According to the Small Business Administration, 50% of small businesses fail after five years and 70% of owners fail in their 10th year in business. How do you buck this trend and build a thriving business for decades to come?
Here are some tips from Growth99, a leader in digital marketing solutions.
1. Bring Medical and Spa Together
Strike a delicate balance between the medical aspects and the spa-like ambiance of your medspa. You must make your medspa a place where your patients can enjoy the amenities. Just like any spa, your clients should feel a sense of comfort and relaxation. A few ways to bring out the spa ambiance is to use aromatherapy in the waiting area and treatment rooms. A clean and well-kept medspa is another way to leave a good impression on your clients.
2. Calculate the Costs of Operations
To make a profit, you first need to recover the costs of running your business. These costs would include rent, supplies, inventory, equipment maintenance, marketing, utilities, salaries, insurance, and wages. If you’ve run your medspa for a long time, go through your books and track your regular expenses.
3. Stay on Top of Your Finances
Check whether all your expenses are actually necessary. If you discover anything too lavish for your business, it’s something you need to do away with. By reducing your regular costs, you would have to recover less. Revenue that exceeds costs is the profit of your business.
4. Don’t Undercharge Patients
Know your worth. Undercharging your patients can hurt your finances. If you are unsure of how to charge, check out competitor prices. You should also calculate how much a specific service actually costs you. If you want to charge premium fees, you must make your patients feel like what they are paying for is worth every dime. The amenities play a huge role in this.
5. Don’t Spend Too Much Time on Low-Value Activities
Do you have services that cost you a lot, but earn you little? If the answer is yes, do away with these services. Low-value activities are time-consuming and your efforts could have gone to other services that generate more revenue for your business.
6. Get People to Talk About Your Business
Having people rating your clinics highly can strengthen your image of trust and credibility. Referrals are one of the best ways to get new customers. Implement a system (Buy One Get One Free or Bring a Friend deals) to actively solicit referrals from your satisfied customers. Then reward them with a coupon for 10% off their next service when they refer a new client.
Next Steps?
Execute on the ideas above and you are virtually guaranteed to increase revenue. In addition to these tips, it’s important for a small business to have a well-thought-out business plan and hire the right people. Your employees are the face to your customers, so make sure you hire people who are positive, passionate, and engaging.
Allied Beauty Experts (ABE) is the premier association dedicated to the Spa, Salon, and Medspa industry. With more than 30 years of experience, we provide the most comprehensive insurance programs in the industry. As a member of ABE, we’re committed to your continued development and growth, so be sure the check out our extensive Blog Archive.