If you are interested in health and wellness and like working with people, you may want to start an IV hydration business. This entrepreneurial adventure offers you the chance to help people achieve their health and wellness goals with the potential to make good money. However, you must follow a few points to get that business off the ground. Here are the steps to start an IV hydration business from start to finish.
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What Is IV Hydration?
Over the years, non-hospital use for IV hydration has risen in popularity. Many people are choosing these treatments to boost their health and wellness. IV hydration can deliver minerals, vitamins, fluids, electrolytes, and other supplements to the client. In turn, it can boost energy, ease headaches, and improve the user’s overall health. Before embarking on this journey, you need to decide if it is the right step for you.
Step 1: Is the Business Right for You?
When it comes time to start a business, you need to know the pros and cons. Not all opportunities are the right choice for you. Working as an entrepreneur is challenging, and you should take some time to determine if an IV hydration business is a suitable option.
First, you will have to go over the benefits and disadvantages of the business. Look at the positives:
- A popular part of the health and wellness movement
- Offers flexible and convenient services for patients
- Potential for steady growth
- Services can be offered from a storefront or mobile unit
- Low startup costs and good margins
However, there are a few disadvantages:
- Need trained professionals to administer IV drips
- Must have strong marketing for the product
- The price point may limit the customer base
According to Grandview Research, the global IV industry is valued at $11 billion, with an expected growth rate of 8% by 2028. More than four out of five Americans are focusing on boosting their immunity and health maintenance as their personal goals, making that a great market to promote IV hydration to assist with those health and wellness objectives.
Costs To Start an IV Hydration Business
IV hydration therapy can be delivered using a brick-and-mortar storefront or a mobile unit. You can cut office expenses when you offer services out of a mobile unit. But a storefront might provide a better sense of professionalism to the community.
Typically, a mobile business’s minimum startup costs will begin at $50,000. Mobile IVs have proven to be less profitable and have weaker business models. Full-service IV spas will require an investment of$150,000 -$350,000 or more. Those prices usually include the purchasing of equipment and supplies for your business, building out your spa, and working capital. As you can tell, the price range varies depending on how you want to deliver services to your clients.
Before getting into any new business, you need to analyze the earning potential. Take time to decide whether this industry is worth the investment where you can earn a high return on investment. For the most part, an IV hydration business does have the potential to offer an excellent return for those new entrepreneurs.
Remember that your revenue potential will depend on your investment, sales, service demand, and business size. On average, a single IV hydration session costs $280. If you schedule four to five sessions per day, you could make $400,000 in annual revenue. Considering the average industry margin of 35%, it is possible to make $140,000 in profit. That is just the start!
Full-service IV hydration lounges often book 8-10 clients daily, meaning $600,000 in annual revenue with a $210,000 estimated profit. As you grow your business, it could mean higher profits in the future. You could even reinvest in the business and open more IV bars in your city or state. The possibilities are endless with this type of investment.
While the earning potential for this business is good, there are a few barriers to entry. Some of the biggest ones include:
- A few states require the lounges to be owned by a medical professional
- Some states heavily regulate IV therapy
- Low awareness of services means more money on promotion and marketing
- High startup costs
- Potential liability risk
An IV hydration business is not for everyone, but it is an excellent opportunity for those passionate about the health and wellness industry.
Step 2: Hone Your Idea
The first step has many factors to consider, but you should know that any investment requires commitment from the entrepreneur. Now you want to dive into all these little details.
First, why are you starting this business? Do you have a passion for the industry or want to get on the ground floor of a rising opportunity? Today, on-demand IV therapy is still a small, but quickly growing niche market with about 625 registered businesses in the United States as of this writing. That number is rapidly growing as IV therapy continues to
Next, you should decide whether you want to operate an independent business or work as part of a franchise. You are on your own with an independent shop, but a franchise will give you all the resources and tools to start your business.
You also need to determine the type of services to offer your clients. Some of the most popular IV types include treatments to help:
- Athletic performance recovery
- Migraines and hangovers
- Cold and flu side effects
- Immune system boost
- Revive energy
- Pregnancy side effects
Finding a location is also essential. As previously mentioned, you can choose to offer service for a mobile unit. You can drive the vehicle to several places to help your clients. A storefront is a little different. Like any business, you need to find a location where you can be visible to the community to help draw in those walk-in customers.
After that, identify your target market. This step can help with marketing and advertising. In most cases, IV therapy will target those clients in the age 18 to 60 range, with the most customers at 25 to 40 years old.
