1.0 Executive Summary
The purpose of this business plan is to secure $400,000 for the development of a medical aesthetic spa based in Princeton, New Jersey. Medical Spa LLC (“the Company”) was founded by Pamela Smith. The Company will provide a wide range of medical aesthetic services with a focus on Botox injections, anti-aging services, chemical peels, laser hair removal, microdermabrasion, body contouring, and collagen induction therapy. The founder is a nurse practitioner, and she will be able to render all services on site. In accordance with law, the business will retain a medical doctor who will serve as the medical director of the business.
1.1 Operations
Through its luxurious location in Princeton, the business will render all services that encompass medical aesthetics. The primary driver of revenue will come from Botox injections. These sessions will produce $200 to $500 per treatment regimen. The company will produce substantial revenues as it relates to laser hair removal, microdermabrasion, chemical peels, and collagen induction therapies. A substantial portion of the capital sought in this document will be used specifically for the acquisition of equipment that is used when rendering medical aesthetic services.
To complement the medical aesthetics offered by the business, the business will also offer a number of spa services including facials, massages, and other wellness focused services. Moving forward the company may implement additional services such as access to infrared saunas and cryotherapy.
The third section of the business plan will further document the services offered by Medical Spa LLC.
1.2 Financing
The Company is currently seeking $400,000 for the development of its luxurious facilities in Princeton, New Jersey. The terms of this financing are to be determined during negotiation, but this document assumes that the company will receive a seven-year fixed loan carrying a 9.1% interest rate. Primarily the funds will be used for the buildout of the facility, medical aesthetics equipment, general furniture fixtures and equipment, and working capital.
The founder will contribute $50,000 towards the development of Medical Spa LLC. Moving forward and given the highly predictable streams of revenue that are generated on a monthly basis – the Company can easily secure additional capital as needed in order to further fuel the growth of the business.
1.3 Mission Statement
Medical Spa’s mission is to cost effectively provide a wide range of medical aesthetic services and traditional spa services in a luxurious environment to the Princeton general public.
1.4 Management
Pamela Smith is a highly experienced nurse practitioner that has undergone substantial training specifically for rendering medical aesthetic services. She will be able to provide her clients with an outstanding range of anti-aging care while bringing the operations of the business to substantial profitability.
1.5 Sales Forecast
1.6 Expansion Plan
Over the next three years, the Founder intends to make ongoing reinvestment into the ongoing expansion of business. This will include expanding the scope of the Company’s marketing operations in order to effectively brand the medical spa as the premier medical aesthetics business within Princeton and the greater Mercer County area. The Company will also hire staff associates so that the business can increase its billings as demand increases. After the third year of operation, management may seek to develop a second location which would be financed using the accrued profits of the business.
2.0 Financing
2.1 Registered Name
Medical Spa LLC. The business is registered as a limited liability company.
2.2 Medical Spa Startup Costs
The $400,000 of debt capital and $50,000 of equity capital will be used as follows:
2.3 Management and Investor Equity
Pamela Smith retains a 100% ownership interest in the business.
2.4 Exit Strategies
In the event that Ms. Smith intends to retire or relocate to a different area, she will coordinate the sale of the business with a qualified business broker. In all likeliness, the founder may seek to sell the business to staff associates as they will be able to quickly transition their business to their ownership. Based on historical statistics regarding the sales of profitable medical spas, the business could receive a sales premium of up to three times the previous year’s earnings.
3.0 Medical Spa Operations
The medical spa will specialize in providing a broad range of treatments that are in demand among the general public. A substantial portion of the Company’s operations are focused on skin treatments including Botox injections. The business will also provide collagen induction therapy as this is becoming a very popular service among people that frequent medical aesthetics businesses. To complement these operations, the business will also provide a wide range of treatments specific for acne while also rendering specialized laser treatments especially as it relates to laser hair removal. In tandem with the Company’s medical director, the business will also be able to provide laser tattoo removal when requested.
To complement these services, the business will provide a number of standard spa treatments that are also in demand among people that frequently use medical aesthetic services. This will include massage therapy which will be rendered by an independent contractor.
Moving forward, the business intends to hire nurse practitioners and staff nurses that will further render services in order to boost the revenue of the business. The Company will have an internal training program so that these employees understand the protocols and procedures that are used for each service that is rendered by the business. This is an important aspect of operations as it will not only allow the business to increase its revenue, but it will also facilitate the expansion of the business should the founder decide to establish additional locations.
At all times the Company will comply with all state laws regarding medical aesthetic services. As noted in the executive summary, the business will retain a medical doctor who will serve as the medical director of the business and will be on call during all hours of operation. From time to time, the medical director may render medical aesthetic services as well in tandem with the Company’s staff.
4.0 Market and Industry Analysis
4.1 Economic Analysis
This section of the business plan will outline the current economic climate, the medical aesthetics industry, the target market, and the ongoing competition that the business will face moving forward.
