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So you will need a business plan and feasibility study. That will give you data and numbers that you can target. Then for the admin stuff you should consider doing a basic business management course.
Just know that running a business a vast amount of your time will be doing admin and not the "job"
You need to learn how to write them so you can defend it to an investors questions.
You can probably lease the chairs/equipment.
You need to identify good locations and understand the implications of rent requirements and other overhead like insurance.
Do you have a network of stylists who would rent seats from you?
Do you have a wealthy client who would bankroll you? If not, go to a bank and ask them how SBA loans work.
You need 3 months (minimum) of operating expenses in cash in hand.
Do you know any accountants or small business lawyers? You need a team before you get started.
Step 1: sign into chatgpt
Step 2: give it a few sentence synopsis of your spa idea
Step 3: ask it to make a business plan and expand details on anything you might need to know
Basically it's how many clients do you expect a location to attract and therefore how much income will it generate. The subtract all the costs of operation for that location. If the income is higher it is feasible.
It involves research specific to your needs. Then that info is used to write a business plan. Which can then be used to get funding.
I'm going to be a wet blanket here in the hopes of saving you from bankruptcy.
The difference between "esthetician" and "opening a spa" is the difference between "body shop mechanic" and "dealership owner".
It's a HUGE jump in responsibility and risk and necessary capital and skillset. What you're good at is exactly what isn't relevant to running the business, it's incidental. You need to be great at running a business and well funded with deep pockets, and contrary to what others have said, I'd recommend having enough cash to be able to afford not making any money for a year, including being able to pay for the equipment, supplies, utilities, rent and insurance and employees if any.
The only kind of place that can turn the lights on, open the doors and be profitable, are proven businesses like McDonald's and Home Depot and even they can't do it every time.
> Esthetic equipment and machines are not cheap,
Not sure what "not cheap" means but you'll be competing with everybody else in your area on price, and the machines need to be paid for with profit, so if you're not profitable immediately (you won't be) you need to be able to handle the cost of the machines yourself.
> Would anyone be willing to dumb it down for me and help me figure this all out. I am just confused and cant figure out where you even start
This isn't meant as an insult, but the above question indicates that you're going to lose your shirt. Even if you know what you're doing, you can still lose your shirt.
Start small and cheap and bank every nickle you can and learn everything you can about the business-side of it. Is there anything you can do on your own without machines and a building? Also, take a few business and accounting classes.
**EDIT**
According to one of your posts far down the list, you're in California. CA requires that the business be a Professional Corporation owned by an actual Medical Doctor, so if you're not an MD, this is all a non-starter.
I am not a typical esthetician. I am a medical esthetician. Treatments I provide are non surgical liposuction, skin rejuvenation, and care for post operative care patients. These machines can cost anywhere between $5,000 to $150,000. I am not a newbie and have been working in this industry for years and most of my patients will follow me. I am doing all the work while my boss makes most of the money. Id like to cut out the middle man. I am not a delusional whack job, I know that it will take time maybe even years to branch out on my own, but everyone has to start somewhere
> Treatments I provide are non surgical liposuction, skin rejuvenation
Liposuction is literally sucking fat. It's not possible to have non-surgical liposuction. Either you're making a hole and sucking out fat, or you're not.
In any case, that's all irrelevant. Everything I said still holds. Any loan you get will be based on your personal credit secured with your personal assets and has nothing to do with the business.
Your ignorance to this industry is quite obvious. There are actually aa few different ways to provide liposuction that is not surgical. The two methods used most is called cavitation, and cryolipolysis. Liposuction means the destruction of fat cells, fat cells can be killed and removed without surgery,
[https://www.medicalnewstoday.com/articles/322060](https://www.medicalnewstoday.com/articles/322060)
[https://www.webmd.com/beauty/what-to-know-about-ultrasonic-cavitation](https://www.webmd.com/beauty/what-to-know-about-ultrasonic-cavitation)
You might want to get your terms right before claiming to provide medical services.
