March 12, 2025 • 36 mins
Cameron emphasizes the critical importance of financial literacy for practice owners in the medical aesthetics industry. He discusses the necessity of understanding key financial metrics, the growth potential of the MedSpa industry, and the importance of patient acquisition and retention. He also provides actionable strategies for improving financial management and marketing, urging practice owners to view their financials as essential tools for sustainable growth.
Listen In!
Thank you for listening to this episode of Medical Millionaire!
Takeaways:
Unlock the Secrets to Success in Medical Aesthetics & Wellness with "Medical Millionaire"
Welcome to "Medical Millionaire," the essential podcast for owners and entrepreneurs in
Medspas, Plastic Surgery, Dermatology, Cosmetic Dental, and Elective Wellness Practices! Dive deep into marketing strategies, scaling your medical practice, attracting high-end clients, and staying ahead with the latest industry trends. Our episodes are packed with insights from industry leaders to boost revenue, enhance patient satisfaction, and master marketing techniques.
Our Host, Cameron Hemphill, has been in Aesthetics for over 10 years and has supported over 1,000 Practices, including 2,300 providers. He has worked with some of the industry's most well-recognized brands, practice owners, and key opinion leaders.
Tune in every week to transform your practice into a thriving, profitable venture with expert guidance on the following categories...
-Marketing
-CRM
-Patient Bookings
-Industry Trends Backed By Data
-EMR's
-Finance
-Sales
-Mindset
-Workflow Automation
-Technology
-Tech Stack
-Patient Retention
Learn how to take your Medical Aesthetics Practice from the following stages....
-Startup
-Growth
-Optimize
-Exit
Inquire Here:
http://get.growth99.com/mm/
Listen In!
Thank you for listening to this episode of Medical Millionaire!
Takeaways:
- Knowing your numbers is not optional; it's essential for sustainable practice growth.
- Set a revenue goal for the next six to 12 months.
- Analyze your cost per lead, per service, and overall profit margins.
- Implement one financial improvement strategy this month.
- Increase prices, reduce costs, or offer memberships to improve profitability.
- Marketing should be viewed as an investment, not an expense.
- Patient retention is critical; aim for a retention rate above 70%.
- Understand your revenue per visit per patient to optimize pricing.
- Utilize financial dashboard software to track key metrics.
- Educate yourself on financial management to enhance your business acumen.
Unlock the Secrets to Success in Medical Aesthetics & Wellness with "Medical Millionaire"
Welcome to "Medical Millionaire," the essential podcast for owners and entrepreneurs in
Medspas, Plastic Surgery, Dermatology, Cosmetic Dental, and Elective Wellness Practices! Dive deep into marketing strategies, scaling your medical practice, attracting high-end clients, and staying ahead with the latest industry trends. Our episodes are packed with insights from industry leaders to boost revenue, enhance patient satisfaction, and master marketing techniques.
Our Host, Cameron Hemphill, has been in Aesthetics for over 10 years and has supported over 1,000 Practices, including 2,300 providers. He has worked with some of the industry's most well-recognized brands, practice owners, and key opinion leaders.
Tune in every week to transform your practice into a thriving, profitable venture with expert guidance on the following categories...
-Marketing
-CRM
-Patient Bookings
-Industry Trends Backed By Data
-EMR's
-Finance
-Sales
-Mindset
-Workflow Automation
-Technology
-Tech Stack
-Patient Retention
Learn how to take your Medical Aesthetics Practice from the following stages....
-Startup
-Growth
-Optimize
-Exit
Inquire Here:
http://get.growth99.com/mm/
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:03):
You're listening to Medical Millionaire, your podcast for medspot owners,
medical aesthetics, cosmetics and elective wellness entrepreneurs. Each week, we
dive deep into powerful marketing strategies, proven scaling tactics, and
the secrets to attracting high end clients, all while staying
ahead of the latest industry trends. Join us as we
(00:25):
uncover insights from top industry leaders to help you boost revenue,
enhance patient satisfaction, and master the art of marketing your practice.
Hosted by Cameron Hemphill. With over a decade of experience
in the aesthetics industry, Cameron has supported thousands of practices
and providers, working with some of the biggest names, most
well respected brands, and elite industry thought leaders in the field.
(00:46):
If you're ready to level up your practice and become
a true medical millionaire, this is your podcast. Here's your host,
Cameron Handpill.
Speaker 2 (00:57):
Hey, what's up everybody? Cameron hemp Pill here your host
for Medical Millionaire. Thank you so much for taking the
time to tune into the podcast. Our goal is to
give incredible value and insight for practice owners. So if
you own a medical aesthetics practice, wellness clinic, Medspot Cosmetics,
anything of the above. Every single one of these episodes
(01:19):
that we create, they are one hundred percent designed for
you and to help take your practice to the next level. Guys,
I have been consulting in working with some of the
most well recognized practice owners all over the country for years.
I see medspas killing it, crushing it, practice owners having fun,
(01:41):
and I see other ones that are falling by the wayside,
and I want to get into something that's super important today.
It's been on my mind a lot lately, and it's
essentially talking about why knowing your numbers is so important
for a practice owner. And I'm going to get into
some of the details here, but the most successful practices
(02:04):
that I have worked with continuously try to understand and
know their numbers. They create benchmarks, they create goals. They
know if they're falling behind forecasting, if they're ahead of
their plan that they've outlined for the year or the
quarter or the month. They have accountability to these numbers.
And so if you don't know what your numbers are,
(02:26):
and I think that's like a broad statement, right, like
know your numbers, well, what does that mean? Right? You
should really when we're talking about that it's getting into
the financials, getting into exactly what your revenue streams are.
Where is the revenue coming from, what products is it
coming from, what specific tool sets is it coming from.
(02:51):
In terms of equipment that you have, how much is
your retail producing and you should have this broken down
in each specific category, guys, so you know exactly what
products that you are acquiring that are creating the most
profit for the practice. So it's getting into the financials,
like as a practice owner, as a business owner, it's
(03:12):
your fiduciary obligation to understand finance. You're an entrepreneur, you're
a practice owner, and if this is an area that
you struggle with, go learn it, read a book, get
on YouTube, hire an industry expert. They are out there.
I'm telling you that there is people out there that
(03:32):
know medical aesthetics and can help you understand how to
know what knowing your numbers actually mean. Okay, and once
you figure out what your numbers are, this isn't something
that's set in stone. Your numbers are going to go
through peaks and valleys as the market changes, seasonality changes,
(03:54):
and it's really important to understand as a practice owner
what the trends look like like over time, so you
can obviously plan accordingly on expenses, personnel expenses, marketing expenses,
tool set expenses, equipment expenses, product purchases, those types of things. Okay,
so again, like understanding your numbers is absolutely critical as
(04:20):
a practice owner, and many metspot owners are. They focus
on marketing, aesthetics, and patient care, but they truly ignore
the financials, which is the true backbone of your business. Now,
you obviously have to know marketing, you have to focus
on it. You've heard me say it over and over again.
