Medical Spa Business Plan Template [Updated 2024]

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Medical Spa Business Plan Template

If you want to start a medical spa or expand your current medical spa, you need a business plan.

You can download our Medical Spa business plan template (including a full, customizable financial model) to your computer here.

To write a successful medical spa business plan, you will first need to decide what type of medical spa you want to open. Do you have a specific medical specialty, such as dermatology or aesthetics, that you want to focus on? Or do you provide a variety of medical spa services such as chemical peels, body contouring or laser hair removal?

You will then need to gather information about your business and the medical spa industry. This type of information includes data about customer demographics, marketing strategies to reach your target market, and 5-year pro-forma financial statements (income statement, balance sheet and cash flow statement).

Medical Spa Business Plan Example

The following sample medspa business plan template gives you the key elements to include in a winning med spa business plan:

I. Executive Summary

Business Overview

[Company Name], located in [insert location here] is a new, state-of-the-art medical spa focusing on providing beauty services and medical-grade skin care products to the surrounding community. Our product and service lines fit nicely with the aspirational tastes and preferences of the local area – young, middle class suburbanites want quality medical aesthetic care, but do not want to pay luxury prices for it.

Products and Services

[Company Name] will provide medspa services for all ages and both genders. Services will include skin rejuvenation, injectable procedures, non-surgical skin tightening procedures, body contouring, and more. The team will continuously expand and improve on the menu of services.

In addition to providing these services, [Company name] will also be a retailer of medical grade skin care products. Customers will find products at [Company name] that they will not find in beauty stores.

Customer Focus

[Company Name] will primarily serve the residents within a 10 mile radius of our location. The demographics of these customers are as follows:

  • 27,827 residents
  • Average income of $74,700
  • 58.9% married
  • 49.6% in Mgt./Professional occupations
  • Median age: 38 years

This bodes well for [Company Name], as the prime demographic for medical spas is women under the age of 55. In addition, there is growing demand from males for medical spa treatments. Both women and men will be sure to patronize [Company Name] for both one-off and routine aesthetic treatments.

Management Team

[Company Name]is led by [Founder’s Name] who has been a physician for 20 years. While [Founder] has never run a medical spa herself, she has been a medical spa director since age 30 and spent most of her adult life working as a medical director at various spas. As such [Founder] has an in-depth knowledge of the medical spa business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • The Company will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when it is launched.
  • Our location is in a high-volume area with easy access from multiple residential and commercial district zones.
  • The management team has a track record of success in the medical spa business.
  • Medical spas are a proven business and have succeeded in communities throughout the United States.
  • Local competitors leave a large gap in the aesthetics market—there are providers offering non-medical services (skin care only or nails only), and an ultra-luxury spa with high-priced medical services, but nothing in between.

Financial Highlights

[Company Name] is currently seeking $700,000 to launch. Specifically, these funds will be used as follows:

  • Spa design/build: $50,000
  • Medical spa equipment purchases: $150,000
  • Working capital: $500,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even

Topline projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

II. Company Overview

You can download our Medspa Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name], located in [insert location here] is a new, state-of-the-art medical spa focusing on providing medically-supervised aesthetics treatments and services in a professional environment. It will showcase a well-designed interior as well as private recovery areas with refreshments. [The Company] also sells a variety of medical-grade skin care products which will be on display in the waiting room.

[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the medical spa business for some time, it was in [month, year] that she decided to launch [Company Name]. Specifically, during this time, [Founder] took a trip to Fort Lauderdale, FL. During her trip, [Founder’s Name] visited a medical spa that enjoyed tremendous success. After discussing the business at length with the owner of the spa, [Founder’s Name] clearly understood that a similar business would enjoy significant success in her hometown.

Specifically, the customer demographics and competitive situations in the Fort Lauderdale location and in her hometown were so similar that she knew it would work. After surveying the local population, [Founder’s name] went ahead and founded [company name].

[Company Name]’s History

Upon returning from Fort Lauderdale, surveying the local customer base, and finding a potential facility location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

The business is currently being run out of [Founder’s Name] medical office, but once the lease on [Company Name]’s commercial location is finalized, all operations will be run from there.

Since incorporation, the Company has achieved the following milestones:

  • Found commercial space and signed Letter of Intent to lease it
  • Developed the company’s name, logo and website located at [website]
  • Hired an interior designer for the decor and furniture layout
  • Determined equipment and fixture requirements
  • Begun recruiting key employees with previous medical spa experience

[Company Name]’s Products & Services

Below are [Company Name]’s initial service offerings and in-store products sold.