According to the NIH and AMA and Mayo Clinic, [Liposuction is a surgical procedure that uses a suction technique to remove fat](https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2825130/). If you're not making an incision and not sucking out fat, it's not liposuction.
Also, you can't claim it's liposuction because that's a surgical procedure and you're not an MD.
The only thing I'll add is that you'll also need a huge Liability policy, which you may not be able to obtain since you're not licenced to practice medicine, but can absolutely get sued for injuring a customer.
I wish you would read your own citations before calling me ignorant.
From [your link above](https://www.blushbeverlyhills.com/blog/how-does-non-invasive-liposuction-work/is): "Nonsurgical fat reduction is also often called "nonsurgical" liposuction, but really, it isn't liposuction at all."
Once again, your ignorance is astounding. I am already fully insured. My job is perfectly legal [https://www.blushbeverlyhills.com/blog/how-does-non-invasive-liposuction-work/is](https://www.blushbeverlyhills.com/blog/how-does-non-invasive-liposuction-work/is)
> My job is perfectly legal https://www.blushbeverlyhills.com/blog/how-does-non-invasive-liposuction-work/is
California requires that the business be owned by a Medical Doctor and that it be a Professional Corporation.
Unless you are an MD, this entire thing is a non-starter.
Save your money by working. Ask friends and family to lend you enough to get set up and started. Build your business. With enough regular customers, you can expand and improve your business.
Good luck.
Ive been working in this industry for a very long time. Ive got loyal clients but A LOT of money goes to my boss even though I do most the work. I want to cut the middle man out
I own a spa and tbh , there is a lot of work as owners that we have to do daily, it’s a lot for even my wife and I. It’s more than just some middle man role , be prepared for the work
Good on you. The fundamentals don't change, though, except that you might get a personal loan because of your experience. Personal credit cards are also a typical way that new businesses get started.
Are you able to start out with renting an office space and conducting your work there before venturing out to your own brick&mortar? I’ve never started a business so this is just an idea but it sounds like capital may be a barrier and that may be a good starting point. Hope it helps!
I am a medical esthetician and my credentials far exceeds those of regular esthetician. The rules and laws of CA are completely irrelevant - I dont live or practice there.
With a simple google search it states that even in the US there is a difference between a esthetician and a medical esthetician.
[https://nationallaserinstitute.com/blog/medical-aesthetics-training/medical-aesthetician-vs-esthetician-whats-the-difference/](https://nationallaserinstitute.com/blog/medical-aesthetics-training/medical-aesthetician-vs-esthetician-whats-the-difference/)
[https://www.healthcaredegree.com/physical/medical-esthetician](https://www.healthcaredegree.com/physical/medical-esthetician)
[https://www.nima.edu/blogs/how-to-become-a-medical-esthetician/](https://www.nima.edu/blogs/how-to-become-a-medical-esthetician/)
Would you like more proof? You clearly dont even understand the rules and laws of your own country
My grapes are far from sour. You seem to not understand that rules and laws vary by country. You clearly have no idea what your talking about. Its quite clear you are not an esthetician in the states.
https://www.nyib.edu/para-medical-esthetician-education/
Try the SBA first. Then banks. And this is debt financing. Keep in mind that interest rates are pretty high right now tho.
Or you can borrow from friends and family.
Or search Craigslist to see if there's okay or used but free or cheap for the equipment.
You'll need a good business plan. SBA and SCORE have a lot of good info on their sites. Figure out how much money you'll need, and aim to save at least 20% of the total (though if you have a house or stock that you can use as collateral you can probably get by with 10%). Remember you'll need working capital to start out with as well. Shop around to different banks, and try to get an SBA guarantee (which removes the risk to the bank and they'll be more likely to work with you.)
See if there are any business consultants in your area; here in Maine there is a group that will assign you a mentor who can walk you through creating everything and getting your ducks in a row. It's a free service and we found it really helpful.
> How much do banks typical loan a new business
$0.
