How to Start a Medical Spa Business

by Temiloluwa Alagbe
82 views 5 minutes read
A medical spa business offering their services to a client.

Starting a medical spa business can be exciting because it bridges the gap between aesthetics and medical expertise. However, the start-up process can be challenging…without the right information, that is. Well, it’s a good thing this article has all the information you need. In this all-inclusive guide, we unveil the secrets to starting a successful medical spa business, equipping you with all the knowledge you require whether you are a seasoned entrepreneur or an ambitious newcomer. Let’s begin!

What is a MedSpa Business?

The medical spa business (also known as MedSpa business), as the name implies, is a combination of a medical centre and a spa. It is a business that uses non-invasive cosmetic treatments like lasers and injectables to improve the health and appearance of its clients. The difference between a medical spa and a regular spa is the presence of skilled medical practitioners like dermatologists and plastic surgeons who oversee treatments. Unlike a regular spa deals with relaxation and well-being, a medical spa is mainly concerned with addressing aesthetic concerns like acne, wrinkles, and unwanted hair. In summary, a MedSpa business provides a relaxing spa experience while also addressing cosmetic concerns with medical-grade treatments.

Who Can Own a Medical Spa Business?

Because of the medical services medical spas offer, not everyone has legal permission to own them. In many states and countries, only licensed physicians are allowed to own medical spas. However, there are some exceptions where nursing practitioners or even non-medical individuals are permitted to co-own the business.

Is The Medical Spa Business Lucrative?

The medical spa business can be quite lucrative as it is a growing industry with an estimated market value of $29 million as at2022 and a 13.06% compound annual growth rate. The demand for medical spas is significantly high and is expected to keep growing, contributing to the profitability of the business. The medical spa business has an average profit margin of about 20% – 25%.

How Much Do Medical Spa Business Owners Make?

The average annual salary of a medical spa business owner is between $300,000 – $375,000. However, you should note that this depends on several factors like location, services, and pricing. Depending on these factors, you could earn higher or lower than the average MedSpa business owner.

Most Profitable Medical Spa Services

To give you an idea of the services that make the most money for a MedSpa business, here’s a list of the most profitable services in these establishments.

1. Injectables

Injectables are split into two main categories: botox and fillers. Botox is commonly used to reduce wrinkles and fine lines and for jawline slimming and lip flips too. Fillers, as the name implies, are used for restoring lost volumes, enhancing facial features, and treating acne scars. The global demand for these injectables is through the roof with a market value of $15.7 billion and a compound annual growth rate (CAGR) of 9.34%. The high demand for injectables is the key driver of the profitability of injectables in medical spa businesses.

2. Body sculpting

Body sculpting services are also in high demand because of its increased affordability and an increased desire for targeted fat reduction. Some examples of body sculpting services include cryolipolysis, laser lipolysis, radiofrequency, and liposuction, liposculpture, and abdominoplasty (tummy tuck). The last three, however, are surgical processes while the other three are non-invasive or minimally invasive procedures.

3. Microneedling services

Microneedling is a minimally invasive cosmetic procedure that involves using a device with fine needles to create tiny punctures in the top layer of the skin. This controlled injury triggers your body’s natural healing process, stimulating collagen and elastin production for smoother, firmer, and younger-looking skin. Microneedling services are in high demand because the procedure has proven to be highly effective in addressing various skin issues, hence, it can be very profitable for your MedSpa business to offer microneedling services.

4. Laser treatment services

Laser treatment is the use of controlled beams of light to interact with body tissues in controlled ways to produce various outcomes. It is effective in tattoo and hair removal, skin tightening, wrinkle removal, and many others. The effectiveness and precision of the treatment contribute largely to its high demand along with its tendency to create fewer scars.

5. Chemical peel services

Chemical peel services typically involve applying a chemical solution to the skin to remove its outer layer, revealing a smoother and clearer complexion. The main reasons for its high demand are its affordability and minimalistic approach.

Licenses Required to Start a Medical Spa Business

1. Business license

Business licenses are a general business requirement as they are government-issued documents, authorizing a business’ operations. For this reason, you need a business license to legally run a MedSpa business. You will likely need to have some other licenses before you can submit a business license application. Therefore, the first step towards getting a business license is to find out what other licenses you may need. After gathering the required documents, submitting an application, and paying any fees necessary, all that’s left is to wait for your application to be processed. The processing period depends on your location. The cost of getting a business license ranges from $100 – $200.

2. Medical license

Because only licensed physicians are allowed to own MedSpa businesses, you need a medical license. To get a medical license, you have to first fulfil the educational requirements which include earning a Doctor of Medicine degree (MD) and passing the medical licensing examination. Upon passing the examination, you will still need to complete a residency training programme where you receive hands-on training in the medical field. This programme typically lasts for about 3 – 7 years. Once this training is complete, you can successfully apply for a medical license. The application process involves submitting an application and paying all applicable fees. After doing this, all you need to do is wait to receive your license. Because of all the educational requirements, the cost of getting a medical license ranges from $2,000 – $5,000.

