Medical Spa Start-up Costs: Actual Estimates

Deep Into the Cost Categories

I categorize all the on-time and recurring/ongoing costs into three main categories. Each category contains a number of effective factors. 

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Going through this huge guide, you will know:

• How and how much each factor affects the cost,
• And, how to estimate the cost of each factor more accurately.

Cost Category 1: Facility Acquisition and Lease Costs

Securing an appropriate real estate space is one of the most fundamental and costly steps when starting a medical spa.

Thoroughly planning your medical spa’s real estate needs will help you budget accurately and secure the perfect facility to house your business.

Here’s what you need to consider when scouting locations and estimating facility expenses:

1.1. Location Scouting

Evaluate demographics, foot traffic, parking, competition, and accessibility. Factor in costs to visit potential sites.

• Demographics: Target areas with higher incomes and populations interested in aesthetics. 
• Foot traffic: Being located in a busy area, mall, or shopping center drives awareness. 
• Parking: Convenient parking is essential for customers.
• Competition: Avoid saturation and pick an underserved area if possible.
• Accessibility: Americans with Disabilities Act (ADA) compliance is legally required.
• Visits: Budget $3,000-$5,000 for travel and time to scout potential sites.

1.2. Purchasing vs. Lease Considerations

Weigh options to buy or lease your property. Purchasing provides long-term stability but requires substantial capital. Leasing offers more flexibility but ongoing rent payments.

• Purchasing provides long-term stability and equity but requires substantial upfront capital of around $400,000.
• Leasing offers more flexibility if the business or market changes but involves ongoing rent payments of around $7,500 per month. 

Purchasing or LeasingThe CostPurchasingAround $400,000Leasing$7,500 per month

The cost of purchasing or leasing a property for your medical spa.

1.3. Size Requirements

Consider the number of treatment rooms, reception, lounge, and inventory/staff areas needed to house your services. 

For a hypothetical 3-treatment room medical spa, the size requirements would total around $44,000.

• Treatment rooms:  Plan for 3 rooms at $5,000 per room build-out ($15,000 total).
• Reception area: $10,000 for furnishings and design.
• Retail section: $4,000 for displays and merchandising.
• Lounge: $7,000 for furnishings and decor.
• Staff areas: $4,000 for kitchen, breakroom, and office.
• Storage: $4,000 for secure room build-out.

1.4. Build Out and Renovations

Most facilities require build-outs for medical-grade finishes, lighting, electricity, plumbing, HVAC, and accessibility.

For a hypothetical 1,500 sq ft medical spa, 3-treatment room, the build-out and renovation costs would total around $105,000.

• Finishes: $40 per square foot for floors, walls, and countertops.
• Lighting: $10,000 for medical and mood lighting.
• Electric: $12,000 for power and outlets.
• Plumbing: $7,000 for 3 treatment room sinks.
• HVAC: $10,000 for heating, cooling, and ventilation.
• Doors and access: $6,000 for ADA compliance.

1.5. Architects, Contractors, Permits  

For floorplans, permits, and contractors. Costs vary based on project scope.

The total costs for architects, contractors, and permits would be approximately $12,500.

• Professional Fees:$10,000 for architects and contractors.
• Permits: $2,500 based on typical costs for business, construction, and occupant load permits.

Cost Category 2: Equipment and Technology Expenses

Outfitting a medical spa with the necessary medical devices, clinical supplies, furniture, and information systems represents a significant upfront investment.

The right equipment and software establish a professional, reputable medical spa. Plan budgets accordingly for these sizable but essential investments in the guest experience and business operations.

2.1. Medical Devices

Medical spas need advanced equipment to provide aesthetic treatments. Common devices such as lasers, RF machines, LED light therapy, cryotherapy, microdermabrasion, etc. It is a major capital investments.

For a hypothetical medical spa, considering two LED light theraphy, the equipment could cost a total of $230,000. 

• Lasers: $80,000 for multi-application laser machine.
• RF machines: $60,000 for skin tightening and body contouring machine.
• LED light therapy: $10,000 per anti-aging LED light panel.
• Cryotherapy: $55,000 for whole body cryotherapy chamber.
• Microdermabrasion: $10,000 per microdermabrasion machine.
• Other tools: $5,000 budget for microneedling, ultrasound, etc.

2.2. Clinical Supplies

Ongoing disposable supplies like needles, gowns, drapes, and sterilization equipment will also be required.

The total startup costs for clinical supplies would be approximately $12,500.

