What Every Wellness Business Owner Should Know Before Adding a New Modality 

By Jim Law, CEO of Advanced BioTechnologies

Ask most wellness business owners how they started, and you’ll often hear a familiar origin story: dealing with a health challenge—theirs or a loved one’s—sparked a desire to help others restore and support their well-being.

But as much as purpose fuels the journey, it’s not enough on its own to sustain a business. Statistically, only about 35% of new businesses reach their 10th year. Wellness businesses face unique challenges, such as high upfront equipment costs and a slow journey to breaking even. When a practice that’s making a meaningful difference in its community has to close its doors because the financials don’t add up, everyone loses.

Over the years, I’ve worked with hundreds of wellness businesses as they’ve evaluated new modalities. I’ve seen what separates the modalities that tie up precious capital and resources from the ones that transform a business. My goal—and the goal of our team—is to help wellness business owners make smart, confident investments that serve both their clients and their business. Here’s what I’d share with any owner who is considering a new modality.

Choosing the Right Modality in a Growing Market 

The global wellness economy has seen remarkable growth over the past decade, doubling in size since 2013. If current projections prove accurate, the sector could approach $10 trillion by 2029. New technologies and platforms are continually emerging, presenting wellness business owners with an almost dizzying array of possibilities. 

It’s easy to be drawn to the latest innovation, but there’s risk in being an early adopter. Trends come and go—just look at what happened with Peloton. The safer bets are proven solutions with a track record of results and an engaged community of practitioners and clients. 

Modalities anchored in foundational science—such as light therapy, pulsed electromagnetic fields, and other frequency-based approaches—are a strong starting point, as they are supported by decades of substantive research and real-world application. But even among proven modalities, some fit more naturally into clients’ lives than others. In an ideal world, people would consistently invest in their well-being: eating healthy foods, exercising daily, and spending time in nature. Reality paints a much different picture: people balancing full plates, with limited time to prioritize themselves. 

The most effective wellness solutions meet clients where they are. Approximately 60% of Americans are living with at least one chronic disease, and many health and wellness clients are not prepared to put their bodies through additional stress. Modalities like cryo, infrared sauna, and hyperbaric oxygen are touted for delivering intense experiences, but they may not suit a population that prefers to stay fully clothed, can’t tolerate excessively hot or cold temperatures, or wants to be comfortable during their sessions. Consider the preferences of your clientele, and remember that not everyone is seeking extreme wellness solutions—they’re simply seeking relief. 

The Business Case for a New Modality 

The other critical piece in evaluating a new modality is determining whether it can stand on its own financially. This is an area where many wellness entrepreneurs—especially those who entered the industry driven by personal passion rather than business training—may feel less confident. 

Know the full cost picture

Conversations about new wellness equipment tend to focus on the sticker price or the monthly payment, but that’s just the tip of the iceberg. Other cost factors to consider include:

• Revenue per square foot. Solutions with a small footprint that can serve multiple clients at once position you for higher revenue per square foot than those that require a dedicated room for one person at a time.
  
• Utilities: Some modalities—cryotherapy is a good example—run continuously, racking up significant energy costs even when not in use. At even the busiest centers, a modality is likely to be idle 10-12 hours overnight.
  
• Staffing: If the modality demands a dedicated operator or significant oversight from staff, it can easily add $3,000 or more to monthly overhead. 
• Subscriptions and software: Many technology platforms require ongoing licensing or content subscription fees that must be factored into ongoing costs.
  
• Maintenance: Every piece of equipment requires upkeep. Factor in an average annual maintenance estimate, amortized monthly, to get an accurate cost baseline.

Determine what you can realistically charge

Pricing a treatment involves understanding the market and what clients are willing to pay. An effective approach is to benchmark against comparable offerings in similar markets, but it’s equally important to analyze your client base’s actual spending patterns. Aligning rates with both market realities and clients’ willingness to invest sets the stage for sustainable growth and lasting engagement.

Do the payback math

Once you have a clear handle on the monthly operating costs and the intended per-session rate, you can start modeling your break-even point. How many sessions per month will it take to cover the associated operating costs? At what point will the modality be considered pure profit? To be safe, run both conservative and optimistic scenarios, making sure that even the conservative one delivers financial results. 

Additional Tips for Vetting a New Modality 

The more rigorously you vet a modality, the better positioned you’ll be to make a purchasing decision that serves both your clients and your business for the long term. 

Look to your peers

Some of the most valuable insights come from direct conversations with wellness business owners who are already using the modality you’re considering—ideally, in a context similar to yours (e.g., similar client base and business model). If you have the opportunity to talk to another business owner, get as much information as they’ll give: What are they charging? What does real utilization look like? What do they wish they’d known before investing? You may also find this information in case studies and other resources on the vendor’s website.

Evaluate vendor support 

Robust vendor support isn’t a given in the wellness industry. As a result, equipment that costs tens of thousands of dollars ends up sitting idle because staff don’t know how to use it confidently. Or, staff may administer modalities without proper training, putting clients—and the business—at risk.

Conduct your due diligence before committing to a solution. Ask specifically about onboarding, client education, workflow integration, and the type of ongoing support the vendor provides. Find out what resources your team will have available for use in their day-to-day operations. A strong partner should offer a streamlined experience from initial setup through ongoing customer support.

Check local competitors’ booking calendars 

This is a practical way to gauge the demand for a modality. Scan the real-time booking availability of businesses in your area offering similar services. If you consistently see wide-open calendars, consider what that says about market appetite or competitive saturation. This research can also provide useful insights into what competitors charge for the modality.

Be honest about where you are in your business journey

An established business with a loyal client base and strong cash flow is in a much different position from a new business trying to reach stability. Projections for utilization and ROI should reflect your current reality, not an optimistic vision of where you hope to be.

Building a Business That Lasts 

The relentless demands of modern life take a tangible toll on people’s well-being. Wellness business owners step up to address that reality, and that’s meaningful work.

The businesses that endure are those whose missions and business models are in alignment: what’s best for clients is also financially sustainable, and the owner has the clarity and discipline to make decisions that support both. Done right, adding a new modality can be a catalyst for significant growth and impact.

The considerations outlined here aren’t meant to slow you down. They’re meant to help you move forward with conviction, knowing your choices are grounded in both purpose and pragmatism. That’s how you build a wellness business that lasts.