5 Reasons Med Spas Struggle
Over the past twenty years medical aesthetics has risen in popularity among those who seek age defying and life enhancing solutions. What was once an industry driven by neurotoxins (Botox) and a quest to preserve external beauty has evolved into treatments designed to reverse the aging process inside and out. As is the case in any emerging industry, growing popularity among the masses has brought with it growing competition and great interest from investors.
Those early adopter practice owners who effectively designed the model for the industry, and subsequently rode the wave of exponential growth, now find themselves challenged by competition. Additionally, new technology designed to better address the most complicated conditions appear to launch daily. What was once a handful of treatment options has now become seemingly endless. As such, competition and the cost of doing business has grown as quickly as the industry itself.
Because of the rapid growth and influx of investment dollars, the very fragmented medical aesthetics industry is in the midst of consolidation. No longer can loosely run and unsophisticated practices continue as to operate as such. They will have to change or find themselves faced with the unfortunate realization that comes with operating in a high demand industry. Being first in an industry that is experiencing rapid expansion does not guarantee long-term success. If it that were the case, Blockbuster, Palm, Napster, and Myspace would still be household names. The axiom change or be change reigns true. Truer yet is the fact that dinosaurs no longer exist.
Given the evolution and rapid growth of the medical aesthetics industry, what is an independent practice to do? The answer is as simple as it is hard. It sits at the crossroads of highly effective leadership, strong management, unwavering commitment, and entrepreneurial spirit. It is a mix of what got you here and what it will take to keep you here. It is rebuking Einstein’s theory of insanity.
If you’re an independent practice owner who is concerned for the future of your medical aesthetics business, the first step toward addressing the concern must come from within. As the flight attendant reminds us every time we ready for takeoff, in the case of an emergency we must first place the oxygen mask on ourselves before helping others. If we do not acknowledge our role as owners and leaders in the current state of the business and fully commit to changing ourselves first, Einstein’s Theory will hold true. For those who are committed and ready to do things differently, below is a non exhaustive list of five areas to reflect over as you plan the transformation.
Client Experience – A great question to ask yourself is this, “If I were a client would I be excited to tell my friends and family about the experience I received at my practice?” Be honest. If you hesitate to say “YES!” with resounding confidence, you have a problem. So, what is the issue? My guess is you already know. This is a relationship business driven by great results and a memorable experience. The attraction of medical spas is that they do not look, feel, or behave (outside clinical and regulatory practices) like an institutional medical practice. If your practice is not any different than the spa down the street, then you can expect your clients to eventually find the one that is.
Relationship Building – How well does your team seek to understand the real wants, needs and desires of your clients? Do they ask probing questions that uncover a client’s real concerns? Do they help the client realize the underlying problem that is contributing to their expressed concern? A client that schedules an appointment to smooth out forehead lines is concerned about more than lines on their face. They are concerned about aging. Addressing the stated concern will only result in uncovering additional concerns when they get home and start looking in the mirror to evaluate the work done. You might as well cut to the chase and have them do that evaluation while they are with you. An in depth consultation process goes a long way toward addressing unstated and unrealized concerns, building strong relationships, and creating loyalty.
Clear Expectations – Does your team do what they are supposed to do? Do they greet clients, manage leads, and follow up properly? Do they attend to the details? Are client records timely updated? Do people show up on time, treat each other with respect, and enthusiastically help you grow the business by promoting services and the skills of their colleagues? Does every person on the team know what is expected of them? Not in general terms, but in detail? Do they know their numbers? Do they know their role and responsibilities? Does your team perform as expected and do you consistently hold them accountable for such performance? No one can meet expectations if they are not clearly stated and consistently held accountable for adhering. Every person needs to be led and held accountable for results and behaviors.
Culture of Excellence – Excellence is learned. What you expect and pay attention to becomes the norm. The same is true for what is ignored. During NASA’s Space Shuttle program two shuttles exploded. Many lives were lost, and many families were devastated as a result. Both accidents were seemingly avoidable. NASSA allowed things to happen that were outside their “normal” operating protocol. They ignored things. Eventually, those things they chose not to ignore resulted in tragedy. A culture of accountability and excellence are a product of leadership and management. What the leader says and does matters. It matters in the littlest of ways. The goal is to have a team that always performs with excellence, especially when the cat is away. That does not happen by accident.
Business Acumen – To survive long-term a practice owner must make more good business decisions than bad. To make good business decisions you must be aware of and accountable to the numbers. Merely knowing that there is money in the bank is not going to lead to success. Looking at a P&L once a month or worse, annually, is not going to move the needle. Those are trailing indicators. As much as is possible, a business must operate with real-time data. A small business owner must incorporate a business operating system, such as EOS or Traction, and practice restraint. You also have to be strategic and thoughtful. You can’t discount your way to a profit. Such behavior results in a race to the bottom. It did not work for K-Mart and it is not going to work for you. You also cannot buy every piece of new technology and you can’t spend wildly on marketing. You must be strategic with service offerings and base them on client demand within your market. You must target your marketing and actively manage campaigns. You must embrace business fundamentals that have been tried and tested for ages.
Owning and operating a medical aesthetics practice is not for the faint of heart. It is challenging, demanding, and scary at times. However, done right, it is very rewarding. Seeing client lives changed for the better makes every struggle worth it. Seeing the bank account grow because you helped clients solve their problems and managed a well run business is a pretty good feeling as well. None of this happens by accident though. A great business requires exceptional management and leadership from the top. It also requires a team that buys in and is held accountable for achieving excellence.
💌 Are you ready to take on an investment partner to help you grow your medical aesthetics practice? If so, we are here to partner with you every step of the way. Fill out the contact form or send us an email at info@baraesthetics.com and we will schedule a call to discuss the possibilities.
Don’t forget to sign up for our newsletter below so you never miss an opportunity to learn and grow.