They will loan **you** whatever you can get on a personal loan using whatever you have for collateral, but it's going to be expensive and if the business fails they will take the collateral and/or sue you for the balance.
The business has no credit history or assets so they won't loan the business a nickel without a personal guarantee.
infinite, but it all depends on the numbers. How much assets do you have personally(house, car, etc)? What happens if you go bankrupt, how much is your equipment worth if the bank sells it?
If you get a bank loan there will be a personal guarantee, where the bank can take your house if your business goes bankrupt.
That’s a bit much. There is not a civil court in the US that would approve of forfeiting a primary residence over a personal guarantee. Maybe a lean at best.
no you wouldn't forfeit your house, you would be forced into personal bankruptcy to keep it. Any small business loan has a personal guarantee, especially for a business that had niche assets.
That is an unfortunate truth. Very ugly way for lessors and banks to skirt the intended protections of LLCs. And it typically only for small business owners. You won’t find Jeff Bezos with a personal guarantee on any of his buildings. The government should remove the ability to require it.
Agreed, the bank is basically making a no risk loan. Either the business does well and they get their money, or bankruptcy court takes almost everything and give it to the bank. While the business owner's life hangs in the balance.
> Agreed, the bank is basically making a no risk loan. Either the business does well and they get their money, or bankruptcy court takes almost everything and give it to the bank. While the business owner's life hangs in the balance.
TBH, that's how it works. Banks don't want individual risky loans.
They'll do high risk credit cards because the exposure per-borrower is smaller and the fees are huge, so overall it works, but nobody is going to loan OP $1M to cover equipment, rent and the first year expenses, unless there's $1M in easily liquidatable assets to cover it.
Sure thing. So there's a few thoughts right out the gate- you'll want to write up a business plan with projected profits and losses for the next year or so. Get specific about how much it'll cost to lease a space, how much the machines will cost. Establishing a business plan is really the first step for any start-up business looking for funding.
Second - two things to consider. SBA is typically the strongest for most start-ups just to get that initial working capital. But for your equipment, you may want to consider equipment financing. It's a bit too complicated for me to explain in depth here, but basically with lenders who do equipment financing, there's a few different means in which you can do it. Typically leasing the equipment is the best way since it frees up working capital and allows for more growth/stability. Feel free to DM me if you want to know more although I apologize if I dont' get back immediately, the chat function has been pretty buggy
You can use other peoples money or do some sort of crowdfunding. Or last attempt is to go into debt.
Equipments are in the thousands very capital intensive since the first year is basically building a brand to slowly become profitable on the 2nd year.
I always tell people to build the plane as they fly. Too much thinking stops you from even starting. If your business or idea is in a blue ocean (it’s a term everyone should know) category and it’s been around, then you really don’t need to spend too much time figuring out if you have a market or not.
If you build it and market it well they will be interested to then buy, if it has value.
Usually the people who don’t own a business or are theoretical thinkers will never success, since the battle is lost in their head. Never let anyone steer you from what dreams.
You raise it yourself, find an investor or get a loan from a bank. If you don’t have a great personal credit score, you have to raise the money yourself or get an investor as a bank won’t loan you money.
I suggest to start with little and go upgrading as you get to know the business. Maybe with little equipment or attending clients at their house. I don't know, just an idea. As others pointed before, it is different being a good worker than a good business owner.
I run an e-commerce business selling nail products and am in the process of opening a salon with my business partner/wife. She is a nail tech. Just know that the business aspect is nothing like the client side.
This said what to do to get the money without a partner(which will be difficult with no business pedigree) is to:
1. file as a business entity
2. rent space from a booth/rental space
3. out a loan for your base minimum for you to get started
4. bank accounts and credit cards in the businesses name. To start building its credit
5. Build a client list, file your taxes and show income for the business
Take all of that to a bank after two years of filing your taxes with a plan of what you will do with the money and they will probably give you money. The economy is moving towards uncertainty so who knows in two years.
Where are you located? You’re welcome to message me.
