on you or give you high interest rate.
Another strategy that will help you offer your medical spa services at the right price is to ensure that you cut operational cost to the barest minimum and channel your efforts towards marketing and promoting your brand name. Aside from the fact that this strategy will help you save cost, it will also help you get the right pricing for your products and services.
Possible Competitive Strategies for Winning Your Competitors
The health and wellness spas industry is a competitive industry, and you must come up with a unique and highly creative strategy to be able to outsmart your competitors. Part of what you need to do in order to stay competitive in the industry is to continue to proffer solutions to people’s health and wellness concerns.
Another strategy that you can adopt is to ensure that your organization is well positioned, key members of your team are highly qualified and certified as it relates to their job roles.
Possible Ways to Increase Customer Retention for Medical Spa Business
When it comes to business, no matter the industry that you choose to pitch your tent in, one of the easiest ways to increase customer retention and perhaps to attract new customers is to produce results and satisfy your customers always. If your customers are satisfied with your services delivery, they can hardly source for alternative service provider or products.
Statistics has it that one of the major reasons why clients source for alternative service provider or product is when there is a drop in quality. Another reason is poor customer service.
Part of what you need to do to achieve this is to track progress, results or outputs with the aim of improving on them quickly as the case demands. When it comes to managing your customers, and building loyal clientele base, you should purchase a customized CRM software.
With a customized CRM system, you can easily stay in touch with your clients (you can carry out quick surveys, you can introduce new products and prices to them without any hitch, you can felicitate with them on their birthdays and other anniversaries, you can keep track of their progress, you can send bulk sms and customized e – mails and above all, you can easily receive compliant and feedback from them).
Strategies to Boost Your Brand Awareness and Create Your Corporate Identity
If you are in business and you are not deliberate about boosting you brand awareness and communicating your corporate identity, then you should be ready to take on whatever the society portrays your business to be. One of the secrets of larger corporations is that they are willing to spend fortunes to boost their brand awareness and to continue to communicate their corporate identity the way they want people to perceive them.
If your intentions of starting a medical spa firm are to grow the business beyond the city where you are going to be operating from to become a national and international brand, then you must be ready to spend money on promotion and advertisement of your brand.
In promoting your brand and corporate identity, you should leverage on both print and electronic media and also social media (the internet). As a matter of fact, it is cost effective to use the internet and social media platforms to promote your brands, besides it is pretty much effective and wide reaching.
Below are the platforms you can leverage on to boost your brand and to promote and advertise your medical spa firm;
- Place adverts on healthcare and wellness related magazines and newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from your loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote your business.
- Ensure that we position your banners and billboards in strategic positions all around your city
- Distribute your fliers and handbills in target areas in and around our neighborhood
- Advertise your business in your official website and employ strategies that will help you pull traffic to the site
- Brand all your official cars and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.
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