Medical Spa Business Plan – Why You Need One

Are you an entrepreneur looking for guidance on a medical spa business plan? Maybe you have already begun the startup process but wonder what a business plan is and why you really need one?

If you are nodding in affirmation to any of the above-mentioned scenarios, you are in the right place.

As an entrepreneur starting a new medical spa venture, you often wonder if you need a business plan and its components to focus on. The answer to the first question is “yes,” you will need a medical spa business plan as an integral part of the entire process.

Why do you need a medical spa business plan?

A business plan will allow you to draft an extensive list of research you must conduct on your new business. You will also get to identify various compulsory asks you must focus on and complete. In reality, it can take a while for you to write a business plan. You will need an exponential amount of data to come up with the forecast, predictions, and expectations for your new medical spa business.

According to a study, a startup business with a formally written business plan has a 16 percent more chance to achieve viability than those without one.

So, in order to succeed in the medical spa business, you must simply plan each and every step carefully. You will have to define each process in extreme detail while setting your priorities and allocating resources and finances.

Do not rely on your memory when it comes to business planning; you must document even the minute details about your new business operations. There are too many variables for you to know them by heart all the time. Most importantly, forgetting or mixing up your numbers while pitching your idea to a lender or investor is the last thing you want.

Thanks to a business plan, you can rectify any disadvantages associated with your medical spa business before they even happen. Therefore, do not try to run without a well-thought out strategy, as it will help you save yourself from many potential financial debacles.

So, without further ado, let dive right in.

Why You Need a Business Plan

A business plan is going to be a birds-eye view of your entire medical spa departments and operations. That said, here are five of the reasons why writing a business plan should be the steppingstone of your new medical spa business.

Help You Make Your Case

Are you an entrepreneur thinking about applying for a business loan or apply for a business grant? In that case, a business plan can help pitch your idea to the investors or approach a business partner for support.

Your business plan will have precise details with facts and numbers that will demonstrate the true potential of your medical spa to potential investors. When it comes to business, a business plan is probably the most common practice to provide investors or lenders information about your proposed startup. 

Make Informed Decisions

As your business plan states all the facts and numerical data, you will be able to see everything in black and white. This will help you eliminate any gray areas in your business model and empower you to make better decisions based on the facts and figures present in front of you.

Manage Your Expectations

Every start-up business is always enthusiastic and optimistic about it’s success. However, many make the classic mistake of overestimating their potential. This is where a business plan will help your medical spa project to keep a reality check on every aspect of your business.

A business plan will identify any gaps in the earlier stage of your startup and give you a chance to fix them before opening your doors. You can even put your business plan through various in-house trials and make changes as you find out what makes it stronger and more viable.

You may face initial set-backs by going back to the drawing board, but once you have a well-planned medical spa business plan, your chances of success becomes promising.

Brainstorm

A business plan can help you brainstorm with your team to come up with new ideas and explore various approaches to make your medical spa business a success. An effective business plan is flexible and dynamic in nature, to help you apply fresh or sometimes out-of-the-box solutions.

For example, you can re-imagine the digital marketing strategy for your medical spa and create a blueprint that is unique to your business only. If you nail it, this medical spa business plan can provide you a competitive edge over other competitors.

Create an Extensive Roadmap

Your business plan is a document that can help you outline your entire action plan. This includes actionable steps, categorization of different completion phases, next steps, and future business activities.

You can even mention the optional potential possibilities for future addition as well as create contingency plans for a backup. Think of it as a live map of your entire medical spa operations with the ability to adapt as you proceed.

So, if you are looking to build a successful medical spa business, a well-structured business plan is a must-have.

What’s in a Medical Spa Business Plan

Typically, a business plan refers to primary operations and aspects of any business.

The medical spa requires more extensive and precise pre-startup planning. For that, you will have to familiarize yourself with the compulsory components of a business plan pertaining to the medical spa niche.

1. Executive Summary

This refers to a short section within your business plan document summarizing your entire business plan. This way, a reader can instantly get acquainted with the overall concept of your medical spa business operations without reading the whole document.

The executive summary usually contains the following information

• The vision of your medical spa business
• The Mission statement
• The concept of the project
• Proposed market place
• Market strategy etc.

2. Finances

As a medical spa owner, you must include Pro-forma financial statements in your business plan. These refer to all financial information pertaining to the future prediction of your spa’s profitability.

However, you will have to maintain a practical approach when stating future revenue projects. For that, you will have to conduct thorough research with realistic facts and numbers.

This is important because, at the end of the day, all a lender would be interested in is whether your business plan is profitable or not. Here are the financial statements that you will need to add to your business plan.