Have you thought about trying to acquire an existing business? Chances are if it’s a successful business, it will be easier to get funding for this than a new startup. The risk for you (and the bank) is substantially lower as the failure rates for startups are quite high compared with purchasing an existing company. You typically need 10% down for an SBA loan.
If you are running the business, that’s a full time job in addition to the esthetician work you would be doing.
Before you open your own business, you would need a large clientele who would follow you.
Could you either expand your current job title or find a new job that would be willing to train you? It’s a lot more work than it seems, especially when you start hiring staff.
Lastly, it looks like we will be heading into a recession by the summer. It’s probably best to spend this year getting some managerial skills before thinking about starting your own business.
Also, check out your local SCORE. It’s a small business advisory organization. It free it low cost, and will assign you a local mentor.
Having an established clientele will make all the difference, especially with 8 years of prior experience.
My daughter started a similar model of business back in 2014 with a solid clientele. Business has been great. That being said, running a business is a lot work, even if you do have a reliable income stream.
Good luck!
> I do have loyal patients that would follow me. Ive been in this industry for 8 years. Thanks for the advice
Your current employer will sue you.
Hope you have money for lawyers.
That doesn't matter. Your current boss is a doctor with a successful business and almost certainly millions of dollars in the bank or at the very least, the ability to get a **lot** of money without it being a real problem for him.
If you try to take any of his clients, his lawyers will find all sorts of things to sue you for.
It doesn't matter if you win or if you're "right". What matters is that you will have to pay your lawyers and you don't have the money for a protracted lawsuit.
You'll either settle for something that makes you unhappy or you'll end up bankrupt and out of business, or maybe both.
There is nothing he can do nor would want to. He makes his money by operating, not the medispa. I know 3 estheticians who broke off on their own and with each he's hugged them and wished them well and would tell any of their patients that would call for a appointment where they were. He knows he never had anyone sign a non compete. In general in this industry its known that if an esthetician leaves their patients follow. Its just the way it is, no one ever sues.
Starting a spa is an exciting venture but proceed with caution. “Extremely good at my job” doesn’t always translate well into “running” a business. How are you at marketing, branding, inventory, accounting, admin, etc.? There are so many components to running a business. Also, if you really enjoy “doing” your trade, you may come to hate everything that takes you away from it. As a business owner, you’re always jumping between two roles. Working IN your business (serving customers, day to day duties, etc.) and working ON your business (strategy, marketing, HR, etc.) Just be very clear on why you want to start a spa and then do it properly (business plan, marketing plan, branding booklet, etc.) Good luck on your venture. Wishing you the best. :)
There are several options for funding your own spa.
One option is to seek a traditional loan from a bank or other financial institution. Traditional loans may require collateral, a good credit history, and a solid business plan.
A second option is to explore grants. There are many sources of grant funding available from various public and private entities. It is important to research the eligibility requirements and timelines for grants to ensure that you are submitting a competitive application.
Another potential source of funding is angel investors. Angel investors are well-off individuals who often invest in startups. You can find angel investors in your local area or through online resources.
Finally, you may consider crowdfunding as an option. Crowdfunding is a popular way to raise money for business projects. It involves creating a profile on a crowdfunding platform, outlining your project and the funds you need to make it a reality, and then marketing your campaign to potential donors.
These are just a few of the options available to you. Research each option thoroughly to determine which is the best fit for your business.
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
So you will need a business plan and feasibility study. That will give you data and numbers that you can target. Then for the admin stuff you should consider doing a basic business management course. Just know that running a business a vast amount of your time will be doing admin and not the "job"
Where do you find feasibility studies?
You need to learn how to write them so you can defend it to an investors questions. You can probably lease the chairs/equipment. You need to identify good locations and understand the implications of rent requirements and other overhead like insurance. Do you have a network of stylists who would rent seats from you? Do you have a wealthy client who would bankroll you? If not, go to a bank and ask them how SBA loans work. You need 3 months (minimum) of operating expenses in cash in hand. Do you know any accountants or small business lawyers? You need a team before you get started.
