How Much Does It Cost to Open a Med Spa?

Opening a med spa can be a challenge. Between the start-up costs, inventory purchases, and other expenses, it can also be pricey. However, if it’s been your dream to provide high quality beauty services that stretch far beyond the typical spa experience, you can make it a reality – even if you don’t have the funding yourself. But how much does it cost to open a med spa? And what type of ongoing costs should you expect after opening?

This article will cover what you need to know about opening a medical spa, including how much it costs to open one, a list of recurring expenses to account for, and tips on reducing your financial load. 

Average Cost of Opening a Med Spa

Medical spa start-up costs vary depending where you are in the United States. Some locations will be pricier than others, particularly if you set up shop in an urban area versus a less-populated suburb. The amount will also depend on whether you buy or lease your equipment, the cost of your licenses and permits, and any initial inventory you’ll need to purchase. That said, the average cost of opening a medical spa ranges between $100,000 and $500,000. 

Below are some typical start-up costs associated with opening a medical spa: 

1. Equipment purchases

Following building rent, equipment will likely be your biggest expenditure. Machines can be quite expensive, and depending on the size and service menu for your business, you’ll probably need several types of equipment (perhaps even more than one of each). 

• Laser machines: $5,000-$50,000
• Microdermabrasion devices: $500-$6,000
• IPL machines: $7,000-$30,000
• Treatment chairs: $500-$2,500

2. Licensing, permits, and certifications

Some other medical spa start-up costs will include any licenses, permits, and certifications necessary to legally operate (the requirements of which, along with the price, will vary by state). In most of the United States, you’ll need to hold a medical license to own and operate a med spa. In others, you’ll need to at least partner with a licensed physician to oversee all operations. 

• License and permits: $200-$1,500 (every one to three years, depending on renewal price)
• Insurance: $2,000-$5,000 (per year)
• Additional certifications: $150-$2,000 (each)

3. The space and average renting costs

These costs will also vary by state and depend on the physical size of your business. While you may not be required to pay this fee all at once, you’ll need to make sure you bring in enough profit to cover the ongoing monthly rent. (You may also be required to put down a deposit.) In addition, you’ll have to consider any decor or design ideas to facilitate a more inviting, comfortable space. 

• Office space rental: $50,000 - 100,000 (per year)
• Decor: $500-$3,000

4. Staff recruiting and training

Recruiting costs will vary based on whether you post your own job listings or use headhunters. Training costs will also depend on the level of experience you’ll need for your staff and whether you’re willing to foot the bill for their certifications. 

• Recruiting and training: $2,500-$10,000

Manage payroll, payouts, and scheduling all with GlossGeniusʼ Team & Staff features.

3 Recurring and Ongoing Expenses of a Med Spa

Having the funds to open a med spa is one thing, but having the financial stability to keep your med spa open is another. Here, we list some of the common, recurring expenses of owning a med spa. 

1. Regular payroll for employees

If you’re not planning on running your med spa business solo, you’ll need to hire a team of competent employees who can help you handle everything from clients to administrative duties. If you’re not licensed yourself, you’ll have to consider the cost of hiring a medical director to oversee procedures like Botox and certain laser treatments. 

• Licensed physician/medical director: $100,000-$250,000 (per year)
• Front desk: $20-$25 (per hour)
• Medical estheticians: $50,000-$85,000 (per year)

GlossGenius’ lets you run your Payroll and pay your team, all from one convenient platform. 

2. Supplies and skincare products

Running a med spa requires a long list of inventory: injectables (e.g., Botox, fillers), medical-grade cleaning agents, treatment materials, healing serums, cooling gels, creams – all the products that’ll likely require frequent restocks. Expect to spend anywhere from a couple hundred to several thousand dollars per month on supplies and inventory.

GlossGenius Inventory Management features automatically send restock notifications so you never run out of what you need.

3. Marketing efforts

Digital advertising, social media campaigns, email marketing, and loyalty programs all come with their own costs that can add up quickly – especially if you’re paying for them a la carte. You can expect to spend hundreds to thousands of dollars just on monthly marketing costs alone. 

