Medical Spa Business Plan Template
Whether you want to start your own medical spa business or expand an existing one, you need a business plan. The following medical spa business plan template lets you know what elements you need to include in a successful medical spa business plan.
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To ensure your medical spa business success in this highly competitive market, you need a properly structured medical spa business plan. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their medical spa businesses. Using the following medical spa business template, you can put together an effective business plan for medical spa.
Things to Know Before Writing an Medical Spa Business Plan
According to AmSpa 2022 Medial Spa industry report, the industry GDP is $15 billion and it employs about 70,000 people.
There are a total of 8,841 medical spas in the nation. Out of these, 81% only operate one location and only 19% have more than one location. The average annual revenue per spa is $1,982,896. The single-location medical spas earned an average monthly revenue of $121,632 in 2021.
The medical spa industry is booming industry. It is time to make money in the industry. Every medical spa receives an average of 283 non-surgical aesthetic patient visits per month and the average spend per patient per visit is $536. The industry has an exceptionally high percentage of repeat customers at 65%.The majority of medical spa customers, 88%, are women.
You can become a successful medical spa business person even if you are not an MD; 63% of the medical spa owners are non-MDs. The industry is experiencing exceptional growth with 17% of new medical spas opening in 2021.
Among the major products and services offered in this industry include:
- Laser treatments
- Botox injectables
- Chemical peels
- Acne treatments
- Microneedling
- Laser hair removal
- Facials
Key Success Factors for the Medical Spa Business
With the help of IBISWorld industry report, We have identified these factors to be vital for becoming successful in the medical spa industry.
- Close to Key Markets: You will need to establish your medical spa closer to target customer markets. In this case, a downtown location is better than a suburban location.
- Develop a Loyal Customer Base: Since most customers are repeat customers in the industry, a great customer experience will cause the word of mouth referrals. A loyal customer base is necessary to grow in this industry.
- Business Expertise of the Operators: The skill quality and experience of your staff are critical to the success of a medical spa business. Hire experienced staff or invest in their training.
- Offer a Range of Services: Medical spas generally offer a range of services. When you can offer a variety of services at your medical spa, your success chances increase.
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What is a Med Spa Business Plan?
A medspa business plan is a road-map for starting and growing your medical spa business. Your business plan outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections.
Any bank or investor you approach will require a med spa business plan, so putting one together will be critical to securing funding.
In short, writing a business plan can help you succeed if you’re thinking of starting a medical spa business or pitching to investors or venture capitalists.
Why You Need a Medical Spa Business Plan
Medical Spa business plans can be used to gain interest from potential investors or to secure loans from banks. They are also helpful to you as the owner. A medical spa business plan allows you to thoroughly analyze every aspect of your potential business.
A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a medical spa business idea, and may help you better understand your company’s finances and competition.
Med spa business owners who have a business plan grow 35% faster than those who don’t, and 75% of fast-growing businesses have one.
A medspa business plan is a living document that should be updated annually as your company grows and changes.
Free: Business Plan Examples
Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.
Sources of Medical Spa Funding
A medical spa is a high-investment business. There are some specialized financing options for the medical spa industry that offer equipment financing.
Start with SBA loans when you are looking for funding for your medical spa business.
Also, look into term loans from alternative lenders like ForaFinancials. A term loan is an amount you borrow for a certain period (like 2-5 years). These loans are flexible and you can secure a loan of up to $80,000.
Many credit cards come with a high credit limit and if you don’t have a cash flow problem, you can raise money with credit cards.
You can also get funding with merchant cash advances if your business accepts credit card payments.
How to Write a Medical Spa Business Plan
To write a medical spa business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a med spa business plan, or you can just download our proven business plan sample pdf to get a better idea.
Executive Summary
The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.
It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.
Tell them what kind of medical spa business you have and what stage you’re in; for example, are you a startup, do you have a medial spa that you want to expand, or do you have a lot of medical spas?
Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.
