Spring 2006

 

 

 

 

 

 

What distinguishes Beautiful Forever in the field of medical spa consultants is our growing presence at significant nationally respected health industry conferences. The expertise, wisdom, and results-driven leadership of Beautiful Forever's Cheryl Whitman garnered significant attendance at the recent Healthcare Retail '06, April 9-11 in Orlando, FL, which attracted more than 100 hospital executives seeking result-oriented direction for executing a successful hospital retail model of business.  

 

Healthcare retail model of business offers hospitals a new way of doing business by capitalizing on non-traditional revenue sources less dependent on reimbursable revenues with additional benefits of high margins and profitability. Hospitals that promote a more comprehensive, consumer focused approach report higher utilization of their core, acute care services.  

Together with Beautiful Forever executive consultant Mac Fadra, Cheryl presented, "Critical Development Issues For Setting Up a Medical Spa," attended by a national corps of hospital executives. This new and exciting way for hospitals to create revenue is high on the priority list for new business development at hospitals nationwide. Participants learned on the benefits of proper planning for this highly lucrative business. An overview of the newly launched Beautiful Forever Medical Spa Success System was eagerly embraced: www.medicalspasuccess.com/.    

Other conference topics included strategic planning and sizing of retail opportunities, case studies of hospitals successful in generating millions in profits, and insights on partnerships with independent retailer and physician groups.  James E. Orlikoff, the president of Orlikoff & Associates, Inc., caught the audience's attention with a dramatic exposé of the financial condition of the healthcare industry in the United States and the subsequent need for alternate sources of revenue.

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Facts You Should Know:

 

In case you still are looking for an excuse to avoid jumping into the biggest beauty explosion since Cleopatra introduced a host of cosmetic enhancements to make her the diva of Egypt, think again!

 

"The face of aging is changing," reports the American Academy of Anti-Aging Medicine. A "youthful appearance is important for both professional success and personal happiness," reports a recent survey of adult Americans conducted to reveal contemporary attitudes towards aging (Harris Interactive, 2004)

 

Reality TV shows are creating a greater public awareness of cosmetic surgery and may attribute to the growth in procedures...Minimally invasive procedures increased 7 percent to nearly 7.5 million procedures performed in 2004. The top five minimally invasive cosmetic procedures were Botox® (3 million), chemical peel (1.1 million), microdermabrasion (859,000), laser hair removal (574,000), and Sclerotherapy (545,000), reports the American Society of Plastic Surgeons.

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A Checklist for Starting Your New Medical Spa

 

MEDIcal SPAS Volume 6 no. 5

By Cheryl Whitman

It's been said that the clock is quite literally ticking for the baby boomer generation. With every seven seconds that pass, another Baby Boomer hits the big Five O. Their collective US $7 trillion in wealth foretells of a patient-driven healthcare landscape that is rooted in the notion of feeling, acting, and looking young, healthy, and vital for as long as possible.

 

It is no wonder, therefore, that the world's fastest growing medical specialty is anti-aging medicine. A global phenomenon, anti-aging medicine is a medical specialty founded on the application of advanced scientific and medical technologies for the early detection, prevention, treatment, and reversal of age-related dysfunction, disorders, and diseases. It is a healthcare model promoting innovative science and research to prolong the healthy lifespan in humans. As such, anti-aging medicine is based on principles of sound and responsible medical care that are consistent with those applied in other preventive health specialties.

 

Valued at US $30 billion in 2001, the anti-aging medical marketplace is expected to grow to US $41.94 billion in 2006, reflecting an average annual growth rate (AAGR) of 9% [Business Communications Company]. In the United States alone, nearly 90 million American consumers use anti-aging products and procedures, and another 77.3 million women and 21.3 million men will do so in the near future (Harris Interactive, 2004).

 

So, what are you waiting for? Why not spearhead this exciting beauty enhancing and enriching business opportunity? The time is right; the time is now to learn all you can about the medical spa business. Congratulation on your decision to become part of one of the fastest growing industries in the country.  Whether you are building a free standing medical spa or adding medical spa services to your existing practice or spa business, there are many complex issues that you will need to address before your grand opening.  It is similar to putting together a giant jigsaw puzzle. You can't complete the puzzle without each individual piece but, if you use the puzzle box picture as a guide it is easier and less stressful.  In this article, I will share the "picture" on the medical spa puzzle box, if you will.  It is a proven blueprint for starting and maintaining a successful medical spa.

