The wellness market is booming and interest in functional medicine (like red light therapy) has never been greater.
According to McKinsey & Company, 82% of consumers now say wellness is a top or very important priority in their lives. And a recent Glimpse study shows a 73% increase year-over-year in red light therapy interest among consumers.
This trend creates a compelling opportunity for wellness entrepreneurs, who want to launch dedicated RLT clinics or expand their existing service menus.
However, whether you’re interested in starting a new RLT business, or add light therapy as a complementary service, success hinges on a few key factors:
- Market Research: Understanding your target audience and their needs is crucial.
- Targeted Treatments: Identify specific conditions you can address or complement your existing services.
- Quality Equipment: Invest in high-quality, commercial RLT devices for optimal results.
- Effective Marketing: Build a strong strategy to reach potential clients.
- Science-Based Approach: Stay informed about the latest research to offer reliable treatments.
Ready to Launch? Read our guide for valuable tips, pricing strategies, and differentiation ideas to help you start and thrive in the red light therapy business.
Why Start a Red Light Therapy Business?
Consumers are more interested in photobiomodulation and light therapy than ever before. But can that interest translate into a full-fledged business or new revenue stream?
Absolutely. With the right planning, starting a red light therapy business can be a winning move. Here are three key reasons why:
1. Strong Return on Investment
The growing demand for RLT services allows you to recoup your investment in equipment and marketing quickly. For example, Dr. Eric Broadworth, who owns a PT practice in Michigan, used red light therapy to increase revenue by $200,000 in the first year.
With red light therapy sessions costing $75-$125 per visit, the right acquisition model can drive rapid revenue growth.
2. Improved Patient Outcomes
RLT offers a range of benefits, from pain relief and improved skin health to faster wound healing and reduced inflammation. Since red light therapy’s discovery in 1903, a growing body of research suggests it may be a standalone or complementary treatment for:
- Inflammation
- Improving circulation
- Physical therapy & chiropractic
- Skincare & medical aesthetics
- Sports medicine
- Massage
- Anti-aging and age medicine
Pro Tip. Consumers prefer science-backed approaches, according to the McKinsey study. Therefore, as you grow your business, use science-based research to inform your audience.
3. Streamlined Client Acquisition
Building on the existing interest in RLT, attracting new clients becomes easier.
For new businesses and existing clinics, target marketing that highlights the benefits of RLT can expand your reach and attract a clientele fast. Many clinics can be first-to-market and claim market share for red light therapy.
First Steps: Starting a Red Light Therapy Business
As with starting any new business, wellness entrepreneurs need to conduct careful market research and business planning.
Some of the key steps for opening a red light clinic include:
I. Market Research
Analyze your local market and answer these questions:
- Demand: Is there a demand for RLT services in your area? Research local salons, spas, and medispas to see if they offer RLT. Consider demographics like age and income level.
- Competition: Who are your competitors? Analyze their pricing, service packages, and marketing strategies. Identify potential gaps in the market where you can differentiate your business.
- Pricing: Research what other RLT providers charge to establish a competitive pricing strategy.
II. Securing Licenses and Permits
Every business needs a basic business license to operate legally. Check with your local government for specific requirements.
However, with a red light therapy business, you may also need to consider:
- Professional Licenses: Some jurisdictions may require licenses or certifications for operating an RLT business. Investigate any specific licenses needed for technicians operating the equipment. Even if not required, certifications can help you build trust.
- Insurance: Obtain general liability insurance to protect your business from potential lawsuits. However, you should also consider professional liability insurance (malpractice insurance), depending on the type of business you operate.
III. Commercial Equipment
Red light therapy machines will be your largest start-up cost. A top-quality red light therapy bed, for example, typically starts around $90,000, while a commercial-grade RLT panel might cost half that.
Quality equipment is worth the investment. The best machines allow you to:
- Align treatments to patient outcomes
- Provide multiple treatments daily (with no light degradation)
- Contact support staff to troubleshoot issues quickly
- Partner for marketing and client acquisition support
TRUSTED PROVIDER. Hue Light USA offers a full line of red light therapy and wellness devices. Learn why our photobiomodulation therapy devices are designed to maximize medical benefits.
IV. Planning
Next, you’ll want to create a business plan for your red light therapy facility. This is helpful for both new clinics and existing wellness businesses. Your plan should outline:
- Equipment Costs – For a new clinic, the highest start-up expenses are equipment and build-out, while established businesses only need to consider equipment costs (and possibly facility upgrades). Overall, a new facility might cost $100,000-$300,000 to start.
- Marketing Strategy: Establish a marketing plan to reach your target audience. Consider online advertising, social media marketing, and partnerships with local businesses.
- Financial Planning: Create a financial plan that includes equipment costs, marketing expenses, insurance premiums, and projected revenue. Determine how much it will cost to operate through your first year.
Tips for Launching a Red Light Therapy Business or New Service
Follow these business tips for launching and scaling your practice quickly:
1. Target Your Approach
Red light therapy offers promise for a wide range of conditions, from pain management to mental health.
Although there are many practical applications, if you’re starting a new red light therapy business, consider targeting a few select patient demographics. For example, your business could be the source for red light therapy skincare.
