A medical spa is a business that typically offers numerous health treatments. Unlike regular spas, medical spas pay detailed attention to more difficult issues such as widespread discoloration and wrinkles. The treatments include deeper chemical peels, injections (such as Botox), and laser treatments.
Available data from the United States shows that there are 19,919 Health & Wellness Spas in the US as of 2022, an increase of 0.4 percent from 2022. The number of businesses in the Health & Wellness Spas industry in the US has grown 0.4 percent per year on average over the five years between 2017 – 2022.
The Health & Wellness Spas industry in the US is labor intensive which means businesses are more reliant on labor than capital. The highest costs for business in The Health & Wellness Spas industry are Wages (69.6 percent), Purchases (5.3 percent), and Rent & Utilities (1.2 percent).
Steps on How to Write a Medical Spa Business Plan
Executive Summary
Amie Pamela® Medical Spa, Inc. is a licensed and registered medical spa center that will be based in Lake Havasu City, Arizona. The organization will serve those who need professional medical spa services (balneotherapy). We are going to be health-conscious and customer-centric with a service culture that will be deeply rooted in the fabric of our organizational structure and indeed at all levels of the organization.
Amie Pamela is the founder and CEO of Amie Pamela® Medical Spa, Inc.
Company Profile
a. Our Products and Services
Amie Pamela® Medical Spa, Inc. will provide a wide range of services that revolve around balneotherapy treatments. That is providing deeper chemical peels, injections (such as Botox), and laser treatments, providing massages, dermal fillers, laser hair removal, body contouring, body sculpting, dermabrasion facials, providing skincare treatments, and retailing skincare and cosmetic merchandise.
Our products and services are designed to help our clients enjoy full restoration from peeling skins, reinvigoration of their skin, and relaxation of their bodies.
b. Nature of the Business
Our medical spa will operate on a Business to consumer business model. We will offer our services directly to the end-user without any middleman arrangement.
c. The Industry
Amie Pamela® Medical Spa, Inc. will operate under the Health and Wellness Spas industry.
d. Mission Statement
Our mission is to provide safe and secured medical spa treatment geared towards helping our clients enjoy full restoration from peeling skins, reinvigoration of their skin, and relaxation of their bodies.
e. Vision Statement
Our vision of establishing our medical spa is to become the pacesetter in every city where we are located.
f. Our Tagline (Slogan)
Amie Pamela® Medical Spa, Inc. – Brighter Skin, Reinvigorated Life!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Amie Pamela® Medical Spa, Inc. will be formed as a Limited Liability Company, LLC.
h. Our Organizational Structure
- Chief Operating Officer (Owner)
- Spa Manager
- Licensed Aesthetician
- Experienced Esthetician (Laser Technician Med Spa)
- Nurse Practitioner “Experienced Cosmetic Injector”
- Medical Spa Sales/Patient Care Coordinator
- Customer Service Officer (Receptionist)
i. Ownership/Shareholder Structure and Board Members
- Amie Pamela (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- Austin Normal (Board Member) 19 Percent Shares
- Sydney Lance (Board Member) 10 Percent Shares
- Moses Simone (Board Member) 10 Percent Shares
- Mariah Gomez (Board Member and Sectary) 10 Percent Shares.
SWOT Analysis
a. Strength
- Ideal Location for medical spa
- Highly experienced and qualified employees and management
- Access to supplies
- Highly secured and clean facility
b. Weakness
- Inability to initially run and manage the organization without falling back to savings
- Financial Limitations
- Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
- Inability to retain our highly experienced and qualified employees longer than we want.
c. Opportunities
- Growing acceptance of medical spa treatment and services
- Build upon existing clientele
- Online market, new services, new technology, and of course the opening of new markets.
i. How Big is the Industry?
The Health and Wellness Spasgrowing industry
ii. Is the Industry Growing or Declining?
Available statisticsthe Health and Wellness Spa industry’s ability
Please note that in the coming year (2022), the revenue for the industry is anticipated to decline slightly, but as the economy recovers and COVID-19 (coronavirus) cases subsequently drop in line with the nationwide vaccination rollout, industry revenue will likely increase.
iii. What are the Future Trends in the Industry
The Health and Wellness Spas industrycustomized software
iv. Are There Existing Niches in the Industry?
No, there are no niche ideas when it comes to the medical spa line of business. This is because the medical spa business is a niche idea in the Health and Wellness Spas industry.
v. Can You Sell a Franchise of your Business in the Future?