The most successful practice owners are the best marketers because
(04:42):
they bring patients into the door. Now, the ones that
actually bring the best service and the best value and
retain those patients at a high retention rate percentage, those
ones win. Then when you get into understanding the financials,
what will happen is your business starts to be become
a mathematician exercise. It's dials and numbers and financials. And
(05:07):
that may sound like a little bit too institutionalized in
a way, but think of it this way, as you
actually are a mini institution of your own. You own
your own destiny, and so if you don't understand your numbers,
and how much it costs to acquire a patient, how
much it cost to service a patient, how much it
costs to retain a patient, how much it costs to
(05:28):
acquire your product, and what your net profit is and
what your gross profit is. You really have no understanding
of how to scale your practice and are you running
a healthy organization or a sick organization? You should know
if you have been in business long enough, you should
(05:49):
know exactly how many new patients you need, want desire
to acquire this month, this quarter, six months this year.
You need to understand that you need to understand the
cost that it is to acquire these patients and can
you service them mechanically in a way that's going to
(06:13):
give them the patient experience and give you the loyalty
that you deserve and build that bond and that relationship.
So I can tell you right now it's way more
expensive to acquire a new patient than it is to
keep an existing patient.
Speaker 1 (06:29):
Okay, So.
Speaker 2 (06:32):
Guys, the men spot industry is a multi billion dollar market.
It's valued over seventeen billion, and I think this was
actually the number that was pulled from like late twenty three,
So this is behind. This is just going off a
little bit of legacy data, and I know it's grown
since then, but let's peg it between seventeen to nineteen billion. Okay,
(06:56):
don't quote me on that, but I'm pretty damn close. Right,
We're talking a pretty significant industry, and I truly feel
that we are we have a long way to go.
We are uncovering things on the wellness side, the cognitive side,
the regenitive side, in ways that we never have before.
(07:18):
And I think there's a lot of practice owners that
we don't even know how to monetize these particular patients
and treatments and new discovering of healthcare yet right like
everybody's jumping on the GLP one bandwagon right now, which
I totally get. It's hot, it makes sense, it produces revenue,
it produces results, patients are happy, and it's as the
(07:42):
wellness industry continues to grow, you're going to find so
many ways to monetize your practice and create new revenue streams.
But you need to pay attention and you need to
be quick to act. Right, So, I know that there
is a lot of practices out there that have not
started implementing wellness into their practice, into their aesthetics business,
(08:06):
and I truly feel like you will be falling behind.
I mean, just go pull up social media, just go read,
go do your research. Like everybody's talking about wellness, they're
talking about longevity, they are trying to reverse aging. We
all are. And I don't know if this is like
a a ramification of COVID or what, but it feels
(08:28):
that everybody is on this same mission to feel good
and look good. And maybe it has to do with
like what happened in COVID and then maybe tying that
into social media and how like the whole world is
like spread apart because everybody moved. You know, I can't
really like stamp it, but I do know that people
(08:49):
are truly wanting to feel good and look good. And
so my point on that, coming back to this seventeen
billion dollar industry, I think that this is peanuts, and
I think what you're going to see by twenty thirty five,
I would peg this to be a thirty billion dollar industry.
(09:13):
And so if you're just starting out as a practice owner,
you're not late to the game. Don't compare somebody else's
journey with your new entry point journey. I would not
look at this and say competitions everywhere. It's a saturated market.
The market is changing so fast and the patients are
getting so educated that you are at the tipping point.
(09:37):
And I truly think aesthetics and wellness is one of
the coolest industries ever to be a part of because
you truly are helping people build confidence and health and
age reduction. I mean, it's amazing, and it's something that's
like AI cannot destroy that. Sure, you can make a
(09:57):
video on Instagram TikTok and upload it to some filter
and make yourself look younger whatever, but that's just something
on video that's not like true face to face and
true how people feel. Right, So if you can support
making people feel good, think better, act better, desire to
(10:17):
look younger, feel younger, get more confident, it almost like
supports the entire world economy. Right. If everybody feels good
and look good, everybody's gonna work harder and actually get
more done. So, like when you really start to peel
back the layers of like why I am so bullish
and excited about this industry and I love to be
(10:39):
a part of it and I've been here for over
ten years, it's because, like start peeling back the layers
and understand what the main mission and purpose is. And
then when you think seventeen billion, Wow, this is huge,
Like we're this thing's going to go to one hundred
billion in our lifetime. Right, So it is in this generation,
there's no there's no stopping it. There's going to be
(11:03):
certain years that it's going to slow, like grow slower
than others. We saw a tremendous amount of growth over
the past five years, and you're going to see material
growth continue. So zoom out, look at a thirty thousand
foot view and make sure that you understand what's really happening.
And I think some people can get caught up in
like current economic conditions and make emotional decisions instead of
(11:28):
zooming out and just taking that thirty thousand foot view footprint. Okay,
there are over ten thousand medical spas in the US.
Ten thousand with single location spa is generating an average
of like one point one million bucks single location owned
(11:48):
practices generating one point one million that's top line revenue.
Top line revenue. Right, A healthy practice needs to be
pegged right around like twenty five to thirty five percent
bottom income. That means, let's just take the worst case
scenario twenty five percent net, and I'll make the numbers
easy and say you're doing a million bucks, you're making
two hundred and fifty thousand dollars in profit. And that
(12:13):
was that stat was actually pulled mostly out of the
esthetic side, mostly from the actual like the surface side.
You could take your million dollar practice to a two
million dollar practice very fast by bolting on a very
(12:34):
sophisticated wellness environment to your esthetics practice. But before you
do that, you have to know your numbers. You have
to know what it costs to acquire a patient. You
have to be a great marketer, you have to be
great at your treatment. You have to be great at
running a console, building a treatment plan, having great technology,
(12:55):
having a great process. And by the way, I feel
like it's possible to run a two million dollar practice
as a solo provider. If you have the right systems,
the right marketing, the right brand, the right location, you
could actually do this. And I don't think you'd have
to work yourself, you know, like fifty hours a day.
(13:17):
Obviously not possible, but you get what I'm saying. I
truly do, And I think like if you look at
ways to monetize your practice. You can easily expand in
services that create revenue streams like never before. Okay, And
you know, it's a great exercise to pull yourself out
of the day to day operations and work on your
(13:40):
business versus work in the business. And I've said this
on previous episodes, but if you're not taking the time
to do that, you're going to get caught in the
day to day just doing your job, doing your job
over and over and over and over and over again.
And that's fun. You're trading patients, your you know, revenues
coming in, but you have to look at the big
picture and you have to see what's taking place. Okay,
(14:01):
So beside despite this ten thousand MEDSPA plus single location,
you know, practices that are generating over one point one million,
many struggle with profitability due to poor financial management, many
of them. And it's like it's it's it's kind of
(14:22):
sad in a way because you're actually generating, you got
seven figure earning business and you don't know where all
the money's going, and you don't know how all the
income is coming in. You know it's coming in, but
you don't know where it's coming from. And you really
need to take the time to strategize and know your
numbers and study finance. Studying finances. It's not boring at all.
