Cryotherapy is a lucrative business. Cryo entrepreneurs make profits within the first year of operation even when they charge an average of $35 per session. With an average of 10 cryotherapy sessions in a day, you can recoup your cost of investment within four to six months.
While cryotherapy is a rewarding business, setting up a cryotherapy business requires adequate planning. Without the right cryotherapy business model, you might find this business quite challenging.
Viable Cryo Business Models
The two cryotherapy business models are cryotherapy as an added amenity or as a standalone. Many factors go into the business model decision, but first, let us explore the two business models.
Cryotherapy as a standalone
In this model, you offer cryotherapy services alone. Cryotherapy business has low operating costs. It is possible to open a standalone brick-and-mortar location and still make money.
A standalone mode, however, has notable challenges. It is a costly model as you will rent a new location, buy equipment, and spend a lot on marketing and promotion.
A standalone model is still feasible. Certain clients prefer standalone cryotherapy services because they offer privacy.
Cryotherapy as an added amenity
This is a popular business model for cryotherapy. Cryotherapy can be an added amenity to a medical spa, tanning salon, gym, and chiropractic facility, or a wellness center.
To pursue this model, you can partner with other entrepreneurs or add it to your existing business. As an additional service, you will not incur additional costs in terms of rent. But you must create enough room for the nitrogen chamber and the liquid nitrogen dewar.
The recommended room size for the chamber is 10’ x 10’ while liquid nitrogen dewar takes up half the space of the chamber.
Cryotherapy as an additional service is also beneficial because it is easy to introduce to the market. All you need is to integrate cryotherapy services into your business using the steps discussed in our previous article. Your existing clients will be the first to try cryo services.
How to Select the Right Business Model for Your Business
Having identified the two business models, how do you decide on which model is best for you? Here are some of the factors to take into consideration when creating your cryo business model.
1. Equipment and Initial Cost
The cost of equipment is a crucial part of evaluating the overall business costs. The prices of full-body cryo equipment are different from whole body cryo equipment. A whole-body machine can cost up to $75,000, while small portable machines can be priced below $100. There are costly machines that do not use liquid nitrogen retailing at approximately $150,000.
The cost of equipment and the initial cost of setting up will help you make the decision of having a standalone or an added-amenity business. Further, you can start this business as a sole proprietorship or as a partnership, depending on your financial capability.
It is advisable to partner with trusted cryotherapy vendors to help you find the best equipment for your business. Cryotherapy vendors can also advise you on the best marketing strategies and integrating cryotherapy into your business.
2. Local cryotherapy market
The overall cryotherapy market is worth several billion and it will grow by double digits by 2025.1
Explore the local cryotherapy market before deciding on your business model. Is there a gap in the local market, or is it crowded? Find out how much your competitors are charging and how they market their services.
If the market is not crowded, you can consider a standalone cryotherapy business model if your finances allow. Find ways to offer value to your potential clients and differentiate yourself from competitors.
Your location also plays a crucial role. Set up your cryo business in a strategic location to attract more clients and sales. There are locations where you can charge $100 per session, but setting up will also cost more. Find your ideal location and identify the cost of setting up.
So what makes up an ideal location for your cryo business? It is crucial to choose a location with existing health, fitness, and wellness businesses surrounding it to attract a high volume of foot traffic.
A Good Cryotherapy Business Model Can Transform Your Business
The right business model will help you achieve your goals faster. Do thorough research on the available business models and factors within your local market. Write a SWOT analysis of each model and consider all the scenarios before deciding on one model. The ultimate goal is to pick a model that will enable you to achieve your goals faster.
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