A comprehensive medical spa practice business plan is the vital first step in building a successful business in the medical spa industry. Without a business plan, spa owners could not apply for loans or government grants. A business plan for a medical spa practice is an operational and financial map of how the spa practice will be operated. It will detail the licensing required and give an account of the costs involved. For additional guidance on researching and creating a business plan, visit the free on-line business plan programs offered through the U.S. Small Business Administration (SBA).
Things You'll Need
- Word processing and spreadsheet programs or a business plan software program
- Experience in the spa industry
- Insurance agent
- Mentor at the Small Business Administration or Score
Steps to a Business Plan
Research and write the Executive Summary. This is a general description of the spa medical practice. An Executive Summary will include information on how the spa practice will look, describe the type of clients who will use the practice, and information on spa services to be sold. The medical spa owner must also describe his business vision and business qualifications for operating such a business.
Research and write the information needed under Section I of the business plan called The Business. This section includes a short introduction on the business’ operations and the challenges of opening and owning a medical spa practice. Subheadings that must be included in Section I are Marketing, Competition, Operations, Personnel, and Insurance.
Marketing will describe the medical spa practice’s customer demographics and the advertising strategy planned. Spa owners will discuss their advertising plans and promotion. They will also need a detailed and factual analysis of the demographics of potential clients in the area. A budget sheet for marketing also must be included.
Competition needs to be an in-depth study of other medical spas in the area. This sub-section describes how they will compete with your medical spa and what it offers that is better, the same or inferior.
Operating procedures describe the day-to-day business operations such as cleaning the equipment, processing customers, and dealing with employees. Operating procedures also involve information on regulatory compliance and licensing. Consider this section almost a “how-to” on the best way to run a medical spa practice. Another sub-heading for the Description of Business Section is Personnel. This sub-heading describes the background of the owners, and the key medical staff.
Insurance is the last subheading under Section I. Under this sub-heading a business will describe the insurance coverage it will purchase and the agent it plans to use or is using to purchase the insurance. In the case of a medical spa practice, the owner may have the insurance policy already because of licensing requirements. If this is the case, include a copy of the policy in the reference section of the business plan.
Research and write business plan Section II Financial Data and its subheadings. If the principals of the medical spa practice have never created business financials, it is best to hire a business accountant to assist. Worksheets to create these budgeting documents are available free through the SBA. Begin this section with an overview of the medical spa practice's financial plan. Things to include are how the business will make money and information on the medical spa practice's start-up costs.
This section involves extensive financial spreadsheets and graphic charts. Experience with a spreadsheet program is helpful. These spreadsheets and colorful graphs are an important part of a medical spa practice's business plan because they make it easier to understand the business and they allow lenders to get a snapshot view of the business without reading the complete business plan. Subheadings for this section include Loan Applications, Capital Equipment and Supply list, A break-even analysis spreadsheet and explanation, a balance sheet with the profit and loss statements. Spreadsheets need to support a three-year, yearly, and quarterly financial analysis of the business' future.
Section III of the business plan contains all supporting documents. This section will include reference pages containing the source information for all the facts within the business plan. Copies of leases, contracts, letters of intent from medical spa suppliers, licenses and other legal contracts are also included in this section. Spa owners must include three years of tax returns, a resume, and medical licensing. If the medical spa is a franchised operation, make sure to include the franchise contract.
Assemble the medical spa practice business plan for presentation. To complete the business plan the medical spa practice will need a cover sheet with the business’ name and the owners listed, a table of contents that lists each section and subsection, and the supporting documents section.
Have someone review the plan. The SBA and other organizations offer mentors that will review your plan at no charge. Friends and family are excellent editors, but a business professional with no personal ties to the business is better able to determine if your medical spa business plan is missing anything or is incorrect in its accounting.
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