In fact, it's one of the funnest things you'll ever
(14:44):
do as a business owner. Learn how to navigate quick
books like. You can connect it to your accounts, your
credit card accounts, your bank accounts. You can hit buttons,
it pulls in all the feeds, you can categorize it,
you can outsource it to a bookkeeper. It's not a
hard tool. And there's a lot of AI and stuff
that they've released too and too it owns it, so
they've done a great job. Guys, if I can learn it,
(15:06):
you can learn it right. I'm not a CFO or
controller by any means, but I can tell you I
am a business owner. I have started companies. I have
started companies from zero that have gone to eight figures
and valuations, and I have exited those companies, and I've
acquired a tremendous amount of real estate over those years.
(15:26):
And if I didn't understand finance, I would never be
able to do what I have done. And this isn't
just like look at me, see what I've done it's
just me telling you a story that is making sure
you truly understand Studying finance is a critical role of
(15:47):
being a business owner. It's probably the most important role,
so you can actually have the mechanical instruments and know
where you're going to drive to okay.
Speaker 1 (16:05):
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the show.
Speaker 2 (17:28):
So some key financial metrics that every MEDSPA owner must track.
I'm not saying should track. I'm saying you must track.
I want you to start understanding your revenue per visit
per patient. How much revenue are you bringing in per
(17:48):
visit per patient national average five hundred and twenty seven
bucks national average. If you're above that, congratulations, hats off
to you, crushing it. If you're below that, time to
start charging more single locations five hundred and fourteen dollars
per visit, multilocation five hundred and ninety per visit. And
(18:11):
my thesis around that, it's not much of a big
delta really, but my thesis around that as they've just
kind of figured out systems and processes and they have
more expenses, so they've up to it. I think multilocation
per visit should be more like seven hundred and fifty bucks.
So I truly look at this like we're under selling ourselves.
We truly like the average spend per visit five hundred
(18:32):
and twenty seven bucks. It's it's not a lot of
money to make someone feel good and look good. It
truly isn't right. Like, look, if you are given, you're
changing the shape of who they are and how they feel.
I think it's very very wise to charge the appropriate amount.
(18:54):
So here's a tip. Increase patient spend per visit through
add ons, memberships, product sells. So if you're below this
five twenty seven are you're right? Kind of rite at it, like,
think of ways where you can increase the spend per patient.
And this isn't a sell them more thing type of
like update for you give them the information. There is
(19:19):
so many times guys that I have gone to buy something,
and I know you've experienced this as well. You've gone
to buy something you didn't have all the information. You
would have spent more if you knew the information. So you,
as a provider, it's your duty to give us patients
the understanding of how we need to invest in longevity,
(19:41):
Like give us the information you're the expert, right and
most people that are coming to you, they're coming to
you for like advice on longevity, looking younger, feeling better,
and so put them on a success journey. They're going
to be so much more loyal, they're gonna spend more money,
they're gonna come back and see you like. That's the
playbook for you, for sure. The other component that you
(20:05):
must track is your CPL which is your cost per lead.
For those of you that have tuned in, you know,
I talk a lot about cpls, and I also talk
about customer acquisition cost. I put the spin on it
and I call it patient acquisition cost because we're talking
about patients here. You need to know this stuff like
(20:26):
very important if you are running marketing campaigns. If you're
spending money on marketing, which my gosh, I hope you are.
Most people are underfunding their marketing like by a massive amount.
It's actually quite scary, especially when you're operating at about
fifty percent of fixed costs and you have rooms that
(20:46):
are empty and hours that could be sold. You just
turn the marketing on and you get more patients. But
I'll save that topic for another day. I want you
to understand your CPL and understand the difference between customer
acquisition cost patient actual acquisition costs versus CPL. So, to
acquire a lead is, let's say you go spend ten
(21:08):
thousand dollars this month on marketing. Okay, it's all coming in,
and let's say that you know x amount of patients
came through the door. You just need to understand the mouth,
what is the spend and how many leads were created
from the spend. Okay, that's the CPL. Now when you
(21:29):
compound the actual effort to convert them to a patient,
that's where you get the patient acquisition cost. Okay, understand
those The industry benchmark is one hundred and thirty two
dollars per patient acquisition. Your cpls have to be lower
than your patient acquisition right. That's just like knows that
(21:50):
some of you on the call may say duh obviously
others like the whole purpose of this episode and podcast
is to educate everybody. Okay, And this isn't data that
I just pulled out of a hat, guys. I have
captured all of the industry data, the latest and greatest
data from AMSPA, all the EMRs, the CRM companies. I
(22:14):
follow al Ergain, I follow Banav, I follow Galaderma, like
I have SkyTel's report that they put out, so like
people that are doing M and A and PE and like.
I have captured all of this, studied it, dissected it,
put it into my little AI program, and I have
the data. So I've done the hard work for you.
(22:35):
I'm just giving it back to you through a nice
little voice outlet for you. Okay, So, industry benchmarks one
thirty two, I'd love for you guys to be below that.
Optimized marketing spend and focus on repeat business will help
reduce that. The next thing I want you guys to
understand is profit margin and expense breakdown. The average MEDSPAH
(22:58):
profit margin is right around twenty to three thirty percent.
Kind of talked a little bit about that earlier. Okay,
the expense breakdown. Understand your expense breakdown, not just your
profit margin. What is your true expense breakdown? On average,
thirty percent goes to payroll, thirty percent goes to cogs, costing, goods,
treatment supplies, et cetera. Those types of things, nine percent
(23:20):
to rent, and seven percent to marketing. In some cases,
most practices I talked to are actually only spending about
like two to three percent on marketing, which is like
way low. Your your rent should be lower than nine percent.
Your marketing should be anywhere from ten to fifteen percent
(23:43):
at this point in time. If you're looking to capture
patient demand. Okay, so here's a tip. Reduce your fixed costs,
negotiate vendor contracts, and automate processes to improve your margins.
Super simple. Make sure to do it. The other component here, guys,
is patient retention and memberships. Patient retention and memberships is
(24:05):
absolutely extremely critical in order to understand how to keep
your patients with you. You need to keep your patients
with you. The typical lifetime value is about three years,
and I think people should exceed that. Okay, that's the
(24:25):
average about three years. I think people should say with
you for four or five unless, like you know, they
move or something like that. You know, But the patient retention,
if you're north of seventy percent on your patient retention,
that is a key KPI that private equity or strategic
buyers look at. They want to know your attention rate.
They want to know your utilization rate and your attention
(24:46):
rate Like these are probably the two biggest things. Then
they can just run mathematics and say, oh, they have
great retention or poor retention, and they have terrible utilization
or great utilization. We just need a marketing playbook or
we need a basically a sales and a treatment plan playbook.
