A well-managed medical spa in the right location has the potential to make more money than traditional doctor’s offices. But there are some common pitfalls that could stop you from becoming profitable. As a small business owner, you’ll need to identify these issues and confront them head-on so that your medspa can flourish.
Here are the top reasons why medical spas fail and how to avoid them.
1. Dumping Marketing Tasks on the Staff
“Marketing is a group effort. Certainly, the staff members at your spa are more than capable of contributing to the overall marketing goals, but that is not what you hired them to do!
In other words, just because you have an employee that loves posting on social media, this does not mean they are qualified to create custom business posts to represent the voice of your business and build your brand. Budget accordingly to allow for trained marketing professionals to plan, implement, maintain, and constantly improve your marketing work and efficacy.”
Source: Luis Trevino
2. Spreading Yourself Too Thin
“There are many varying facets of a medical spa that all require your attention. However, trying to handle all of the different components of your medical spa yourself will surely result in subpar execution. Duties like hiring employees, putting together financial forecasts, establishing a marketing strategy, and securing investors all require a lot of work. During the early phases of developing your medical spa, it’s important to work with others who can help you handle the many elements of your business.”
3. Lack of Business Plan
“Building your business model is the single most important step in running your new business, and it should also be the first one. Danielle Lavallee Wasson of MyRetailCoach.com explains, “All business managers make bad decisions at one point or another. These can be minimized if there is a strong plan in place that is supported by a clearly defined mission and values.” This is the plan from which you will base all your leadership decisions, from branding to sales strategy.
With a clear, informed business plan, you can make smarter decisions and increase your leadership capacity. More importantly, your employees and colleagues can help you work toward these goals and uphold your values. Because when “employees don’t have clear goals, don’t understand the mission and values of the business,” Wasson explains, “[they can] truly hinder performance.”
As the leader of your spa business, it’s your job to communicate your vision to employees and customers. Without a plan, you’re likely to repeat the same mistakes until your business shutters prematurely. In other words, if you cannot envision your plan, how can you expect others to understand and accept what you have to offer?”
4. Lack of Adequate Cash Reserves
“MedSpa’s don’t fail because of lack of commitment, passion or enthusiasm of its owners. They fail because of money! More specifically lack of cash.
Top 3 reasons:
- Start-up costs too high.
- Monthly expenses too high.
- Failing to convert consultations into sales.
If you are considering opening a Medical Spa, the first thing you need to do is ensure you have the business skills to do it! If you don’t have the skills, hire a business or practice manager who does.
Many people focus on clinical skills and underestimate the need for business skills. You may be the best injector in the world, but that doesn’t mean you’re going to have a profitable MedSpa or aesthetic practice.” — Jeff Russell
Source: Aesthetic Medicine News
5. Lack of Physician Oversight and Ownership
“Especially if you are a non-medical professional, you will definitely need a physician or medical director that oversees procedures. Clients feel a sense of ease when they know there is a physician there just in case and it will really add value to your practice. You’ll want to check your state’s policies on ownership for legality reasons as well.”
Source: Aesthetic Advancements
Get the Best Medspa Financing with First Union Lending
Getting the wrong type of financing can sink your business faster than any other mistake. First Union Lending has nine different types of business loans and a variety of financial solutions, so you can find the one ideally suited for your medical spa.
Here are some of the loan types and financial solutions we offer:
- SBA loans
- Long term loans
- Short term loans
- Commercial property loans
- Lines of credit
- Debt consolidation
- Bridge loans
- Healthcare provider loans
- Equipment financing
Want to learn more? Don’t make the mistake of choosing the wrong loan for your medical spa.