So you have decided to open a medical spa but are unsure what the costs are or if you can afford them. Starting a business from scratch can be expensive. On average, the one-time costs for starting up your medical spa or IV hydration business are around $25,000. This is just the start. Further costs can be incurred for repeating maintenance costs.
Initial Business Costs:
The first part in determining how much you will need to spend is knowing the steps to open a medical spa properly. The first step in opening a med spa involves establishing your business legally. The basic steps to setting up a med spa are 1) consult a lawyer, 2) create your business structure with your lawyer, 3) create a brand, 4) find a location, 5) customize your location, and 5) obtain equipment and materials.
Operating Costs:
The cost of forming your business will vary from state to state but can be anywhere from $5 to $5,000 or more if your area requires publication fees or MSOs. Additional fees may also be required for obtaining permits or licenses required by your state or local governments. These may be optional or required and often range from $50 to $700.
Additional business fees should also be accounted for. These include lease or mortgage payments, insurance premiums, attorney fees, marketing fees, and recurring business maintenance costs (rent, employee salaries, software, and employee training). Regular expenses will also include credit card processing fees and phone and internet services which vary widely based on location and the scale of your operation. Many of these will vary from state to state and business to business but most of these types of businesses can provide you with a general quote to better calculate your baseline.
Facility Expenses:
Your med spa’s location is a critical factor affecting your initial costs. Rent can vary significantly based on the geographic location. Unless you have a very generous budget or access to a lot of small business financing, chances are you’ll be looking for ways to keep your costs down. Renting a small location rather than purchasing one or doing a bit of buildout can save you costs. Oftentimes other spas will rent out booths or rooms for other individuals, or you can rent a larger office space as well. Renting an office space may cost more if any build-out is required but will still be cheaper than purchasing a space. You may also be able to negotiate to have a build-out covered by your landlord.
Equipment Expenses:
Focusing on injectables and facial services is also a great way to reduce costs, as they don’t require expensive equipment, can attract various clients, and typically lead to faster profits. Additionally, services that provide AI assistants to book and manage appointments, answer customer questions, and complete transactions can help reduce costs compared to hiring personnel to handle these matters. You’ll need to budget for utilities, remodeling, furnishing your spa, and purchasing or leasing medical equipment.
Software and Marketing Expenses:
Investing in software for customer relationship management (CRM), accounting, invoicing, and internal communication is essential to ensure efficient operation. These costs can range from minimal to several hundred dollars per month. Additionally, budgeting for website development and marketing efforts, such as social media advertising and email marketing tools, is crucial for attracting clients to your new business.
There are many ways to move through your business setup and save costs. One of the most important steps is to ensure that your business is set up within the proper legal parameters for your state and ownership structure. Setting up your business correctly will keep costs down in the future in case of restructuring requirements or issues with state boards. Here at Lengea, our specialty is assisting clients with structuring their medical spa business. Sign up for a free consultation today to speak with an attorney to see how we can help you achieve your business goals.
*This blog post is for informational purposes only and does not constitute legal, financial, or medical advice or the forging of an attorney-client relationship. Please retain the services of an attorney to receive legal advice on how the law applies to your business.