3. Facility permits

You are likely to need facility permits too from your state’s health department. Facility permits like building permits, zoning permits, environmental permits, and many others confirm the health and safety standards of your facility, marking it safe for use. The facility permits you will need for your MedSpa business are dependent on your chosen business location along with the costs and processes.

4. Cosmetology license

A cosmetology license is important for your business to offer cosmetics services. A cosmetology license proves that you have enough experience and expertise to handle certain cosmetic procedures, therefore, increasing your client’s trust in your services. To apply for a cosmetology license, you will need to complete an accredited cosmetology programme. Once you have completed the programme, you have to pass the licensing exam before you can apply. Upon submitting your application along with other required documents and paying all applicable fees, you just have to wait to get your license. Once you have received your license, you can maintain it by renewing it when it is due. The license’s validity period depends on your state but it typically ranges from 1 – 2 years. The cost of getting a cosmetology license ranges from $5,000 – $20,000, the educational requirement being the reason for its high cost.

5. Waste disposal permits

Because medical spas generate specialized waste, you will need to get a waste disposal permit. The waste disposal permit ensures proper disposal of biohazardous materials like needles, syringes, and surgical instruments to maintain the sanitary conditions of the environment. The first step to getting a waste disposal permit is to find out. After gathering the necessary information, the next step is to choose a licensed and reputable waste disposal company to dispose of your waste. If your state requires proper licensing or registration, then the next thing to do is to apply for legal authorization. Fill out the necessary application forms, submit the required documents, and pay any applicable fees and your medical spa business is ready to safely and legally dispose of its waste substances.

Any other licenses you may need depend on your business location’s laws.

Cost of Starting a Medical Spa Business

1. Legal costs

To avoid having issues with the law of your country or state, you must get all the permits and licenses that are required of you. The cost of getting your business on the right side law of the law depends on your location and its state laws. However, the legal costs of a cosmetics business range from $5,000 – $30,000.

2. Location costs

This includes the cost of building or renting a space for your business’s operations to take place. Depending on your location, the cost of getting a space for your business ranges from $5,000 – $15,000 per month for rent and $200,000 – $700,000 for purchase or construction

3. Equipment costs

To start a MedSpa business, you will need to get some high-tech equipment and for this reason, equipment costs tend to be high. Some of the equipment you will need for your business include;

  • Treatment and massage tables.
  • Pedicure and facial chairs.
  • Waiting room furniture.
  • Storage cabinets.
  • Radiofrequency devices.
  • Laser systems.
  • Microdermabrasion machines.
  • Injectable tools.
  • Vein finders.
  • Sterilization equipment.
  • Magnifying lamps.

The total cost of getting these equipment ranges from $100,000 – $200,000.

4. Hiring costs

While not impossible, it is difficult to run a medical spa business all by yourself. Because of this, you should factor hiring costs into your expenses. You will generally need nurses, aestheticians, laser technicians, and administrative staff. The cost estimate for hiring staff ranges from $10,000 – $30,000 per month.

5. Operation costs

This includes the expenses incurred in the day-to-day running of your MedSpa business. You should expect to spend between $15,000 – $30,000 on monthly operations of your business.

6. Insurance costs

It is important to protect your business from risk and this can be achieved by choosing an insurance plan. The cost estimate for insuring your medical spa business is $5,000 – $30,000 monthly, depending on your insurance plan.

7. Marketing and advertisement costs

This is a total of all the money that will go into publicity for your business. The amount of money spent on marketing depends on various factors like your location, target market, and budget size. However, a rough estimate of how much you should expect to spend is $1,000 – $10,000.

In essence, the total cost estimate of starting a medical spa business ranges from $200,000 – $500,000.

How to Start a Medical Spa Business

1. Develop your business idea

If you are interested in starting a MedSpa business, the best place to begin is to carefully plan out your business. Determine the size of your business, the services you would like to offer, and what you want your business to portray. Create your business in your mind’s eye first and then move to make that picture a reality.

2. Get required training

Because only trained physicians have legal permission to start a medical spa business, you must first ensure that you get all the education you need before venturing into the business. Completing your educational requirements will make the path to running a medical spa business a lot easier for you.

3. Draft a business plan

Now that you have envisioned what you want your business to look like, it is time to put that idea down on paper. However, you must note that drafting a business plan is a lot more than writing down what you want to see. Your business goals are simply a part of your business plan. A well-written business plan contains your business’s current state, your business goals, and a foolproof plan to accomplish these goals. An excellent business plan could also be the key to securing funding for your business

4. Secure funding

Because of the relatively high start-up costs of the MedSpa business, you may need some help with funding your start-up. Be on the lookout for funding opportunities in whatever city, state, or country you have decided to operate in and grab as many as you can find. You can also try crowdfunding options.

