According to the Department of Commerce, over 1 million businesses open up every year but only 40,000 of them stay open past the first 5 years. That’s a very small survival rate. Where does your business stand? Will your business be among the survivors? Or you need help?
As a business development firm, we come across many medical spas and spas that are in need of help and some are in major survival mode. InSPAration Management’s mission is to help medical aesthetics professionals gain financial health. We have learned what separates successful medspas from failing ones. To be successful, you need a solid business model that includes the 4 S’s: Systems, Structure, Strategies, and Solutions. Also, you must have strong leadership skills and a high-performing team of injectors, aestheticians, laser techs, patient coordinators and more…
In this Dori Talks I will be sharing six steps to insure your medical aesthetics success!
1. Conduct a Medspa Business Assessment
The first step is to conduct an S.W.O.T. analysis.
It’s an objective assessment of your current situation. Take the time to identify your spa’s:
Strengths, what are you doing well and do more of the same!
Weaknesses, what needs improvement? Make a list of all the challenges keeping you from achieving greater success.
Opportunities, what new opportunities can lead into new revenue streams?
Threats, what is holding you back?
This S.W.O.T. exercise will help you focus on your strengths and explore new opportunities.
Implement a plan to improve your challenges and build on your strengths.
Also, we are offering you a complimentary Medical Spa Business Assessment document to help you dig in deeper and realize your opportunities.
2. Marketing Plan for Medical Aesthetics
Marketing is one of the most important business functions to any medical spa. Without a marketing plan, your spa’s capacity is minimized, leading to low revenue and profits. Your marketing goal must include a focus on lead generation. Your marketing efforts must compel your new leads to visit your medspa, to purchase and repurchase your products and services.
Many medspa industry professionals are under the impression that marketing is expensive; therefore, they don’t market. Or they do invest but do not track effectiveness. Running your business without a marketing plan is like trying to drive a car without fuel. There are many effective, economical marketing strategies you can implement that will increase your medspa traffic, i.e., text messaging, e-marketing campaigns, promotions, in-spa marketing, special events, business 2 business, asking for referrals. Take the time to create an annual marketing plan and watch your capacity increase! Avoid starting from scratch or reinventing the wheel check out the marketing for success plan we offer. It’s on Med Spa Biz University.
3. Focus on Increasing your Volume per Guest
The easiest way to increase your sales is by focusing on the volume per guest. We call it VPG. Calculate your current volume per guest for both service and retail, do it for each person on the team and for the overall facility then set new goals for everyone. Train your medspa team how to maximize the number of treatments/upgrade opportunities and retail sales. This will increase volume per guest. You can increase your volume for treatments and retail three ways:
- Through the consultation process
- Through the Guest Relations team
- Through your providers
To increase your Retail sales we recommend implementing the P.R.I.D.E. system which trains your team on how to make recommendations easily and increasing your volume per guest. Retail sales will make a major, positive impact on your bottom line!
4. Medical Spa Team Performance & Expectations
Evaluate your team’s performance. Identify areas for improvement and implement business training such as the Recipes For Success to improve performance. The biggest mistake we see is that practice managers and directors do not set targets and goals with their team. Targets must include: number of new guests, repeat guests, retention rate, retail sales, service volume, member enrollment, reviews, referrals, reactivating lost clients, and more… Targets must be set in the beginning of each month and evaluated at the end of each month.
As a leader, continual monthly measurement of your medical spa performance insures growth and success. Another significant opportunity to focus on is your team’s rotation and how new guests are assigned. Calculate your team’s retention rate and begin assigning new guests to the team members who have the highest retention rates. We call that Power Rotation. This practice emphasizes the importance of delivering a great guest experience and motivates team members to improve their retention rate.
5. Tapping into multiple medspa treatment modalities
Assess your menu and discover which treatments are selling and which are not. Introduce new combination modalities for improved results. The biggest mistake we see providers make is when clients come in they receive Botox and leave. Yet they may need other treatments. Train the medspa team to perform multiple modalities. This will help you introduce your clients to new treatments and increasing revenue.
6. Providers and Experts Communication
Share current conditions with your team. Be transparent and engage them in mapping out a new vision and in creating a new action plan. Ask your team to recommit to the medspa and to the new strategies.
Remember… you don’t have to reinvent the wheel. Firms like ours have proven effective systems that are guaranteed to produce results! Visit InSPArationManagement.com and explore all the BizTools that are available to help you set your business back on track.
Experience exponential growth and maximize your success!
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