When you combine those two with a great brand, like,
you got a recipe for success right there. Okay, So memberships,
(25:10):
I think you guys could look at these and get
a little confused, like how do you create the memberships?
What's the best memberships? Like beauty banks are fantastic giving
somebody just like a monthly automatic debit that goes into
a bank where they can come in and pick and
choose what they want a service or use a tool
like use a piece of tech right or PTMD has
great ones, and there's other great EMR companies that have
(25:31):
some as well. But I think you know, having this
type of stuff is actually cheaper to acquire and roll
out versus not too Some people could look at acquiring
software and saying I don't like the monthly fee. I
look at it and say, it's a critical component to
your tech stack, and if you're looking to increase your
(25:52):
patient retention and increase your patient like velocity and monthly
reoccurring revenue it's acquired. In fact, if I owned a practice,
it would be one hundred percent required for us to
have a very robust membership plan and a very robust
rewards plan because I know like people that do have that,
(26:16):
their attention goes up. And so I would drive my
practice as if I'm going to sell it one day,
even if I never plan to, Like obviously there's always
an expiration date, but if you never plan to run
it as if you are, because then you're you're running
it exactly how an institutionalized financier would acquire it. And
(26:41):
that's what's going to make you even better. So if
you have it into like an M and A conversation
in a conference, like go to conferences and go to
the finance ones and the M and A conference discussions.
Ben Hernandez with skytell Group he's awesome. He puts on
like some of the great greatest talks ever. Shout out
Ben if you're tuning in, but go study this stuff
(27:02):
and then start to engineer your practice this way. Okay,
moving on why medspot owners struggle with financials. It's simply like,
we don't want to look at it. We almost like
are afraid to. We don't, we don't want to know, right,
It's like, eh, I don't, I don't want to know.
I'll kind of get to it when when I want to.
But many just lack financial literacy and don't track their numbers.
(27:24):
Like and this is why it's so important if you
if you're just like I'm just not a numbers person,
become one. Go become a numbers person. There was a
day in time where you obviously weren't a person that
knew how to ride a bike, and then you figured
out how to ride a bike. Right, there was a
person that you were not an injector, and then all
of a sudden, you were an injector. Right. If you're
(27:45):
a mom, there was a there was a world you
lived in where you're not a mom, and all of
a sudden, the baby came home and now you're a
mom and you have to figure it out. Right. So, like,
if you're one of those that's afraid to really get
in the nitty gritty of your numbers and it drives
you crazy, go learn it because you don't want to
just rely on like bookkeepers and CFOs to run your
(28:05):
numbers and tell you information that you don't comprehend. Go
learn it. You'll find it fun over time, Like just
right through the barrier. Okay, you just need to understand
your profitability for service, like not using proper finance strategies,
charging too low versus market rates that can just give
a bad patient experience, that can give a bad brand,
(28:27):
that can just like eventually have turn and burn, give
you kind of the the type of medical asthetics practice
where people go for a quick fix and never come back.
Just not the type of business you're looking for, right,
So failing to allocate enough for marketing and acquire the
right patient is it's also a big issue I see
(28:49):
time and time again like practices, they do not spend
enough on marketing because we're looking at it through the
wrong lens. And this is why a medspot owners struggle
with the finance is. Everything that you're looking at and
I'm going to talk about marketing on this site. Everything
you're looking at on the marketing side is you're looking
(29:09):
at it as an expense. Guys, it's more expensive to
not do. And let's just like let's look at your
website for a second. Hey, how much does it cost
to build a website? How long does it take should
I build one? Do websites even matter anymore? Do you
realize when you really think about that, your website is
(29:32):
a digital asset. It's a digital piece of real estate
that is in cyberspace. It's on the Internet. You can
literally go spin up a piece of land which would
be a domain. You can build your house on it,
which is your brand and your actual physical website, the
(29:53):
content and all that stuff, and then you could put
signs up all over the place and people will come
visit you in a digital world. Right in the science
of it, that's obviously the analogy of like the marketing aspect,
the SEO, the ads, all that stuff. Isn't this amazing?
Like it's the cheapest piece of real estate you can
almost ever acquire. And if you don't acquire it, you
(30:13):
basically said, hey, I am now putting myself in a
position to say I want to be a practice owner.
I want to grow, but I don't want to invest
in a digital piece of real estate that's going to
produce patients. So for me, I look at that and
I'm like, I don't even know how you put a
cost on it. It's more expensive to not do, way
(30:35):
more expensive to not do if you want people to
go somewhere else. Yeah, then then and this is where
I come back to, like the why some practice owners
struggle with the financials, because that should be looked at
as an investment allocation. Right, once you acquire the domain,
once you build the site, once you have it, traffic's
coming in. You have a revolving door of traffic of
(30:57):
patients that it can flowing in. Now you can take
that digital asset and you could sell it. It's worth
it's worth cash. Right, I'm not saying that's what you do,
but like if you package up your practice in the
solid obviously you'd sell your website with it. So it's
it's it's super important to know, like everything that you're
doing here, you're you're actually building intellectual property, you're building assets, right,
(31:21):
You're acquiring little physical assets for your practice. And I
think that's the right lens to start looking through. So
super super important. So I'll give you a couple of tibets,
like on how to improve your financial management. Okay, so
set revenue and profit goals. Start aiming for a thirty
percent profit margin. If you're below that use financial dashboard
(31:42):
software like Sinodi, REPETMD, Cetic Record, Boulevard Growth ninety nine. Right,
so hire a bookkeeper or CPA who understands MEDSPAT finances.
There is there's a lot of people out there, some
great people who do a wonderful job, and they've worked
with so many practice they know these numbers back and forth.
Optimize pricing and services like high ticket services you know
(32:04):
RF micronadling, body contouring versus low margin treatments. Okay, micro
needling is has a great high margin, high ticket I
was at a conference recently and I was talking with
the device and and a practice owner happened to have
the device in this this machine. It was like one
(32:26):
hundred and fifty grand. I don't want to drop the name.
Great micronedling device. Low down time about one hundred and
fifty thousand bucks. And when they sell it, they charge
about eighteen hundred dollars per treatment and it cost them
about one hundred bucks to run the machine. What a
and it takes about fifteen minutes. So it's like wow,
(32:49):
you know, that's that's a great, great way to uh,
you know, to look at your finances and optimize those
based upon you know what works, okay, and then up
selling like I think like after you are done doing
the treatment, it's a great time. As they're going to
the checkout area, don't just let them walk by the
(33:10):
retail product. The retail product should should complement the treatment
and it should work and give a result, right like
don't sell like thin air, like make it give them
a result and then track ROI on marketing, spend and
sure your leads convert to patients. And if you have
if you're spending money on marketing, you need to be
spending and investing money on converting them. If you have
(33:33):
leads coming in and you have people that are not
taking the phone calls or are not following up with
them through text emails, phone calls, everything, like whatever it
is immediately like right away, you need to you need
to invest in that. Okay, you need to make sure
you have systems and processes in place because this will
reduce your patient acquisition costs, your cost per lead. You'll
have to you'll spend less on marketing and produce more results.
