How to Start an IV Hydration Business | SkillsAndTech

If you like working with people, enjoy health and wellness, and have a medical background, an intravenous (IV) hydration business could be your route to entrepreneurial success! IV hydration, or IV therapy, offers you the chance to make good money while helping people achieve health and wellness goals.

But first, what is IV hydration? Basically, it’s the use of intravenous injections to deliver health-boosting fluids directly into the bloodstream. For decades, linking a hospital patient to an IV drip has been standard operating procedure. 

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But in recent years, non-hospital use of IV hydration has become increasingly popular due to the health benefits. The industry has grown quickly over the past decade as consumers have learned that IV hydration can deliver vitamins, minerals, electrolytes, fluids, and other supplements that increase hydration, ease headaches and hangovers, boost energy, and even improve your skin.

Intrigued? Read on to learn all the details and steps required to launch your own IV hydration business and start making money while improving people’s lives!

Decide if the Business Is Right for You

Starting a business is a personal choice, and not every opportunity is the right one for you. Becoming an entrepreneur comes with challenges, so it’s wise to take some time to first determine if IV hydration is the right choice for you.

Pros and Cons

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One of the easiest ways to determine if this is the right opportunity for you is to go over all the pros and cons. There are always good and bad elements of an opportunity, so take some time to consider these and determine if it is the right fit for you.

Pros

• Increasingly popular as part of health and wellness movement
• Quick and simple process allows for many daily clients
• Flexible and convenient, with mobile or on-site services
• Relatively new market, with low competition and steady growth
• Little regulation of on-demand IV therapy in most states
• Low start-up costs and good margins

Cons

• Trained professionals required to give IV drip
• Low awareness of IV therapy means strong marketing is a must
• Much pricier than vitamins or electrolyte drinks, may limit custom

IV hydration industry trends

More than four out of five Americans (82%) cite health maintenance and immunity as a personal goal, so it seems reasonable to expect IV hydration to expand along with the health and wellness segment.

Industry size and growth

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• Industry size and past growth – Market analyst IBISWorld values the IV hydration centers in the US at $2 billion. 
• Growth forecast – Market analyst Grand View Research expects an impressive 8% growth for the global IV industry through 2028.
• Number of businesses – There are more than 600 IV hydration centers in the US.
• Number of people employed – The industry employs more than 9,000 people.

Trends and challenges

Trends shaping the IV hydration industry include:

• More than half of all US workplaces now offer some type of health and wellness program, according to the Centers for Disease Control.
• Increasing alcohol consumption

Challenges in the IV hydration industry include:

• Supply problems
• Risk of infusion rate errors and infections
• Improper and unsanitary drug compounding 

How much does it cost to start an IV hydration business?

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An IV hydration business can be started as an independent company or as a franchise. The latter is an easier and quicker way to begin as all the tools and resources are available to new franchisees. It is also much more expensive, as most IV hydration franchises require an initial investment, including the franchise fee, of $80,000 to $150,000, as detailed by Profitable Venture magazine.

An independent IV hydration therapy business can be provided in a brick-and-mortar storefront – usually called an IV lounge or spa – or delivered by a mobile unit. The mobile version allows you to use your home as your office, cutting costs considerably. A storefront business will provide a stronger sense of professionalism and achievement, which means higher prices. Of course, startup costs vary significantly based on which model you choose. 

The minimum start-up budget of $5,000 is for a mobile IV business where only essential costs are incurred, which means a home office and using your personal vehicle to deliver the IV therapy to clients. 

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The high-end startup budget of $75,000 or more is for a full-service IV lounge that also provides mobile services. This includes purchasing or leasing physical space along with all the required supplies and equipment. 

Here is a list of equipment needed to set up an IV hydration business:

IV equipment and supplies

• IV fluid bags, with poles and hooks to hang the bag.
• Clear plastic, sterile tubing, with pumps and clamps to control flow.
• Needles, syringes, dressing and tape.
• Alcohol swabs.
• Sharps container and disposal equipment.

General medical equipment

• Autoclave or sterilizer.
• Weight scale and height rods.
• Blood pressure monitor and pulse oximeter.
• Thermometer, stethoscopes, and personal protective equipment.

IV lounge equipment

• Refrigerator or freezer to hold IV contents.
• Clocks or timers to keep track of IV drip times.
• CCTV and other security equipment.
• Janitorial and cleaning equipment and supplies.
• Phone system, TVs for the lounge area, and a cash register.

Computers and IT equipment

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• Computers, printers, WiFi.

Furniture and fixtures

• IV therapy, office, and waiting room furniture.
• Cabinetry and storage shelving.
• Workstations and a front desk.

