Updated on March 25, 2024 by Ryan Koenig
A medical spa can be a smart business start-up, especially considering how many people want to look and feel their best. With the booming medical spa industry, now may be the right time to invest in the business.
The medical spa industry is projected to reach a market value of $63.4 billion with a compound annual growth rate of 14.7%. However, medical start-ups are also an undoubtedly expensive venture. If you’re not careful, it’s easy to let your numbers spin out of control, from salaries to equipment.
Reducing your start-up costs makes sticking to a tight budget easier and can help you establish a price advantage over your direct competitors. See how you can maintain quality without overspending before opening your medical spa.
Key Takeaways
1. The average start-up cost to open a medical spa is approximately $19,000.
2. You can reduce your start-up costs by using pre-owned equipment, investing in training, sharing facilities with other businesses, and renting laser equipment.
3. Laser Service Solutions provides laser equipment rental services and premium laser part supplies for your medical spa business needs.
Table of Contents
How Much Does It Cost to Open a Medical Spa?
The start-up cost for opening a medical spa varies depending on several factors. A few of these factors include:
- Extensiveness of services offered
- The business location
- The business team’s size
- Insurance services
- Type of marketing strategies
All of these factors, and some others, will determine the size of your start-up cost. Some businesses say the average cost to open a small medical spa is approximately $19,000, not including advanced equipment.
If you want to build a medical spa offering extensive services, you’re looking at approximately $500,000 to $1,000,000. It is a given that the more business operations you plan on performing, the bigger the needed startup cost.
What Are the Start-up Costs for a Med Spa?
The start-up costs of opening a medical spa will not always be the same for two businesses. This is especially true if they are located in different locations.
Now, we gave you a general estimate of how much cash you’d need to start a medical spa. Below is a list and estimate of what you will use this start-up cost on.
- Acquiring a business license ($1,500 to $3,000)
- Lawyer fees ($1,500)
- Insurances (e.g., professional liability insurance) ($5,000)
- Fixtures and furniture ($10,000)
- Renovation costs ($50,000 if any)
- Hiring and training ($12,000 to $18,000)
- Marketing budget ($5,000)
- POS and software for recordkeeping ($5,000)
- Different types of laser equipment ($30,000 to $100,000)
- Spa essentials for medical spa treatments ($15,000 to $20,000)
Note that this list contains only the necessary costs to open a med spa business and does not contain ongoing maintenance costs. The best way to prepare for the total start-up costs for a medical spa business is to conduct thorough market research and include it in your spa business plan.
Additionally, consider consulting with industry professionals or mentors who can provide insights into the unique challenges and expenses associated with running a medical spa.
What are the best ways to reduce start-up costs for opening a medical spa?
While there is quite a long list of things you need to purchase to start a medical spa business, there is also a long list of ways to reduce these costs. Reducing startup costs for opening a medical spa requires careful planning, resourcefulness, and strategic decision-making.
We made an effective list to consider in order to reduce start-up costs for opening a medical spa.
Purchase Pre-Owned or Refurbished Equipment
You might hesitate to purchase pre-owned equipment because you’re worried about its inherent quality. However, consider that spa owners may choose to sell their equipment for any number of reasons that have nothing to do with its efficacy.
From early retirement to shifts in volume, you can get an amazing deal on machinery with plenty of life left in it. As for refurbished equipment, you can find pieces that expert hands have perfectly restored.
It’s an opportunity to get your hands on a machine that’s just as good as new but sold for a fraction of the price. Equipment such as laser hair removal tools are not cheap. They come in different models, but you’ll surely need a chunk of your start-up cost to purchase a new one.
Purchasing refurbished equipment can help you expand the medical spa treatments you provide and help cover ongoing costs.
There are several benefits to buying pre-owned aesthetic lasers. All you need to do is research and meticulously inspect the equipment before purchasing.
Conduct Proper Training Before Operating
Staff training must be a priority — the start-up period is not a time to cut corners with your employees. They are the glue that holds your operation together and the hands that maintain your expensive aesthetic equipment.
Make sure you’re hiring competent people who feel comfortable working under pressure. You may want to spend an extra week or two on training to run your staff through the paces and ensure they’re ready for the unexpected.
It only takes a single mistake to threaten your equipment’s integrity and endanger your customers’ safety. Training helps your staff become experts at changing disposables on your cosmetic laser equipment. It gives them the chance to learn the treatment guidelines by heart.
Many medical spa start-ups initially feel uneven as staff learn to work together and operate the machinery. The initial disorganization can turn new customers off forever.
Rent Aesthetic Lasers
A great alternative to purchasing new equipment is opting for equipment rental services.
Aesthetic laser rentals can be a great option when looking to expand your treatment options. Suppose you are looking to offer new services or experience different laser systems. In that case, when you choose rental equipment, you can collect feedback from clients & staff before making a much larger investment.
While renting several brands or types of medical laser devices may seem disruptive, the reality is that renting laser equipment is less of a hassle than having to live with equipment. Especially if you are looking to offer specialized or targeted treatments.
You may find that certain lasers work better on your target demographic than others, or you may find that one piece of equipment drastically reduces the time spent between patients, allowing you to fit more people in a day.
Renting laser equipment also allows you to build solid market research before fully committing to buying new equipment.
Consider Sharing the Spa Facility
Another factor that takes up a significant part of your startup cost is choosing the location where you will operate. Now, there are different takes in choosing a location.
You can either rent an entire commercial space, build an office space from scratch, or share a facility with an existing medical business. The latter option gives you the advantage of sharing the leasing cost with another business.
In this scenario, you can rent a building with shared treatment rooms with another business that can help boost your customer engagement.
The key is to find a business that compliments your medical spa. For example, you can share a facility with a fitness center, a salon, a dental office, or a health tech company.
Leverage the Use of Software Subscriptions and Digital Marketing
Nowadays, several ways exist to consolidate multiple roles in one convenient software in the medical spa industry. Using software subscriptions allows you to open several opportunities that can help you streamline operations.
Using automatic appointment booking software, you can easily skim through the customers and skip the long consultation lines. This type of software can help determine what the customer needs without spending so much time interviewing them.
In addition, some software subscriptions can prevent no-shows and secure profit earnings for every customer. In terms of marketing, technology can also help you reduce promotional costs while boosting visibility results.
Social media marketing has proven to be a very powerful and cost-effective way to promote the business. You can skip using prints and other physical marketing strategies with the right materials.
Reduce Your Start-up Costs with the Most Trusted Laser Rental Business
Laser Service Solutions understands just how complicated the start-up process can be, which is why we provide both the equipment and advice that new owners need to make tough decisions. We offer medical laser rental, pre-owned & refurbished lasers for purchase, and quality parts on all the best models for aesthetic equipment.
We can also provide support if you need it years down the road, offering repairs and rework at the drop of a hat. So, if you want to buy a pre-owned medical laser that won’t break down during a procedure, contact us today to see how we can help.