Medical Spa Financial Model

This Medi Spa Medical Spa Financial Model (5-Year, 3-Statement) in MS Excel is a comprehensive financial planning tool designed to help business owners, investors, and financial analysts evaluate the financial feasibility and profitability of a medical spa business over 5 years.

Financial Model For A Medical Spa (Medi Spa)

A comprehensive, editable, MS Excel spreadsheet for tracking Medical Spa finances, including yearly development channels and summary tabs, integrates Income Statements, Balance Sheets, and Cash Flow Statements, providing a comprehensive view of financial performance.

YOU GET? Both Versions In 1 ZIP FILE. So you can decide which one is best for you.

Both are 5-Year 3 Statement.

Version 1: 5-Year, 3-Statement financial model, with 5 standard PAYG revenue streams

Version 2: Sell your services under tiered 12-month subscriptions that increase in price as SLAs (Service Level Agreements) and monthly treatment hours/services increase.

Plus 13 Inputs for PAYG Services.

For tracking revenue from single sessions, maybe if you sell spa-branded apparel, oils, accessories, etc, in your own spa shop.

Both versions are completely editable.

Income Statement (Profit & Loss Statement)

Your Medical Spa Financial Model income statement provides a breakdown of revenue, expenses, and net profit over the forecasted 5-year period.

Revenue Breakdown

Treatment Sales: Revenue from individual treatments (Botox, Laser, Skin Rejuvenation, etc.).
Subscription/Membership Sales: Recurring revenue from membership plans (See Section 4).
Retail Product Sales: Skincare and wellness product sales.
Other Income: Referral bonuses, partnerships, or special events.

Cost of Goods Sold (COGS)

Medical Supplies: Injectables, skincare products, laser consumables.
Treatment Consumables: Gloves, syringes, numbing creams.
Technician Commissions: If staff are paid per service.
Equipment Depreciation: Amortization of expensive medical devices.

Gross Profit Calculation

Gross Profit = Revenue – COGS
Gross Margin (%) = (Gross Profit / Revenue) × 100

Medical Spa Operating Expenses

Fixed Costs:
- Rent & Utilities
- Administrative Salaries
- Insurance (Liability, Malpractice)
- Software & CRM
Variable Costs:
- Marketing & Advertising (Google Ads, Social Media)
- Staff Bonuses & Commission
- Customer Acquisition Costs
Depreciation & Amortization: Spread-out costs of medical equipment and leasehold improvements.

Net Income Calculation

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
Operating Profit = EBITDA – Depreciation & Amortization
Net Profit = Operating Profit – Interest & Taxes

Medical Spa Cash Flow Statement

The cash flow statement tracks the movement of cash within the business over the forecast period. It ensures the business maintains sufficient liquidity to cover expenses and investments.

A. Operating Cash Flow

Cash Inflows:
- Service Revenue
- Subscription & Membership Fees
- Retail Sales
Cash Outflows:
- Payroll & Staff Compensation
- Rent & Overhead Expenses
- Marketing & Advertising Spend
- Inventory Purchases

B. Investing Cash Flow

Initial Capital Expenditures:
- Purchase of medical equipment (lasers, injectables, wellness machines).
- Renovations & leasehold improvements.
Ongoing Investments:
- Expansion costs (new location, more treatment rooms).
- Replacement of old equipment.

C. Financing Cash Flow

Debt Financing:
- Loan proceeds (SBA loan, commercial loan, investor funding).
- Loan repayments (principal & interest).
Equity Financing:
- Investor contributions.
- Owner capital infusion.

Net Cash Position

Net Cash Flow = Operating CF + Investing CF + Financing CF
Ensures business does not run out of cash and remains financially stable.

Medical Spa Balance Sheet

The balance sheet provides a snapshot of the medical spa’s financial health, listing assets, liabilities, and equity.

A. Assets

Current Assets:
- Cash & Bank Balances
- Accounts Receivable (Pending payments from customers)
- Inventory (Retail skincare, injectables)
Fixed Assets:
- Medical Equipment (Lasers, Injectables, Body Contouring Machines)
- Leasehold Improvements
- Office Furniture & Fixtures

B. CAPEX / OPEX Examples

CAPEX
- Laser and Light-Based Microneedling Devices
- Therapy Beds
- Injectables Inventory
OPEX:
- Salary Expenses
- Supplies and Materials
- Travel Expenses

D. Liabilities

Short-Term Liabilities:
- Accounts Payable (Vendor invoices, rent, utilities)
- Short-Term Loans or Lines of Credit
- Deferred Revenue (Subscription fees paid in advance)
Long-Term Liabilities:
- Business Loans
- Equipment Financing

E. Medical Spa Equity

Owner’s Investment: Capital contributed by founders.
Retained Earnings: Profits reinvested in the business.

Key Financial Metrics & Projections For A Medical Spa

Medical Spas Revenue Growth Rate (CAGR over 5 Years)
Break-Even Analysis (Months to Profitability)
Return on Investment (ROI) & Payback Period
Net Present Value (NPV) & Internal Rate of Return (IRR)

When structuring revenue ideas for a medical spa, it’s important to organize them in a way that aligns with customer requirements, market demand, and efficiency.

Reasons for Using a Medical Spa Financial Model:

Medical Spa: Strategic Planning
- Project future spa revenues and expenses
- Set financial goals and track spa performance
- Assess profitability of services
- Plan expansion and new spa service offerings
Medical Spa: Risk Management
- Identify spa financial risks early
- Model various spa business scenarios
- Optimize spa cash flow management
- Create contingency plans for downturns
Medical Spa: Investor Relations
- Present clear financial projections
- Justify spa funding requests
- Demonstrate medical spa market opportunity
- Show the spas return on investment potential
Medical Spa: Performance Monitoring
- Track actual vs. projected spa performance
- Analyze revenue per treatment or spa service
- Adjust the medical spa marketing strategies based on data
- Refine spa pricing strategies for maximum profitability

4 Sub-Reasons for Using a Medical Spa Financial Model:

Forecasting Revenue and Expenses: Predict future financial performance to make informed business decisions.
Optimizing Pricing Strategies: Analyze profitability and adjust pricing for services and products.
Tracking The Medical Spas Key Metrics: Monitor KPIs like client retention, average spend, and service popularity.
Planning for Growth: Identify opportunities for expansion, staffing, or new service offerings.

6 Tier Subscription Model For a Medical Spa

A subscription-based revenue model provides recurring income, increasing business stability. The tiers cater to different customer needs.

Tier 1: Basic Spa Glow Membership

10% discount on all services.
1 free skin consultation.
Priority booking.

Tier 2: Bronze Wellness Spa Membership

1 complimentary facial or peel per month.
15% discount on all services.
5% discount on retail products.

Tier 3: Silver Rejuvenation Spa Membership

1 advanced treatment per month (Hydrafacial, Microneedling).
20% discount on injectables.
10% discount on retail products.

Tier 4: Gold Anti-Aging Spa Membership

1 premium treatment per month (Botox, PRP).
25% discount on all additional treatments.
15% discount on retail.

Tier 5: Platinum VIP Spa Membership

2 premium treatments per month.
30% discount on all services.
20% discount on retail.
Free skincare consultation quarterly.

Tier 6: Elite Concierge Spa Membership

Unlimited Botox & Filler touch-ups.
VIP concierge access (after-hours booking).
35% discount on all additional services.
Exclusive access to luxury skincare products.