5. Secure a location

The location of your business is a major determinant of your business’s success rate. To increase your chances of success, you should choose a well-populated and accessible location.

6. Obtain legal permission

In order to avoid future complications, it is important to acquire all the licenses and permits your state demands as well as complete all the necessary registration. You should get on the right side of the law before proceeding with your plans to launch your business.

7. Purchase equipment

After completing the licensing and registration processes for your business, you can fully enter the planning phase of your business. Begin with getting high-quality equipment that align with your service goals because purchasing good equipment will boost your company’s productivity levels.

8. Design your brand

You are now in the final stages of launching your MedSpa business. Now, all your business needs is an identity. Create an identity for your business by coming up with a creative brand name and an attention-catching brand logo and business slogan.

9. Hire staff

The next thing to do is to build a team for your brand. Find skilled personnel to help you build a successful MedSpa business. Keep in mind that your business’s reputation depends on the quality of the services your staff offers so remember to thoroughly screen your candidates.

10. Get insurance

Now that your business is ready for launch, you must secure it from unforeseen circumstances by getting insurance. Choose the insurance plan that works best for your business and protect yourself from loss.

11. Implement effective marketing strategies

You have successfully set up your business and you are ready to begin operations but you are missing clients. As there can be no business without clients or customers, you need to effectively promote your business to attract them. Some effective marketing strategies include:

  • Email marketing.
  • Paid advertisements.
  • Content creation.
  • Social media marketing.
  • Local SEO.

Best Countries to Start a Medical Spa Business

1. The United States

The demand for medical spa services in the United States is strong and growing with an estimated market value of $18.6 billion and a CAGR of 15.13%. The industry’s growth is driven by an increase in disposable incomes, shifting beauty standards, and an increased focus on physical appearances. The country’s large population and high demand for MedSpa services make it an excellent place for a medical spa business.

2. Canada

Like the United States, Canada also has a high demand for non-invasive aesthetic procedures. The country also provides a business-friendly environment with less stringent regulations for MedSpa businesses. Its diverse population also gives the potential for a large client base.

3. Australia

The Australian MedSpa market is equally large with an estimated growth rate of 4.4%. Like Canada, the country also has a business-friendly environment, making it easy for start-ups to grow and because the MedSpa industry is not yet saturated, competition is less in Canada.

4. The United Kingdom

Because of the populace’s growing interest in cosmetic treatments and wellness services, the demand for medical spa services in the UK is high. The country also has clear regulations and functioning regulatory bodies that ensure compliance with safety rules and regulations and oversee medical facilities.

5. Singapore

Singapore has a developed healthcare infrastructure that makes the MedSpa start-up process easier. In addition to its strong health infrastructure, the country also has a global reputation for excellent healthcare services, making it a great place to start a medical spa business.

How to Attract Customers to Your Medical Spa Business

1. Identify a target audience

Identifying a target audience always makes marketing more effective because it helps you strategise better. When you decide on your target market, it is easy to tailor your marketing strategies and services to best suit their tastes, thus, increasing your chance of business success.

2. Build a strong online presence

The digital world is a major contributor to business success these days as it has a broader reach. Create a user-friendly website for your page where you showcase your services, expertise, and even client reviews as this will grow your client base significantly.

3. Provide excellent services

If you want to succeed as a business owner, excellence should be your watchword. Don’t settle for “okay”, aim for the best results achievable and watch your client base grow all by itself.

4. Ask for reviews

Request for reviews from satisfied clients as evidence of the quality of your work. People tend to believe past clients’ reviews more than the words they see in ads. When you receive these reviews, put them up on your website and all your business’s social media pages.

5. Partner with other businesses

Partnering with other related businesses, especially larger ones, has a positively significant impact on your number of clients. Establish relationships with related business owners like dermatologists and aestheticians and they’ll help you get more customers or clients.

6. Keep up with industry trends

If you want to keep making progress as a medical spa business owner, you cannot be ignorant of the industry’s trends. ensure your services don’t grow obsolete by keeping up and adapting to new developments in the industry.


Starting a medical spa business can be a rewarding venture as it provides the potential to help clients reach their aesthetic goals while earning a profit. However, success requires careful planning, strategic execution, and an unwavering dedication to quality and service. Thankfully, you have no cause for alarm because by following the steps outlined in this article, staying informed about industry trends, and prioritizing client satisfaction, you can transform your vision into a thriving medical spa that stands the test of time.

Image Credits: All images on this website are sources from Getty Images, Pexels and Unsplash.

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