Specialists will be asked to perform the following services for both men and women:

  1. Injectables (Botox, dermal fillers, etc.)
  2. Coolsculpting
  3. Laser Hair Removal
  4. Skin rejuvenation (laser, microdermabrasion, ultrasound, etc.)
  5. Microblading and Permanent Makeup
  6. Vaginal Rejuvenation (Laser and Radio Frequency)

The first appointment will include an initial assessment and recommendation phase where the specialist will discuss the customer’s desired outcome. A treatment plan will then be formulated, and appointments scheduled.

[Company Name] will feature medical grade beauty products in-store from these well-established brands. It will continue to update its offering in order to provide the newest developments in medical grade beauty products to its customers.

Some of its featured brands will include:

  • Augustinus Bader
  • Dr. Barbara Sturm
  • Dr. Dennis Gross
  • MZ Skin
  • SkinCeuticals

Furthermore, the waiting area will feature a relaxing, welcoming atmosphere, and popular publications to make the wait for service more pleasurable. At-request refreshments will be provided for free during the waiting period.

Spa Design

[Company Name] will develop a 2,500 square foot facility whose key elements will include the following:

  • Treatment Rooms
  • Private Recovery Rooms
  • Reception Desk
  • Product Display area
  • Self-service coffee area
  • A waiting area with TV screens
  • Restrooms

[Company Name] plans to be open 6 days a week, from 7AM to 6PM. As demand dictates, we may extend or reduce our hours.

III. Industry Analysis

[Company Name] competes against other medspas, wellness spas, and medical practitioners such as Dermatologists and Plastic Surgeons. There are over 22,000 registered spas in the United States.

According to a report by Packaged Facts, the spa industry is a fragmented one, as the majority of operators are single-location businesses. The market is estimated to grow to nearly $20 billion in three years. Since there are no truly dominant competitors, barriers to entry are not as high as many other industries, and a start-up can expect to have success in this growing market, [Company Name] is well-positioned for success. There is plenty of room in the industry particularly for conveniently located spas that cater to specific geographic and demographic customer niches. Smaller spas can easily develop a loyal clientele that enable them to compete and succeed against industry giants; in this industry, size does not necessarily mean an advantage, which bodes well for [Company Name].

Market Trends

The market in which [Company Name] will compete is experiencing a number of different trends.

Market-level trends:

  • Strong growth. This market is expected to grow consistently at around 14.3% annually.
  • Success drivers. Customer satisfaction is what ultimately makes one med spa triumph while another fails. The experience a med spa’s client has will ultimately determine whether or not they return and whether or not they refer others to the same spa.

Firm-level trends:

  • Economies of scale. Larger medspas are finding opportunities to succeed, by making effective use of support personnel. Receptionists and assistants at larger establishments can take care of many of the menial tasks that skilled therapists and aestheticians are responsible for handling in small spas. This permits specialist staff to spend a higher proportion of their time actually performing skilled services.
  • Premium independent spas. Independent spas also compete with medspas, offering some of the same treatments which do not require medical application or supervision. These spas develop a loyal customer base and select their location on the basis of population demographics.
  • Specialty spas. Presently, a niche is being carved out for spas that cater to very specific customer segments, such as those that desire body contouring treatments and dermatologist brands.

Customer-level trends:

  • Intense customer loyalty. Many medspas develop repeat customers who become a regular client base and represent a significant portion of their revenues. Medspas whose employees are able to develop strong relationships with customers can expect to see more long-term success.
  • Changing gender patterns. Traditionally, women bring in the lion’s share of revenues for medical spas, using anti-aging and wellness services more often and spending more at each appointment. In recent years, however, the male consumer’s attitude has begun to shift. Men now make up approximately 25% of spa clientele.
  • Gender preferences. Women are the most lucrative customers for medical spas, visiting more often and purchasing more special treatments.

IV. Customer Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Demographic Profile of Target Market

[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].

The area we serve is populated mostly by middle class Millennials; as a result, they have the means to pay for higher quality service, and are looking for medical spa services somewhere between traditional spa treatments and surgical treatments.