Amie Pamela® Medical Spa, Inc. has plans to sell franchises in the nearest future and we will target major cities with a growing working class and upwardly mobile people who are subjected to stress in the United States of America.
d. Threats
- The spread of coronavirus and similar pandemic
- The first year will be financially tight while we gain customers and pay off loans
- Management of employees requires time, money, and efforts
- The medical and health department could change their regulatory status and decide to regulate enforce strict regulations that can strangulate new business
- The arrival of competitors within our market space.
i. Who are the Major Competitors?
- Canyon Ranch
- Montage Hotels & Resorts
- The Woodhouse Spas Corporation
- Massage Envy Franchising LLC
- Radiance Medspa
- Pure Vanity
- V/O Med Spa
- Kalologie 360 Spa
- Sirius Day Spa
- Face to Face Spa
- Massage Green Spa
- Pure Vanity
- The Elements Massage brand
- Spavia
- 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
ii. Is There a Franchise for Medical Spa Business?
Yes, there are franchise opportunities for the medical spa business, and here are some of them;
- Massage Envy Franchising LLC
- Radiance Medspa ($269,300 – $533,300)
- Massage Green Spa (Initial investment: $170,000 – $282,000)
- Pure Vanity (Initial investment: $387,000 – $746,000)
- V/O Boutique Medical Spa (Initial investment: $583,850 – $723,900)
- Kalologie 360 Spa (Initial investment: $150,000 – $460,000)
- The Elements Massage brand (Initial investment: $312,650 – $560,750)
- Sirius Day Spa (Initial investment: $477,950 – $698,750)
- The Woodhouse Spas Corporation (Initial investment: $1,231,600 – $1,833,100)
- Spavia (Initial investment: $292,465 – $636,905)
- Face to Face Spa (Initial investment: $237,000 – $444,000).
iii. Are There Policies, Regulations, or Zoning Laws Affecting Hospice Agencies?
Yes, there are county and state regulations for medical spa business and it is important to state that each state has its requirements as there are different laws and costs per state, it’s important to do your research into local regulations and zoning policies.
Administering Botox, collagen, and Restylane in California is a medical procedure and is regulated by the medical board of California. In New York, spas can be owned by anyone. However, if you wish to perform medical treatments such as Botox and fillers, the procedures must be performed by a medical professional and paid directly to the medical professional.
Marketing Plan
a. Who is Your Target Audience?
i. Age Range
Our target market comprises of adults above 18 years old who have the finance to do business with us.
ii. Level of Educational
We don’t have any restriction on the level of education of those we will welcome to our medical spa.
iii. Income Level
We don’t have any cap on the income level of those who we will welcome to our medical spa.
iv. Ethnicity
There is no restriction when it comes to the ethnicity of the people we will welcome them to our medical spa.
v. Language
There is no restriction when it comes to the language spoken by the people we will welcome to our medical spa but we will prefer people that speak English and Spanish.
vi. Geographical Location
Anybody from any geographical location will be welcomed in our medical spa.
vii. Lifestyle
Amie Pamela® Medical Spa, Inc. will not restrict any person from accessing our facility and services based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch the Attention of Potential Clients.
- Tap Into Text Marketing.
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with other healthcare service providers and related organizations in our Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for each of our clients.
- Create an efficient content marketing strategy.
- Create a community for our freelance marketers and influencers.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Amie Pamela® Medical Spa, Inc. will make sure it covers time, service delivery, supplies, premium, economy or value, and full medical spa (balneotherapy) package for each of our clients. In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, hospitals, freelance marketers, and social media influencers to help refer clients to us.
Amie Pamela® Medical Spa, Inc. will also leverage the 4 Ps of marketing which are the place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our patients and donors.
b. Inventory Strategy
The fact that we will need medical spa supplies and medications per time means that Amie Pamela® Medical Spa, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that Amie Pamela® Medical Spa, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
At Amie Pamela® Medical Spa, Inc., we offer services, so we don’t accommodate return policy, but we will make sure we give out incentives from time to time to our esteem customers.
e. Customer Support Strategy
Our customer support strategy will involve seeking customers’ feedback. This will help us provide excellent customer service to all our clients, it will help us to first understand their needs, experiences, and pain points. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
Operational Plan
Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnerships and referrals that will enable the firm to boost our service offerings and support revenue growth.
a. What Happens During a Typical Day at a Medical Spa?
