With so many businesses out there, it’s hard to stand out. One thing we notice is that the strongest MedSpas in the market are always the ones who are financially aware. Here are 5 tips from our team of financial wizards that will help you scale your business and stand out from the crowd.
1. Start with a vision
Every business starts with a goal in mind. No matter what the goal is, you need to have some kind of roadmap. A roadmap will help you understand where you are, where you want to go, and what needs to happen to get you there. This starts with a thoughtful and honest review of your practice. Start by asking yourself what needs to change. Should your providers be generating more revenue? Do they need new or different goals? What are you going to do if you have to close for a period of time? If this sounds overwhelming, we understand! Maven can help you determine which goals are in range and provide realistic expectations based on the status of your business.
2. Set Up a Successful Pay Structure
Setting up a successful pay structure may look different for every Medspa. Do you want something that incentivizes your providers, or something more structured and consistent?
For structured systems, look into offering salaried pay. This will not only create consistency for your budget but for your providers as well. When there are no financial strains, they are more likely to focus on quality over quantity. If you need to incentivize salaried or hourly providers, consider collections or commissions based on performance and the amount of new business they bring in.
3. Don’t Be Afraid of Financial Debt
Let’s be real. Starting a practice is expensive! It takes more money than many realize to start a practice from the ground up. We are here to remind you that debt is not a bad thing.
When you’re growing your Medspa, you may need to borrow some money, and that’s okay! If you’re going to take out a loan, we recommend choosing one with a longer term. While your interest rate may be higher and may take you longer to pay it off, your monthly payment will be much lower and more comfortable for your business. The most important thing is to have a plan to pay off that loan. Remember, that roadmap we talked about? That entails tying all of the pieces together.
4. Keep Track of Inventory
Organization is key! Make sure you always know what’s going in and out of your practice. We like to look at the cost of goods sold. For Medspas, you’ll want to look at the cost to perform a procedure which includes the supplies, equipment, and the cost of time to perform the treatment. Our analysts will also dig deep into areas such as past revenues, fixed costs, your break-even number, and even what you look like stacked against the industry standards. Together, we’ll determine where you can increase your cash flow, where you can reduce costs, and what it will take to get you to your year-end goals.
5. Work With Maven to Manage Your Finances
Last, but most definitely not least, allow us to do your “heavy lifting”! Starting a business is time-consuming and our goal is to take the weight off of your shoulders and give you financial clarity. At the end of the day, we are your partner and we want to see you succeed. We’ll work with you and your team to come up with a plan that reflects your business goals. If you’re ready to become more financially aware this year, reach out to schedule a complimentary financial analysis!