 

1. Proper Planning

The old saying "Fail to plan then plan to fail" is so true in any new business and despite their amazing popularity, medical spas are no different.  Regardless if you are going to need financing or not, a business plan is an important first step to make your spa a success.  It is critical in order for everyone involved with your project to be on the same page.  Make sure you include the following:

• An executive summary if you will be seeking financing
• A mission and vision statement
• A competitive analysis. Research your competition, mystery shop, and look for strengths and weaknesses.
• An analysis of your target market including their wants and needs.
• A competitive advantage or market niche
• A general menu of services with a brief description
• A list of equipment needed with prices
• Staff requirements with position summaries
• 2 years of cash flow projections
• Start-up cost projections (be sure to allow for sufficient working capital)
• An overview of marketing strategies

2. Establish the proper ownership structure for your business.

Because of the potential liability of a medical spa business, you will almost surely want to form a business entity that provides personal liability protection, which shield your personal asses from business debts and claims.  Consult with your attorney to determine what is right for your situation.

3. Check with your state board of medical examiners

 You need to see who can administer the following treatments in your states and plan your staff accordingly: Microdermabrasion, chemical peels, Injectables, thermage, Mesotherapy, etc. Also, ensure that all medical or cosmetology personnel are properly licensed within the state in which they will be practicing.

 4. Determine if the medical director must be on site and establish appropriate compensation.

 If you are a spa going medical or an entrepreneur starting a medical spa, you will need to check with your state laws regarding physician involvement in medical spa ownership and management. Consult your attorney, but in most states the best way to structure the physician's compensation is to establish a management services agreement.

 

5. Obtain the proper insurance coverage

It is critical that adequate malpractice insurance be carried by the medical director, the facility and by the practitioners. There are some medical coverage firms that now have policies for spa services and there are spa coverage firms that now have policies for clinical treatments.  They can assist you in making decision about coverage for your medical spa. The cost of medical spa liability insurance is determined by the spa's revenue, the number of client visits, the type of procedures and which providers is performing the procedures.  As the spa's revenues and procedure level increases, the insurance premium does also.  However, they generally run $15,000-$25,000 for new companies.  You can search the internet for your state department of insurance and find authorized malpractice providers in your area.

 

6. Hire an architect/designer

Assuming you have already chosen the location for your medical spa (I recommend a minimum of 1600-2500 sq. ft.), it is critical that your properly plan and decorate your space.  Ideally, a medical spa should have a relaxing and luxurious environment.  This is a high end retail business and clients expect to be pampered and serviced properly.  First impressions matter because your business will be built on referrals.  Keep in mind that selecting an architect/designer with industry experience can actually save you money in the long run.  They will already know the specific requirements for your project and you won't need to pay for their learning curve.  They can guide you as to the proper number of treatment rooms, non-revenue generating space, and client flow.

 

7. Select a reputable contractor/builder

Although many architects have contractors that they work with, you may need to hire one in order to turn your plans into reality.  A good general contractor then hires and supervises all subcontractors including, hydraulics, electrical and mechanical engineers as well as flooring, painting and carpentry professionals. Be sure to obtain a contract before any work begins and make sure your builder applies for the appropriate permits required including building or fire permits. Keep in touch throughout the process and speak up about any discrepancies with the contract.

 

8. Pick a Name

You will need a good name for your medical spa. One that reflects what clients can expect when they walk through the door as well as presents the right image.  A good name should:

• Be distinctive
• Be memorable and meaningful
• Be easily spelled and pronounced
• Suggest the products and services your will offer
• Distinguish you from your competitors

Once you choose a name, you will need to register it with the appropriate authorities depending on how your business is structured.  Check with your attorney for the specific details on this.

Also, remember to pick a website domain name and register it on any internet registration site such as http://www.register.com/.

 

9. Choose a graphic designer

Branding your medical spa is critical to its success.  A good graphic designer will design a logo and color scheme that includes your name and possibly a symbol to reflect your identity to the public.  This logo should be used in all of your marketing collateral including:

• Letterhead and envelopes
• Business cards
• Brochures
• Bags/labels
• Advertisements
• Gift certificates or cards
• Website

10. Select your retail product line(s)

Decide whether to go with name brand, private label or both.  There are literally hundreds of name brand skin care lines available today and most have excellent marketing literature, packaging, samples, and collateral materials. You can develop a list of possible candidates by asking other physicians or businesses for recommendations as well as searching the internet, industry or trade publications or going to trade shows. However, most all of these name brand lines will be available at other businesses in your area or over the internet.  Not only will this competition limit your retail product sales, but can impact your repeat client business. 

 

Choosing a private label product line gives you a competitive edge.  Using your name and logo on the products enhances your brand and image.  Also, clients perceive that they can only get these products at your spa and because private label products are less costly to you, the profit margins are usually higher.  You will have to develop your own collateral materials and training but, the impact on your overall business makes it worth.

