For information only. Not meant as advice in any form. Please consult your medical professional or lawyer.
There are plenty of job opportunities in the spa industry for cosmetic and medical professionals. But if you want to pursue something more challenging yet equally satisfying, you can consider establishing your own med spa business. Being a med spa owner certainly comes with its own benefits, but it’s not something that you can achieve overnight, especially since you have to be ready to spend a lot of money to run your own practice.
So how can you open a destination spa or medical aesthetics clinic without money? Any business needs to have a starting capital but if you have no money, you can enter into partnerships, apply for business loans, or pitch your idea to investors. Once you have money, you can proceed to choose your location, prepare your team, buy spa equipment and tools, and promote your aesthetic practice or day spa service.
A Guide on How to Start a Spa With No Money
One of the most rewarding industries to work in is the aesthetics medicine industry. Whether you’re an aesthetician, massage therapist, nurse practitioner, or physician assistant, working at a med spa offers a unique sense of fulfillment as you’re able to work closely with clients, develop one-on-one relationships, and help them with their concerns and beauty goals.
This is probably why a lot of budding entrepreneurs are interested in starting a spa business. However, opening a med spa isn’t easy and it takes a lot of dedication, time, and especially money.
Not having enough funding can certainly be a big roadblock in your plans of creating your own med spa practice. But if you’re willing to put in the effort, there are ways you can acquire monetary support to make your business ideas come to life. Here’s how you can establish your medical spa with no money:
1) Consider Entering Into A Med Spa Partnership
In most states, med spas are owned and operated by medical professionals and licensed physician assistants. If you’re a non-physician and want to enter the medical spa business, it’s a common practice to create a partnership with a certified professional.
A strategic partnership can help ease your financial problems since you’ll have additional people to split the costs of the business with. Additionally, it ensures that you’ll remain compliant with the state regulations in locations that don’t allow non-physicians to own a med spa.
If you’re not a medical professional, you can enter into an MSO agreement with a licensed physician or medical director which basically allows you to oversee the business operations while leaving the administration of cosmetic procedures and spa services to qualified personnel.
2) Find Investors For Your Med Spa
Another way you can get money for your aesthetic business is by looking for professional investors or venture capitalists. Investors can provide a steady stream of money to help you overcome your financial problems and start your med spa. They also have their own business expertise which can be helpful as you develop and run your medical spa service.
To attract investors, you should be prepared with a comprehensive business plan that explains your practice’s goals, mission and vision, and objectives. It should also include your sales forecasts, expenditures, financial statements, and cash flow projections so they know that your business is sustainable for the long run.
3) Look For Start-Up Loans For Med Spas
Aside from pitching to investors, you can also apply for short-term loans to solve your financing needs. Most med spas can apply to the US Small Business Administration since they offer financing support to aspiring entrepreneurs without money. Just make sure to have your business plan ready so you can present it to the lenders to increase your chances of getting loan approval.
You can also opt to get equipment financing to purchase the basic tools, machines, and devices that you need to operate your spa business. Additionally, you can get a credit card since there are banks that offer special cards to help a small business owner.
4) Create Your Business Plan
It’s recommended to develop a strong business plan so you can better sell your idea to potential investors, lenders, and partners. Your business plan should be comprehensive, detailed, and complete. This will serve as your guide in starting and managing your medical spa business.
A business plan usually consists of different sections that provide a glimpse of how sustainable and successful your spa can be. According to an article by the Small Business Administration, there are two common business plan formats: lean startup and traditional business plan. If you’re planning to ask for loans or investors, you should go for the traditional business plan, and here’s what it typically contains:
- An executive summary – This contains a brief explanation of what your business is all about. This can include your med spa’s mission and vision statement, an overview of treatments and services, and information about your managing team and staff.
- Company overview – This provides details about your med spa business and specific information about why it was formed. Talk about the existing market problem that you intend to solve with your business.
- Market and target audience research – You’ll also need to present a thorough market analysis, which can include consumer research and SWOT analysis. Study your competitors in the market and determine the advantages and strengths that you have over them.
- Management and organization structure – With the help of a legal team, determine the structure of your business, whether you want to run it as a corporation or a limited partnership. You should also create an organizational chart to showcase the people behind the spa business.
- Services – This goes into detail about the beauty products and aesthetic treatments that you’ll be offering in the market.
- Sales and marketing strategy – You should also outline your marketing plan to give your investors an idea of how you’ll promote your business and boost your revenue.
- Financial statements – Investors will also look for a clear picture of your financial projections, cash flow statements, and revenue assumptions to determine if your business is profitable and worth funding.