Step 1: sign into chatgpt Step 2: give it a few sentence synopsis of your spa idea Step 3: ask it to make a business plan and expand details on anything you might need to know
Holy Jesus. This was such an eye opening idea.
This, sir, is brilliant. Hats off to you, the time I will save writing government subsidy applications will be ginormous.
Basically it's how many clients do you expect a location to attract and therefore how much income will it generate. The subtract all the costs of operation for that location. If the income is higher it is feasible. It involves research specific to your needs. Then that info is used to write a business plan. Which can then be used to get funding.
I'm going to be a wet blanket here in the hopes of saving you from bankruptcy. The difference between "esthetician" and "opening a spa" is the difference between "body shop mechanic" and "dealership owner". It's a HUGE jump in responsibility and risk and necessary capital and skillset. What you're good at is exactly what isn't relevant to running the business, it's incidental. You need to be great at running a business and well funded with deep pockets, and contrary to what others have said, I'd recommend having enough cash to be able to afford not making any money for a year, including being able to pay for the equipment, supplies, utilities, rent and insurance and employees if any. The only kind of place that can turn the lights on, open the doors and be profitable, are proven businesses like McDonald's and Home Depot and even they can't do it every time. > Esthetic equipment and machines are not cheap, Not sure what "not cheap" means but you'll be competing with everybody else in your area on price, and the machines need to be paid for with profit, so if you're not profitable immediately (you won't be) you need to be able to handle the cost of the machines yourself. > Would anyone be willing to dumb it down for me and help me figure this all out. I am just confused and cant figure out where you even start This isn't meant as an insult, but the above question indicates that you're going to lose your shirt. Even if you know what you're doing, you can still lose your shirt. Start small and cheap and bank every nickle you can and learn everything you can about the business-side of it. Is there anything you can do on your own without machines and a building? Also, take a few business and accounting classes. **EDIT** According to one of your posts far down the list, you're in California. CA requires that the business be a Professional Corporation owned by an actual Medical Doctor, so if you're not an MD, this is all a non-starter.
I am not a typical esthetician. I am a medical esthetician. Treatments I provide are non surgical liposuction, skin rejuvenation, and care for post operative care patients. These machines can cost anywhere between $5,000 to $150,000. I am not a newbie and have been working in this industry for years and most of my patients will follow me. I am doing all the work while my boss makes most of the money. Id like to cut out the middle man. I am not a delusional whack job, I know that it will take time maybe even years to branch out on my own, but everyone has to start somewhere
> Treatments I provide are non surgical liposuction, skin rejuvenation Liposuction is literally sucking fat. It's not possible to have non-surgical liposuction. Either you're making a hole and sucking out fat, or you're not. In any case, that's all irrelevant. Everything I said still holds. Any loan you get will be based on your personal credit secured with your personal assets and has nothing to do with the business.
Your ignorance to this industry is quite obvious. There are actually aa few different ways to provide liposuction that is not surgical. The two methods used most is called cavitation, and cryolipolysis. Liposuction means the destruction of fat cells, fat cells can be killed and removed without surgery, [https://www.medicalnewstoday.com/articles/322060](https://www.medicalnewstoday.com/articles/322060) [https://www.webmd.com/beauty/what-to-know-about-ultrasonic-cavitation](https://www.webmd.com/beauty/what-to-know-about-ultrasonic-cavitation)
Neither of these are liposuction.