 

11. Develop a comprehensive treatment menu and signature services

Once you have selected your professional or back bar product lines (most name brand and private label retail lines offer professional products as well), you can write your detailed menu of services.  Try to give each treatment or service a catchy name and then write a brief description of what will be performed on the client during the service. Provide the price and the amount of time the service takes.  An aesthetic medical spa menu should include at least the following categories: Medical facials, Microdermabrasion, Injectables, Facial rejuvenation, peels, Laser and light treatments, Anti-aging medicine, Body Care, Massage Therapy and Make-up.  Also, include treatment packages and series pricing.

 

12. Provide patient financing

Cost remains the number one reason why people don't schedule procedures or even come in for consultation.  Providing your patients with a financing option can significantly increase your chance for success by making your services accessible to a wider clientele.  Your consultation specialists are able to close more sales by helping clients fit the cost of the procedures into their monthly budget.

 

13. Selecting the right FF&E for your medical spa

In addition to lasers and microdermabrasion machines, you will need treatment beds, carts, magnifying lamps, etc for each treatment room; you will also need furniture for the consultation room, waiting area, check-in & check-out area and office. Don't forget cash drawers, receipt printers, a credit card machine, brochure and business card holders and file cabinets. 

Be sure to invest in a good software program designed for medical spas.  There are many good ones available.  Look for the following key areas: Appointment book capacity, payroll management, POS system, inventory control system, and a good management reporting system. You will also need a laundry list of supplies for each room including linens, bowls, tissues, wipes, gloves, etc.  A medical spa consultant can help you with refining the FF&E and supplies specific to your project. Check out http://www.medicalspaconsultant.com/.

 

14. Hire the right staff

Write job descriptions for each position you intend to hire.  Place ads in the newspaper and on the internet.  Screen the resumes, interview candidates by phone and then bring the top 2-3 in for face-to face interviews. Bring in the spa director or manager at least 2 months before your planned opening date.  Design a compensation plan that includes commissions and incentives for meeting targets and goals and make sure your compensation plan does not represent more than 50% of your total cost of sales.  Have a plan for who will perform each treatment and train them accordingly. Also, develop an employee manual outlining your company policies on everything from housekeeping and staff meetings to vacation and sick days allowed. You may also want to consider employee and independent contractor agreements to outline compensation, grounds for dismissal and non-compete clauses.

 

15. Create a marketing plan

Include strategy and tactics for at least one year of operation. Proven marketing tactics for medical spas are:

• Public relations including frequent press releases
• Advertising via print media and radio
• Visibility in local networking organizations
• Direct Mail
• Educational seminars
• Internet marketing via a website
• Printed collateral materials
• Strategic alliances
• Special events and open houses
• Internal marketing programs

Include a media plan, an implementation plan, and an annual budget

 

16. Create an operating manual

Many spas tend to skip this step because by the time they get to this point they are either too busy or too exhausted to put it together.  However, an operating manual that includes the following sections is critical to consistent, superior customer service:

• Operating hours
• Treatment protocols
• Client flow
• Client etiquette
• Consultation forms
• Home care prescription forms
• Customer service
• Inventory and retail procedures
• Daily operating procedures
• Front desk procedures
• All other staff job descriptions and procedures

17. Ensure your medical spa is OSHA and HIPPAA compliant

OSHA stands for Occupational Safety and Health Administration and their guidelines are enforced for every business nationwide.  All employees including new hires must be trained prior to being assigned to a task which could put him or her at any safety or health risk. Additionally, all employees must be aware of your facility's fire and emergency plans. To find out information about the requirements for your business go to http://www.osha.gov/. The Health Insurance Portability and Accountability Act or HIPAA has completely changed the way businesses handle private customer/client information.  For medical spas this means that you will need procedures for being HIPAA Compliant on certain aspects of ascertaining and maintaining client information. This can impact parts of your business/practice from the layout of your facility to how you advertise or market your business. For more information go to:

http://www.cms.hhs.gov/home/regsguidance.asp.

 

In conclusion, if you properly address each of the above issues, you will have done everything necessary to ensure your medical spa's success.  Don't be tempted to skip steps or take short cuts especially when it comes to marketing and operations.  Building any successful business is a process.  Even if you find yourself running low on working capital, find a way to implement your marketing plan. I see spas fail everyday because they fail to market themselves properly or creatively. It is a lot of work, but there is help available.  You can hire a medical spa consultant or go to http://www.medicalspasuccess.com/ for information about The Medical Spa Success System -Medical Spas Made Simple, published by Beautiful Forever Consulting Firm, Inc.  Be patient and persistent and you will find this business not only highly profitable but, rewarding too!  Good Luck!

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The Oprah Treatment

May 11, 2006

By NATASHA SINGER

The New York Times

FEW Americans had heard of a beauty treatment called Thermage until Oprah Winfrey began championing it on her talk show. Billed as a procedure to tighten skin, Thermage uses a radio-wave emitting machine to heat and expand collagen beneath the skin's surface.