Mobile service business

• Van to convert into business space.
• Vehicle to move between locations to set up IV stations.

Start-up Costs	Ballpark Range	Average
Licenses and permits	$150 – $700	$425
Insurance	$300 – $1,000	$650
IV equipment and supplies	$2,750 – $20,000	$11,375
General medical equipment	$500 – $5,000	$2,750
IV lounge equipment	$0 – $12,000	$6,000
Computers and IT equipment	$0 – $2,000	$1,000
Furniture and fixtures	$0 – $7,500	$3,750
Vehicle	$0 – $10,000	$5,000
IV lounge interior renovation and decor	$0 – $7,500	$3,750
Branding, marketing, and advertising	$1,000 – $10,000	$5,500
Website	$200 – $1,000	$600
Hiring	$100 – $300	$200
Total	$5,000 – $77,000	$41,000

How much can you earn from an IV hydration business?

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Getting into a new business requires an analysis of the earning potential. It needs to be worth your while and earn a reasonable return on investment. 

The revenue potential varies widely depending on your investment and your sales. the size of your business, and service demand in your area. The average cost of an IV hydration session in the US is about $280.

Mobile IV therapy

As a solopreneur providing mobile IV therapy, in the early days you might provide 2 client sessions per day, six days a week, bringing in around $175,000 in annual revenue. Assuming the average industry margin of 35%, you’d make $61,000 in profit. 

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And that’s just to start; within a few years you could reach a dozen sessions per day. This might require you to rent an office and hire an employee, cutting your margin to 25%. Still, at more than $1 million in annual revenue, $250,000 in profit is nothing to sneeze at. 

IV hydration lounge

With a full-service IV hydration lounge, you might see 10 client visits per day even in your first year but your bigger costs reduce your profit margin to 15%. If you can expand operations and stay open every day, you’d earn more than $1 million in annual revenue and around $153,000 in profit. This could soon grow to 25 daily clients. With more than $2.5 million in annual revenue, you’d make a tidy profit of nearly $385,000.

With that kind of success, you could re-invest and open more IV bars in your city or state, or expand through franchising. Your profit potential will increase in tandem with your brand’s expansion.

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What barriers to entry are there?

The earning potential for an IV hydration business is very good. Still, there are some barriers to entry.

Some of the main barriers include:

• Some states, including NY, require IV lounges to be owned by a medical doctor
• Other states, such as Florida, heavily regulate IV therapy 
• Low awareness means you’d spend a lot of time and money on promoting and marketing
• High startup cost for an IV lounge
• Potential liability risk if health regulations are not followed

Hone Your Idea

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After you’ve reviewed the pros and cons and considered the earning potential, you might start getting excited about this IV hydration business opportunity! If you’ve decided it is the right opportunity for you, it’s time to hone your concept by digging into the details.

Why? Identify an opportunity

Are you doing this because you’re passionate about it? Because there is a lot of local demand? Consider the opportunity you are looking to address. 

The on-demand IV therapy market is small, with only about 625 registered US businesses, according to industry analyst IBISWorld. It’s also highly fragmented with no clear leader, as services are almost entirely provided by small, local shops. 

This suggests some lingering doubt among consumers about the efficacy and utility of IV hydration. But many celebrities and influencers have embraced IV therapy, which may help it gain widespread acceptance.

What? Determine your products or services

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People use IV therapy for a variety of reasons, and so it’s important to narrow down your services and products to target and capture a niche market. Below are some of the most popular services that are offered to help you determine what you will want to offer in your own IV hydration business.

Common IV therapies target:

• Hangovers and migraines
• Athletic Performance Recovery
• Immune System Booster
• Cold and flu symptoms
• Pregnancy side effects 
• Food Poisoning Recovery
• Jet Lag, Energy Boost 
• Dehydration 

The demand for IV services may be seasonal. For example, immunity boosters may be popular in winter, while hydration IVs might be more in demand in summer to deal with extreme heat.

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How much should you charge for IV hydration?

The price for IV therapies ranges between $159 and $399 per session, while some treatments, such as NAD (nicotinamide adenine dinucleotide) can run as high as $1,000. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

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Your target market might change based on the services you offer. Generally, IV therapy targets consumers from age 18 to 60, with the most common clients at 25-40 years old.

Aside from directly selling to consumers, you may also target businesses for your IV hydration services. Firms that offer office wellness programs might be interested in partnering with you to provide regular IV therapy to their staff.

Gyms and sports clubs could also be strong prospective clients for IV therapy, as athletes always need to rehydrate and replenish after an intense workout. People who boost their fitness by paying $100 a month for a gym or club membership tend to care about their health and wellness, and may be interested in IV therapy.

