According to Market Watch, the industry expects continued growth. Buyers are looking for low-risk, high-reward industries to invest in, and medical spas can be perfectly positioned to take advantage of this. Many doctors see the shift to aesthetic medicine as a way to generate additional income, as the business relies heavily on cash rather than insurance. However, like any business, if you don't know what you're doing, owning your own medical spa can be a risky venture.
It requires a large investment in marketing and equipment when starting up, and making poor decisions with your start-up capital can lead to disaster. Some medical spas end up taking out high-interest loans to close the gap and start having problems with monthly expenses. The return of cosmetic treatments was quickly anticipated, as consumers have spent months in their homes due to quarantine. Medical spas should care for these patients and help them decide which treatments are best for them from a clean and safe environment.
The large volume of revenues from cosmetic treatments also attracts investors due to repetition. If someone receives Botox regularly (for example), they will get it every three or five months. These are very stable treatments that generate large revenues. These revenues can be used to innovate and expand to provide patients with machines, treatments, more technicians, etc.
Medical spas are perfectly suited to benefit from this increased demand and should alter their marketing with this in mind. A new client may feel a little overwhelmed by the number of different options available, and the ability to speak with a professional and gather the necessary information before entering a medical spa is incredibly valuable. Durocher recommends that the total compensation of a medspa compared to service money should not exceed 35%, where the total payroll burden of the spa would not exceed that percentage. Medical spa owners often don't take into account other cost factors, such as long-term depreciation and financing costs. This week, Brandon Robinson, owner of Skin Body Soul and investor in OrangeTwist, talks about the business perspectives of the medical spa industry during and possibly after the COVID-19 pandemic. The types of treatments offered by medical spas are no longer seen as mere luxuries, but as an investment in oneself that will pay off mentally and emotionally, not to mention real physical improvements.
In addition to learning from some of these benefits that have allowed businesses to thrive right now, there are a few other steps medical spas can take to thrive. Ramin's medical spa focused its online marketing on attracting people for PRP hair restoration, using Google ads and Facebook campaigns. While doctors in a medical practice may be hesitant to sell products, people who work in a spa or spa have to sell products because the real margins are in retail, says Durocher. You have to run it like a retail business, says Durocher, who spoke about team compensation and pay for performance at this year's American Med Spa Association (AmSpa) show in Las Vegas. It's an industry that should have been hit very negatively due to ongoing closures, and some spas have certainly been. However, the medical spa industry is ready to emerge from this pandemic stronger than ever, having weathered the storm of this pandemic better than most.
