men's
aesthetic procedures
Medical Spa
Investing
FOR BETTER
FISCAL HEALTH:
NOT JUST FOR
DOCTORS ANYMORE
By Cheryl Whitman
A few years ago, the
term "medical spa" was
as foreign to men as
Botox®. Today, though,
adding the pampering
luxe of the spa to the
scientifically advanced
skincare abilities of a
dermatology practice or
surgery practice has
taken the medical spa
mainstream.
According to The
International Spa
Association's research,
medical spas increased
by 133% between 1995 and
2000, making them the
fastest growing type of
spa in the United
States. In fact, it is
hard to find a place
where you can not get
pampered. Small towns,
large cities, exotic
islands, hospitals, and
hotels have all
succumbed to the allure
of the tremendous
profits to be gained
from this feel better,
look better trend.
Medical spas now not
only attract males as
clients, but also the
attention of male
business capitalists,
investors, and
entrepreneurs - who
until recently didn't
know Botox from Brüt. In
fact, even many medical
spa clients are becoming
the industry's fastest
growing financial
supporters. For
instance, the largest
demographic group in the
United States, better
known as the baby
boomers, who flock to
medical spas for stress
reduction and age
management, now also see
them as investment
opportunities. This
trend will continue to
grow as investors learn
that the same business
which erases lines from
their faces can also
enhance their wallet's
bottom lines.
Conversely, those who
didn't know the
difference between
antiaging and free
radicals are now
clamoring to invest in
this new Mecca for their
money. Medical spa
experts report that new
investors are
increasingly coming from
every background and
industry including
finance, high-tech, and
even public service.
Yes, medical spas are
not just for doctors any
more. Even CPAs, MBAs
and JDs are joining
those MDs. The
anecdotal evidence of
plastic surgery and
aesthetic advances
chronicled in the media
and on the internet has
given the medical spa an
international presence.
While the genesis of the
aesthetic techniques and
Treatments which drive
the medical spa happened
on the West Coast, the
financial support and
growth of the medical
spa as a business
endeavor is focused on
the East Coast and in
Europe.
But do not rule out
physicians as investors.
Even doctors whose
specialties are entirely
outside of the aesthetic
arena are embracing the
medical spa. They invest
in a new spa or add a
medical spa component to
their practices,
resulting in both
financial and personal
growth. For instance,
podiatrists, cosmetic
dentists, neurologists,
even urologists have
found that investing in
or adding a medical spa
to their practices
enhances revenue and
adds variety to the
tediousness or
tunnel-vision of a
lifetime practicing the
same specialty.
Many physicians who have
worked long,
unpredictable hours for
years find the regular,
appointment driven
routine of a medical spa
not only refreshing, but
a boon to having more
free time for a private
life without sacrificing
income. Also, physicians
and non-medical
entrepreneurs alike are
stimulated by the
constant evolution of
aesthetic therapies and
the high-tech equipment
used to deliver them.
Are you thinking of
opening or investing in
a medical spa? If so,
you should be able to
answer yes to the
following questions:
1 Are you a hard
worker willing to work
the hours which meet the
needs of other working
people- usually 45 hours
a week-and not your own?
2 Do you have enough
money? Do you know if
you have enough money?
3 Do you have
business savvy or a
partner who does?
4 Do you know how to
hire and train a staff
of estheticians to work
with professional
cosmetic physicians?
5 Do you know how to
motivate a staff?
6 Do you know the
difference between
shiatsu and a sauna?
If you answered "yes,
but" to any of these
questions, you need the
assistance of what has
become another
burgeoning cottage
industry in the medical
spa industry-medical spa
consultants.
Whether you are a
physician adding a
treatment room to an
existing practice,
building a 20,000
square-foot freestanding
building, or looking for
an investor to partner
with, consultants can be
your business partner,
guiding you through each
step of the process from
obtaining financing to
hiring staff to locating
sponsorship.
My firm, Beautiful
Forever, has advised a
fire chief, a
chiropractor, cosmetic
dentists, real estate
brokers, cosmetic
neurologists, as well as
attorneys and
physicians. One of my
favorite pairings is a
physician with an
attorney. Each brings
diverse yet vital
knowledge to the
partnership.
Some of the ways a
consultant can assist
you in your venture are:
1. Help you
choose the best
structure.
Maybe you are not sure
what kind of spa you
would like to open- day,
destination, medical. A
consultant will help you
decide that, based on
your location,
demographics, available
financing and the
legalities involved.
While there are many
cookie-cutter
operations, a good
consultant will
customize your
investment to make sure
it stands out in the
crowd. A day spa set-up
deals almost exclusively
in aesthetic treatments,
which are not covered by
insurance. That means
fewer administrative
headaches. A medical spa
offers more serious
treatments and invasive
procedures which require
highly trained
professionals at a
higher cost.
2. Advise you
regarding how much money
you will need.
The minimum cost for a
200 square-foot retail
location would most
likely be $300,000; but
a consultant will tell
you how best to allocate
that money: whether to
buy or lease equipment,
how to hire staff,
training, and learning
the business.
3. Extending
your spa's brand with
private label products.
If your name and money
are in or on a spa,
clients should be taking
that name home. How? By
developing and investing
in a line of
personal-brand
products-an additional
profit center. I
strongly advise all my
clients to go this
route. Not only does it
keep your name on the
tips of the tongues-and
on the faces and
bodies-of your clients,
but it can also add 30
to 50% to revenues.
Every single time a
client looks at that
product and uses it, he
or she is reminded of
your spa. If he or she
had a good experience at
your venue, a private
label product with your
spa's name and logo will
renew that good feeling.
We guide owners through
developing a line,
deciding how much
inventory is needed, and
training and hiring your
staff to sell the line.
Whether or not you hire
a consultant, make sure
you know what your own
goals are. Some
investors just want a
big financial return.
Others want the hands-on
experience of running a
medical spa. Whatever
your goals, work hard
and remember that this
is a business. It is
here to stay. We qualify
our clients to ensure
their credit ratings are
good and that they know
how to run a business.
We make sure they will
be successful. Who knew
that feeling and looking
good could bring
phenomenal returns, both
physically and fiscally?