At this time, the economic climate in the United States is moderate. There have been changes to global trade policy over the past business corner which may have an impact on businesses throughout the country. At this time, interest rates as well as asset prices have remained steady. The Federal Reserve is doing an outstanding job of implementing appropriate policies that will guide the continued growth of the business even as economic and global trade policies evolve.
It should be noted that the business is primarily targeting upper middle income to upper income people for the medical aesthetic services shown in this document. The Company will generate substantial contribution margins on all services rendered, which will fully support the underlying obligations for the business as well as its operating expenses.
4.2 Industry Analysis
Medical spas have gained tremendous popularity over the past 15 years given the number of advancements that have been made within the industry that allow for seamless care especially as it relates to anti-aging therapies. Currently, the industry generates approximately $21 billion per year among 26,000 companies that own or operate one or more locations within the country.
The demand for these services is expected to remain strong in the coming years, especially as advancements continue to reduce the cost of anti-aging therapies and related medical aesthetic services. The anticipated compounded annual growth rate for the industry is expected to remain near 4% over the next five years.
4.3 Customer Profile
Any individual that wants to improve their appearance and lives within a 20-mile radius of the Company’s location is a potential client of the company. Generally, the business will primarily cater to women that are between the ages of 25 to 60. These individuals will typically have a household income of $100,000 a year or more. The Founder anticipates that each visit to the medical spa will generate $250 to $500 of revenue. Specialized services, especially those related to the use of a laser for hair removal, are expected to generate 750 to $1,500 per engagement.
4.4 Competition
As with any well-developed business plan, a full competitive analysis should be included. This includes an examination of the number of locations that are within the target market radius, their estimated revenues, estimated number of employees on staff, and the pricing that they provide to the general public period. In this section, one of the ways that you can strengthen your competitive analysis is by indicating the ways in which you will maintain an effective differentiating factor for your medical spa. This includes pricing differentiation as well as offering a wider scope of services that would normally be associated with a medical esthetics business.
5.0 Marketing Plan
5.1 Marketing Objectives
• Engage a wide ranging grand opening period that covers a twenty-mile market radius.
• Focus on using social media marketing during the development period.
• Establish relationships with referring professionals within the target market.
5.2 Revenue Forecast
5.3 Marketing Strategies
Medical Spa LLC will use a number of marketing strategies in order to drive substantial traffic and brand visibility for the medical spa. Most importantly, the Company is coordinating with a commercial real estate brokerage in order to source an appropriate location that will either be located within a traditional medical building or within a facility that will allow for substantial renovation so that a luxurious atmosphere can be created for the Company’s clients. The location will feature a substantial amount of exterior signage that showcases the wide range of medical aesthetic services that are available.
During the development, the Medical Spa will have its online presence developed which will include a proprietary website as well as a presence among all major social media platforms. As it relates to the website, this will be a priority development once the initial capital has been secured. This will allow the business to engage in search engine optimization during the development. The Company will provide ongoing updates regarding the development of the location in order to pique the interest of individuals within the target market. Through the life of the business, the website will undergo ongoing search engine optimization so that when searches for medical spa services or medical aesthetic services are conducted the company’s website will appear frequently within the scope of the search results.
As it relates to social media, the business will maintain pages on Facebook, X, Instagram, TikTok, and YouTube period of special importance to the Company’s social media driven operations is Instagram. With client approval, the business will frequently post before and after images of individuals that have used the company’s medical aesthetics services. Numerous images and videos showcasing the location will also be available on these pages as well. Specialized discounts and seasonal deals will also be frequently offered in order to boost revenue.
In regards to traditional methods of advertising, the medical spa will distribute mailed flyers among individuals that fall into the demographic profile. These mailed advertisements will encompass a 20-mile radius from the location, and they will be distributed 30 days prior to the grand opening of the facility.
The business will also maintain ongoing relationships with area real estate brokerages as individuals that move to the area frequently ask for recommendations among local and regional businesses.
6.0 Organizational Plan
6.1 Organizational Structure
6.2 Organizational Expenditures
7.0 Financial Plan
7.1 Underlying Assumptions
• The Company will acquire $400,000 of capital to establish operations.
• The Founder will contribute $50,000 towards the venture.
7.2 Sensitivity Analysis
The Company’s revenues are moderately sensitive to negative changes in the economy. Medical aesthetics are purchased with discretionary income, and in a highly severe economic recession the demand for these services may decline. However, the medical spas operating in a wealthy and population dense market that is far less swayed by challenging economic climates. Additionally, the business will recognize substantial contribution margins on all medical aesthetics services rendered which will ensure that the business can cover its underlying operating costs as well as its ongoing financial obligations as it relates to the funding sought in this document.
7.3 Source of Funds
7.4 Tax Assumptions
7.5 Profit and Loss Statement
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
7.7 Business Ratios