Every GlossGenius subscription includes essential Marketing features like email and SMS blasts so you can reach your clients without busting your budget on advertising expenses.

4 Tips for Reducing Costs When Starting a Med Spa

Med spas aren’t cheap, but there are a few ways you can reduce some of the costs of opening a med spa. 

1. Create a business plan

A well-researched and detailed business plan will outline all of your costs, creating a blueprint to guide your med spa to profit. To avoid making unnecessary expenditures or overspending on products and operations, a business plan serves as a roadmap to help you keep things in perspective. 

2. Offer a limited menu 

To start, focus on high-demand services like Botox, fillers, or laser treatments rather than a full suite of options. A limited menu means you’ll need less equipment and inventory, resulting in fewer expenses earlier on. As you build your client base and earn more profit, you can gradually introduce new services and tools into the mix. 

3. Lease equipment 

You don’t have to buy all of your med spa equipment! In fact, some med spa suppliers offer leasing or rentals, allowing you to spread out payments over time and reduce some of your initial capital requirements. 

4. Choose a location with moderate foot traffic

Plazas, strip malls, or other high traffic areas are prime locations that can bring organic foot traffic to your door. While that can’t completely replace a robust marketing strategy, it can help attract clients you may otherwise not reach through traditional or digital marketing means. (If possible, you’ll also want to find commercial space that offers negotiable rent.)

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Can You Start a Med Spa with No Money?

You’ve now learned how much it costs to open a med spa, but chances are you don’t have $100,000 to $500,000 just lying around. So, how to start a med spa with no money? Believe it or not, it is possible, but you’ll need to do your own research when it comes to financing options. Below, we’ve outlined a few different avenues to secure financial backing. 

Request a small business loan

Small business loans are one of the most common ways for entrepreneurs to fund their professional ventures. Many small business loans can offer up to $5 million dollars, but your specific amount will depend on the institution, as well as your credit health. 

GlossGenius Loans can get you funding fast – direct to your bank account in as little as two business days, no personal credit check required. 

Seek out investors 

Seek out investors who are interested in the beauty or wellness industry and who might be willing to fund your med spa in exchange for a percentage of ownership or profits. Investors will want to see a detailed business plan, so be sure to have that ready to present when the opportunity comes. Do your due diligence when scoping out potential backers, however, and if possible, run any agreements by a legal professional before you sign. 

Explore grant options

In some cases, you may be able to obtain grants to invest in your business, particularly those that support women, minorities, or startups in the health and wellness sector. For example, Amber Grants can provide up to $10,000 for innovative startups and certain business categories (that changes each month), while IFundWomen offers a Botox Cosmetic Grant Program that will award $25,000 each to up to 20 female entrepreneurs (plus coaching and mentorship). 

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Begin Your Dream Med Spa with GlossGenius

Opening a med spa can be a rewarding pursuit that extends far beyond profits. Med spas help customers look and feel their best, boosting their confidence and self-esteem. With the right mindset, skills, and ambition, you can build a thriving career off your passion and make a living beautifying a range of clientele. 

GlossGenius is one of the top software platforms for med spa owners, with various features that can help grow and expand their business. With Online Booking, your customers can secure a spot in your schedule from any device, any time, while Point-of-Sale features make it easy to process and record transactions. And with GlossGenius Finances, you can always stay on top of your expenses and profits, making tax season simple and stress-free.

Try GlossGenius today and get 14 days free!

FAQs

How profitable are med spas?

Profits may range anywhere between $250,000 to over $2 million dollars a year if business is good, but this is never a guarantee. Exactly how profitable your med spa will be relies on a number of factors: quality of service, customer satisfaction, marketing, location, the economy – all of these elements play a role in your bottom line. 

How do I get clients for med spa?

Investing in marketing strategies such as email promos, text message blasts, and social media campaigns are all different ways you can attract new clients. You can also try traditional advertising like billboards and bench ads, or implement referral programs so clients can recommend their family and friends to your business. 

Loans are issued by Celtic bank and powered by Stripe. All loans are subject to credit approval.