How to Start a Med Spa Business

As more people seek subtle, non-invasive ways to enhance their appearance, the med spa industry is projected to soar from its $74 billion in 2025 to over $100 billion by 2029.

While opening a med spa can be enriching, given the industry's rapid growth, it requires careful planning, industry knowledge, and compliance with medical regulations.

If you're considering starting a med spa, this article covers everything you need to know to get started, with practical tips to help you plan, launch, and attract patients. 

Step 1: Build a plan and research the market

Before you dive into the logistics, it's important to have a clear vision of what you want your med spa to be. Defining your niche will help you create a strong brand identity and attract the right patients.

Here are three elements you’ll want to have clearly defined before you get started:

• Target audience:  Try to get into the mind of your ideal patient and what they’re looking for. Are you focused on injectables, skin treatments, or advanced devices? Are you offering a no-frills, affordable service, or a luxurious experience for busy patients who want to unwind? Your services, pricing, and setup should all match the persona of the people you want to walk through the door.
• Competitive analysis:  Search online for other med spas in your area. What services do they offer? What isn’t offered? Pinpoint gaps in the market you can fill or ways to differentiate your brand.  For example, if there are plenty of clinics offering a wide range of services, your clinic could niche down on being the best place for injectables or hair removal. 
  
• Business planning:  Once you’ve determined the direction you want to take your spa, you can create your business plan. This should include your market research, a competitor analysis, and financial projections (more on financial projections soon). A well-thought-out business plan will help guide your decisions and secure financing if needed.  Once you have your plan, you’ll need to ensure that everything you intend to do is legally compliant.

Step 2: Understand licensing, compliance, and medical oversight

Before you open your doors, your med spa must be fully compliant, both legally and operationally.

Here are the five basics you’ll need to understand to navigate this:

• Business structure: You’ll need to choose a way to structure your business in a way that suits your needs. Two common choices are an LLC or an S Corp.  You’ll also want to keep in mind that most states follow CPOM rules, which means that non-physicians can’t directly profit from medical treatments. This doesn’t mean you can’t start your med spa; it just means you’ll need to connect with a Management Services Organization (MSO). An MSO handles the non-clinical side of your business, so that the medical side stays under the supervision of a licensed professional, while you focus on running the business.
• Licenses and permits:  Every state has different legal requirements, so you’ll need to check your local laws. This will affect which licenses are required and who, and with what accreditations, can legally perform the treatments at your med spa.  Working with a provider like Fresh Clinics helps you get the paperwork right from the start, taking a huge weight off your shoulders.
  
• Medical oversight:  A Good Faith Exam (GFE) is something your med spa needs to do for patient safety. It’s a medical consultation done before treatment, and only qualified professionals like physicians, PAs, or nurse practitioners can perform them.
• HIPAA and OSHA compliance:  The Health Insurance Portability and Accountability Act, better known as HIPAA, protects patient information from being shared without consent. Managing this data securely isn’t optional; it’s a legal requirement.  You'll also need to meet OSHA standards to ensure a safe, professional working environment for your staff.
• Insurance: It’s important to protect your business with the right insurance. At minimum, you’ll need to have professional liability, general liability, and workers’ compensation insurance. Most insurance providers will have plans specifically designed for aesthetic services.  Now that you’ve covered your legal bases, you can develop a plan for funding, budgeting, and maintaining the financial health of your med spa.
  

Step 3: Build a plan for long-term profitability

You’ve got the vision, the compliance, and the groundwork. Next, you need to ensure your plan will be profitable.

• Startup costs: Setting up a new business, especially a med spa, comes with significant upfront costs. This is your initial investment, which will return dividends in the years to come. To start, you’ll need treatment equipment, an interior build-out, rent, medical supplies, software, staff training, insurance, and marketing. This can add up quickly, so defining your budget at the start will help you feel confident about what you can and can’t invest in initially.
• Funding options:  There are a few ways to fund your med spa. You could use personal savings, a business loan, or outside investment. Each one comes with trade-offs.  If you’re planning to borrow money or pitch to investors, you’ll need to show them exactly how your business will work and why it’s worth backing. It’s a good idea to speak to a financial advisor to figure out what funding suits your situation best.
• Profitability:  Med spas can be hugely profitable, but the level of profitability and how long it takes to get there won’t be the same for every business. Your profit will depend on things like location, costs, pricing, and how well you bring in and keep patients. Services like injectables, laser treatments, body contouring, and skin-tightening packages tend to offer the best margins, especially when they’re booked as part of a treatment plan.
• Patient retention:  Getting patients through the door is one thing, but getting them to come back is what builds your business. Patients are more likely to return when they trust your care, feel good about their results, and have a consistent experience. They’re also more likely to refer friends, which is a free and effective form of marketing. A strong financial plan isn’t only about the initial launch, it’s about long-term sustainability. Now, let’s look at the practical logistics of opening your med spa.
  

Step 4: Location, setup, and equipment

Where you open and the equipment you use will shape both your client experience and daily operations.