The precise demographics of the town in which our retail location resides is as follows:

Total Population26,09710,725
Square Miles6.893.96
Population Density3,789.202,710.80
Population Male48.04%48.84%
Population Female51.96%51.16%
Target Population by Age Group
Age 18-243.68%3.52%
Age 25-345.22%4.50%
Age 35-4413.80%13.91%
Age 45-5418.09%18.22%
Target Population by Income
Income $50,000 to $74,99911.16%6.00%
Income $75,000 to $99,99910.91%4.41%
Income $100,000 to $124,9999.07%6.40%
Income $125,000 to $149,9999.95%8.02%
Income $150,000 to $199,99912.20%11.11%
Income $200,000 and Over32.48%54.99%

Customer Segmentation

The Company will primarily target the following three customer segments:

  1. Middle aged women: The town has a significant population of middle aged women, many of whom are empty nesters. These women seek anti-aging services on a regular basis. These women are well connected to each other and as such are a prime source of referral business. [Company name] expects to regularly acquire new customers from referrals.
  1. Professionals: [Company name] is located along a well-traveled commute route. By offering convenient location and exceptional service to the customer, [Company name] will draw in working men and women who who want services over their lunch break or at the end of the work day.
  1. Moms: The town has a sizeable population of families with younger children. As these moms finish having children, they will seek treatment for body changes associated with childbirth. In addition, this demographic has become increasingly proactive in staving off the first signs of aging. [Company name]’s range of services include a variety of options to address these concerns.

V.Competitive Analysis

Direct & Indirect Competitors

The following spas are located within a 20 mile radius of [Company Name], thus providing either direct or indirect competition for customers:

The Fountain

The Fountain is a boutique med spa that artfully blends a relaxing experience with the care, expertise, and results of a physician’s office. It employs a hand-picked staff – all of whom have worked in some type of medical practice and have years of spa experience and training. It offers a range of services, including facials, injectables, laser treatments, and cryotherapy.

While we expect that The Fountain will continue to thrive based on its location and customer relationships, we expect that more and more customers will frequent [Company Name] based on the high-quality and competitively priced services we offer and product selection.

Best Self Spa

Established in 1993, Best Self Spa provides a personalized approach to health optimization, access to a range of treatments, and the latest technology. The company provides its guests with aesthetics and wellness services such as injectables, dermal fillers, skin resurfacing, IV therapy, halotherapy, and medical weight loss.

[Company Name] has several advantages over Best Self Spa, in that it offers a broader range of medical spa treatments. [Company Name] will provide these high demand services at an affordable price point.

Radiance Med Spa

Established in 2015, Radiance Med Spa was created to help reverse aging skin, sun damage, and other skin conditions that tend to make people feel uncomfortable in their own skin. The team takes the time to listen to its guests’ skincare needs and concerns, and provides individualized attention, skin-care education, and customized state-of-the-art services in a comfortable, safe and confidential environment. The goal is to enhance each guest’s natural beauty with lasting results while maintaining the highest safety standards in the industry. Its services include acne treatment, body contouring, laser hair removal, vein treatments, tattoo removal, and microblading.

Radiance Med Spa offers some services which are unique to the area, and thus we expect it will continue to draw a large clientele. However, because many of its services are geared to a wealthier clientele, we expect to draw aspirational clients who cannot necessarily afford these price points.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Location: [Company Name]’s location is near the center of town, giving us access to commuters going to and leaving the train station, local office workers, and passersby shopping in the city. We also offer adequate parking making it easy for customers to patronize us.
  • Great service at an affordable price: The complete array of medspa services offered by [Company Name] goes beyond the skin-focused services of its most premium positioned competitor, Radiance Med Spa. [Company Name] will offer these services at a much more affordable price.
  • Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
  • Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.

VI.Marketing Plan

You can download our Medspa Business Plan Template (including a full, customizable financial model) to your computer here.

[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the medspa market. Customers can expect to receive care from licensed medical professionals and medically supervised professionals for a price somewhere between discount chains and luxury establishments.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

  • Convenient location
  • Highly trained specialists
  • Significant personal attention
  • Moderate price point
  • Comfortable, customer-focused environment

Promotions Strategy

[Company Name] expects its target market to be individuals working and/or living within a 10-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:

Local Publications

[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.

Major Publications

We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost effectiveness. These ads will include discount coupons so that response to the ads can be tracked.

Community Events/Organizations

[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, or homeowner associations. Since mothers are often heavily involved in such things, we will not only reach the lucrative audience of adult women but also potentially their families by extension.

Commute Advertising

We will drive attention toward [Company name] by leasing a billboard alongside [route or highway]. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of working individuals with disposable income of our opening.

Customer Loyalty Programs

[Company name] will create a winning customer loyalty program to keep its best clients coming back again and again. When not actively providing services to customers in the store, our professionals and other employees will make periodic, regular phone calls to customers. These phone calls will (a) ensure that customers are satisfied with their treatments, and (b) remind customers after a certain period of time has passed that they might want a new treatment. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.

