Med Spas are popping up everywhere …. It’s predicted to be a 37 BILLION Dollar Industry within the next 6 years. If you do your research and are strategic with your setup you can easily change your life (and your family’s life) from investing in a med spa. But as with most businesses, the key to profitability is being strategic with investments and operations to ensure you have a profitable business, not a cash-eating cow.
We want to hit on 4 ways that derail a medspa from being profitable, as well as the 3 things our clients have done to ensure they are running a personally profitable spa.
Staffing a Profitable Med Spa
Figuring out staffing, and pricing along with reception hours is the biggest item to “get right”- Finding the balance of having staff to manage clients but also not having people sitting on the payroll not creating an ROI- Predicting customer patterns, having appointments and cross-training staff will be key. Also, it is key to constantly be monitoring the staffing needs- It’s not a done once-and-forget-it position.
Inventory for a Med Spa to Generate Revenue
Running a successful med spa requires more than providing great services, smart inventory management is key. Rather than having tens of thousands of dollars wasted on a shelf knowing when and how much to order is a crucial skill.
Equipment to Purchase
The right equipment is also crucial for gaining revenue at your med spa. Rather than spending thousands of dollars on equipment that you may not use, buy the equipment you will use and equipment that will pay for itself.
The Overall Vibe of your Med Spa
The vibe of your med spa matters- It’s typically the thing that will take you from a midrange spa to one that is considered a luxury and brings in high-value clients… But if you are spending on the vibe without guardrails, or monitoring the effect on the overall operations this one thing can be the reason why you don’t have a profitable spa. Overspending on decor, in the beginning, can set you back from making a profit for years.
3 Key things our clients have done to ensure that not only do they have a profitable medspa but one that attracts premium clients and ensures the owner is paid something worth talking about:
- Willing to try something new, BUT evaluates the effect BEFORE committing to the investment and is monitoring it after! It’s not haphazard but extremely calculated.
- Constantly evaluating the ROI: Staffing, Advertising, and Expenses.
Remember if your expenses aren’t doing 1 of 3 things you are just tossing money out the window- Generating revenue
- Keeping customers/clients
- Giving YOU your time back
- Back up their intuition- those gut feelings with plans, action steps, and data. This is often where our team is brought in- How can we make the intuition work with the facts we have- How can we use the data to determine if it makes sense?
The Medspa industry is an extremely profitable business to run IF you run it like a business with an intent to make a profit vs running it off a hope and prayer strategy. JUMP in! But make calculated decisions based on ROI.
If you need help interpreting the data or ensuring your data is reliable so you can make those calculated decisions reach out, we would love to help you at Empowered 2 Profit! We would love to connect with you on Facebook where we share some of our best tips and tricks for putting more money in your account.
Hang out with Team Profit and learn how we can help you put more of your business profit into your pocket! Cheers to profit!