Here are some decisions you’ll need to make before you open your med spa:

• Choosing a location:  Look for a space that’s within your price range, accessible, and close to your ideal patients.  Consider parking, surrounding businesses, and whether the area fits your brand. If you're targeting suburban areas, you’ll want plenty of parking and a quieter setting. If you’re aiming for professionals, choose a spot near office buildings so they can pop in after work or during their lunch break.
• Med spa design:  Your layout should feel calm and professional. Chaotic or overly playful spaces can make clients feel uneasy, especially in a medical setting where it’s all about trust. Your space should feel comfortable, meet health and safety standards, and support a smooth workflow for your team. Consider providing comfortable seating in the waiting room, low-volume calming music, a designated area for returning medical forms to your staff, or light reading options.
• Equipment and supplies:  Choose quality equipment you can trust. Cheap devices might cut it short-term, but they’re more likely to fail or give your patients inconsistent results. This will ultimately cost you money, as patients will seek better results elsewhere. Stick with suppliers that are well-known and recommended in the industry.
• Software and systems:  In addition to treatment equipment, consider the software you’ll use to manage your business. From medical directorship to electronic medical records (EMR), having the right technology in place will streamline operations and help you stay organized.  On top of having the right equipment, you’ll want to hire the best people. Let’s discuss how you can hire and develop staff.

Step 5: Hiring and training staff

Your team plays a huge role in the success of your med spa, both in delivering safe treatments and building trust with patients. Here are some tips for hiring the right staff and developing them.

• Hiring qualified staff:  Everyone on your team must be properly licensed and experienced in the treatments they deliver. That includes nurses, doctors, or other medical professionals who are legally allowed to perform or supervise services like injectables and laser treatments. You can’t have someone unqualified even holding the equipment while your nurse steps out. Which is why it is so important to make sure you and your team know exactly what’s required in your state to avoid legal trouble.
• Comprehensive training:  Even experienced staff still need a proper onboarding to work in your space. Every member of your team should feel confident using your equipment, following your protocols, and knowing exactly how you want things done. The clinical side is only half the equation. It’s also about how patients are welcomed, how questions are addressed, and the consistency of care you provide. Patients will come back for great results, but just as often, they return because they felt understood and looked after. Once your team is in place and trained, the next step is to attract patients and build your brand. Let’s explore how to get started with marketing your med spa.

Step 6: Marketing and acquisition

Once you’re set up and ready to receive patients, you’ll need a plan to get them in the door. Here are three of the most common ways med spa businesses attract and retain patients. clients.

• Brand identity:  You want to have a strong, consistent brand. Your logo, website, and social media should all reflect the look and feel of your space. A professional, polished image builds trust even before patients walk in. Having an active social media also signals to potential patients that you’re still in business, even if you don’t get a huge amount of engagement.
• Digital marketing:  There are a million places you could start with digital marketing. It's best to put your budget towards bringing patients to the place you’ve already invested time in. If you already have a curated social media profile, consider paying for social ads. If it’s your new, beautiful website, try Google Ads. On these platforms, you can share the results you’ve achieved, testimonials, behind-the-scenes content, and special offers. When you have a customer's attention, be clear about what their next step should be, such as directing them to book a consultation.
• Patient relationships:  The best marketing is word of mouth. Great service, thoughtful touches, and consistent care can turn first-time visitors into loyal advocates.  Especially for more intensive procedures, make sure to follow up with a friendly email or text to check in. These little details go a long way to make your patients feel appreciated and keep you top of mind when they are looking to book their next appointment.  Once your med spa is up and running, you can start to look at best practices to ensure you get the best results from your business.
  

Best practices for running a safe, successful med spa

Starting a med spa takes time, focus, and a serious level of responsibility. Once you’re operational, these are the practices that will keep things running smoothly and your patients safe.

Keep your medical director involved: They’re not just there for the paperwork. Your medical director should be actively involved, reviewing protocols, supporting your team, and being available when issues come up.

Commit to ongoing training: This industry moves quickly. Ongoing training keeps your team confident, up to date, and ready to deliver the kind of care patients trust.

Put safety first, always: Every decision should start here. Shortcuts, unclear steps, or staff who aren’t properly trained can do real damage to your patients and your reputation.

Stay in control of your schedule: Packed days don’t mean productive ones. Build in buffer time for consults, cleaning, and follow-ups so your team isn’t rushed and your patients feel looked after.

Starting a med spa is a big step, but with the right planning and support, it can be a rewarding and sustainable business.  Remember, you don't have to navigate this journey alone. Fresh Clinics has helped med spas get up and running across the U.S., with particular expertise in Texas and Pennsylvania.

Ready to take the first step? Contact Fresh today!

FAQs

What is a med spa?
A med spa is a mix between a medical clinic and a day spa. They offer treatments like injectables (anti-wrinkle treatments, fillers), laser services, body sculpting, skin therapies like Hydrafacials, and more. All these procedures are performed under the supervision of a medical professional. It’s where the power of modern medicine meets the beauty industry.
Do I need a medical license to own a med spa?
Not necessarily, ownership requirements vary by state. In many cases, non-physicians can’t own the medical side of the business but can operate through a Management Service Organization (MSO).
What is the American Med Spa Association (AMSA)?
The AMSA offers industry updates, compliance support, and business consulting services to medical spa owners and practice managers. They’re a helpful resource when you’re new to navigating the rules and regulations. 
Is it possible to lease the equipment instead of buying it?
Yes. Leasing equipment is an option to help lower your startup costs, but buying the equipment may offer better value in the long term. Either way, work with reputable suppliers and check what’s included in the contract.