How to Open a Med Spa

Have you been dreaming about owning a medical spa but are starting to think more concretely about how it might all look?

Your entrepreneurial journey is an exciting one, but it can seem intimidating all at the same time. What sort of costs can you expect to pay? Where do you even start?

In this blog post, we’ll cover everything you need to know about how to open a med spa.

What is a Medical Spa?

A medical spa is similar to a traditional day spa except that it specializes in medical services, such as Botox and fillers. Medical services are provided by medical professionals, whether a registered nurse or a plastic surgeon.

The good news?

There is a growing demand for aesthetic procedures. In fact, according to The Medical Spa Global Market Report 2022, the medical spa market is expected to reach $23.42 billion in 2026 at a CAGR of 12.75%.

The future is bright for the medical spa industry.

Do Owners Need to Have Qualifications to Be Eligible to Open a Medical Spa?

When it comes to how to open a med spa, one of the most common questions that gets asked is “Do I need to be a doctor in order to open a medical spa”?

The short answer is no, but there are caveats depending on your state. For example, most states do not allow registered nurses to run medical spas independently – they must have a medical director (unless you’re going into post-op care). The medical director does not work on-site but is simply hired on a contract basis. You can expect to budget $1,000 per month for a medical director when you’re starting off.

Keep in mind that the medical director must be a licensed medical doctor (in your state) and not an anesthesiologist.

Although registered nurses cannot typically run medical spas independently without a medical director, there are select states that allow nurse practitioners to practice independently. That said, many still choose to hire a medical director anyway because it gives them an added level of credibility.

It’s typically recommended to seek legal counsel surrounding the requirements in your particular state. The American Med Spa Association is also a good resource.

What Qualifications Do Employees Need?

At a minimum, employees must hold valid professional licenses based on their field (estheticians, registered nurses, etc.).

Beyond this, it’s typically recommended that employees undergo training depending upon the services you’re going to provide (i.e. injectables, post-op, IV hydration, etc.). Just be mindful of choosing reputable organizations to do your training through.

How Much Does it Cost to Open a Medical Spa?

Another common question when it comes to opening up a medical spa is “What are the costs involved”?

While it can depend on your niche or area of specialization (for example – starting out in mobile IV hydration will have lower startup costs than injectables), you can expect to spend anywhere from 20K to 40K.

Big ticket items will include equipment, products (particularly if you’re doing injectables), furniture and rent.

How Do I Start an Aesthetic Clinic? How to Open a Med Spa

Opening up a medical spa may seem intimidating, but this list will go over all of the necessities:

Create a Business Plan

If you plan to take out a business loan, you’ll need to have a business plan in place in order to actually get your loan. Here are some things you’ll want to cover:

• Your objectives
• Start-up costs
• Expected revenue
• Marketing plan
• Contingency plan

Choose a Niche

One of the most important things you can do when it comes to how to open a med spa is to choose a niche or area of specialization, whether injectables, post-op, IV hydration, etc. Starting a medical spa is not an easy task, so it’s often recommended to start small and add services over time.

You’ll also avoid spending unnecessary money on training in the event that you find one area of specialization isn’t a good fit for your medical spa.

Here is a look at the benefits of some of the popular medical spa niches:

Have the Basics in Place

When it comes to how to open a med spa, there are a few basic things you need in place first:

• A Trademark Search. Although the name of your spa may be available with the state, this doesn’t mean that it hasn’t already been trademarked. To avoid a costly trademark infringement claim, it’s important to do a trademark search to ensure the name of your spa hasn’t been already trademarked.
• Your Limited Liability Company (LLC). Next you’ll need to start an LLC. There are many third-party services that will offer to do this for you, but the best way is to go through your state’s government site. Keep in mind that different states have their own requirements.
• Your Employer Identification Number (EIN). This is a free service, so avoid paying a third party to get this for you.
• State (And County)-Specific Requirements. Lastly, you’ll need to check with your state to see what specific requirements they have to open a business in that state. Some states also require you to set up a separate license for the county that you’re in.

Hire a Medical Director

Unless you’re a nurse practitioner who is opening a medical spa in one of the few states that allow you to practice independently (or you’re specializing in an area that doesn’t require a medical director), the next biggest thing to figure out is your medical director. This will be a contracted position. And like we said above, you should look to budget no more than $1,000 per month.

Your medical director’s role will be small, and your medical spa will still be run by you, but your medical director will be responsible for ordering products, such as Botox, and signing off on charts. They will also be available in the event of complications or other emergencies.

Keep in mind that it can take a couple of months to find the right fit. You’ll want to find someone who is knowledgeable about the field and who is also interested in a long-term venture, so this can take time.

To find your medical director, you can start out by looking on Indeed or LinkedIn.

Get Malpractice Insurance

On the topic of how to open a med spa, you’re also going to need medical malpractice insurance for your business as well as personal insurance for yourself. Expect to pay around $3,000 a year for insurance. Also make sure that your policy covers your medical director (typically this doesn’t cost extra).

Make sure that you’re upfront about the services you’re offering so that you’re covered in the event that something goes wrong.

Implement Liability and Related Policies

In addition to malpractice insurance, there are also some other liability-related things and policies to have in place:

• Consent Forms. Consent forms have to be accurate, up to date and include risks regardless of how minimal they may be.

• Licenses on Site. They typically need to be hung on the wall when you’re walking in (or at least hung somewhere where they can be seen).
• Written and Accessible Protocols. It’s important to have your medical spa’s protocols (i.e. standard operating procedures, how you administer Botox, what happens in the event of an adverse reaction) in writing so employees can have access to it. The same is true even if you’re a mobile medical spa.
• General Liability and Employee Professional Liability Policies. In addition to a general liability policy, it’s important to have an employee professional liability policy in place to protect claims against harassment.
• Medical Equipment/Safety Regulations. Many medical spas are not aware that there are often both federal and state requirements for medical equipment. For example, there must be a sign on the door when lasers are in use.
• Cyber Security Policies. It’s often overlooked, but it’s a good idea to have a cybersecurity policy in place in the event of a breach.

Choose the Right Location

Unless you’re starting out in the field of post-op or IV hydration where it’s perfectly acceptable to start mobile, another important consideration is choosing your medical spa’s location. Don’t be afraid to start small. You can move to a larger location as you grow.

Here are some things to look for when choosing a location:

• A high-traffic area
• A lot of visibility
• An inviting space

Consider Charting on the Go

For some, charting is a big worry when it comes to opening up a medical spa. And even for established medical spas, charting can still be a bit of a chore. The good news is that medical spa practice management software (a must for any medical spa!) makes charting easy as you can “visually chart” by pinning items or notes to areas of treatment or even insert your favorite text with a click.

With Yocale, you can also chart from your tablet inside your treatment rooms all on the go.