Direct Mail

[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the spa.

Ongoing Customer Communications

[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.

Pre-Opening Events

Before opening the spa, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.

Pricing Strategy

[Company Name]’s pricing will be moderate so customers feel they receive great value when patronizing the spa. The anticipated average price point for a Botox treatment is $500 per area, in exchange for which a customer can expect to receive personalized attention during and after their visit. The customer can expect to receive quality care, for a more affordable price than what they pay at an ultra-premium salon or spa.

VII.Operations Plan

Functional Roles

[Company name] will carry out its day-to-day operations on an appointment basis. Because the services offered are primarily performed by medical professionals, walk-in clients cannot be accommodated. However, skin care products may be purchased on a walk-in basis.

In order to execute on [Company Name]’s business model, the Company needs to perform several functions. The majority of employees will assist in up selling customers in addition to the primary functions as treatment technicians. [Company name] anticipates using the services of X employees, divided into the following roles.

Service Functions

  • Laser treatments
  • Injections / IV
  • Medical aesthetic treatments
  • Hair removal
  • Body shaping services

Administrative Functions

  • General & administrative functions including legal, marketing, bookkeeping, etc.
  • Sourcing and storing products
  • Hiring and training staff
  • Appointment making
  • Customer service/cash register functions
  • Treatment room preparation/cleaning


  • Maintenance personnel


The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

[Date 1]Finalize lease agreement
[Date 2]Design and build out [Company Name]
[Date 3]Hire and train initial staff
[Date 4]Kickoff of promotional campaign
[Date 5]Launch [Company Name]
[Date 6]Reach break-even

VIII. Management Team

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Management Team Members

[Company Name]is led by [Founder’s Name] who has been a physician for 20 years.

While [Founder] has never run a day spa herself, she has been a medical spa director since age 30 and spent most of her adult life working as a medical director at various spas. She began her career after she earned her MD from [University] and completed her residency in Dermatology at [institution] in [19xx]. She was in private practice as a Dermatologist for X years before becoming a medical director.

[Other person’s name] will serve as the customer service manager. [He/she] has extensive experience the hospitality industry.

[Founder] will serve as the office manager. In order to launch our medspa, we need to hire the following personnel:

  • Medical Aestheticians (3 to start)
  • Nurses (2 to start)
  • Assistants (1 to start)
  • Receptionist (2 to start)

As dictated by demand and operational maturity, [Founder] will consider hiring the following personnel:

  • Receptionists [Number]
  • Assistant Office Manager

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come primarily from the services rendered and secondarily from the sale of beauty care products.

As with most services, labor expenses are the key cost drivers for medspas. Specialists are salaried. Medspa treatments typically require the provider to have medical training; therefore, attractive compensation packages are necessary to maintain a qualified staff.

The major cost drivers for the company’s operation will consist of:

  • Treatment products and equipment
  • Salaries
  • Lease

Moreover, ongoing marketing expenditures and cost of goods sold expenses are also notable cost drivers for [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking total funding of $700,000 of debt capital to launch its facility. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

  • Spa design/build: $50,000
    • Medical spa equipment purchases: $150,000
  • Working capital: $500,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive

Key Assumptions & Forecasts

The following table reflects the key revenue and cost assumptions made in the financial model.

Number of customers per dayPer location
Year 130
Year 240
Year 360
Year 480
Year 5120
Annual Rent$90,000

5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 5
Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
Lease$60,000 $61,500 $63,038 $64,613 $66,229
Marketing$20,000 $25,000 $25,000 $25,000 $25,000
Salaries$133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
EBIT($56,810)$105,925 $140,152 $184,317 $234,414
Interest$23,621 $20,668 $17,716 $14,763 $11,810
PRETAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
Net Operating Loss($80,431)($80,431)$0$0$0
Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
Net Profit Margin (%)-15.00%13.00%16.30%19.40%

5 Year Annual Balance Sheet

Year 1Year 2Year 3Year 4Year 5
Cash$16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable$0$0$0$0$0
Inventory$21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
Debt$317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
Share Capital$0$0$0$0$0
Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

5 Year Annual Cash Flow Statement

Year 1Year 2Year 3Year 4Year 5
Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
Net Cash Flow from Investments($246,450)$0$0$0$0
Cash from equity$0$0$0$0$0
Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389


You can also click here to get our free medical spa business plan pdf.