How to Start a Medical Spa: A Complete Guide for Wellness Entrepreneurs

The medical spa business is booming. In 2022, there were 8,841 medical spas in the U.S., a 19% jump from 2021, according to data from the American Med Spa Association.

And demand continues to rise. Millennials and Gen-Z now prioritize anti-aging (or pre-juvenation ), and 60% of consumers across all age groups say healthy-aging and longevity is “very” or “extremely” important.

For entrepreneurs or passionate medical professionals, a strong business case can be made for opening a medical spa. On average, a single-location spa generates nearly $2 million in revenue per year. And patients spend more than $500 on average per visit.

However, starting a medical spa can be complex and competition is growing. Success requires significant capital, cutting-edge medical devices, strong marketing, and a variety of licenses. Therefore, before jumping into medical spa business planning, it’s important to familiarize yourself with the challenges that lie ahead, including:

  • Medical spa legal requirements
  • Pros and cons of opening a medical spa
  • Start-up costs / revenue estimates
  • Differentiating your business

If you want to learn how to open a medical spa, our start-up guide offers tips, insights and proven strategies for launching a med spa business.

What Is a Medical Spa?

A medical spa, or med spa, combines the tranquility of a day spa with the expertise of medical professionals. Think of it as a one-stop shop for relaxation and rejuvenation.

Med spas offer a variety of non-surgical cosmetic procedures (called medical aesthetics) alongside classic spa treatments like massages and facials. Commonly, physicians own or supervise a medical spa, which allows the clinic to offer minimally invasive treatments like:

  • Botox injections and facial fillers
  • Laser hair removal
  • Chemical peels
  • Microneedling
  • Dermabrasion
  • IV therapy

The industry is constantly evolving. Emerging skincare treatments like red light therapy, hydrogen baths, and hydrogen inhalation (an adjunct to IV treatments) have grown in demand on spa menus, for example.

Owning a Medical Spa: A Growing Opportunity

If you have a passion for wellness, or have identified a market need, there are many pros to opening a med spa. However, there are challenges too.


  • Profit Potential: On average, medical spa patients spend $530 per visit. And generally, those services have high margins (of 20-40%).
  • Growing Demand: According to McKinsey, more than 80% of Americans now consider wellness a top priority. Consumers are also starting aesthetics treatments earlier, and men have also increased their spending on integrative health.
  • Recurring Revenue: Most medical spas use a recurring revenue model, based on packages of sessions. Some spas also offer membership-like agreements to maximize monthly recurring revenue.


  • Regulations: This is the most critical step: Navigating the legal landscape and complying with state regulations regarding ownership and medical staff qualifications.
  • Competition: The med spa industry is becoming increasingly competitive. Successfully opening a medical spa requires differentiation and strong marketing.
  • Startup Costs: Opening a medical spa requires investment in equipment, staff training, licensing, and marketing. Careful planning and financial resources are essential for success.

Step 1: Legal Requirements for Starting a Medical Spa

Medical spas treatments are more in-demand than ever. However, this unique opportunity comes with a caveat: many med spa services fall under the umbrella of medicine. State laws differ, especially regarding ownership.

Corporate Practice of Medicine

Each state has different requirements when it comes to the corporate practice of medicine (CPOM).

What is it? CPOM are laws prevent corporations (businesses not owned by doctors) from directly running medical practices or employing doctors.

Why are they in place? The main goal is to make sure medical choices are based solely on what’s best for the patient, not on a corporation’s desire for profit. This helps keep the doctor-patient relationship strong and free from outside influences.

The Bottom Line: CPOM laws vary by state, but they all aim at the same thing: protecting patients by ensuring medical decisions are made by qualified professionals, not corporations.

Medical Spas: Additional Legal Considerations

In addition to ownership, here are two key areas of legal compliance to familiarize yourself with:

  • Diagnosis: Who can legally assess a patient’s needs and determine if a specific med spa treatment is suitable? This often requires a medical professional like a doctor or nurse practitioner.
  • Treatment Providers: Who is legally qualified to perform the actual med spa procedures? Depending on the level of invasiveness and complexity, this could be a doctor, a nurse under a doctor’s supervision, or a licensed aesthetician with proper training.

Ensure your med spa operates within the boundaries set by your state and prioritize patient safety. This is a crucial requirement for building trust and achieving long-term success.

Opening a Medical Spa: Business Checklist

Launching a medical spa requires careful planning and execution. Once you’ve sorted the legal requirements, create a business plan. This outlines some of the key points for success.

Here’s a checklist to guide you through the key steps:

1. Craft a Comprehensive Business Plan

This forms the foundation of your medical spa. Your plan should outline your concept, target market, competitive analysis, financial projections, and marketing strategy.

Remember a business plan is your roadmap. It can change, as your priorities change. But it’s helpful for understanding your vision.

2. Secure Funding

Start-up costs are the most significant. Depending on the size of your clinic and the treatments you will offer, costs can quickly add up. Here’s a ballpark estimate, based on med spa size:

  • $50,000 to $100,000: A starting point for a smaller spa with basic equipment and a limited menu.
  • $250,000 to $500,000: Mid-sized spas offer a broader range of treatments, may employ more staff, and generally have more equipment costs.
  • $750,000 or more: High-end spas with luxurious amenities, advanced equipment, and a comprehensive service menu can reach this level or even surpass it.

3. Find the Ideal Location

Location plays a crucial role in attracting clients. Choose a space based on accessibility, demographics in the local community, visibility, and proximity to complementary businesses.

