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Steps to Opening a Successful Med Spa
April 1, 2024
A medical spa can be a lucrative and satisfying business venture when developed correctly. Launching a successful med spa in today’s thriving market requires a considerable amount of time and dedication. But with the right guidance and expertise, you can turn your dreams into a reality. At Acara Partners, our business consulting experts help you thoroughly establish everything, from your target market and capital investment to your service offerings and staffing.
Backed by our decades of industry experience and knowledge, we’ve outlined the steps to opening a successful medical aesthetic practice — from conceptualization to doors open:
Define your business’ concept.
Developing a solid concept for your business establishes the key components of your vision and mission. Will you specialize in a specific area of aesthetics? What services will you offer? How will these services help enhance your practice? During a business envisioning at Acara Partners, our team will collaborate with you to answer these questions and more as we envision the potential of your business’ vision, mission, concept and program components in the marketplace.
Determine the viability of your concept in a defined market area.
Now that you have established your concept, you will need to determine who will be your target market and where you will be located. Once you have a defined market area (DMA), it’s time to get to know your competitors, including their service offerings, pricing, technology and equipment, customer service, breadth of retail skincare lines and the overall quality of their facility. When you work with Acara Partners for your market assessment, we will conduct an on-site market visit to your DMA, perform a competitive analysis and intelligently forecast sales for the first five years of operation.
Identify your necessary capital investment.
How much money you will need to successfully launch your business can include capital requirements such as professional fees, construction build-out costs, equipment and technology, pre-opening payroll, working capital and so much more. Acara will present the estimated start up investment costs and a full set of financial projections for the first five years of operations in a financial model. Looking at the illustrated future of your business can help you determine whether this venture will be a good return on your investment.
Create a business plan and select your ideal location.
Most med spa owners will apply for bank financing. Lenders will look for good credit (usually a 700+ credit score), a detailed business plan outlining your concept and plan for achieving success, projected financials and owners’ equity (20-25%). The summary of a business plan is a combination of your market strategy, organizational structure and financial position. The next step in the planning process is one of the most important decisions you will make: selecting the site for your location. Acara Partners will work with you to develop a strong business plan and provide guidance throughout the site selection process, including during lease negotiations and discussions about TI allowance and rent abatement.
Build a space that is visually appealing and operationally efficient.
Most med spa owners will apply for bank financing. Lenders will look for good credit (usually a 700+ credit score), a detailed business plan outlining your concept and plan for achieving success, projected financials and owners’ equity (20-25%). The summary of a business plan is a combination of your market strategy, organizational structure and financial position. The next step in the planning process is one of the most important decisions you will make: selecting the site for your location. Acara Partners will work with you to develop a strong business plan and provide guidance throughout the site selection process, including during lease negotiations and discussions about TI allowance and rent abatement.
All the pieces come together in this final phase of your business development — from your building design and establishment of services to your management structure, staffing and training. When running a successful practice, it’s important to have the operational, sales and marketing knowledge needed to meet your goals. Acara Partners offers ongoing business consulting, brand development and marketing strategy to ensure a smooth operation within your practice, promote brand awareness and penetrate your target market at the highest possible level.
Acara Partners can help you bring your unique vision to life, guiding you through every step of the launch of your new practice. Contact us to learn more about the business development process and how you can get started today.