Maximizing the value of your medical spa.
Guest post by Dr. Lee Laris, Medical Director and Chief Cosmetic Surgeon at Phoenix Skin Medical Surgical Group in Phoenix, Arizona.
Would you like to improve the value of your medical spa practice? We’ll share simple tips to get the ball rolling: Here are Five Tips for Improving Medical Spa Practices:
1. Cut Through The Clutter – there’s an avalanche of information regarding ways to better one’s medical spa, especially by general practitioners. The truth however, is that each practice has its own set of rules that are relevant to improving profit margins and patient satisfaction.
A cosmetic surgeon who you befriended during general medicine training may’ve had phenomenal success – by adding just about every gem of cosmetic surgery on the planet to its menu of services. In a medical spa, however, this rule may not apply. It’s therefore important to discern what’s good and bad – and relevant to a medical spa’s niche.
2. Get Acquainted with Accounting – if you want to run a lean-mean medical spa machine, get familiar with numbers – fast.
Even though you’re in the business of medicine, it overlaps with the business of business. As a B2C company, an appraiser will explore several areas when assessing the business’ value, including monies, business model and how marketing is being conducted. By learning each area firsthand, you’ll know where to plug the loopholes, and add more value to what’s already being done.
3. Divide And Conquer – from the get-go, improving the business’ value may seem like an overwhelming feat. You’ve managed to build a tidy empire thus far, but how can new changes be applied, without disrupting the day-day-business, or affecting the quality of care?
Project managers are available to discuss the application of value add-ons, including name changes or new pricing strategies. One very important agreement to compose with a lawyer would be a non-compete contract, to eliminate the risk of current staff starting a replicated version of the medial spa.
4. Exit Strategy – once there’s value added to the medical spa, and a certified appraiser is able to confirm a substantial increase in the growth and revenue of the medical spa, application of the exit strategy will be in effect.
The exit strategy should be composed well before the implementation of the plan, and some suggestions include using the perfect timing. Just as how it’s easier to get a job while on a job, most medical spas will sell for faster and higher when it’s currently a booming one. An accountant or lawyer can help.
5. Legal Ties – it goes without saying that running a medical spa practice takes hard work and dedication. Still, if there are no legal contracts in place for employers, business partners and patients, the practice will likely succumb to a fall. Don’t allow this to happen. Consult and retain a top-notch lawyer to periodically review old contracts and scheme up new ones. The laws are furthermore changeable, so it’s essential to keep up.
The Benefits of Implementing Strategies
- Legacy – for years to come, most medical spas will bear the same name, since this is what patients will be accustomed to. Though nothing is guaranteed, chances are that owners can pass on a legacy in their name, and one that was built from the ground up.
- Client Retention and References – while you’re busy working to add value to the practice, customers will be busy booking appointments due to the quality of services. Customer retention and referencing also lowers the advertising budget, and eventually return customers will make up a large part of the business income.
- Higher Profit Margins – value add-ons means making more, during the ownership of the practice, and ultimately when an offer for sale is made.
There’s always room for improvement in any practice – including medical spas. If this is your passion, and you’d like to ardently grow, seeking out the most effective ways to upgrade is the way to go.
About: Dr. Lee Laris graduated from Gannon University in 1981 and continued his education at the College of Osteopathic Medicine of the Pacific where he received his Medical Degree in 1987. His internship was completed at Grandview Hospital in Dayton, Ohio.
Dr. Laris is Board Certified in Hair Transplantation and Dermatology and is a member of the American Osteopathic Association, The Arizona Osteopathic Medical Association, The Osteopathic Physicians and Surgeons Association of California and the American Osteopathic College of Dermatology.