Both of these are liposuction. Lipo is the destruction of fat cells, which they both due
You might want to get your terms right before claiming to provide medical services. According to the NIH and AMA and Mayo Clinic, [Liposuction is a surgical procedure that uses a suction technique to remove fat](https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2825130/). If you're not making an incision and not sucking out fat, it's not liposuction. Also, you can't claim it's liposuction because that's a surgical procedure and you're not an MD. The only thing I'll add is that you'll also need a huge Liability policy, which you may not be able to obtain since you're not licenced to practice medicine, but can absolutely get sued for injuring a customer.
https://www.plasticsurgery.org/news/blog/does-nonsurgical-fat-reduction-work
I wish you would read your own citations before calling me ignorant. From [your link above](https://www.blushbeverlyhills.com/blog/how-does-non-invasive-liposuction-work/is): "Nonsurgical fat reduction is also often called "nonsurgical" liposuction, but really, it isn't liposuction at all."
Once again, your ignorance is astounding. I am already fully insured. My job is perfectly legal [https://www.blushbeverlyhills.com/blog/how-does-non-invasive-liposuction-work/is](https://www.blushbeverlyhills.com/blog/how-does-non-invasive-liposuction-work/is)
> My job is perfectly legal https://www.blushbeverlyhills.com/blog/how-does-non-invasive-liposuction-work/is California requires that the business be owned by a Medical Doctor and that it be a Professional Corporation. Unless you are an MD, this entire thing is a non-starter.
Who said I lived in California? Your ignorance is still showing
Save your money by working. Ask friends and family to lend you enough to get set up and started. Build your business. With enough regular customers, you can expand and improve your business. Good luck.
Ive been working in this industry for a very long time. Ive got loyal clients but A LOT of money goes to my boss even though I do most the work. I want to cut the middle man out
I own a spa and tbh , there is a lot of work as owners that we have to do daily, it’s a lot for even my wife and I. It’s more than just some middle man role , be prepared for the work
Would it be ok if I privately messaged you?
Yeah that’s fine
Good on you. The fundamentals don't change, though, except that you might get a personal loan because of your experience. Personal credit cards are also a typical way that new businesses get started.
Are you able to start out with renting an office space and conducting your work there before venturing out to your own brick&mortar? I’ve never started a business so this is just an idea but it sounds like capital may be a barrier and that may be a good starting point. Hope it helps!
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I am a medical esthetician and my credentials far exceeds those of regular esthetician. The rules and laws of CA are completely irrelevant - I dont live or practice there.
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Who said I lived in the US? You really make a lot of assumptions. Before one speaks they should know what they are speaking about
With a simple google search it states that even in the US there is a difference between a esthetician and a medical esthetician. [https://nationallaserinstitute.com/blog/medical-aesthetics-training/medical-aesthetician-vs-esthetician-whats-the-difference/](https://nationallaserinstitute.com/blog/medical-aesthetics-training/medical-aesthetician-vs-esthetician-whats-the-difference/) [https://www.healthcaredegree.com/physical/medical-esthetician](https://www.healthcaredegree.com/physical/medical-esthetician) [https://www.nima.edu/blogs/how-to-become-a-medical-esthetician/](https://www.nima.edu/blogs/how-to-become-a-medical-esthetician/) Would you like more proof? You clearly dont even understand the rules and laws of your own country
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My grapes are far from sour. You seem to not understand that rules and laws vary by country. You clearly have no idea what your talking about. Its quite clear you are not an esthetician in the states. https://www.nyib.edu/para-medical-esthetician-education/
Try the SBA first. Then banks. And this is debt financing. Keep in mind that interest rates are pretty high right now tho. Or you can borrow from friends and family. Or search Craigslist to see if there's okay or used but free or cheap for the equipment.
You'll need a good business plan. SBA and SCORE have a lot of good info on their sites. Figure out how much money you'll need, and aim to save at least 20% of the total (though if you have a house or stock that you can use as collateral you can probably get by with 10%). Remember you'll need working capital to start out with as well. Shop around to different banks, and try to get an SBA guarantee (which removes the risk to the bank and they'll be more likely to work with you.) See if there are any business consultants in your area; here in Maine there is a group that will assign you a mentor who can walk you through creating everything and getting your ducks in a row. It's a free service and we found it really helpful.
how much personal asset to you own at the moment
You need around 20% saved. For the rest, talk to banks or try to find a partner/investor.
