Medical Spas Review

Debunking the Biggest Medical Spa Myths

By  Cheryl Whitman

The health and wellness market is a $500 billion industry made up, in  part, by a 500% boost in the number of aesthetic procedures performed  in the last five years. Peak demand for medical spas, cosmetic  medical centers, wellness centers and age management institutes is on  the horizon and those who are prepared will be ahead of the curve - and have the potential to set the standard for excellence.

While your attention should be fully engaged with your patients, there is  still the matter of the business you are running. Not only is it  important that you have a business plan and a marketing blueprint,  among other business related specifics, but also adhere to each and  every board,  ruling, regulation, registration, licensing, and  recommendation in order to be in compliance and protect your patients  and your facility from reprisal.

MYTH: "Medical spa" means instant revenue

REALITY: Like anyone else who starts a new business, you have a 50/50 chance of succeeding. The number one reason most businesses fail is because they don't plan properly and under capitalize their investments. In addition to a significant financial investment, it  will take a lot of hard work to put yourself on the positive side of  that ratio. There is more to consider than just the highly sought-after services you will offer. Building a successful medical spa practice, cosmetic medical center, wellness center or age management institute is a process that requires patience and serious planning to improve your chances for achieving your goals. It takes time and attention to detail to build, maintain and grow a successful  practice.

Whether  you are seeking start-up or expansion capital, or working to keep  your investment strong, a business plan will help take your business  and organization to the next level. In fact, it is essential to the  success of your medical spa or cosmetic medical practice.?It is  the ultimate guide for your structure, services, products, staffing, resources, budgeting, financial management and implementation. A solid plan helps you visualize your goals and stay on track while also keeping you from floundering in what is quickly becoming a sea of competitors.

If  you are planning a build-out for your space to accommodate your services, secure the necessary permits and be aware of the actual time it can take to complete construction. Develop a Web presence so  you are easy to find online. Make time for networking in your area,  as well as offering free lectures and seminars for the public.  Further, open your calendar to public relations opportunities and  create a budget to cover essential marketing efforts. But before you  can implement any of these options, you will need to plan very carefully.

MYTH: "If you build it, they will come."

REALITY: You won't have clients rushing in just because you  have hung your shingle - even if you are an expert in your field, have the latest equipment and the most beautiful office - unless you are actively promoting your business. You have to tell your clients  and prospects that your medical spa is the only place where they can  receive your signature services."One  hundred percent of your aesthetic business relies on your marketing plan," shares Anca Saladie, senior consultant with Beautiful  Forever. "You must have a plan that focuses on your clients,  products and services, promotion and pricing. Marketing includes how  you design and decorate your space, the Private Label and other  retail products you provide for at-home use, and the collateral material available, such as brochures and direct mailers."

MYTH: Once a client, always a client.

REALITY: Clients rarely stop shopping for the best services - and deals - on the market. Satisfied customers are the key to your  profitability, so measuring your customers' satisfaction on a regular basis is vital. Common measurements include surveys, retention rates and customer service inquiries.

In-office consultation is an important avenue for increased success and should  be a part of every client's experience. Every member of your staff should be trained to follow the same procedure for every consultation, whether the client is seeking your premium procedure  package or a simple skin assessment.

Be sure  that you are providing the highest level of satisfaction. Whether your clients and * prospects find you by word-of-mouth, the Internet or  in the yellow pages, it is up to you to make the most of each client  contact and track them so you can identify what is
working and what  needs to be revised.

MYTH: If the equipment is expensive, it must be good.

REALITY: Be picky. Cost is not the defining feature of a good  piece of equipment. You need to add something to your service line  that can keep up with current and burgeoning demand. A clear understanding of your target market's demographics and a competitive analysis are important when making a purchase decision. You want the  best bang for your buck, so look for a piece of equipment that can  meet many needs and serve many different types of clients. Be sure to rate equipment choices based on proven results, "gold  standard" status, broad appeal and / or application, combination therapy capability and the ability to generate high revenue. Find out  who is endorsing the equipment, including major associations.?

Before purchasing new equipment, you also should examine the possible return on investment (ROI). Is the equipment you are considering going to need replacement within two to three years, or will it be effective for four to seven years, thus providing a better ROI? In addition,  learn your financing options and negotiate the best rates.

MYTH: We can tell we are doing well because our revenue is  higher than last month/year.

REALITY: Monitoring incoming dollars is always important, but  don't stop there. You must stay on top of all the factors that may be  affecting your practice so you can correct what isn't working - and  capitalize on the best. Operational efficiencies are a key in sustaining profitability and ensuring not only stable and solid business, but also success for your medical spa. Metrics measurements provide numbers that tell a story about where your business is  headed.

Businesses  in the cosmetic medical sector should use quantitative benchmarks and  techniques to monitor the elements that impact the profitability,  efficiency and effectiveness of their business. When you rely on  solid numbers and key metrics, rather than subjective measures such as hearsay and intuition, you have the edge on success. You will need to measure financial, client, consultation, demographic and lead metrics regularly to track your efforts on an ongoing and cumulative basis and review the results monthly or quarterly. Be sure to share  your goals and findings with your staff so they can continue to build  their skills.

MYTH: A medical spa is not much different from my successful practice. If I keep following the same model, I'll do  fine.

REALITY: You are moving into a very retail-driven market that may be completely new to you. Of course you should keep your ill or recovering patients separate from your well patients, but you should be aware of some major differences. Market research shows the annual average revenue of a medspa tops $1.5 million, up to 15% of which is  accounted for in retail sales. You will be working with patients who are making elective decisions regarding aesthetic choices that are  paid for in cash (or credit, including patient financing that you may  offer). That said, you might need to address the issue that aesthetic services are not covered by medical insurance, so patients will not be able to make claims.

You will need to focus more on the overall experience and the ambiance and atmosphere, as well as retail products for home maintenance. Most clients are happiest when purchasing their skin care products where they get the rest of their cosmetic services. In fact, your patients will greatly appreciate shopping for products that really are designed for their special needs in an environment where they know they will receive your expert advice. Product lines and a well-trained, well-informed, professional staff proficient in selling  can add 30 to 40% to your total revenues.

MYTH: I can count on my staff to know what to do.

REALITY: Standard operating procedures (SOPs) are the backbone of every successful business and practice, so plan your  strategies and train, train, train. After you have taken the time to  hire the right people for your practice, keep them up to speed - or even ahead of the game - by providing ongoing education. Don't leave  anything to chance and don't make your staff guess what you want. Put  clear protocols in place for everything, including phone inquiries, consultations and every treatment you offer.

Even though potential clients have already made the decision to 'buy'  treatment, they may still be shopping around for the best place to  get it. Your goal is to show why your practice is perfect for their  needs. Do spot checks to make sure consultations are done correctly, and follow up regularly with role-playing, training and even secret shoppers.

MYTH: Issues tend to work themselves out.

REALITY: "On a regular basis, you will need to take a  close look at your practice," says Mac Fadra, executive  consultant with Beautiful Forever. "Or better yet, ask a professional, such as an accountant, manager or consultant, to  evaluate it for you. Many practices face at least one issue that  prevents them from reaching the level of success they seek, and it  may cause significant damage before it is clearly recognized and  handled. By doing some detective work, you can discover the root  problems that may be holding you back. The key then is to take action and implement steps to correct your issues."