![]() ![]() The carrying cost of $1,000,000 over three years, using the average rate of return from the market, are close to $250,000. Even when many product vendors extend 30-90 days of credit, many others have fallen on a hard time too and started on demanding cash payments for their products. If a physician is going to open a medical spa, they have to approach it as a small business venture and be committed to staying with it for a minimum of 3 years before they see many financial returnsįor most of the clients, we worked with in this field, the startup cost for an operation to make over $1,000,000 in revenue per year, the startup cost before one opens the door is already well above $1,000,000 for the location renovation, deposit for a premium location, initial product ordering (e.g., the injectables are not cheap). Start-up costs for medical spas are between $700,000 and $1,000,000. Myth 1: “It is easy to recover the investment on MedSpa as it is a super lucrative business.” (Feel free to click on each myth to expand on the one(s) to learn the “reality”. For those who might be feeling the headwind, use this list to start planning some mitigation actions. It serves as “gut checking” for these before making the commitment to owning a Med Spa. So, we give the 10 most popular “myths” well-publicized, a reality check. Unfortunately, from the cases observed on the ground, especially after the COVID19 pandemic, we found a lot of “caveats” that would have rendered the above rosy outlook extremely misleading. “… even during the COVID19 period, many of the Med Spa still flourished…” The market is forecast to grow 18% per year.” “Data estimates that revenues of medical spas in 2012 were $1.94 billion and will hit $3.6 billion in 2016. “The average medical spa brings in $1 million per year according to the AmSpa 2019 Medical Spa State of the Industry Report, and top practices can approach $4–$5 million.” Most of those who made the plunge were inspired by the following “claims” from sources like. Amongst them, a small proportion even becomes the sole owner or co-owner of the Med Spa itself. Some of them become medical directors for Med Spas in the last few years for a monthly fee of $3,000 – $6,000 depending on the level of involvement. ![]() With the high burnout and ever-decreasing reimbursement rates, more and more physicians are looking beyond their core clinical roles for their practice growth. ![]()
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