(33:56):
And the whole point, guys, like on the marketing side
is reducing your seed on your customer acquisition cost. Okay,
so takeaways here. Knowing your numbers is not optional, it's essential.
It's essential for business sustainable practice growth. So here's your
(34:17):
action plan. Set a revenue goal for the next six
to twelve months. Analyze your cost per lead, per service,
and overall profit margins. Implement one financial improvement strategy this month.
Increase prices, reducing costs, or offer membership something. Take action,
(34:39):
and then call to action. If you guys found this
valuable this particular episode, please share it with your colleagues.
Everything I do here I do for you, and I
want to help you guys grow in any way possible.
I'll leave it at that until next time. Happy.
Speaker 1 (35:03):
Thanks for tuning in to Medical Millionaire. Every week, we're
here to help you transform your practice into a thriving,
profitable venture, covering everything from marketing and patient bookings to mindset, workflow, automation,
and beyond. Whether you're just starting out, scaling up, optimizing operations,
or planning your exit strategy, this podcast is your go
(35:25):
to resource for success in the medical esthetics industry. It's
time to supercharge your practice and take action today. Share
this episode with a fellow entrepreneur. Rate the show and
don't forget to click the link in the show notes
to access powerful tools and expert guidance at get dot
growth ninety nine dot com, slash MM, and make sure
(35:48):
to tune into the next episode of Medical Millionaire
You're listening to Medical Millionaire, your podcast for medspot owners,
medical aesthetics, cosmetics and elective wellness entrepreneurs. Each week, we
dive deep into powerful marketing strategies, proven scaling tactics, and
the secrets to attracting high end clients, all while staying
ahead of the latest industry trends. Join us as we
(00:25):
uncover insights from top industry leaders to help you boost revenue,
enhance patient satisfaction, and master the art of marketing your practice.
Hosted by Cameron Hemphill. With over a decade of experience
in the aesthetics industry, Cameron has supported thousands of practices
and providers, working with some of the biggest names, most
well respected brands, and elite industry thought leaders in the field.
(00:46):
If you're ready to level up your practice and become
a true medical millionaire, this is your podcast. Here's your host,
Cameron Handpill.
Speaker 2 (00:57):
Hey, what's up everybody? Cameron hemp Pill here your host
for Medical Millionaire. Thank you so much for taking the
time to tune into the podcast. Our goal is to
give incredible value and insight for practice owners. So if
you own a medical aesthetics practice, wellness clinic, Medspot Cosmetics,
anything of the above. Every single one of these episodes
(01:19):
that we create, they are one hundred percent designed for
you and to help take your practice to the next level. Guys,
I have been consulting in working with some of the
most well recognized practice owners all over the country for years.
I see medspas killing it, crushing it, practice owners having fun,
(01:41):
and I see other ones that are falling by the wayside,
and I want to get into something that's super important today.
It's been on my mind a lot lately, and it's
essentially talking about why knowing your numbers is so important
for a practice owner. And I'm going to get into
some of the details here, but the most successful practices
(02:04):
that I have worked with continuously try to understand and
know their numbers. They create benchmarks, they create goals. They
know if they're falling behind forecasting, if they're ahead of
their plan that they've outlined for the year or the
quarter or the month. They have accountability to these numbers.
And so if you don't know what your numbers are,
(02:26):
and I think that's like a broad statement, right, like
know your numbers, well, what does that mean? Right? You
should really when we're talking about that it's getting into
the financials, getting into exactly what your revenue streams are.
Where is the revenue coming from, what products is it
coming from, what specific tool sets is it coming from.
(02:51):
In terms of equipment that you have, how much is
your retail producing and you should have this broken down
in each specific category, guys, so you know exactly what
products that you are acquiring that are creating the most
profit for the practice. So it's getting into the financials,
like as a practice owner, as a business owner, it's
(03:12):
your fiduciary obligation to understand finance. You're an entrepreneur, you're
a practice owner, and if this is an area that
you struggle with, go learn it, read a book, get
on YouTube, hire an industry expert. They are out there.
I'm telling you that there is people out there that
(03:32):
know medical aesthetics and can help you understand how to
know what knowing your numbers actually mean. Okay, and once
you figure out what your numbers are, this isn't something
that's set in stone. Your numbers are going to go
through peaks and valleys as the market changes, seasonality changes,
(03:54):
and it's really important to understand as a practice owner
what the trends look like like over time, so you
can obviously plan accordingly on expenses, personnel expenses, marketing expenses,
tool set expenses, equipment expenses, product purchases, those types of things. Okay,
so again, like understanding your numbers is absolutely critical as
(04:20):
a practice owner, and many metspot owners are. They focus
on marketing, aesthetics, and patient care, but they truly ignore
the financials, which is the true backbone of your business. Now,
you obviously have to know marketing, you have to focus
on it. You've heard me say it over and over again.
The most successful practice owners are the best marketers because
(04:42):
they bring patients into the door. Now, the ones that
actually bring the best service and the best value and
retain those patients at a high retention rate percentage, those
ones win. Then when you get into understanding the financials,
what will happen is your business starts to be become
a mathematician exercise. It's dials and numbers and financials. And
(05:07):
that may sound like a little bit too institutionalized in
a way, but think of it this way, as you
actually are a mini institution of your own. You own
your own destiny, and so if you don't understand your numbers,
and how much it costs to acquire a patient, how
much it cost to service a patient, how much it
costs to retain a patient, how much it costs to
(05:28):
acquire your product, and what your net profit is and
what your gross profit is. You really have no understanding
of how to scale your practice and are you running
a healthy organization or a sick organization? You should know
if you have been in business long enough, you should
(05:49):
know exactly how many new patients you need, want desire
to acquire this month, this quarter, six months this year.
You need to understand that you need to understand the
cost that it is to acquire these patients and can
you service them mechanically in a way that's going to
(06:13):
give them the patient experience and give you the loyalty
that you deserve and build that bond and that relationship.
So I can tell you right now it's way more
expensive to acquire a new patient than it is to
keep an existing patient.
Speaker 1 (06:29):
Okay, So.
Speaker 2 (06:32):
Guys, the men spot industry is a multi billion dollar market.
It's valued over seventeen billion, and I think this was
actually the number that was pulled from like late twenty three,
So this is behind. This is just going off a
little bit of legacy data, and I know it's grown
since then, but let's peg it between seventeen to nineteen billion. Okay,
(06:56):
don't quote me on that, but I'm pretty damn close. Right,
We're talking a pretty significant industry, and I truly feel
that we are we have a long way to go.
