Botox, used since the 1970s to treat various medical conditions, is now widely recognized for reducing fine lines and wrinkles. Its growing popularity as a mainstream cosmetic treatment is fuelled by an aging population, social media influencers, and greater societal acceptance
Today, the global market for medical aesthetics is valued at approximately $20 billion, as reported by the Boston Consulting Group (BCG). And, according to the American Society of Plastic Surgeons (ASPS), last year in the United States, about 15.8 million injectable procedures, including Botox, were performed.
If you’re interested in starting a Botox business, read on for a step-by-step guide.
Step 1: Research certification and other requirements
To administer Botox injections, you must be a physician, dentist, registered nurse, or other licensed medical professional. Aestheticians can work alongside medical professionals but cannot administer Botox themselves. Most of these professionals need a four-year bachelor's degree in pre-medicine, biology, or a related science.
In addition, some states require continuing medical education (CME) credits so that professionals can perform Botox and fillers. Keep in mind that requirements may vary by state and jurisdiction. For example, some medical professionals may not be allowed to administer injections in certain states. Check with your state medical board for additional requirements.
Step 2: Research the Botox market
The medical aesthetics industry is super competitive, so it's really important to think about how to successfully build and grow your business. Besides offering top-notch treatments and services, you need to understand who your potential customers are and what they need. Research their demographics, including age, gender, marital status, socioeconomic status, education, occupation, and more.
Think about the type of experience you want to provide your customers. Besides Botox, customers typically look for a business that provides a complete range of aesthetic treatments. Are there unique services that you can provide in addition to that can’t be found elsewhere?
Also, technology innovations and tough competition mean that aesthetic products are constantly evolving. How will you ensure your business stays current?
Step 3: Consider pricing
Pricing your services is a crucial aspect of running a successful business. Research the going rates for your services but be careful not to set your prices too low, as this could undervalue your expertise and hurt your business in the long run. Also, look at your local market and see what your competition charges.
Understand your business expenses, including fixed costs like rent and variable costs like products. Consider overhead costs when deciding which procedures to offer. For example, if a procedure requires expensive equipment and a lot of your time, you may not get the desired return on your investment.
Don't forget to regularly review and adjust your prices, as new technologies, trends, and techniques are constantly emerging. Keeping your pricing strategy up to date will help you remain competitive, aligned with current market trends, and profitable.
Step 4: Have a business plan
Any Botox business needs a solid business plan. This plan will help you define your business, products, and services, understand your financial strategy, and determine how your company will operate and grow. It will also inform critical business decisions, outline objectives for your business, and help identify potential risks.
If you need funding from a third party, such as a bank or investor, a business plan is a must-have.
A basic business plan contains the following
- Executive summary
- Company description
- Industry and market analysis
- Competitive analysis
- Organization and management
- Product or service offering
- Sales and marketing strategy
- Startup and ongoing costs
- Financial projections
For more information, read Evaluating the need for a business plan.
Step 5: Choose a business structure
The structure or type of business you choose for your Botox business can have a significant impact on your liability for debts and claims made against your business, as well as your tax liability.
The most straightforward business structures to form are sole proprietorships and general partnerships. However, in both, the owners have unlimited personal liability for the business’s debts, including the acts of employees.
Consider forming a limited liability company (LLC) or corporation, as they provide limited liability protection by separating business assets from personal assets. However, there are different pros and cons related to taxation, management structure, and ownership. Additionally, there are ongoing formalities and compliance requirements that must be fulfilled to maintain the benefits of the chosen business structure.
For more information on business entity structures, read Comparing company types and LLC vs. Inc.
If you decide to form an LLC or corporation for your Botox business, you may also need to file a beneficial ownership information (BOI) report with FinCEN (U.S. Department of Treasury’s Financial Crimes Enforcement Network). This is a new federal requirement that went into effect on January 1, 2024. A BOI report contains information about the company and its owners. Take this quiz to see if your business may be subject to the new BOI filing requirement. For more information, visit: Beneficial Ownership Information Report.
Step 6: Understand your licensing requirements
The aesthetics industry is subject to two distinct licensing requirements: those that apply to aesthetics businesses and licenses that apply to all businesses.
Cosmetic procedures are subject to city, state, and federal regulations that govern the products used, the licensing of personnel performing the procedure, and the facilities where the procedures are conducted. Depending on your state and local jurisdiction, you may need to obtain licenses for your business and the individual(s) who perform Botox and other aesthetic procedures. If you license your business, you may also need a surety bond and business insurance, such as general and professional liability insurance).
In addition, most small businesses need a business license or permit to operate, such as general or basic business licenses, zoning permits, occupancy permits, and sign permits. Requirements vary by business type, location, and regulations.
Step 7: Understand other legal requirements for your Botox business
Your Botox business may be subject to other legal requirements, including:
- Registering with the Department of Revenue in your state.
- A DBA filing with your state or local jurisdiction. This is needed if you plan to do business under an assumed or trade name.
- If you hire employees, you must obtain an EIN, register with the Department of Labor, and handle payroll.
- An EIN is also needed if you form an LLC or corporation.
- File a Beneficial Ownership Information (BOI) report.
For more information, see What are the legal requirements for starting a small business?
Step 8: Open a business bank account and credit card
Corporate and LLC regulations require the separation of business and personal finances. The best way to do this is by opening a bank account and obtaining a business credit card. These should be used exclusively for business expenses to maintain liability protection in case of legal action against the business. A business credit card can also help you build credit and negotiate good terms with vendors and suppliers.
Try to open a business bank account as soon as your Botox business starts incurring expenses or accepting money.
Frequently Asked Questions
Is a Botox business profitable?
Yes, a Botox business can be profitable due to high demand and relatively low material costs compared to the service fees.
Can you do Botox as a side hustle?
You can do Botox as a side hustle, but there are several important factors to consider.
