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