We are uncovering things on the wellness side, the cognitive side,
the regenitive side, in ways that we never have before.
(07:18):
And I think there's a lot of practice owners that
we don't even know how to monetize these particular patients
and treatments and new discovering of healthcare yet right like
everybody's jumping on the GLP one bandwagon right now, which
I totally get. It's hot, it makes sense, it produces revenue,
it produces results, patients are happy, and it's as the
(07:42):
wellness industry continues to grow, you're going to find so
many ways to monetize your practice and create new revenue streams.
But you need to pay attention and you need to
be quick to act. Right, So, I know that there
is a lot of practices out there that have not
started implementing wellness into their practice, into their aesthetics business,
(08:06):
and I truly feel like you will be falling behind.
I mean, just go pull up social media, just go read,
go do your research. Like everybody's talking about wellness, they're
talking about longevity, they are trying to reverse aging. We
all are. And I don't know if this is like
a a ramification of COVID or what, but it feels
(08:28):
that everybody is on this same mission to feel good
and look good. And maybe it has to do with
like what happened in COVID and then maybe tying that
into social media and how like the whole world is
like spread apart because everybody moved. You know, I can't
really like stamp it, but I do know that people
(08:49):
are truly wanting to feel good and look good. And
so my point on that, coming back to this seventeen
billion dollar industry, I think that this is peanuts, and
I think what you're going to see by twenty thirty five,
I would peg this to be a thirty billion dollar industry.
(09:13):
And so if you're just starting out as a practice owner,
you're not late to the game. Don't compare somebody else's
journey with your new entry point journey. I would not
look at this and say competitions everywhere. It's a saturated market.
The market is changing so fast and the patients are
getting so educated that you are at the tipping point.
(09:37):
And I truly think aesthetics and wellness is one of
the coolest industries ever to be a part of because
you truly are helping people build confidence and health and
age reduction. I mean, it's amazing, and it's something that's
like AI cannot destroy that. Sure, you can make a
(09:57):
video on Instagram TikTok and upload it to some filter
and make yourself look younger whatever, but that's just something
on video that's not like true face to face and
true how people feel. Right, So if you can support
making people feel good, think better, act better, desire to
(10:17):
look younger, feel younger, get more confident, it almost like
supports the entire world economy. Right. If everybody feels good
and look good, everybody's gonna work harder and actually get
more done. So, like when you really start to peel
back the layers of like why I am so bullish
and excited about this industry and I love to be
(10:39):
a part of it and I've been here for over
ten years, it's because, like start peeling back the layers
and understand what the main mission and purpose is. And
then when you think seventeen billion, Wow, this is huge,
Like we're this thing's going to go to one hundred
billion in our lifetime. Right, So it is in this generation,
there's no there's no stopping it. There's going to be
(11:03):
certain years that it's going to slow, like grow slower
than others. We saw a tremendous amount of growth over
the past five years, and you're going to see material
growth continue. So zoom out, look at a thirty thousand
foot view and make sure that you understand what's really happening.
And I think some people can get caught up in
like current economic conditions and make emotional decisions instead of
(11:28):
zooming out and just taking that thirty thousand foot view footprint. Okay,
there are over ten thousand medical spas in the US.
Ten thousand with single location spa is generating an average
of like one point one million bucks single location owned
(11:48):
practices generating one point one million that's top line revenue.
Top line revenue. Right, A healthy practice needs to be
pegged right around like twenty five to thirty five percent
bottom income. That means, let's just take the worst case
scenario twenty five percent net, and I'll make the numbers
easy and say you're doing a million bucks, you're making
two hundred and fifty thousand dollars in profit. And that
(12:13):
was that stat was actually pulled mostly out of the
esthetic side, mostly from the actual like the surface side.
You could take your million dollar practice to a two
million dollar practice very fast by bolting on a very
(12:34):
sophisticated wellness environment to your esthetics practice. But before you
do that, you have to know your numbers. You have
to know what it costs to acquire a patient. You
have to be a great marketer, you have to be
great at your treatment. You have to be great at
running a console, building a treatment plan, having great technology,
(12:55):
having a great process. And by the way, I feel
like it's possible to run a two million dollar practice
as a solo provider. If you have the right systems,
the right marketing, the right brand, the right location, you
could actually do this. And I don't think you'd have
to work yourself, you know, like fifty hours a day.
(13:17):
Obviously not possible, but you get what I'm saying. I
truly do, And I think like if you look at
ways to monetize your practice. You can easily expand in
services that create revenue streams like never before. Okay, And
you know, it's a great exercise to pull yourself out
of the day to day operations and work on your
(13:40):
business versus work in the business. And I've said this
on previous episodes, but if you're not taking the time
to do that, you're going to get caught in the
day to day just doing your job, doing your job
over and over and over and over and over again.
And that's fun. You're trading patients, your you know, revenues
coming in, but you have to look at the big
picture and you have to see what's taking place. Okay,
(14:01):
So beside despite this ten thousand MEDSPA plus single location,
you know, practices that are generating over one point one million,
many struggle with profitability due to poor financial management, many
of them. And it's like it's it's it's kind of
(14:22):
sad in a way because you're actually generating, you got
seven figure earning business and you don't know where all
the money's going, and you don't know how all the
income is coming in. You know it's coming in, but
you don't know where it's coming from. And you really
need to take the time to strategize and know your
numbers and study finance. Studying finances. It's not boring at all.
In fact, it's one of the funnest things you'll ever
(14:44):
do as a business owner. Learn how to navigate quick
books like. You can connect it to your accounts, your
credit card accounts, your bank accounts. You can hit buttons,
it pulls in all the feeds, you can categorize it,
you can outsource it to a bookkeeper. It's not a
hard tool. And there's a lot of AI and stuff
that they've released too and too it owns it, so
they've done a great job. Guys, if I can learn it,
(15:06):
you can learn it right. I'm not a CFO or
controller by any means, but I can tell you I
am a business owner. I have started companies. I have
started companies from zero that have gone to eight figures
and valuations, and I have exited those companies, and I've
acquired a tremendous amount of real estate over those years.
(15:26):
And if I didn't understand finance, I would never be
able to do what I have done. And this isn't
just like look at me, see what I've done it's
just me telling you a story that is making sure
you truly understand Studying finance is a critical role of
(15:47):
being a business owner. It's probably the most important role,
so you can actually have the mechanical instruments and know
where you're going to drive to okay.
Speaker 1 (16:05):
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(17:09):
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Your practice deserves the growth you've always envisioned. Let Growth
ninety nine help you make it happen. Now back to
the show.
Speaker 2 (17:28):
So some key financial metrics that every MEDSPA owner must track.
I'm not saying should track. I'm saying you must track.
