The initial stage of medspa development is an exciting and scary time for entrepreneurs and medical providers alike. Wondering where to start? The business development team at Acara Partners speaks to hundreds of ambitious individuals each year with two things in common: the desire to develop a medspa, and the uncertainty of where and how to begin.
If you are in the discovery phase of a medspa development process, you’re in the right place. Through a Feasibility Study, Acara Partners can help you determine the viability of your concept in a defined market area. And if you’re just getting started after years of deliberation, our team of aesthetic medical industry experts will partner with you to launch a successful medspa with your vision in mind.
Regardless of how long you’ve been thinking about starting a medical spa, there are key steps to learn before jumping in the medspa development process. Acara Partners has worked with more than 300 aesthetic medical spas and has developed more than 180 practices.
We’ve put together a list of the top five steps for starting a medspa:
1. Develop Your Concept
• Vision & Mission
• Program Components, Treatments and Services
• Brand look-and-feel
• Defined Market Area (DMA)
• Measurements of Success
2. Conduct Market Assessment
Once you’ve established your DMA, it’s time to identify your target market. During a Feasibility Study, Acara’s Business Analyst conducts an in-depth analysis of the demographics within your target market and interprets age, gender, household income and geography within an established drive-time radius. It is critical to understand the consumer profiles and corresponding assumed buying behaviors within a DMA, and how they shape up against the average medspa consumer profiles in aesthetic medial industry as a whole.
Next, a comprehensive review of the competition in your DMA is conducted. Before entering a new market, savvy medspa owners will be prepared to understand what the competition is offering in terms of treatments, prices, promotions and quality services.
3. Develop Your Sales Forecast
A Sales Forecast by Program Component is developed based upon the analysis of the size of market, competitive environment, concept alignment/points of differentiation, industry data and comparable operations.
5. Build Your Financial Model
Launching a medspa is a big investment, and the consulting team at Acara advises our clients to understand the capital requirements necessary to build, equip and open the proposed business before moving into the financing phase. Capital requirements include:
• Leasehold Improvements (cost to build-out the identified space)
• Furniture & Equipment
• Startup Costs (inventory, supplies, professional fees, pre-opening payroll)
• Marketing (including website development)
• Working Capital
Thinking about starting a medspa? Contact us to start your process. Acara Partners’ team of industry experts are available to walk you through the beginning stages of opening a medspa.