Step 3: Choose a Business Name
You need to choose the business name unless you work with a franchise. It should be short and stand out in the community. Make sure to choose one that is easy to say and remember. Plus, it must be relevant to your service offerings and products. Once you have found a name, make sure your name is available on the US Patent and Trademark Office’s website for registration.
Step 4: Create Your Business Plan
Every business will need a plan to operate. You can use this plan as a guidebook to take your business from the launch stage to a successful operation. In that plan, you need to include:
- Executive Summary: an overview of the business plan
- Business Overview: an overview of the mission, ownership, company, and company goals
- Product and Services: detail your service offerings
- Market Analysis: assess all the market trends for demand and growth
- Competitive Analysis: analyze your main competitor’s strengths and weakness
- Sales and Marketing: develop your sales, marketing, promotional strategies, and sales
- Management Team: complete detail of your management team
- Operations Plan: outline the company’s plan, including the office location, critical assets, procurement, equipment, and logistical details
- Financial Plan: detail three years of financial planning, including break-even costs, cash flow, balance sheet, and startup costs
- Appendix: Include any additional business-related documents and financial information
Step 5: Register Your Business
Registering your business is extremely important. You need to do it to raise capital, open a bank account, and pay taxes. Once you register, you now have an official business. At this point, you need to choose the right location to register the company. While many people register in their home state, you can always register in another state if you plan to expand in the future.
After that, you will need to choose a business structure. The four main options are:
- Sole proprietorship: the most common option for small businesses with no distinction between owner and company
- Partnership: similar to a sole proprietorship but for two or more people
- Corporation: the business is a distinct legal entity with the owner not liable for debts
- Limited liability company (LLC): combines the benefits of a sole proprietorship and corporation, with the owners not responsible for debts
Step 6: Register for Taxes
All businesses have an Employer Identification Number (EIN). You can file for an EIN by mail or by visiting the IRS website. Sole proprietorships can use the owner’s social security number.
Step 7: Funding the Business
Securing financing is one of the most critical steps. There are many ways to raise capital for your new business, such as:
- Bank loans
- SBA-guaranteed loans
- Government grants
- Venture capital
Step 8: Apply for Licenses and Permits
With an IV hydration business, you must obtain permits and licenses from your local city, state, and federal governments. In addition, you might need to get a health license and permit from the Occupational Safety and Health Administration (OSHA). Don’t forget patents, trademarks, copyrights, and industry-specific permits and licenses. If you fail to comply with those regulations, you could be required to pay hefty fees or have the business shut down.
Step 9: Open a Business Bank Account
When you start making money, you must deposit it in a business bank account. While you might be tempted to put the money in your personal account, a business account can help file taxes and track your company. It is simple to open a business bank account. You will need to bring in your EIN, articles of incorporation, legal documents, and other pieces of information to open that new account.
Step 10: Get Business Insurance
Don’t forget about business insurance. This insurance can protect your business from the unexpected. You might want to consider these insurance types:
- General liability
- Business Property
- Equipment Breakdown Insurance
- Worker’s compensation
- Commercial auto
- Professional liability
- Business owner’s policy (BOP)
Step 11: Prepare To Launch
With all those details in place, it is time to launch your business. Make sure to have a website that your potential clients can visit. Since IV hydration is fairly new, a website can help your clients learn about your services or even schedule an appointment. Setting up a website can be a part of your marketing plan. Marketing is simple; use social media to spread the word about your new business. Facebook and Instagram are great places to start marketing.
Setting up your accounting process is another critical factor. You can use one of the accounting software programs on the market or hire a professional to get the job done.
After that, you will need to set up the equipment, whether working from a mobile unit or brick-and-mortar storefront.
Step 12: Build the Team
You might need workers to fill those roles if you have a big storefront. Some potential positions include:
- IV Therapists
- General Manager
- Health and Wellness Advisor
Step 13: Start Making Money!
After these steps, you can focus on bringing in clients and making money. With this step-by-step guide, you have a blueprint to help make your IV hydration business a success.
Franchise with Prime IV
Starting a business requires many steps, but you can skip all the above by franchising with Prime IV. You can work with a proven franchise system to grow your customer base. Plus, you don’t have to worry about finding the right solutions for your customer. We have a proven business model with ‘business in a box’ solutions already figured out for you.
Franchising allows you access to a proprietary social media marketing system and a hands-on and online education curriculum. In addition to that, you will receive training for medical professionals. With us, you can be part of a $3 trillion global wellness industry.
By franchising with Prime IV, you can see the direct results of offering services that change people’s lives. Skip all of those steps and start your business with Prime IV.
Do you want to learn more about franchising opportunities with Prime IV? Reach out to us and learn about our easy application process!