I want you to start understanding your revenue per visit
per patient. How much revenue are you bringing in per
(17:48):
visit per patient national average five hundred and twenty seven
bucks national average. If you're above that, congratulations, hats off
to you, crushing it. If you're below that, time to
start charging more single locations five hundred and fourteen dollars
per visit, multilocation five hundred and ninety per visit. And
(18:11):
my thesis around that, it's not much of a big
delta really, but my thesis around that as they've just
kind of figured out systems and processes and they have
more expenses, so they've up to it. I think multilocation
per visit should be more like seven hundred and fifty bucks.
So I truly look at this like we're under selling ourselves.
We truly like the average spend per visit five hundred
(18:32):
and twenty seven bucks. It's it's not a lot of
money to make someone feel good and look good. It
truly isn't right. Like, look, if you are given, you're
changing the shape of who they are and how they feel.
I think it's very very wise to charge the appropriate amount.
(18:54):
So here's a tip. Increase patient spend per visit through
add ons, memberships, product sells. So if you're below this
five twenty seven are you're right? Kind of rite at it, like,
think of ways where you can increase the spend per patient.
And this isn't a sell them more thing type of
like update for you give them the information. There is
(19:19):
so many times guys that I have gone to buy something,
and I know you've experienced this as well. You've gone
to buy something you didn't have all the information. You
would have spent more if you knew the information. So you,
as a provider, it's your duty to give us patients
the understanding of how we need to invest in longevity,
(19:41):
Like give us the information you're the expert, right and
most people that are coming to you, they're coming to
you for like advice on longevity, looking younger, feeling better,
and so put them on a success journey. They're going
to be so much more loyal, they're gonna spend more money,
they're gonna come back and see you like. That's the
playbook for you, for sure. The other component that you
(20:05):
must track is your CPL which is your cost per lead.
For those of you that have tuned in, you know,
I talk a lot about cpls, and I also talk
about customer acquisition cost. I put the spin on it
and I call it patient acquisition cost because we're talking
about patients here. You need to know this stuff like
(20:26):
very important if you are running marketing campaigns. If you're
spending money on marketing, which my gosh, I hope you are.
Most people are underfunding their marketing like by a massive amount.
It's actually quite scary, especially when you're operating at about
fifty percent of fixed costs and you have rooms that
(20:46):
are empty and hours that could be sold. You just
turn the marketing on and you get more patients. But
I'll save that topic for another day. I want you
to understand your CPL and understand the difference between customer
acquisition cost patient actual acquisition costs versus CPL. So, to
acquire a lead is, let's say you go spend ten
(21:08):
thousand dollars this month on marketing. Okay, it's all coming in,
and let's say that you know x amount of patients
came through the door. You just need to understand the mouth,
what is the spend and how many leads were created
from the spend. Okay, that's the CPL. Now when you
(21:29):
compound the actual effort to convert them to a patient,
that's where you get the patient acquisition cost. Okay, understand
those The industry benchmark is one hundred and thirty two
dollars per patient acquisition. Your cpls have to be lower
than your patient acquisition right. That's just like knows that
(21:50):
some of you on the call may say duh obviously
others like the whole purpose of this episode and podcast
is to educate everybody. Okay, And this isn't data that
I just pulled out of a hat, guys. I have
captured all of the industry data, the latest and greatest
data from AMSPA, all the EMRs, the CRM companies. I
(22:14):
follow al Ergain, I follow Banav, I follow Galaderma, like
I have SkyTel's report that they put out, so like
people that are doing M and A and PE and like.
I have captured all of this, studied it, dissected it,
put it into my little AI program, and I have
the data. So I've done the hard work for you.
(22:35):
I'm just giving it back to you through a nice
little voice outlet for you. Okay, So, industry benchmarks one
thirty two, I'd love for you guys to be below that.
Optimized marketing spend and focus on repeat business will help
reduce that. The next thing I want you guys to
understand is profit margin and expense breakdown. The average MEDSPAH
(22:58):
profit margin is right around twenty to three thirty percent.
Kind of talked a little bit about that earlier. Okay,
the expense breakdown. Understand your expense breakdown, not just your
profit margin. What is your true expense breakdown? On average,
thirty percent goes to payroll, thirty percent goes to cogs, costing, goods,
treatment supplies, et cetera. Those types of things, nine percent
(23:20):
to rent, and seven percent to marketing. In some cases,
most practices I talked to are actually only spending about
like two to three percent on marketing, which is like
way low. Your your rent should be lower than nine percent.
Your marketing should be anywhere from ten to fifteen percent
(23:43):
at this point in time. If you're looking to capture
patient demand. Okay, so here's a tip. Reduce your fixed costs,
negotiate vendor contracts, and automate processes to improve your margins.
Super simple. Make sure to do it. The other component here, guys,
is patient retention and memberships. Patient retention and memberships is
(24:05):
absolutely extremely critical in order to understand how to keep
your patients with you. You need to keep your patients
with you. The typical lifetime value is about three years,
and I think people should exceed that. Okay, that's the
(24:25):
average about three years. I think people should say with
you for four or five unless, like you know, they
move or something like that. You know, But the patient retention,
if you're north of seventy percent on your patient retention,
that is a key KPI that private equity or strategic
buyers look at. They want to know your attention rate.
They want to know your utilization rate and your attention
(24:46):
rate Like these are probably the two biggest things. Then
they can just run mathematics and say, oh, they have
great retention or poor retention, and they have terrible utilization
or great utilization. We just need a marketing playbook or
we need a basically a sales and a treatment plan playbook.
When you combine those two with a great brand, like,
you got a recipe for success right there. Okay, So memberships,
(25:10):
I think you guys could look at these and get
a little confused, like how do you create the memberships?
What's the best memberships? Like beauty banks are fantastic giving
somebody just like a monthly automatic debit that goes into
a bank where they can come in and pick and
choose what they want a service or use a tool
like use a piece of tech right or PTMD has
great ones, and there's other great EMR companies that have
(25:31):
some as well. But I think you know, having this
type of stuff is actually cheaper to acquire and roll
out versus not too Some people could look at acquiring
software and saying I don't like the monthly fee. I
look at it and say, it's a critical component to
your tech stack, and if you're looking to increase your
(25:52):
patient retention and increase your patient like velocity and monthly
reoccurring revenue it's acquired. In fact, if I owned a practice,
it would be one hundred percent required for us to
have a very robust membership plan and a very robust
rewards plan because I know like people that do have that,
(26:16):
their attention goes up. And so I would drive my
practice as if I'm going to sell it one day,
even if I never plan to, Like obviously there's always
an expiration date, but if you never plan to run
it as if you are, because then you're you're running
it exactly how an institutionalized financier would acquire it. And
(26:41):
that's what's going to make you even better. So if
you have it into like an M and A conversation
in a conference, like go to conferences and go to
the finance ones and the M and A conference discussions.
Ben Hernandez with skytell Group he's awesome. He puts on
like some of the great greatest talks ever. Shout out
Ben if you're tuning in, but go study this stuff
(27:02):
and then start to engineer your practice this way. Okay,
moving on why medspot owners struggle with financials. It's simply like,
we don't want to look at it. We almost like
are afraid to. We don't, we don't want to know, right,
It's like, eh, I don't, I don't want to know.
