![]() Then, compare the COGS (Cost of Goods Sold) to the volume of patients to check for profitability. First, identify what procedures you’ll offer at the new location. Knowing what services you offer-and what percentage of your business they make up-helps maximize your med spa revenue. This might include accounting, legal paperwork, med spa consulting, and utilities. ![]() Other big bucket expenses to consider are professional fees. When it comes to staffing, how many employees do you need? How much will they be paid, and how quickly do you need to ramp up production per revenue for the numbers to make sense? When you choose a credit card company, check what they charge for fees. When your business makes a lasting impression, patient retention stays high and you can compound the patient flow with both returning and new patient visits.Īnother cost could be credit card processing. Advertising, sponsorships, and print materials cost money-but it’s worth the investment. But your new location will need to gain traction in the new part of town and among new clientele. You might benefit from word-of-mouth of your other location’s customers. You might spend $350,000 on equipment, $150,000 on working capital, and $200,000 to $250,000 on construction.Īs for marketing, consider the cost of getting patients through the door. $500,000 to $700,000 is a common ballpark we see for a buildout budget. Now, it’s time to dig into the opening costs of your next med spa location. How many rooms do you need? What equipment do you need in each room? It’s worth knowing the total expense of your rent and buildout. What does that ramp-up look like? Do you have to be open five days a week? Or can you start by opening two or three days a week with your current provider and increasing your schedule in future months?įinally, compare your new space to your med spa’s service mix. Next, estimate the number of patients per day and the revenue per patient. Plus, you can see how much loss you’ll face in the beginning and if you’re comfortable with it. You’ll want to understand what the ramp-up to a breakeven point entails. Start by creating two years’ worth of projections. Calculate Projections for a Med Spa Pro Forma ![]() ![]() Skytale helps our clients put together a pro forma for the future. Think of it like a roadmap that tells you where you’re headed and how to get there. Pro formas might include balance sheets, income statements, and cash flow statements.Ī med spa pro forma is critical for determining the success of your medical spa growth. It’s a forecast that can guide decisions and help take multiple scenarios into account. What Is a Med Spa Pro Forma?Ī pro forma is a financial statement that predicts a future-or hypothetical-situation. What is the cash outlay going to be to build out a new space? How will you lock in a lease? What are the upfront costs of opening? Do you understand the working capital requirements, and can you go get funding from the bank?īefore we get ahead of ourselves, let’s start with a quick definition. ![]() This is where a med spa pro forma comes in handy. As the saying goes, “Those who fail to plan, plan to fail.” When our clients at Skytale tell us they’re ready to scale their med spa, we want to nail down a few important details first. ![]()
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