• Needles, syringes, gowns, drapes: $7,500 initially for disposable clinical supplies
• Sterilization equipment: $5,000 for an autoclave unit to sanitize tools

2.3. Furniture

The right furniture will include treatment tables, waiting room furnishings, desks, and storage.

For a 3-room medical spa, the total furniture and decor costs could be $29,000.

• Treatment tables/beds: $3,000 per room for 3 rooms = $9,000 total.
• Waiting room chairs/sofas: $6,000 budget.
• Reception desk: $4,000 for a custom reception desk.
• Storage cabinets: $3,000 for supplies, towels, and device storage.
• Figures, art, and decor: $7,000 for wall art, and decorative pieces.

2.4. Information Systems

Seamless tech and software improve customer experience.

Your med spa business will need booking/records, inventory, and marketing software. Also, phones, computers, and the internet.

The total startup costs for software and hardware would be approximately $7,500 one-time for hardware, plus $375 per month for the software services.

• Booking/records system: $100 per month for scheduling and patient records.
• Inventory management: $75 monthly fee for tracking product levels.
• Marketing software: $150 per month for email, social, and CRM.
• Accounting software: $50 per month for finances and payroll.
• Hardware: $7,500 for phones, computers, wifi, and printer.

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Cost Category 3: Licensing, Permits, and Legal Compliance

Operating a medical spa comes with important legal and regulatory requirements, which vary by state and city. Be sure to budget for these expenses.

3.1. Business License

Obtaining a proper business license is crucial for legally operating your medical spa. While fees vary widely, for a standard medical aesthetic spa in the United States, expect licensing costs between $150-$300 depending on your specific state and municipality. 

Some states like California and Florida charge, on the higher end, around $300+ for the application and processing fees. Other areas like Texas and Illinois tend to range from $150 to $250. 

Carefully research the exact costs and steps involved in applying for a business license in your local jurisdiction. Investing time into getting licensed properly will provide peace of mind that you are operating on the right side of regulations.

3.2. Seller’s Permit Cost Considerations

A seller’s permit enables a medical spa to legally collect sales tax on retail products sold to customers.

Properly acquiring and maintaining a seller’s permit ensures you can legally collect sales tax from customers.

If you’re planning to sell retail products, keep in mind the points below when budgeting for expenses.

• The fee amount varies by state and municipality.
• Typically ranges from $50 – $75 per year.
• States like CA and NY tend to have higher fees ($75+).
• Other states like TX and FL charge on the lower end ($50).
• Check your specific state and local requirements.
• Renewed annually, so the budget as an ongoing operational expense.
• Integrate required sales tax rates into the point of sale system.
• Remit collected sales tax to the state on schedule.

StateLicensing Fee RangeCalifornia$75+New York$75+Texas$50Florida$50

Seller’s permit licensing fee range in four different states.

3.3. Medical License Expenses

The medical director of a spa must hold valid licenses for each specialty practice area. The cost of licensing for medical directors varies by specialty.

Proper licensing ensures your medical director is legally certified to oversight procedures and treatments. Renewals are critical to avoid lapses.

When budgeting, consider the following:

• Initial license fees average $300-$500 per specialty.
• Renewal is also required annually/biennially at similar costs.
• Most common credentials:
  • Dermatology certification
  • Plastic surgery certification
  • Anti-aging medicine certification
• Research exact fees in your state.
• Allow 2-6 months for initial license approval.

CredentialInitial FeeRenewal FeeDermatology$500$300Plastic Surgery$400$250Anti-Aging Medicine$350$200

Initial and renewal fees for the common credentials of medical directors.

3.4. Building Permit Expenses

Permits for renovations or new construction are required for facility modifications (renovation and construction projects): 

The cost would vary based on the scope of the project. For a 1,500 sq ft medical spa buildout, expect a total of $2,000 for permits. If larger space or complex work, $3,000 to $4,000.

Research exact rates based on local jurisdiction.

• Demolition permit: $75 to $150
• Electrical permit: $200 to $300
• Plumbing permit: $150 to $250
• Construction permit: $750 to $1,500

3.5 Malpractice Insurance

Malpractice or errors and omissions coverage is crucial. It covers errors and omissions and insures against claims of professional negligence. Budget at least $3,000 to $5,000 annually.

3.6. Legal Fees

Work with a business lawyer to establish your medical spa as an LLC or corporation. Plan around $1,500 to $3,000 in initial legal fees.

Staying compliant with all applicable regulations and licenses prevents issues. Consult legal and insurance advisors to ensure you meet every requirement in your state.

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