I'll kind of get to it when when I want to.
But many just lack financial literacy and don't track their numbers.
(27:24):
Like and this is why it's so important if you
if you're just like I'm just not a numbers person,
become one. Go become a numbers person. There was a
day in time where you obviously weren't a person that
knew how to ride a bike, and then you figured
out how to ride a bike. Right, there was a
person that you were not an injector, and then all
of a sudden, you were an injector. Right. If you're
(27:45):
a mom, there was a there was a world you
lived in where you're not a mom, and all of
a sudden, the baby came home and now you're a
mom and you have to figure it out. Right. So, like,
if you're one of those that's afraid to really get
in the nitty gritty of your numbers and it drives
you crazy, go learn it because you don't want to
just rely on like bookkeepers and CFOs to run your
(28:05):
numbers and tell you information that you don't comprehend. Go
learn it. You'll find it fun over time, Like just
right through the barrier. Okay, you just need to understand
your profitability for service, like not using proper finance strategies,
charging too low versus market rates that can just give
a bad patient experience, that can give a bad brand,
(28:27):
that can just like eventually have turn and burn, give
you kind of the the type of medical asthetics practice
where people go for a quick fix and never come back.
Just not the type of business you're looking for, right,
So failing to allocate enough for marketing and acquire the
right patient is it's also a big issue I see
(28:49):
time and time again like practices, they do not spend
enough on marketing because we're looking at it through the
wrong lens. And this is why a medspot owners struggle
with the finance is. Everything that you're looking at and
I'm going to talk about marketing on this site. Everything
you're looking at on the marketing side is you're looking
(29:09):
at it as an expense. Guys, it's more expensive to
not do. And let's just like let's look at your
website for a second. Hey, how much does it cost
to build a website? How long does it take should
I build one? Do websites even matter anymore? Do you
realize when you really think about that, your website is
(29:32):
a digital asset. It's a digital piece of real estate
that is in cyberspace. It's on the Internet. You can
literally go spin up a piece of land which would
be a domain. You can build your house on it,
which is your brand and your actual physical website, the
(29:53):
content and all that stuff, and then you could put
signs up all over the place and people will come
visit you in a digital world. Right in the science
of it, that's obviously the analogy of like the marketing aspect,
the SEO, the ads, all that stuff. Isn't this amazing?
Like it's the cheapest piece of real estate you can
almost ever acquire. And if you don't acquire it, you
(30:13):
basically said, hey, I am now putting myself in a
position to say I want to be a practice owner.
I want to grow, but I don't want to invest
in a digital piece of real estate that's going to
produce patients. So for me, I look at that and
I'm like, I don't even know how you put a
cost on it. It's more expensive to not do, way
(30:35):
more expensive to not do if you want people to
go somewhere else. Yeah, then then and this is where
I come back to, like the why some practice owners
struggle with the financials, because that should be looked at
as an investment allocation. Right, once you acquire the domain,
once you build the site, once you have it, traffic's
coming in. You have a revolving door of traffic of
(30:57):
patients that it can flowing in. Now you can take
that digital asset and you could sell it. It's worth
it's worth cash. Right, I'm not saying that's what you do,
but like if you package up your practice in the
solid obviously you'd sell your website with it. So it's
it's it's super important to know, like everything that you're
doing here, you're you're actually building intellectual property, you're building assets, right,
(31:21):
You're acquiring little physical assets for your practice. And I
think that's the right lens to start looking through. So
super super important. So I'll give you a couple of tibets,
like on how to improve your financial management. Okay, so
set revenue and profit goals. Start aiming for a thirty
percent profit margin. If you're below that use financial dashboard
(31:42):
software like Sinodi, REPETMD, Cetic Record, Boulevard Growth ninety nine. Right,
so hire a bookkeeper or CPA who understands MEDSPAT finances.
There is there's a lot of people out there, some
great people who do a wonderful job, and they've worked
with so many practice they know these numbers back and forth.
Optimize pricing and services like high ticket services you know
(32:04):
RF micronadling, body contouring versus low margin treatments. Okay, micro
needling is has a great high margin, high ticket I
was at a conference recently and I was talking with
the device and and a practice owner happened to have
the device in this this machine. It was like one
(32:26):
hundred and fifty grand. I don't want to drop the name.
Great micronedling device. Low down time about one hundred and
fifty thousand bucks. And when they sell it, they charge
about eighteen hundred dollars per treatment and it cost them
about one hundred bucks to run the machine. What a
and it takes about fifteen minutes. So it's like wow,
(32:49):
you know, that's that's a great, great way to uh,
you know, to look at your finances and optimize those
based upon you know what works, okay, and then up
selling like I think like after you are done doing
the treatment, it's a great time. As they're going to
the checkout area, don't just let them walk by the
(33:10):
retail product. The retail product should should complement the treatment
and it should work and give a result, right like
don't sell like thin air, like make it give them
a result and then track ROI on marketing, spend and
sure your leads convert to patients. And if you have
if you're spending money on marketing, you need to be
spending and investing money on converting them. If you have
(33:33):
leads coming in and you have people that are not
taking the phone calls or are not following up with
them through text emails, phone calls, everything, like whatever it
is immediately like right away, you need to you need
to invest in that. Okay, you need to make sure
you have systems and processes in place because this will
reduce your patient acquisition costs, your cost per lead. You'll
have to you'll spend less on marketing and produce more results.
(33:56):
And the whole point, guys, like on the marketing side
is reducing your seed on your customer acquisition cost. Okay,
so takeaways here. Knowing your numbers is not optional, it's essential.
It's essential for business sustainable practice growth. So here's your
(34:17):
action plan. Set a revenue goal for the next six
to twelve months. Analyze your cost per lead, per service,
and overall profit margins. Implement one financial improvement strategy this month.
Increase prices, reducing costs, or offer membership something. Take action,
(34:39):
and then call to action. If you guys found this
valuable this particular episode, please share it with your colleagues.
Everything I do here I do for you, and I
want to help you guys grow in any way possible.
I'll leave it at that until next time. Happy.
Speaker 1 (35:03):
Thanks for tuning in to Medical Millionaire. Every week, we're
here to help you transform your practice into a thriving,
profitable venture, covering everything from marketing and patient bookings to mindset, workflow, automation,
and beyond. Whether you're just starting out, scaling up, optimizing operations,
or planning your exit strategy, this podcast is your go
(35:25):
to resource for success in the medical esthetics industry. It's
time to supercharge your practice and take action today. Share
this episode with a fellow entrepreneur. Rate the show and
don't forget to click the link in the show notes
to access powerful tools and expert guidance at get dot
growth ninety nine dot com, slash MM, and make sure
(35:48):
to tune into the next episode of Medical Millionaire
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