- The business is open for the day’s work
- The spa beds and equipment are cleaned, adjusted, and set for the day’s job
- Customers are attended to
- Scheduled maintenance and servicing of ambulettes are carried out
- Marketing/website upkeep
- Administrative duties
- The business is closed for the day.
b. Production Process (If Any)
There is no production process when it comes to the medical spa business.
c. Service Procedure (If Any)
Medical spas’ service procedure vary widely and depend greatly on the medical director or owner’s experience and predilection. At Amie Pamela® Medical Spa, Inc., our service procedure will include microdermabrasion, mild chemical peels, medical facials, laser hair removal, photo rejuvenation, botulinum toxin, and injectable fillers.
d. The Supply Chain
Amie Pamela® Medical Spa, Inc. will establish a business relationship with wholesale supplies of medical spa supplies and medications.
e. Sources of Income
Amie Pamela® Medical Spa, Inc. make money from;
- Providing treatments include deeper chemical peels, injections (such as Botox), and laser treatments
- Providing massages
- Dermal Fillers.
- Laser Hair Removal.
- Body Contouring (Body Sculpting)
- Dermabrasion Facials.
- Providing skincare treatments
- Retailing skincare and cosmetic merchandise
Financial Plan
a. Amount Needed to Start Our Medical spa?
Amie Pamela® Medical Spa, Inc. would need an estimate of $285,500 to successfully set up our medical spa in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Cost Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $70,000.
- Other start-up expenses including commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $40,000
- Start-up inventory – $15,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $120,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Amie Pamela® Medical Spa, Inc. will not build a new facility for our medical spa; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our facility.
d. What are the Ongoing Expenses for Running a Medical Spa Business?
- Cost of stocking up supplies
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Maintenance and repair of equipment
- Salaries of employees
e. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – $68,000 Per Year
- Spa Manager – $48,000 Per Year
- Licensed Aesthetician- $47,000 Per Year
- Experienced Esthetician (Laser Technician Med Spa) – $47,000 Per Year
- Nurse Practitioner “Experienced Cosmetic Injector” – $47,000 Per Year
- Sales/Patient Care Coordinator – $38,000 Per Year
- Accountant – $38,000 Per Year
- Customer Service Officer (Receptionist) – $26,100 Per Year
f. How Do You Get Funding to Start a Medical Spa Business
- Raising money from personal savings and sale of personal stocks and properties
- Applying for a loan from the bank
- Source for soft loans from your family members and friends.
Financial Projection
a. How Much Should You Charge for your Product/Service?
At Amie Pamela® Medical Spa, Inc. our service charge will range anywhere from $175 to $500 depending on the services rendered.
b. Sales Forecast?
- First Fiscal Year (FY1): $550,000
- Second Fiscal Year (FY2): $950,000
- Third Fiscal Year (FY3): $1.5 million
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1): $175,000 (50% of revenue generated)
- Second Fiscal Year (FY2): $337,000 (45% of revenue generated)
- Third Fiscal Year (FY3): $540,000 (45% of revenue generated)
d. Profit Margin of a Medical spa Product/Service
The ideal profit margin we hope to make at Amie Pamela® Medical Spa, Inc. will be between 35 and 50 percent on service charges.
Growth Plan
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Amie Pamela® Medical Spa, Inc. will grow our medical spa by first opening other facilities in key cities in the United States of America within the first five years of establishing the organization and then will start selling franchises from the sixth year.
b. Where do you intend to expand to and why? (Geographical Locations)
Amie Pamela® Medical Spa, Inc. plans to expand to Sumter, South Carolina, Tinton Falls, New Jersey, Santa Fe, California, Stillwater, Oklahoma, Longboat Key, Florida, Wintergreen, Virginia, Charleston, West Virginia, Palm Beach Gardens, Florida, and Portland, Oregon.
The reason we intend to expand to these location is the fact that, for example, Portland boasts of having the highest number per capita in the U.S.
Exit Plan
The founder of Amie Pamela® Medical Spa, Inc. intends to build a family business hence our exit plan will be family succession. For that reason, the founder Amie Pamela is already grooming her daughter Mrs. Andrea McKenzie to take over from her. Mrs. Andrea McKenzie is at the moment being groomed to go through the company’s employment process without any bias.