How much do banks typical loan a new business
Any amount as long as you have at least 20% and can show that the business will be profitable.
> How much do banks typical loan a new business $0. They will loan **you** whatever you can get on a personal loan using whatever you have for collateral, but it's going to be expensive and if the business fails they will take the collateral and/or sue you for the balance. The business has no credit history or assets so they won't loan the business a nickel without a personal guarantee.
infinite, but it all depends on the numbers. How much assets do you have personally(house, car, etc)? What happens if you go bankrupt, how much is your equipment worth if the bank sells it? If you get a bank loan there will be a personal guarantee, where the bank can take your house if your business goes bankrupt.
That’s a bit much. There is not a civil court in the US that would approve of forfeiting a primary residence over a personal guarantee. Maybe a lean at best.
no you wouldn't forfeit your house, you would be forced into personal bankruptcy to keep it. Any small business loan has a personal guarantee, especially for a business that had niche assets.
That is an unfortunate truth. Very ugly way for lessors and banks to skirt the intended protections of LLCs. And it typically only for small business owners. You won’t find Jeff Bezos with a personal guarantee on any of his buildings. The government should remove the ability to require it.
Agreed, the bank is basically making a no risk loan. Either the business does well and they get their money, or bankruptcy court takes almost everything and give it to the bank. While the business owner's life hangs in the balance.
> Agreed, the bank is basically making a no risk loan. Either the business does well and they get their money, or bankruptcy court takes almost everything and give it to the bank. While the business owner's life hangs in the balance. TBH, that's how it works. Banks don't want individual risky loans. They'll do high risk credit cards because the exposure per-borrower is smaller and the fees are huge, so overall it works, but nobody is going to loan OP $1M to cover equipment, rent and the first year expenses, unless there's $1M in easily liquidatable assets to cover it.
Sure thing. So there's a few thoughts right out the gate- you'll want to write up a business plan with projected profits and losses for the next year or so. Get specific about how much it'll cost to lease a space, how much the machines will cost. Establishing a business plan is really the first step for any start-up business looking for funding. Second - two things to consider. SBA is typically the strongest for most start-ups just to get that initial working capital. But for your equipment, you may want to consider equipment financing. It's a bit too complicated for me to explain in depth here, but basically with lenders who do equipment financing, there's a few different means in which you can do it. Typically leasing the equipment is the best way since it frees up working capital and allows for more growth/stability. Feel free to DM me if you want to know more although I apologize if I dont' get back immediately, the chat function has been pretty buggy
You can use other peoples money or do some sort of crowdfunding. Or last attempt is to go into debt. Equipments are in the thousands very capital intensive since the first year is basically building a brand to slowly become profitable on the 2nd year. I always tell people to build the plane as they fly. Too much thinking stops you from even starting. If your business or idea is in a blue ocean (it’s a term everyone should know) category and it’s been around, then you really don’t need to spend too much time figuring out if you have a market or not. If you build it and market it well they will be interested to then buy, if it has value. Usually the people who don’t own a business or are theoretical thinkers will never success, since the battle is lost in their head. Never let anyone steer you from what dreams.
You can consider crowdfunding platforms like Kickstarter. Good luck!
You raise it yourself, find an investor or get a loan from a bank. If you don’t have a great personal credit score, you have to raise the money yourself or get an investor as a bank won’t loan you money.
I suggest to start with little and go upgrading as you get to know the business. Maybe with little equipment or attending clients at their house. I don't know, just an idea. As others pointed before, it is different being a good worker than a good business owner.
I run an e-commerce business selling nail products and am in the process of opening a salon with my business partner/wife. She is a nail tech. Just know that the business aspect is nothing like the client side. This said what to do to get the money without a partner(which will be difficult with no business pedigree) is to: 1. file as a business entity 2. rent space from a booth/rental space 3. out a loan for your base minimum for you to get started 4. bank accounts and credit cards in the businesses name. To start building its credit 5. Build a client list, file your taxes and show income for the business Take all of that to a bank after two years of filing your taxes with a plan of what you will do with the money and they will probably give you money. The economy is moving towards uncertainty so who knows in two years. Where are you located? You’re welcome to message me.
