Today it seems like Medical Spas are popping up left and right, which might have you wondering how to grow your med spa and stick out from the crowd. What we have come to understand after working with med spas from across the country in markets of different sizes, is that even though each one is unique, we can still look at several aspects to determine where your efforts could be best focused in growing your med spa.
- Revenue (all of the money you have coming in from services and products)
- Expenses and overhead
- Key Performance Indicators (i.e. KPIs)
What we see most often and where med spa owners need to focus most of their attention is generating more revenue.
Identify KPIs (Key Performance Indicators) & Assess Provider Performance
First, you need to take a thorough look at what your injectors or aestheticians are producing and, more importantly, where their production is coming from. Here are some questions to start thinking through to better understand your provider’s average revenue per patient.
- How much revenue is each injector, aesthetician, or laser tech producing?
- How many patients are each provider seeing each month?
Example: If your provider sees 150 patients in a month and the average spend is $600, that provider will produce $90,000 (150 x $600=$90,000). You can then analyze what treatments are making up that $600 average appointment and evaluate the opportunity to increase your pricing or are there any services you could be adding on to increase the average revenue per appointment. Going from $600 per patient to $700 per patient adds an extra $15,000 a month!
One thing we like to look at is the provider schedule to determine how full each provider is and if there’s an opportunity to book more patient appointments. If your provider already has a full schedule, that may be challenging, but there still may be some ways to squeeze more productivity out. First, consider your appointment times. Here are a couple of questions you can ask yourself as you review schedules.
- Are your appointments too long or is there flexibility to shorten them?
- Could your existing providers work more hours? If your providers only work 2-3 days a week, can they add a 3rd or 4th day? Needless to say, this will have a tremendous impact on revenue.
- Could you open up the schedule for Saturday, or evening, appointments?
- Are some providers seeing patients significantly quicker than other providers? If so, can we crosstrain the team to help everyone treat patients efficiently and consistently?
If none of these are a possibility, it may be time to look at hiring a new provider.
Hiring a New Provider
One of the easiest, and quickest, ways to grow your med spa is to hire a new provider once your existing provider(s) are consistently fully booked.
Some things to consider when hiring new providers.
- You may be tasked with training and onboarding your new provider so they are educated and effective when you open up their calendar for bookings.
- It’s important to note that while you’re training your new provider, you may have a decrease in profits since you are paying them to learn and ramp up. Once they are ready to go, you should start to see an increase in revenue and profits grow in tandem.
- The best way to decrease the ‘ramp up’ time is to have a very detailed training program with clearly defined production targets to help get them up and running.
Review Your Marketing Budget & Strategy
If you have assessed your provider performance, reviewed the schedule, and thought about hiring a new provider but you’re still not seeing the volume of patients you need to be successful, it may be time to review your marketing efforts. We encourage our clients and medspa owners to spend about 5% of the revenue on marketing, and reassess that you’re getting a good ROI regularly. Is your schedule full? Are you seeing an increase in new patients? If not, it may be time to add SEO (Search Engine Optimization), paid ads, or invest in a social media firm or team member. As you grow, you likely will need to invest more money in your marketing and that’s okay!
Maintaining and growing a medspa is hard work (maybe makes you feel like pulling your hair out sometimes). There are several things you can do to grow your medspa and while these things take time, it is possible! Don’t forget that we are in your corner and offer a free hour of consulting for your burning questions to get you started on the right foot.