- Provide a high-level overview of the medical spa industry
- The name, location, and mission of your medical spa business
- A description of your medical spa business, including management, advisors, and a brief history
- Discuss the type of medical spa business you are operating, Give an overview of your target customers., and how your company differs from competitors in the industry
- Create a marketing plan that describes your company’s marketing strategies, sales, and partnership plans.
- And give an overview of your financial plan
Check out these executive summary examples to help you write a perfect one for your medical spa business plan.
Free: Executive Summary Examples
An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.
Company Analysis
- Company summary:
- Company history: When and why did you start your medical spa business?
- What milestones have you achieved so far? Among the milestones might be the number of medical spa number of customers and locations, growth year over year, etc.
- Legal structure and ownership: Do you have S-Corp status? Is it an LLC? A sole proprietorship? Describe your legal structure.
- Mission statement: An overview of your medical spa’s guiding principles. Learn how to write a perfect mission statement.
Industry Analysis
Provide a brief overview of the medical spa industry in your industry analysis. This may seem unnecessary, but it serves multiple purposes.
First, researching the medical spa industry will educate you. It gives you an understanding of the market in which you are operating. Secondly, market research can improve your strategy, especially if it identifies market trends.
Third, market analysis shows readers you are an expert within your field. Conducting research and presenting it in your plan is the most efficient way to accomplish this.
Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.
- Give a quick overview of the medical spa industry. Define the medical spa business in terms of size (in dollars), historical background, service region, and products.
- Examine previous trends and growth patterns in the medical spa industry.
- Identify the market’s major competitors.
- Age, gender, and general lifestyle of the targeted market
- Determine the factors that have an impact on the medical spa industry. These might include government regulatory rules and other businesses’ competitive activities.
- Using research data, the industry forecast expected growth over the next five to ten years. Predictions should be made for both the long and short term.
- Describe how your medical spa business intends to position itself in the industry. Concentrate on how your medical spa business can benefit from opportunities highlighted in the industry.
Customer Analysis
The customer analysis section is an important part of any medical spa business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how your medical spa services will meet those requirements.
Customers can be categorized into the following segments:
- Working women
- Professionals Residing in Area
- Tourists
- Affluent millennials
- People cautious about their looks
Customer analysis may be divided into two parts: Psycho-social profiles (why your medical spa services suits a customer’s lifestyle) and Demographic profiles (descriptions of a customer’s demographic qualities).
With regards to demographics, include information about: the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.
The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.
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Competitor Analysis
It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:
- Identify the strength and weakness of your medical spa business competitors.
- Search for opportunities to distinguish your medical spa business from competitors.
The first step is to determine who your direct and indirect competitors are.
The direct competitors consists of other medical spa businesses that offer essentially the same services to the same people as you do.
The indirect competitors are beauty salons, dermatologists, skin care specialists, massage parlors, and unconventional healing centers like yoga, etc. Since such competitors offer the similar value to your business, your customers decide on who should they visit. You can compete with them with good marketing or offering a wide range of services.
Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your medical spa business— but keep an eye on the indirect competition as well, just in case.
Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.
You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:
- Prices – Are they offering cheaper medical spa services/products or more costly than you and other competitors, what value do buyers get for that price?
- Quality – Are they offering premium medical spa services/products, the perceived worth in the eyes of the customers
- Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
- Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers
The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium medical spa services/products? Do you offer medical spa service that your competitors do not? Will you offer better pricing or will you offer greater customer support?
Consider how you will outperform your competitors and include them in this portion of your medical spa business plan.
Free: SWOT Analysis Examples
Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.
Marketing Plan
Creating a marketing plan for a medical spa business involves identifying the target demographic and offering their services that their preferences.
As part of your marketing plan for a medical spa business, you should include:
Pricing and Product Strategy
Your medical spa business must offer skin care and wellbeing services that are different, unique and eye catching from those of your competitors. Research what your competitors offer and how they price their medical spa services. The better your range of services and your tools and processes for the spa services is, the more successful your medical spa will be.
