Last week we went over concept development, market assessment, sales forecast and architectural program. This week we finish up phase one by detailing how to complete your medspa’s financial planning.
Financial Planning: The Investment
Capital requirements are an investment. They include building costs, furniture and equipment, start-up costs and working capital. Building costs are what it will cost per square foot to build out the medical spa. Furniture and equipment should match the scope of what was outlined in concept development. Start-up expenses are the costs incurred prior to opening the spa’s doors. They include pre-opening payroll, supplies, the cost of a consultancy, etc. Working capital can make or break your practice. This is the money you have in the bank that can fund the operating and marketing programs until the business becomes profitable.
Financial Planning: The Financial Model
The pro-forma should detail the financial model for the first one to five years of your medspa being open. It should identify all of your metrics including utilization rates, productivity rates and staffing levels, present any assumptions and include five years of financial statements. Financial statements should include the income statement, balance sheet and cash flow statement.