• Income statement – these statements will state your gross sales as well as any business-related expenses. You must produce these statements on a monthly basis to identify the flaws and tweak the overall business strategy.
• Balance sheet – this section shows a detailed view of your medical spa’s assets and liabilities. A lender will look at this balance sheet to gauge the financial stability of your business since its inception.
• Cash flow statement – this statement demonstrates what sort of monetary fund your medical spa needs for a specific time period. It will let you know if you will be able to meet your financial obligations, such as paying the bills. Additionally, you will also find out the amount of cash you need to continue your future operations. A cash-flow statement exclusively deals with your actual cash transactions only.
• Annual Projections – You will have to include your annual projections of revenue for each year. However, be thorough in your research and derivation of the projection numbers. Do not try to overestimate your projections because a lender knows when the profitability is too good to be true.

3. Staffing/Payroll

Your workforce is probably one of the most significant and on-going expenses within your medical spa business plan.

Therefore, you must include an extensive section with details about your staffing strategy and projected payroll expenses.

These include each staff member’s salary, commissions, bonuses, recruitment cost, projected income taxes for each employee, workers’ compensation insurance, other benefits expenses, FICA, etc.

4. Office Space

You will have to pick up a facility to start your medical spa.

For this, you will have to include a detailed vision of your office space/spa facility in a business plan. These details will consist of the square footage of the facility, equipment you will install, number of rooms, categorization of different areas for spa operation.

Whether you own a building or thinking about renting a facility, the cost of running a place will be your most considerable expense.

Therefore, you will have to consider all costs pertaining to office space, such as utility bills, equipment installation, technicians’ expenses, repair, maintenance, etc. All of this must have a dedicated section in your medical spa business plan.

5. Advertising/Marketing

Advertisement and marketing cover all aspects of your marketing strategy to promote your medical spa business. You must pay due diligence to your advertising costs as they can spike really quickly. The elements of this section of a business plan include the cost of conventional as well digital marketing cost such as

• social media marketing
• print media
• paid advertising
• business cards
• brochures
• direct mail
• giveaways and promotion

6. Equipment and Supplies

In order to run a flawless medical spa, you will need supplies and equipment. This is a critical but challenging component of a business plan, and you have to keep a check on what you need and what is simply draining your finances.

7. Inventory Costs

As a medical spa business, you will most likely be offering esthetic beauty products to the customers as well. However, you will have to choose professional products you will be using along with the costs. This product categorization and related operating expenses will become a part of your business plan because they will be a part of the business’s expenses.

8. Wastage

You will have to consider leakage and wastage of materials and products. Wastage is part and parcel of every business; however, you can only contain the extent of wastage by training the staff.

Resources to Help Set Everything Up

If you are an entrepreneur thinking about setting up a medical spa service of your own, there are several resources to help you get started. Let us have a brief look into each of them.

Free Resources

Here are three of the best free resources to help you start your medical spa business.

Small Business Administration (SBA)

You can create a business plan for your medical spa via Small Business Administration (SBA)’s website. SBA is mainly a US government agency providing on-going support to small businesses and entrepreneurs.

Score

It is a business plan page allowing free resources to small businesses with online podcasts and workshops.

Lightspeed Resources

Lightspeed is a vital resources page dedicated to offering new and existing small business owners free advice and tools.

Paid Resources

As you know, a business plan can do a lot for your medical spa businesses. Most importantly, an adequate business plan can help you bag an investor. You will be able to draft the direction you wish the business to take and how you can meet its financial needs.

However, finding the right resources to create a business plan can be quite a cumbersome task. Luckily, you do not have to do everything from scratch or do it alone. You can now use paid business planning software that can help you set up a professional draft via pre-set templates and guidance.

Here are some of the best choices for a business plan. So let us look at them.

• LivePlan
• BizPlanBuilder – this is one of the most user-friendly options out there.
• Business Sorter – is best for internals
• Wise Business Plans – for professional services
• PlanGuru – is an impeccable choice for financial forecasting
• GoSmallBiz.com – you will get the most features with this one when it comes to business plan
• EnLoop – if you are a startup looking for the cheapest paid tool for business planning, this is the perfect candidate.

Conclusion

Whether you are a seasoned businessman or a budding entrepreneur, business planning can be a challenging affair for all. If you are struggling with the ideas of how to start, seek professional assistance from industry experts in business planning such as MediaBoom. Not only are they going to help you understand each and every aspect of your new spa venture, but they work to come up with a customized plan to increase your chances of growth.