Essential spa and beauty tools for your own spa business, including skincare products, brushes, and applicators, set against a vibrant orange backdrop.
“Newly divorced — and a medical spa owner — I kept going over the financial spreadsheets,” recalls Eileen M. Fleer, RN, BSN, owner of ALC Medspa in Gurnee, Illinois. The initial days of owning her Own Spa were filled with financial anxieties. “What if I can’t pay myself a living wage? I had four kids to care for. What if I couldn’t pay rent or our health insurance bills?” The weight of these questions led to sleepless nights, constantly recalculating and considering the daunting prospect of closure.
Eileen’s entrepreneurial spirit was ignited back in 2004 when she and her then-husband invested in a laser hair removal and microdermabrasion franchise. “Laser hair removal was hot,” she explains, “and as a nurse performing the treatments, I was always busy.” Recognizing the need for business acumen, she brought in her sister-in-law to manage operations. Within a couple of years, their offerings expanded to include skin rejuvenation and intense pulsed light (IPL) photorejuvenation, marking significant business growth.
The allure of owning her own business was undeniable. After years working as an RN in the ER and ICU, followed by a decade dedicated to raising her children, the med spa offered a renewed sense of purpose. “I was going to work with a new passion. The money and the flexible schedule were exactly what I wanted. I was my own boss.” Furthermore, providing aesthetic treatments was a natural fit, allowing her to leverage her nursing skills in a transformative way, helping clients enhance their well-being and confidence.
Initially, with her husband’s stable income as a doctor, Eileen reinvested all spa earnings back into the business. However, divorce shifted the landscape dramatically. “Suddenly, without my husband’s salary to fall back on, owning a med spa was potentially terrifying.” Fear and anxiety became constant companions, with worst-case scenarios playing out in her mind during countless restless nights.
Fast forward to today, and Eileen’s med spa is a thriving 14-year-old success story. A pivotal moment was separating from the franchise in 2006, granting them the freedom to diversify their services. “In fact, business has been so good, I’m about to open a new location!” This expansion is a testament to her resilience and strategic vision in the competitive spa industry.
Getting Started on Your Own Spa Venture
For those dreaming of owning their own spa, understanding the initial steps is crucial. Eileen’s journey began with a $120,000 loan, covering the $40,000 franchise fee and $80,000 in equipment leases. The franchise model provided a structured business plan, simplifying the initial setup.
Key priorities for any new spa venture include securing an ideal location, building a skilled team, and ensuring legal compliance. Eileen opted for a discreet, three-room suite in a professional building. “It was tiny and private, at a time when most people were still very secretive about getting aesthetic treatments.” This intimate setting resonated with clients seeking privacy. Initially performing all procedures herself, the demand quickly necessitated hiring another nurse within the first year, with bookings stretching weeks ahead.
Navigating the legal landscape of med spas in 2004 was challenging, as regulations were unclear. Her initial business attorney lacked med spa expertise, prompting Eileen to seek guidance from the American Med Spa Association (AmSpa). Securing professional liability insurance for licensed providers (nurses and aestheticians) and a comprehensive business owner’s policy for broader risks (worker’s compensation, property damage, etc.) were essential steps in establishing a legally sound and protected business.
Embracing Independence and Growth in Your Own Spa
The decision to break away from the franchise marked a turning point, unlocking new possibilities for Eileen’s spa. “All of a sudden, the world was our oyster! I didn’t have to answer to the franchise and do it their way anymore.” This newfound independence allowed for service diversification, including popular treatments like Botox and fillers, aligning with Eileen’s vision for a comprehensive and client-focused spa.
A critical aspect of operating a med spa is having a medical director. This collaborating physician is necessary for legally acquiring medical equipment and prescription injectables, though regulations vary by state. While her then-husband initially filled this role, the divorce necessitated hiring a plastic surgeon, adding a significant expense to the business.
Thriving Today and Planning for the Future of Your Spa
Eight years removed from those financially uncertain nights, Eileen’s med spa is flourishing. The services added post-franchise, particularly Botox, fillers, and medical-grade facials, now dominate their revenue streams. “Botox, fillers, and medical-grade facials are what people are looking for today, and they no longer need plastic surgeons to perform them.”
The journey hasn’t been without its hurdles, particularly in time management. Balancing the demands of being the primary injector with business growth proved challenging. “There have been times when I’ve felt spread so thin that I was having anxiety, feeling like I was letting everyone down. As the main injector, I was consistently booked solid and wasn’t able to focus on growing the business. I was only getting through the day-to-day.”
A year ago, Eileen strategically transitioned out of the treatment room. Now managing a team of RNs, NPs, and aestheticians, she can dedicate herself to business development. Hiring support for social media, Google Ads, and SEO further streamlines operations and enhances online presence, essential for attracting new clients to your own spa. Currently, her focus is split between launching a new spa location and enjoying personal milestones, like attending her children’s sporting events.
While her role has shifted towards business management, Eileen emphasizes that her nursing background remains foundational. “Truly caring for our patients is at the core of my office culture. It impacts who I hire and how I treat everyone who walks through my door.” This patient-centric approach is a key differentiator in building a successful and reputable spa.
Key Lessons for Aspiring Spa Owners
Eileen’s most crucial advice is to “follow your passion and open a med spa for the right reasons. Don’t go into it for the money.” Owning your own spa is demanding, a “24/7 responsibility” that requires genuine dedication.
Personal sacrifices are inevitable. “I’ve had to ask friends to stay at my house to take care of my kids when I was working late nights. I’ve also missed my kids’ performances and sporting events because loyal customers needed me.” Loving what you do becomes essential to navigate the inevitable ups and downs of business ownership.
6 Essential Tips for Med Spa Entrepreneurs
For those venturing into owning their own med spa, Eileen offers six invaluable pieces of advice:
1. Prioritize Injectables and Facials Initially
“If you’re starting out, focus on the injectables and facial services, which don’t require expensive equipment.” These services offer a quicker return on investment compared to costly laser hair removal or CoolSculpting equipment. Starting with Botox and fillers can significantly reduce initial loan requirements, potentially down to around $10,000.
2. Simplify Business Plan Creation
“Don’t get overwhelmed by the idea of writing a business plan.” Numerous online templates are available to guide you. The plan serves as a roadmap for your vision, even if the rapidly evolving industry necessitates adjustments. Documenting your five-year goals is a valuable starting point.
3. Conduct Thorough Due Diligence
“Take the time to do your homework.” Meticulously research and estimate rent, staffing costs, service offerings, insurance rates, and equipment needs. Comprehensive financial planning, including startup fees (legal counsel, renovations), is crucial for accurate budgeting and financial stability.
4. Leverage Industry-Specific Resources
“If you need help with your business plan or need legal counsel, check out AmSpa’s services.” Their specialized attorneys understand the unique nuances of the med spa industry, offering reliable guidance and support in navigating legal complexities.
5. Prioritize Cultural Alignment in Hiring
“Before you hire anyone, make sure you’re like-minded as far as mission and culture go.” Assess potential hires based on their patient care philosophy and passion for the industry. While skills can be taught, a strong cultural fit and genuine passion are inherent and vital for team cohesion and client satisfaction in your own spa.
6. Invest in Robust POS Software
“When you’re looking for equipment for your med spa, think about getting POS software to help with scheduling and managing client relationships.” Systems like Booker and Millennium streamline operations, handling scheduling, client management, payment processing, reporting, and marketing communications, essential for efficient spa management.