For existing clinics, red light therapy should complement your existing offerings. This will allow you to offer packages, upsells, and drive revenue growth. Red light therapy complements these wellness business types:
- Spas and massage
- Sports medicine
- Physical therapy clinics
- Chiropractic practices
- Pain management clinics
- Medical spas
2. Choose the Right Red Light Devices
Red light therapy businesses can offer targeted treatments (for example with lasers and mats), but many choose to offer full-body treatments.
The two most common types of devices used in red light therapy businesses include:
- Red Light Therapy Beds – Ideal for offering comfortable, full-body treatments. These devices are similar in size to tanning beds and provide a similar patient experience. RLT beds offer the most comprehensive treatment but do require ample space.
- Red Light Panels – Commercial light therapy panels are more portable and can be positioned over a massage table, for example. They’re ideal if you want to offer full-body treatments, but do not have the space for a red.
With both device types, average sessions last about 10-20 minutes, so you can serve more patients throughout the day.
In addition, you can choose targeted guns, facial masks, or pads to offer targeted treatments to smaller areas.
3. Pricing Strategy
Create attractive pricing packages for red light therapy treatments. On average, treatments can cost $75-$125 per half-hour. Consider these red light therapy pricing strategies:
- Packages/Bundles: Offer discounts for bulk treatments, encouraging client commitment and increasing revenue.
- Introductory Discounts: Attract new clients and get them to experience the benefits.
- Membership Programs: Offer a fixed monthly fee for unlimited or discounted treatments, enticing frequent clients.
- Time-Based Pricing: Charge different rates for short vs. long sessions to cater to various needs.
- Premium Upsells: Enhance base treatments with add-ons like consultations, massage, or topical creams for a higher price.
4. Use Strategic Marketing for Growth
A targeted marketing strategy is essential for any wellness clinic, but the tactics will differ depending on how long you’ve been in business. Here’s a breakdown of key approaches for new and established clinics:
New Businesses:
For new businesses, your goal should be to build awareness and generate leads. Two tactics to consider include:
- Public Relations (PR): Get your name out there by issuing press releases, pitching local media outlets, and participating in community events.
- Paid Marketing: Utilizing paid search, social and traditional media advertising can help you reach a wider audience and drive initial books.
Some other keys: Focus on location. It should be easily accessible and have good visibility. Create a launch campaign. You can invite local media or influencers to generate word-of-mouth promotion.
Established Clinics:
If you have an established clientele, your goal should be nurturing existing clients and offering packages for improved outcomes. Channels to explore include:
- Email Marketing: Leverage your email list to promote new services, special offers, and loyalty programs.
- Upselling and Packages: Encourage existing clients to upgrade their treatments or consider bundled packages for better value.
- Public Relations: Maintain positive media presence by highlighting success stories and new treatment offerings.
MARKETING SUPPORT. Hue Light USA provides marketing packages for clinics that use our devices. Learn more about opening a clinic.
5. Define Your Patient Experience
Successful facilities deliver exceptional patient experiences that go beyond treatment. When you consider every touchpoint, you build a loyal audience and encourage repeat business.
Here are some ways to define your red light therapy patient experience:
1. Pre-Treatment
Provide comprehensive information about RLT, including benefits, potential side effects, and expected results. Consider offering a free consultation to address individual concerns and ensure the right fit.
Additionally, you should offer:
- Booking Convenience: Offer flexible appointment scheduling options, online booking capabilities, and clear communication regarding cancellation policies.
- Welcoming Atmosphere: Create a relaxing and inviting environment in your clinic. Consider comfortable seating, soothing music, and a well-maintained space.
2. During Treatment
Tailor treatments to individual needs and preferences. Discuss treatment goals and adjust settings accordingly.
- Client Comfort: Ensure treatment areas are clean, sanitized and that they are private.
- Knowledgeable Staff: Employ well-trained staff who can answer questions and provide guidance throughout the treatment process.
3. Post-Treatment
After an appointment, think about these touchpoints:
- Aftercare Instructions: Provide clear aftercare instructions to optimize treatment results.
- Request Feedback: Encourage client feedback to understand their experience and identify areas for improvement. This can be through surveys, email follow-ups, or in-person conversations.
- Loyalty Programs: Reward repeat clients with loyalty programs and exclusive offers.
Open Your Red Light Therapy Business with Hue Light USA
Expanding your wellness business or launching a new one brings its own set of challenges. Your red light therapy equipment provider shouldn’t be a source of frustration. Work with Hue Light USA.
Hue Light USA offers a variety of commercial red light therapy devices and wellness equipment. Our devices include the Whole-Body Photobiomodulation Chamber (a state-of-the-art red light therapy bed) and the Full-Body PBM Panel.
Our devices offer:
- Green, red and near-infrared wavelengths
- Optimized for precise dosing
- FDA registered
- Extended warranty coverage
- Commercial-grade LED components
- On-demand support to troubleshoot issues
- Marketing support
Join our network of providers today and Open a Clinic. We offer premium medical equipment from a wide range of wellness businesses.
