April
26, 2005 | Oakridge Healthcare - MedSpa Financing
FOR IMMEDIATE RELEASE:
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.
CONTACT INFORMATION:
Jeff Russell
1-800-485-5759
MedSpaFinancing.com (a division of Oakridge Healthcare)
http://www.medspafinancing.com
### |