 

Ms. Winfrey introduced Thermage as one of the "latest cutting-edge treatments" and as a "lunchtime face-lift" that requires no recovery time. When Thermage was first showcased on "The Oprah Winfrey Show" in 2003, "the show drove so much interest that our sales reps were selling machines over the phone," said Stephen J. Fanning, president and chief executive of Thermage Inc. 

 

 In its desire to be the first show to introduce the latest anti-wrinkle options, "Oprah" sometimes features treatments before doctors have determined how effective they are, who they are best suited for and how safe they are, according to some leading dermatologists and plastic surgeons.

He said viewers would be better served by segments that presented more than one doctor's view of a new technology. Most important, the show should explain that some cosmetic procedures are so specialized that they are best performed by doctors with extensive formal training in facial anatomy and not by general practitioners or nurses.

 

Last year Dr. Lisa E. Airan, a dermatologist in New York City, appeared on "Oprah" in a segment about a new nonsurgical lower eyelid lift that she developed with Dr. Trevor M. Born of Toronto. Ms. Winfrey told viewers that she had sent her makeup artist, Reggie Wells, to have an "under-eye transformation" at Dr. Airan's Manhattan office.

 

Dr. Airan said in an interview this week that the procedure involves plumping up under-eye hollows with deep injections of Restylane, a wrinkle filler. During the procedure, she said, she is "injecting right onto the eyelid bone, between the covering of the bone and the bone itself." On the show, Ms. Winfrey did not mention the more serious complications of such an injection close to the eye, nor what skills a doctor needs to do the treatment.

 

A number of dermatologists and plastic surgeons raised questions about the procedure's safety.

Dr. Sherrell J. Aston, chairman of the plastic surgery department at Manhattan Eye, Ear and Throat Hospital, said that a doctor who doesn't have experience operating on eye tissue may not be competent to inject Restylane around the eyes. "If any injectable went into the large vessels, it could block the orbital artery or vein, cut the blood supply off to a major portion of the eye, and you'd go blind," he said.

 

Dr. Karyn Grossman, a dermatologist in Santa Monica, Calif., and New York City, said she had just learned the thread-lift technique when she demonstrated it on "Oprah." Since that show was broadcast, doctors have reported complications from thread lifts including scarring, indentations, bunching, dimpling, broken or lapsed threads, and asymmetry, said Dr. V. Leroy Young.

 

In the case of Thermage, the skin-tightening procedure, the dermatologist Dr. Patricia Wexler first presented it on the "Oprah" show in 2003. Dr. Wexler, who is based in New York City, told viewers that after a patient had a Thermage treatment, "the jaw line gets tighter and tighter, just like a neck-lift." But last week she said it is impossible for doctors to predict how well the treatment will work on an individual patient.

 

The agency has collected 172 reports from doctors and patients of problems caused by Thermage, including facial burns and indentations. Dr. Wexler did not address the treatment's complications on "Oprah," she said, because "the number of burns were so few" that she did "not consider it a risk that was necessary to discuss in detail."

 

 

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Possibly the Smartest Way to Open a Medical Spa!  

   

Introducing Medical Spa Success System - the medical spa business made simple developed by Cheryl Whitman, President and CEO of Beautiful Forever Consulting Firm Inc.

www.medicalspasuccess.com

  

This system is the first and only comprehensive, do-it-yourself guide to planning, staffing, marketing, and operating your medical spa business.  For a reasonable investment on your part, you get all the tools and knowledge you need to be successful including:

• 400+ page manual that walks you through concept creation and branding, selecting a market niche, choosing your location, creating a menu, identifying marketing tactics, reviewing legal and insurance issues, and operating efficiently.
• Customizable CD Rom that includes: employee handbook, operating manual, marketing and business plan templates, treatment protocols, project timeline, and job descriptions.
• Consulting time with Beautiful Forever medical spa expert
• Six month progress review
• Member discounts on additional services such as consulting hours, on-site visits and practice assessments
• Additional discounts for current or past clients  

Become a MSSS subscriber and learn how to:

• Prevent Costly Mistakes              
• Drive New Business
• Secure Capital                                    
• Maintain Control of Your Venture
• Stay within Your Budget           
• Hire the Right Personnel
• Interpret Applicable Laws         
• Create Profitable Retail

    

    *Beautiful Forever is a leading consulting firm that specializes in advising medical spas as well as clinics and centers that offer procedures and services in the realm of cosmetic and elective medicine. 

  

    *Beautiful Forever can not only help improve your bottom-line and address your problems but also grow your business by developing new and improved marketing programs and strategies as well as by adding new, high margin procedure-based services. 

  

    *Beautiful Forever has the staff expertise, strategic alliances, resources and experience to make a difference in your practice.

  

*If you haven't talked with us lately about
your needs, than what are you waiting for?

 

Call us at:

1-877-SPA-MEDI

www.medicalspasuccess.com