4. Outline Your Treatments

Your treatments and menu will define your business. One tip: Specialize. Choose an area of aesthetics or anti-aging where you can be the market leader. Several of our partner clinics have experienced strong results by combining and bundling services, by offering:

  • IV therapies with molecular hydrogen inhalation – Hydrogen inhalation increases circulation, increasing the bioavailability of the IV.
  • Skincare treatments and red light – Red light naturally complements skincare treatments, with evidence showing it stimulates collagen production and reduces fine-lines.
  • Anti-aging menus – Offer longevity bundles can help you maximize revenue and patient outcomes. This would combine services like Botox, microneedling, and chemical peels, with offerings like red light therapy and hyperbaric oxygen therapy.
  • Hydrogen baths and skincare treatments – Hydrogen-infused baths are a natural skincare treatment that’s long been popular in Japan.

Ultimately, you want to become the go-to source for anti-aging, skincare, aesthetics, etc. Therefore, choose clinically backed treatments that can help you market your spa and build your reputation as the source.

5. Invest in Quality Equipment

Reliable and up-to-date equipment is critical for success. Generally, choose commercial equipment – like a red light therapy bed – and work with companies that offer:

  • Support and troubleshooting
  • Warranties
  • Training
  • Marketing materials

A strong medical device partner doesn’t just sell you equipment. They provide marketing support to help establish your clinic as a leader.

6. Assemble a Skilled Team

Recruit qualified medical professionals (doctors, nurses) and experienced aestheticians to deliver safe and effective treatments. Invest in training to ensure your staff stays current on the latest techniques and technologies.

7. Establish a Marketing Plan

Your spa’s business plan should also include an outline for a marketing program. The majority of clinics, for example, invest heavily in digital advertising (social media, search, etc.) and build strong in-bound marketing programs.

Here are some guidelines for launching your spa with marketing:

1. Highlight Medical Expertise: Feature doctor recommendations and science-backed treatments in marketing materials.

2. Package Deals: Offer discounted bundles for multiple sessions to attract new clients.

3. Respond Like a Pro: Automate responses and streamline booking to ensure prompt communication with potential clients.

4. Be a Social Media Star: Utilize platforms like Instagram and TikTok with influencer partnerships to showcase results and build online buzz.

5. Create a Welcoming Oasis: Invest in a comfortable environment and personalized consultations to build patient trust and loyalty.

How Profitable Are Medical Spas?

Commonly, a medical spa business can be lucrative. However, there are some factors that can affect profitability.

First, here are some baselines that can help drive profitability:

  • High-Profit Services: Injectables, laser treatments, and body contouring procedures offer high profit margins.
  • Variable Costs: Staff salaries, rent, equipment, and marketing are major expenses.
  • Profit Potential: Aim for a 20-40% profit margin.

Additionally, these are the three biggest factors that can affect a newly opened medispa’s profitability:

  • Client Base & Volume: More loyal clients and frequent visits mean more revenue.
  • Location: Wealthy areas with high foot traffic are ideal, however real estate costs will rise.
  • Operational Efficiency: Minimize costs and maximize productivity to boost profits.

Bottom line, a strategic approach + in-demand services + controlled expenses = financial success!

Wrapping Up 

The medical spa industry is booming, fueled by a desire for non-surgical beauty treatments and preventative wellness. This creates a lucrative opportunity for entrepreneurs and medical professionals.

However, success requires a plan. You’ll need to navigate regulations, secure funding, and find a great location. Standing out involves specializing in a unique area, offering bundled services, and using high-tech equipment. Building a strong team and employing effective marketing strategies are also essential.

With dedication, planning, and a focus on patient care, your medical spa can become a thriving business and a wellness destination.

Want to learn more? Explore our resources for proven strategies to launch and grow your medical spa! Hue Light USA offers state-of-the-art longevity care devices and bespoke marketing materials to medical spas in the U.S.


The answer depends on your state's regulations on Corporate Practice of Medicine (CPOM). However, here is some general guidance:

  • CPOM Restrictions: Many states have CPOM laws that restrict corporations (businesses not owned by doctors) from directly owning or profiting from medical services.
  • Solutions: There are workarounds depending on your state. Some corporations may use a Management Services Organization (MSO) model. An MSO provides non-medical services like marketing and management, allowing the corporation to be involved without directly owning the medical practice.
  • Best course of action: Research the specific CPOM regulations in your state before opening a medical spa. Consult with a lawyer specializing in healthcare law to ensure you comply with all legal requirements.

Here's how you can ensure the safety and efficacy of treatments at your medical spa:

  • Hire the best: Recruit qualified medical professionals and trained aestheticians for your specific services.
  • Top-notch equipment: Invest in reliable, up-to-date devices with proper approvals.
  • Safety first: Implement strict hygiene protocols and follow best practices for every treatment.
  • Keep learning: Ensure your staff attends ongoing training to stay current on the latest techniques.
  • Careful consultations: Screen patients thoroughly to assess suitability and identify any risks.
  • Honesty is key: Be upfront about potential side effects and realistic results with your patients.
According to industry estimates, BOTOX and other injectables and fillers are the most common and in-demand treatments. However, additional treatments like CoolSculpting, chemical peels, IV therapy, and red light therapy are also common menu items in medical spas.

Disclaimer: The information provided here is for educational and informational purposes only and is not intended as a direct reference to any products offered by Hue Light USA or any specific brand. We do not claim that our products can achieve the effects or benefits discussed in this content. This information should not be interpreted as medical advice or as an endorsement of any specific product or treatment. We encourage readers to conduct their own research and consult with a qualified healthcare professional before making any decisions regarding their health or wellness regimen.

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