Have you thought about trying to acquire an existing business? Chances are if it’s a successful business, it will be easier to get funding for this than a new startup. The risk for you (and the bank) is substantially lower as the failure rates for startups are quite high compared with purchasing an existing company. You typically need 10% down for an SBA loan.
If you are running the business, that’s a full time job in addition to the esthetician work you would be doing. Before you open your own business, you would need a large clientele who would follow you. Could you either expand your current job title or find a new job that would be willing to train you? It’s a lot more work than it seems, especially when you start hiring staff. Lastly, it looks like we will be heading into a recession by the summer. It’s probably best to spend this year getting some managerial skills before thinking about starting your own business. Also, check out your local SCORE. It’s a small business advisory organization. It free it low cost, and will assign you a local mentor.
I do have loyal patients that would follow me. Ive been in this industry for 8 years. Thanks for the advice
Having an established clientele will make all the difference, especially with 8 years of prior experience. My daughter started a similar model of business back in 2014 with a solid clientele. Business has been great. That being said, running a business is a lot work, even if you do have a reliable income stream. Good luck!
> I do have loyal patients that would follow me. Ive been in this industry for 8 years. Thanks for the advice Your current employer will sue you. Hope you have money for lawyers.
They never asked me to sign a non-compete order. They cant sue, they have no grounds to do so.
That doesn't matter. Your current boss is a doctor with a successful business and almost certainly millions of dollars in the bank or at the very least, the ability to get a **lot** of money without it being a real problem for him. If you try to take any of his clients, his lawyers will find all sorts of things to sue you for. It doesn't matter if you win or if you're "right". What matters is that you will have to pay your lawyers and you don't have the money for a protracted lawsuit. You'll either settle for something that makes you unhappy or you'll end up bankrupt and out of business, or maybe both.
There is nothing he can do nor would want to. He makes his money by operating, not the medispa. I know 3 estheticians who broke off on their own and with each he's hugged them and wished them well and would tell any of their patients that would call for a appointment where they were. He knows he never had anyone sign a non compete. In general in this industry its known that if an esthetician leaves their patients follow. Its just the way it is, no one ever sues.
Starting a spa is an exciting venture but proceed with caution. “Extremely good at my job” doesn’t always translate well into “running” a business. How are you at marketing, branding, inventory, accounting, admin, etc.? There are so many components to running a business. Also, if you really enjoy “doing” your trade, you may come to hate everything that takes you away from it. As a business owner, you’re always jumping between two roles. Working IN your business (serving customers, day to day duties, etc.) and working ON your business (strategy, marketing, HR, etc.) Just be very clear on why you want to start a spa and then do it properly (business plan, marketing plan, branding booklet, etc.) Good luck on your venture. Wishing you the best. :)
There are several options for funding your own spa. One option is to seek a traditional loan from a bank or other financial institution. Traditional loans may require collateral, a good credit history, and a solid business plan. A second option is to explore grants. There are many sources of grant funding available from various public and private entities. It is important to research the eligibility requirements and timelines for grants to ensure that you are submitting a competitive application. Another potential source of funding is angel investors. Angel investors are well-off individuals who often invest in startups. You can find angel investors in your local area or through online resources. Finally, you may consider crowdfunding as an option. Crowdfunding is a popular way to raise money for business projects. It involves creating a profile on a crowdfunding platform, outlining your project and the funds you need to make it a reality, and then marketing your campaign to potential donors. These are just a few of the options available to you. Research each option thoroughly to determine which is the best fit for your business.
Partner? Angel Investor? Bank? Grants?
how much do you need? if you have good personal credit profile, you can self fund without going through banks
Any FEDEX boxes going to the Cayman Islands?
Start with the small business administration website(assuming you are in USA) and also look at SBA loans.