Medical Spa Law
How Much Does it Cost to Open a Spa in NY?
When starting out your own medical spa, the most important factor in your decision to open is the cost. There are many things to consider when you open your practice, and opening your own medical spa is not cheap. The returns from your investment, however, can and most likely will make the initial startup completely worth it.
Whether you’re franchising from an existing spa or starting from square one, there are basic costs every single opening office has to consider: construction and leasing costs. You’ll likely have improvements and enhancements you’ll want to make in the space you’re opening, and New York is at the very top of the “Expensive Real Estate” list. The cost fluctuates greatly depending where you’re located (Midtown Manhattan vs. Long Island) and how much space you want. Follow this link to go more in depth on how much office space your medical spa will need.
For a non-ground floor office space in Midtown NYC, you’re looking for per square foot rent of $55-70. This means that if you’re starting with a 1000sf space, your yearly rent will be $55,000-$70,000 or $4583 to 45833 a month, plus utilities and other expenses. For a ground floor space, the typical rent would be 3 or 4 times this amount.
Your next biggest expense will be staffing your spa. The clinic will need a medical director (which will most likely be you, if you’re reading this article). You’ll want somebody at the front desk, and you’ll also probably have a nurse or two. You can usually expect to hire two or three full-time employees, and a couple of part-time employees as well.
Another expense to consider is the equipment and supplies you’ll need to purchase. You’re looking at $125,000 or more. This means everything to fill the spa, from treatment tables and chairs to Botox and other injectable products. Learn more about what equipment to purchase for your medical spa here.
If you’re franchising your medical spa, there may be a cost included as well – but this cost is typically offset by the established brand recognition and support of the spa you are franchising from. As an example, here are one Medical Spa’s numbers for licensing.
Initial Licensing Fee: $70,000 (this is a fee to be paid to the spa)
Investment Needed To Open Location: $50,000
Ongoing Fee: 7% of sales
While these numbers may sound a bit scary, the current anti-aging market is $250 billion, and projected to grow to $331 billion by 2021. Botox is the #1 non-surgical procedure since 2000, and only growing by the day. The industry is on fire and if you’ve read over this page, you know it will be a worthwhile investment.