It all starts with a business plan: If you do not have one. Write it. A good business plan that will help you get a handle on all the things that get glossed over in the excitement of starting a new business. Also, the usual requirement for funding.
Keep in mind that a medical business and comes with special requirements. Non-physicians can not employ physicians, medical care, compliance with HIPPI, and other regulatory issues on the host to be addressed. Play fast and loose with these rules and you're asking for trouble. (One of our local competitors in Utah did not provide proper medical care. State walked in one day, seized all their technology, and patient records and shut them down.) All lenders want to know how you're going to handle these issues. ADVERTISEMENT
Financing is easy. Funding is difficult to smart: Say the words "medical spa" as a doctor and all of you best friend. Banks, lenders, technology companies, all have big smiles on their faces, and papers in his hands, ready to lend money or to finance everything you need. If you're not a doctor it will be difficult.
If you need money or credit lines, other than technology, the bank will probably be your first stop. Banks will provide the best rates, but the most stringent testing and borrowers have the least tolerance of risk. Banks require that you have a clean credit balance and that all loans are secured. In most cases, each of which owns 10% or more of the business will be personally responsible for the loan and must ensure that two or more years of tax returns. Be prepared for a blizzard of paperwork. Banks want to see the financial statements, cash flow, business plan (although they do not read it), and have a little visit.
The bank will want to know what funds are intended for use. They want to see tangible assets, which have a market and may be sold if the business fails or you are unable to make payments. They do not want to hear that you need more money for marketing and advertising or salaries that do not have any resale value.
The money that banks will lend you need a loan or line of credit form. Loan payments and the schedule. The credit line is a little different. The idea is that the bank will extend credit, you can pay online. Interest is paid only the amount of money that is being used. However, banks usually require that the entire balance of any unused funds within one month of the year in order to ensure that the business is liquid. If you can not meet this requirement, all the lines back into the loan.
Some bankers are useful and some are not. In one case, the branch manager told one of our auditors, that he wanted some information that he did not need our business and we just live with it ". Avoid these types if you can. A friendly banker can go a long way in ensuring the provision of loans and little flexibility if things do not go exactly as you planned. If you find a banker, sending him a Christmas card and some cookies once in a while.
If you are, what the bank can tolerate risk wise, on the outskirts, they often suggest that you request on behalf of the SBA (Small Business Administration) loans, which are partially guaranteed by the government. (Sba.gov / Funding)
Half of something is better than all of nothing: If you are going to need more money than you have assets, you still have a few options. They partnerships, joint ventures, venture loans or equity.
Most start-ups involve some form of equity trading. The partnership is a good example. Sweat equity in the early stages provides ownership in lieu of payment or salary. It is very common for businesses with little or no money, sometimes for years, until the business on its feet. Sweat equity at this stage usually lasts only for the founders, but may include much needed partners. When we started to surface, I took more than 80% reduction in income.
Ownership: A simple rule, you need more money, and risk you need, the more equity you are going to quit.
Angels: This is the first stop for most entrepreneurs. Angel financing (also known as seed money) are usually raised from friends and family, or "high net value" individuals. In some cases, you can find an angel group to meet and seek investment. Angels are commonly found in the early stages of a business and are often bought out when more investors come in.
Venture Debt: Recent increases in debt the company has made its way into the market and is worth discussing. Venture debt is basically a loan company. The lender charges a higher interest rate than the banks allowed to (often around 14%), and assume more risk in return. In addition, you will have to give your small company, which is referred to as warrants. This small percentage (usually less than 5%) allows the lender to share but could be higher. Venture debt is worth considering if you are sure of success, and you do not want or need to withdraw a large equity position of your company. But you are still personally liable.
Venture Capital: When most people think raise substantial amounts of money, they think of venture capital. For a number of business start-ups, venture capital is not a choice. VC money is a loss though. It is hard to get and very expensive. When you add up the whole enchilada, you're looking for about 80% of the composition of the annual interest rate for money. VC's looking for maturities of 3-5 years and the ROI (return on investment) and 700% or more. Whew. You are also going to lose complete control of their business and have someone constantly looking over their shoulders. There are cases where it actually makes sense. Many of the VC is very well connected and that the stock table.
So now you have money you need. What are you going to do with it?
Most medical spas have grown out of existing physician practices. Having technicians producing revenue, low additional overhead idea, increased patient flow, and feel that I could do that is attractive to many doctors who are tired of the medical floor. (We have already contacted surprising diversity of physicians willing to enter into this market, including;. Anesthesiologists, cardiac and thoracic surgeons, pediatricians and even)
In several places: After some initial success, many physicians and MedSpa owners attempt to open additional locations. (For some reason, the second such clinic opened for Beginners often a relative, usually the wife or daughter.) The second place has never achieved the first success of the clinic very simple reason, they completely different animals. If you think you are opening more locations workload just tripled. A number of the location of the majority of doctors in the skills and incorporate a much greater financial risk. Personnel and human resources, legal issues, medical care ... most fail within the first year.
The successful practice of the various local systems are built around. If your first clinic does not run without you there, you're not ready for a second. Expanding quickly is sure why overextend your resources. Then you have big problems. If you've closed a second clinic, lenders are very wary of lending money.
Key Solution: Franchises and consultants drop of love that phrase. The idea is appealing. Experts will help you step financial glory. Marketing, financing, training, everything will be delivered to a beautiful bow at the top of the window. But, given the franchise owners and the problems they have encountered, I would give this advice number, beware.
Read more about spa in orange county , orange county laser and orange county botox