In fact, Americans spent just under $9.4 billion on cosmetic medical procedures in 2003. In 2004, American consumers spent $44.6 billion on anti-aging products and services, and the total anti-aging market is projected to reach $72 billion by 2009 (Business Communications Co., Inc., February 2005).
Unfortunately, there are problems with the Medical Spa Model. Many are, Day Spas, terribly structured franchise chains, and hair salons, calling themselves Medical Spas . So, while it sounds alluring to jump on this trillion dollar anti-aging boom, it would be wise to take note when heading down unknown territory.
If you’re planning on starting or expanding a medical spa, here are a few tips to consider:
Hire an Experienced Consultant - I am often astonished by the day spa consultants that have assumed the title of “medical spa guru”. Most of these new experts drop lots of names but few phone numbers. Anyone offering consulting services should be happy to give a list of references and more importantly, a list of competitors.
You Must be a Physician - If you are not a physician, you can not “own” this business. You may own the building, you may pay the staff, you may have a franchise with a “medical director”, and you may think you’re in charge. It doesn’t matter. All medical law is designed, written and interpreted to keep a physician independent in medical decision making. That means that if you are a non-physician in this field, the physician providing medical oversight has the power to “pull the plug” at any time. There’s also this to consider. What constitutes adequate medical oversight is decided by state medical boards. The board members making the rules are physicians themselves, some of which may be loosing money to “medical spas”. It’s never a good idea to enter a business where the competition can change the rules at any time, but that’s exactly where the current crop of franchises are. If you don’t have a physician on-site and seeing every patient before their treated, you’re in danger of having the rug pulled out from under you.
This is a Tough Business - The market is going to decide who wins and loses. If you don’t have absolutely compelling answers to this question, “Why would a patient choose to come to me over my competition?”, wait until you do. (If your answer is price, start over.) A copy-cat strategy is a no-win business plan. The next five years will see dramatic and disruptive changes in this marketplace. Large, well financed medical businesses with smart physicians and high quality care are going to open up next door to you. If you’re not well established with deep roots, you’ll be gone.
Choose the Right Equipment - The Right equipment is one of the things that will let you move ahead a step, or strap you down. Some if this equipment is like a "house on wheels." Before you decide on which equipment to buy you’re going to need to crunch the numbers. How many shots will the IPL heads last for until they need to be rebuilt? How much support is included? What kind of training is provided? Does the device work better than its competitors? Before you sign your next few house payments away, make sure of your technology decisions.
• Leasing is the best way to go if you want to pay for your equipment as you use it while preserving your capital. Many of the equipment companies have delayed payment plans as long as six months.
• Buying used equipment is often the best way to save money if cash flow is not an issue.
Keep Your Capital Out Lay Down - Cash flow is a problem many start-up medical spas face. Revenues and growth projections are commonly exaggerated in the excitement of a new business. Before you invest in leather treatment tables, make sure you can pay your bills. Financing is easy. Financing smart is hard: Speak the words “Medical Spa” as a physician and you’re everyone’s best friend. Banks, lenders, technology companies will all have big smiles on their faces and their hands out, ready to lend or finance anything you need.
Staffing is a Challenge - Training your technicians can be a tremendous drain on your time and resources. If you believe that our schools provide adequate training to make students labor-ready you are living in a dream world. Yes, some job seekers make the effort to learn on their own the skills needed for a new job, but most get that training on the job. That's where an in-house training program comes in. Not only does instruction arm your employees with needed professional or technical skills, but it also shows that you are invested in them and interested in bringing them with you into the company's future. This helps keep workers motivated and involved.
Profit or Loss - If you don't track the numbers, you'll never know. Understanding the financial aspects of running a business can be a challenge. You must focus on two major areas for growth and profitability: one, establishing a true form of measurement to project, track and monitor the growth (or lack thereof) in your business; and two, gaining a complete understanding of how to protect the cash you already have coming in.
Take these tips and begin using this knowledge to your advantage. Success doesn't happen by accident; it's a result of careful planning. When you put the correct chain of events into motion, you'll find that purposeful action always yields successful results.