Placing and Promotions
Place refers to the location of the medical spa. Describe how your location might attract customers. As an example, is your medial spa in a downtown area, or near to a resort or a beautiful picnic point with a great view. Since women are majority of the customers for a medical spa business, are you located near a shopping mall or inside the mall where women go shopping.
Promoting your medical spa business is the final part of your marketing plan. In this step, you document how you will drive customers to buy your services. A few marketing methods you could consider are:
- Pre-Opening Events
- Flyers
- Local TV and Newspaper Ads
- Social media marketing
- Get referrals from current clients
- Optimize your Google My Business listing
- Reaching out to local bloggers and websites
- List your business on industry-specific sites
- Community Outreach
You should also think about your medical spa’s Unique Selling Proposition (USP), which should explain why clients should choose you over other medical spas or skin care clinics. Ensure that your USP is reflected in your marketing.
Read Later: How to create a marketing plan in a business plan.
Operations Plan
While the previous sections described your goals, your operational plan in a business plan discusses how you will achieve them.
An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.
Your operations plan should be divided into two individual parts, as seen below.
Your daily short-term processes include all the tasks involved in running a medical spa business, including hiring and training employees and administering the business. etc.
Your long-term goals are the milestones you hope to reach. It may include the date when you hope to lease the facility or remodel the facility: or when you hope to reach $X in revenue.
Management Team
The management team section in a business plan‘ outlines your management team, staff, resources, and how your business ownership is structured.
This part may be easily organized by dividing it into the following points:
- Ownership Structure
- Internal Management Team
- External Management Resources
- Human Resources
Ownership Structure
This section outlines your medical spa’s legal structure. If your company is a sole proprietorship, it may simply be one phrase. It might be longer if your company is a partnership or a corporation. You should make it a point to clarify who owns what part of the business.
Internal Management Team
This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your medical spa business. Ideally, you and/or your team members have direct expertise in the medical spa business. If this is the case, highlight your experience and skills.
External Management Resources
Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with medical spa business.
An advisory board would consist of 3 to 7 people who would serve as mentors to your medical spa. They would assist in answering queries and providing strategic direction.
If necessary, search for advisory board members with expertise running medical spa business.
Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches.
Human Resources
The final topic to consider in the management area of your medical spa business plan is your human resource needs.
Financial Plan
As part of your financial plan, you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.
Income Statement
A profit and loss statement is more commonly called an income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.
As you develop your income statement, you need to develop assumptions. Will you serve 30 patients per day or 200? Will sales grow by 2% or 10% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.
Free: Income Statement Template
Create a financial statement for your business by downloading our free income statement templates.
Balance Sheet
While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.
The balance sheet shows your medical spa business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:
- Assets: Tangible goods with the monetary worth that the company owns.
- Liabilities: Debt owing to a company’s creditor.
- Equity: The net difference when the total liabilities are subtracted from the total assets.
The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.
Create a pro forma balance sheet for your medical spa business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.
Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.
For example, spending $200,000 to build out your medical spa business will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.
Similarly, if a bank sends you a check for $200,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.
Cash Flow Statement:
Your cash flow statement will help you determine how much money you need to start or grow your medical spa business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a medical spa business:
- Design fees, construction, and other costs associated with location development.
- Cost of equipment like display cases, computers, and software
- The cost of maintaining spa and machines
- Staff payroll or salaries
- The total cost of insurance coverage (general liability, workers’ compensation, and property casualty)
- Start-up inventory costs
Pro Tips: Learn how to write a financial plan in a business plan to help you write a winning medical spa business plan.
Free: Balance Sheet Template
Create a financial statement for your business by downloading our free balance sheet templates.
Appendix
List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.
Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.
Bonus Tip: Learn how to write a business plan appendix for your medical spa business.
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Summary of the Medical Spa Business Plan
A medical spa plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the medical spa business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your medical spa business.
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Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.
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