10 Tips to Medical Spa Startup Success
Between 2002 and 2004, the medical spa industry grew by 109%. The demand is far from being met, and 2005 is going to see the largest number of Medical Spa openings yet. If you are going to open a Medical Spa this year, check out these 10 tips to Medical Spa Startup Success.
Las Vegas, NV (PRWEB) April 26, 2005 -- “Even though the Medical Spa industry
is still in it’s infancy, I am beginning to see some trends” says Jeff Russell,
the CEO of MedSpa Financing. “We’ve compiled the following 10 tips for those
considering opening a medical spa.”
Don’t try and re-invent the wheel,
learn from our experience, here are 10 tips that will help you open a successful
and profitable Medical Spa.
1. Have sufficient funds
Don’t even think
about opening a Medical Spa unless you have the capital needed to bring it
through the startup and first year of operation. Invariably, your planning will
not deal with all of the unforeseen issues that can occur in the MedSpa
industry. From regulatory compliance changes and training costs, to increased
marketing costs. Under-capitalization is a leading indicator of business
failure. You should considering a combination of various financing strategies
from leasing to working capital.
2. Talk with other doctors who have
successful, operating Medical Spas Ask them what they would do the same, and
what they would do differently. We are starting to see some established Medical
Spas out there, try and learn from their experiences and best
practices.
3. Join associations that help new Medical Spas
succeed
They are a great source of experienced MedSpa owners, who have
already gone through what you will. In addition, they often have members who
have specialized in the MedSpa industry, including: business planning,
marketing, design, dealing with regulatory issues, insurance and finance. The
International Medical Spa Association even has a mentorship program that is
available for new MedSpa owners. It is invaluable to chat with someone across
the country who has had the same problems you may have, especially if you know
they are not a local competitor!
4. Know your strengths and
weaknesses
No one is strong in all areas, you may be an expert in age
management medicine, but you may be weak on the business and marketing side.
That’s fine, but you are going to need to identify the areas where you are weak
and compensate. Not all areas require a permanent, full-time employee, you may
consider hiring a consultant who has the necessary experience.
5. Watch
your expenses
Especially during the startup phase of a MedSpa, it can be easy
to see the glamour of having marble flooring, but is it really necessary? You
may be better off adding another hair removal treatment room, which will
generate income. Remember the old adage: “it will take twice as long and cost
twice as much as you anticipated.”
6. Determine what need your Medical
Spa meets
As with any successful business, you need to meet a consumer
demand. With 11,500 people joining the over 50 crowd every day, you have a great
potential market. But you need to make sure you are where they can be found
(i.e. medical centers, shopping centers, established communities).
7.
Know your cash flow
You may think financial statements are only for
accountants to understand, but you need to be able to read some key financial
statements. Including the cash flow statement, this lets you know where the
money is coming from and where it is going. You must always know your current
cash flow situation, if you cannot pay your bills, you are effectively out of
business.
8. Do it because you want to do it
Starting a MedSpa is
going to consume two things: time and money. The profit potential of a MedSpa is
huge, but if you are not doing what you really enjoy, it will show on your
bottom-line! As you will probably be spending more time and money than you
originally planned, you need to make sure operating a Medical Spa is what you
really want to do.
9. Don’t hire family and friends
They may be able
to provide you with valuable assistance during the startup phase, but they most
likely will not be able to get you to that next level. This is where having an
experienced MedSpa director is very important. Not only are they going to hire
and train your employees, but they also will be responsible for the day-to-day
operations of the MedSpa. Hiring a competent MedSpa Director can allow you to
run your MedSpa as a stand alone profit center; one that makes money whether you
are there or not.
10. Don’t forget about regulatory and insurance issues
Since you will be incorporating medical procedures in your MedSpa you need
to ensure you have the proper coverage for the procedures you will be
performing. While you already have malpractice insurance, it may not cross-over
to your MedSpa practice. Many insurers are now requiring offices adding or
expanding cosmetic-aesthetic procedures to their practice to document clinical
and/or accredited training on all non-ablative modalities before a policy of
coverage will be extended. Please consult your insurance provider to ensure you
are covered.
The underlying theme here is – Be Prepared! The key to any
business success, including opening a successful medical spa is being properly
capitalized from the very beginning. To make things more complicated, you also
need to take into account the evolving regulations surrounding the MedSpa
industry. “I am now seeing successful Medical Spa’s turning profits after 6 to 9
months, there are many very happy doctors out there” says Russell.
About
MedSpa Financing (Oakridge Healthcare)
MedSpaFinancing.com is a division of
Oakridge Healthcare, which provides turn-key healthcare financing solutions to
medical practices throughout North America (www.oakridgehealthcare.com). Through our network of financial
partners, we have the capacity to finance everything from a single treatment
machine to an entire $20 million Medical Spa facility. For additional
information, visit our website: www.medspafinancing.com.
MedSpa Financing is a member of the International Medical Spa Association, and
proud member of our local Chamber of Commerce.
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Source : http://www.prweb.com/releases/2005/4/prweb233340.htm