Where? Choose your business premises

In addition to providing treatments at the IV lounge/bar, mobile services can be offered on-demand at homes, special gatherings and events, offices and other workplaces, hotels, and even at parks or on the beach, from specially equipped vehicles. 

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Of course, at some point you may want an office, or a brick-and-mortar storefront. Find commercial space to rent in your area on Craigslist, Crexi, and Commercial Cafe. When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Brainstorm a Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

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Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “stitches” or “embroidery”, boosts SEO
• Choose a name that allows for expansion: “Jim’s Bakery” over “Jim’s Cookies”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

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Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity. 

Create a Business Plan

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Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Brief overview of the entire business plan; should be written after the plan is complete.
• Business Overview: Overview of the company, vision, mission, ownership, and corporate goals.
• Product and Services: Describe your embroidery products and services in detail.
• Market Analysis: Assess market trends such as variations in demand and prospects for growth, and do a SWOT analysis.
• Competitive Analysis: Analyze main competitors, assess their strengths and weaknesses, and create a list of the advantages of your services.
• Sales and Marketing: Examine your companies’ unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
• Management Team: Overview of management team, detailing their roles and professional background, along with a corporate hierarchy.
• Operations Plan: Your company’s operational plan includes procurement, office location, key assets and equipment, and other logistical details.
• Financial Plan: Three years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash flow, and balance sheet.
• Appendix: Include any additional financial or business-related documents.

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If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist at Fiverr to create a top-notch business plan for you.

Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

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Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to embroidery. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

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Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your embroidery business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

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We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using ZenBusiness’s online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

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The IRS website also offers a tax-payers checklist, and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital: Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

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Bank and SBA loans are probably the best options, other than friends and family, for funding an embroidery business. You might also try crowdfunding if you have an innovative concept.

Apply for Licenses/Permits

Starting an embroidery business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

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You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

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Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your embroidery business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

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Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

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Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

If you want to be competitive, you’ll probably need good embroidery design software such as Hatch Embroidery, Stitch Era, and EmbroideryStudio to create designs from scratch or by scanning images.

Accounting

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• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Marketing

Some of your business will come from the casual passerby or online visitors, but still, you should invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness. 

Once your website is up and running, make sure you link to your social media accounts and vice versa. Social media is a particularly good way of promoting your business because you can create engaging posts that advertise your products: 

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• Facebook: Great platform for paid advertising, allows you to target specific demographics, like men under age 50 in the Cleveland area. 
• Instagram: Same benefits as Facebook but with different target audiences.
• Website: SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Buy Now.” This can sharply increase purchases.
• Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers.

Kickstart Marketing

Take advantage of your website, social media presence and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include: 

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• Competitions and giveaways – Generate interest by offering prizes for customers who complete a certain action, such as the first corporate client each month gets half off. 
• Signage – Put up eye-catching signage at your store and website. 
• Flyering – Distribute flyers in your neighborhood and at industry events. 
• In-Person Sales – Offer your products/services at local markets and trade shows.
• Post a video – Post a video about your embroidery business. Use humor and maybe it will go viral!
• Start a blog – Start a blog and post regularly. Change up your content and share on multiple sites.
• Seek out referrals – Offer incentives to generate customer referrals to new clients.
• Paid ads on social media – Choose sites that will reach your target market and do targeted ads.
• Create infographics – Post infographics and include them in your content.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

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You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

 Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your embroidery business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

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Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your embroidery business could be:

• Best embroidery skills in town! 
• Wildest, most creative designs
• Digital embroidery creations for businesses large and small 

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an embroidery business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in embroidery for years and can offer invaluable insight and industry connections. 

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The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in embroidery. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an embroidery business would include:

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• Embroiderer: Your embroiderer is at the heart of your operations, that’s why this person must be qualified and experienced enough to handle large, multiple assignments.
• Digital content creator: Building a strong digital footprint takes continuous effort and requires a well-thought-out content strategy that a digital content creator can help you with.
• Sales executive: A sales executive will be focused on closing sales online or through face-to-face encounters with prospective customers in the shop to boost revenue.
• Operations assistant: Your operations assistant will be on top of all operational, clerical, procurement, and administrative tasks so you can better focus on running the business.

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Start Making Money!

Now that you have an in-depth understanding of the embroidery market, it’s time to roll up your sleeves and put your plans into action. The hardest part will be the first 100 days of business development, when you’re still trying to find clients. 

But you can make this work if you put in a lot of hard work and use the marketing strategies we’ve outlined above. You can also do affiliate marketing, where you compensate third parties in order to generate traffic to your website. You can develop long-term relationships with these affiliates and generate traffic for each other.

You’re now ready to start embroidering and making good money!