Essential Principles To Having A Successful
Medical Spa & Spa Business Model
Is your place running like the wild, wild west? Most medi spas are.
When you have written and detailed business models and everyone on the team understands their positions and responsibilities, it makes your life easier. Your business can operate on autopilot. If you don’t have a model, then you and your team are winging it. One day you’re doing things one way; one day you’re doing things another way. This behavior leaves your success to chance. You must plan for success. Now is the time to define your business model.
A Business Model Is Needed For:
1. MARKETING MODEL
Marketing is a huge part of your success. The most common mistake medi spa leaders make is the lack of a strategic plan for generating qualified leads and converting them into clients. Many don’t know their numbers. If you are serious about your success, you must know the following:
- Number of leads needed
- Lead source
- Lead cost by source
- Conversion rate from lead to phone call
- Phone call to consultation
- Size of each sales transaction
- Lifetime value of a client
Your Marketing Model should start by identifying your target market, and then creating your message along with the chosen media you will use to reach people. The goal is to generate leads, turn them into a first-time client, and then into a lifetime client. To market your business properly, you need a Marketing Plan.
2. SALES MODEL
Part of your Sales Model should include how your medi spa Guest Relations team manages the phones when they ring. What takes place? Do they know exactly how to manage the call to convert the caller into an appointment?
How does your team recommend upgrade and home-care products? How do they sell memberships?
Your med spa team must be trained on a Sales Model. If you don’t train the team, they will wing it and let opportunities go by. That demonstrates that while your marketing dollars are working to make the phone ring, the team does not know what to do with the callers. They don’t know what to do with your visitors to maximize revenue. They are not reserving consultations that you can turn into clients and revenue.
3. OPERATIONS MODEL
The Operations Model has many components. It begins with an Orientation Manual that includes the organizational structure, followed by training, protocols, policies, procedures, and the guest experience. Daily operations require systems that define your process. To run operations smoothly, you must have procedure manuals for every process. Without written procedures, your team will deliver their guest experience and perform tasks solely on their judgment, for better or for worse.
4. FINANCIAL MODEL
Your Financial Model must include:
- A detailed budget
- A performance-based compensation model
- Financial reporting
Many people spend more time selecting a product line or lasers over checking their finances. Some think measuring finances is seeing how much is left in the checking account. Most don’t even have P&L (Profit & Loss) statements to measure monthly.
Use QuickBooks and your software system to create reports that will help you measure and monitor your performance, and then make necessary adjustments. There are tools to help you, so don’t reinvent the wheel.
Want to improve your business model? Join us for the Super Conference in Dallas. Learn more and register.
Don’t reinvent the wheel. Follow an effective medical spa business model and you will reach success fast! Many of our clients have and you can too.