Cosmetic Surgery Center Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Cosmetic Surgery Center Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Cosmetic Surgery Center business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Business Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
Cosmetic and plastic surgery has become extremely popular in the United States over the past 20 years. There are now a number of new procedures that can be done in office that have a relatively low cost, and a relatively short recovery time. As the techniques used by plastic surgeons and cosmetic surgeons become more advanced, the price and complexity of having these elective procedures carried out has declined significantly. As such, cosmetic surgery centers have become popular businesses among surgeons that are properly licensed to operate as a plastic surgeon or cosmetic surgeon. It should be noted that many dermatologists also operate in a cosmetic capacity, and as such these positions that operate within a dermatology specialty will frequently seek to develop a cosmetic surgery center as well either as a solo-practice were with a number of other physicians that can provide a host of cosmetic improvement procedures.
The gross margins generated by cosmetic surgery centers are extremely high with most procedures producing gross profits of 85% to 95% of the total revenues generated. The startup costs associated with these businesses is moderate and can range anywhere from $250,000 all the way to $2 million depending on the scope and scale of the facility. If the facility is going to be providing large scale in office procedures that require anesthesia than the startup cost will be significantly higher as the facility will need to be built as a surgical center. Smaller practices that offer procedures that do not require anesthesia typically have a lower startup cost. The barriers to entry for this type of business are also extremely high given that it must be operated by a duly licensed surgeon who can who is board-certified provide plastic surgery or cosmetic surgery. The extremely high educational requirements and licensing requirements make these businesses few and far between even in major metropolitan areas.
As such, once these businesses are established they are able to generate revenues and profits in most economic climates. These businesses tend to thrive in larger metropolitan areas or areas that have a number of high net worth and high income individuals who will continually undergo procedures even during times of economic recession. It should be noted that there are also a number of specialty lending companies that provide patients with the ability to finance their cosmetic procedures. This can drastically boost the revenues of the business as people will be able to pay for the surgeries over a period of time rather than through upfront payments. Generally, it should be noted that most insurance companies and publicly funded health systems do not provide for cosmetic surgical procedures unless it is due to an accident or disfigurement.
Given the very high gross margins, very high educational requirements, and complex licensing requirements – almost all financial institutions, banks, lenders, and private investors are willing to put up the necessary capital in order to develop a new cosmetic surgery center. As such, a cosmetic surgery center business plan needs to be developed that showcases a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that is on par with that of other cosmetic procedure centers. As it relates to industry research, cosmetic and plastic surgeons generally upwards of $3 billion a year of revenue and provide jobs for approximately 30,000 people. Approximately 7,500 individuals are properly licensed and board certified as plastic surgeons within the United States. The remaining employees that are hired by these businesses consist of physician’s assistants, surgical assistants, receptionists, nurses, and anesthesiologists. If complicated procedures are going to be rendered on site than a staff anesthesiologist is going to be hired to properly administer these medications to patients. This can add a significant amount of expense to the ongoing costs of these types of businesses.
Outside of the information relating to the expected financial results of the business and the industry research, a full demographic profile that encompasses a 50 mile radius should be included as well. Although people travel from further to see specific surgeon, most cosmetic surgery practices do have a target market radius of 50 to 75 miles. Within this documentation a full examination of the median household income, median family income, household value, percentage of people over the age of 45, percentage of women in target market, and other relevant information regarding the general populace. This examination should also include a discussion regarding competitors that may be in the area. Although most plastic surgeons consider other practices to be colleagues rather than competitors – it is still important to examine the overall market and how much revenue can be generated on any given yearly basis among the number of practices operating within any specific area.
A cosmetic surgery center marketing plan also needs to be developed and this is going to be one of the more complicated aspects of the business planning process. Given that there are a number of other surgeons in major metropolitan areas, it is imperative that the owner operator developed a multipronged approach for obtaining new patients. First, many cosmetic surgery centers will hire a publicist in order to get information about the practice and its surgeons into lifestyle articles in magazines. This can be expensive but the results can be phenomenal if this is done correctly given that many people will turn to beauty magazines and lifestyle magazines to get a better understanding of plastic surgery procedures. Two, many cosmetic surgery centers will also engage in a broad-based print and advertising marketing campaign that includes taking out print advertisements in newspapers, magazines, radio advertisements, and distributing mailers within the specific market to the target demographics. A third-party marketing and advertising firm can be hired to acquire mailing lists of individuals that fall into the demographic profile. This is expensive but it can result in a tremendous return on investment as it relates to the cosmetic surgery centers marketing budget.
A website showcasing the facility, biographies of key surgeons, services offered, preliminary pricing information, contact information, and how to schedule appointment should all be found on the website. This website should be listed among all major search engines. Beyond a proprietary website, and expansive presence on social media should be included as well. This includes maintaining pages on FaceBook, Twitter, Instagram, and Google+. Certain patients may allow the cosmetic surgery center to showcase before and after pictures of completed procedures. Once this permission is given, many cosmetic surgery centers will upload these photos to their social media pages to show the quality of the surgeons work. This can be one of the best ways that many people placed their trust in a specific surgeon for carrying out an elective procedure. Additionally, many social media platforms allow for individuals to write reviews regarding their experiences with a specific physician or surgeon or cosmetic surgery center. Over time, the stronger views can greatly boost the visibility of the business given that many people will now turn the social media for recommendations for things like specialty elective procedures.
A cosmetic surgery center SWOT analysis should be produced as well. As it relates to strengths, cosmetic surgery centers are able to generate extremely large revenues from the specialty elective procedures that they provide to the general public. The operating costs are high, but these are substantially ameliorated by the procedures that have a price tag of $5,000 to $100,000 for specific types of surgical services. For weaknesses, unlike other types of medical businesses these businesses have some issues generating top line income during times of economic recession. However, many cosmetic surgery centers will also provide certain selective surgical services that are necessary for a patient’s health. These procedures include things such as fixing a deviated septum. These procedures are often covered by private insurance. As such, despite declines in top line revenues as it relates to elective procedures – a surgeon can ameliorate this risk by providing some non-elective procedures that improve a patient’s health. For opportunities, these businesses will frequently hire additional staff plastic surgeons and dermatologists in order to generate additional billings. For threats, there’s really nothing that is going to impact the way that these businesses conduct their operations over the next 10 to 20 years. As more people enter the senior citizen age from the Baby Boomer population – the demand for elective procedures is expected to increase substantially. The estimated growth rate over the next 20 years is going to be 5% per year.
A cosmetic surgery center can be an outstanding business investment for either an entrepreneur that is looking to hire a number of surgeons to render the services or a surgeon owner that wants to own their own business. While the operating expenses are high and the barriers to entry are also extremely high – once established, these businesses are able to generate millions of dollars a year in revenue as well as millions of dollars in profit for their owners. The demand will continue to be there in most economic climates and given that this is only a service that a handful of people can provide, there is very little risk of ongoing competition squeezing the revenues and profits of these businesses.