5) Find A Location That Fits Your Budget
Once you’ve secured your funding, the next step is to choose the location where your business will grow. It’s important to look for a neighborhood that meets your target market demographics and it should also fit your total budget. When searching for a spa location, some factors that you’d need to consider are:
- Accessibility – Your practice should be located near major roads and thoroughfares so it’s easy for clients to visit you.
- Parking spaces – Your location should also have plenty of available parking areas and should be around a safe environment.
- Rent and maintenance costs – You should also consider potential rent, maintenance, and utility expenses when scouting for a location for a medical aesthetic business.
6) Prepare Your Medical Spa Equipment Checklist
The selection of spa treatment and procedure will depend on the availability of tools and equipment in your practice. To provide the latest services and attract customers, you should equip your spa with advanced aesthetic devices and machines.
Some of the common equipment that you should have in your spa facility are injection tools, laser devices, microdermabrasion machines, salon chairs, massage tables, facial beds, storage cabinets, hot towel warmers, and office furniture for the treatment room and reception area.
How Much Does It Typically Cost To Open A Med Spa?
The costs of starting a medical spa business can vary greatly on the size of your facility, location, and treatments offered. On average, the startup cost for opening a spa practice ranges from $18,000 to $35,000. Some physicians also share that the cost of building a med spa may even reach up to $700,000 to $1,000,000.
One reason why it’s so expensive is that a medical spa practice is different from a day spa salon. Traditional spas focus on promoting wellness and relaxation, while med spas offer specialized treatments and noninvasive cosmetic services for skin rejuvenation. Most of the time, you’d also need to consider the costs of hiring professionals, licensed therapists, and expert aestheticians who will be in charge of the procedures in your medspa.
Other factors that influence the startup cost of your med spa business are:
- Business Formation Fees – You’ll likely require legal help in setting up your spa business, which is why you also need to consider the professional lawyer fees in your budget. You may also have to pay for getting a certification, permit, license, and small business insurance.
- Lease Expenses – If you want to have a physical spa facility, you’ll also have to compute the total rent costs for your locations. If you’re buying an establishment, you may have to consider additional expenses for remodeling and improving the existing utilities and the indoor and outdoor space.
- Software Costs – You’d also need to invest in good spa management software that can help you smoothly run your day-to-day operations. Most software offers monthly subscriptions which can vary depending on the type of plan and number of users that you’ll choose.
- Promotional Expenses – To increase your business awareness and visibility, you’d also need to allot funding for advertising and marketing. Since most promotions are now done online, you may have to spend on social media marketing tools.
- Hiring and Manpower Expenses – You also have to consider the cost of hiring skilled people for your team. In some cases, you’ll also have to spend on additional aesthetics training and certification programs to make sure that your staff is highly qualified to perform the procedures.
- Utility and Maintenance Expenses – Once your med spa is running, you can expect recurring costs from utilities and regular maintenance. You may also have to get internet service to run your software which will incur additional costs. Additionally, you’ll need to include expenses on supplies and beauty products that you provide.
Other Tips To Save on Costs of Running A Med Spa
With the right promotional activities and materials, you can enjoy a profitable and successful spa business, especially today when there are a lot of people who are getting cosmetic procedures. But as you run your business, there are still ongoing expenses that may affect your total profit. For this reason, here are some ways you can cut down on the costs of operating a med spa:
- Hire employees on a contract – Instead of having full-time employees, you can save on expenses when you employ contract workers. Contractors are independent employees who are typically paid for their services and they’re not included in your business’s payroll. Unlike your spa manager and other regular employees who receive a standard hourly wage, contractors don’t require an annual wage and have more flexibility when it comes to labor cost.
- Rent equipment instead of purchasing – Small spa and salon owners may actually benefit more from leasing equipment instead of immediately buying them. Renting machines is a great way to explore new technologies and try new cosmetic procedures. It can help you decide whether you want to add a specific service permanently to your spa menu.
- Search for alternative ways to offer spa services – Having a physical spa facility is definitely more expensive since you have to consider the costs of the establishment, utilities, and monthly rent. If you want to try offering cosmetic treatments without breaking the bank, you can start a mobile spa business. With mobile medspas, you have the option to offer services on a van or trailer or bring treatments to a client’s home.
Shop High-Quality and Affordable Spa Tools and Supplies at FACE Med Store
If you’ve been an aesthetic professional for years, creating your own med spa is a great next step in your career, and you can already use your savings to start your practice. But if you’re a beginner with no money, there are plenty of ways that you can acquire funding to establish your own spa business.
FACE Med Store is a trusted provider of high-quality tools and equipment for medical and cosmetic treatments. We strive to provide affordable supplies that can be an alternative to the other expensive options in the market so you can save on your costs while improving your revenue. Call us today to see our stock list or reach out to our customer service to inquire about how to use our products.