How Much Does it Cost to Open a Medical Spa Business?
Luxury amenities, expensive treatments, pricey equipment, qualified specialists, and good branding are all important because spa salons don't sell the treatment, they sell "the experience." Setting up and operating a business like this isn't cheap.
Here's a breakdown of the costs:
- Space: The costs will vary depending on whether you choose to own, lease, or rent your physical spa space. In all cases, we're talking hundreds of thousands of dollars. Whether you're going for a luxury or authentic feel, you'll have to invest some real money in construction and renovation.
- Furniture and equipment: You will need to create the right atmosphere and functionality for your customers and staff. Your med spa professionals need specialized equipment to do their job perfectly. In short, furniture and equipment is going to be your second biggest expense.
- Treatment products: You will also need to spend money on skincare products, paper towels, Q-tips, and the like. Keeping your spa area clean and washing towels and gowns after each use is a top priority, however, such things will increase your utility bill.
- Professional fees: A lawyer, an accountant, an interior designer, or an architect can help your business stand out from the competition, but their salaries aren't exactly cheap.
- Permits and licenses: The authorities will require specific operational licenses or fees for various permits, depending on your location.
- Online presence and appointment software: Digital presence is one of the essential components of any brand. You need a website that bears the same feeling as your amenities. Your website also needs to be functional so that your potential client can get an appointment easily. You will also need to take advantage of social media.
- Operating expenses: Your ongoing operating expenses will vary according to the size of your salon. You will likely need separate capital for ongoing expenses before you start earning money.
All in all, a mid-range medical spa of 2,500 square feet will cost you about $500,000, but if you plan to own a high-end facility, the costs could go as high as $1 million, plus operating expenses.
How to Choose the Best Medical Spa Financing Option
If you’re looking for a loan for your medical spa business, there are a number of factors that it’s important to consider to choose the right lender and loan product for your business’s unique needs. Make sure to consider these factors before committing to a lender:
- Application process: When looking at different lenders for your medical spa financing, you’ll want to find one that offers a simple, online application. This will make applying for the loan a simple process for you.
- Variety of loan options: Depending on your financing needs, there may be a variety of different loan products that you can use. Choosing a lender that offers more than one loan product will allow you to pick the right loan and terms for your business.
- Interest rates and fees: A loan can be expensive to repay. The best loan product for your business will have the longest repayment window and the lowest interest rate and fees you can qualify for.
- Qualification process: Each lender has specific requirements for who can be approved for a loan. These requirements vary from lender to lender, so it’s important to know your credit score, how long you’ve been in business, and average monthly revenue prior to applying for a loan.
- Customer support: When reviewing different lenders, be sure to see what type of customer support they offer to ensure you have someone to reach out to in case there is a problem with your loan.
- Online user reviews: A great way to scope out if a lender is right for your spa business is by reading customer reviews to see what worked for them and what didn’t.
The Bottom Line
Opening and maintaining a spa business is no easy task. Starting a spa business will be costly during both the startup period and throughout the lifetime of the business. It may get even harder to manage and more costly as your clientele gows. Having a reliable loan lender can help you to manage the financial load. All our recommended lenders offer you fast and easy application processes, and most of these processes can be completed online. Now it’s up to you to select a suitable lender and get started.