Failing in Aesthetics

Failing at Business: Three Years in Aesthetics

I have earned hard-won scars from failing in business. As a long-time registered nurse with a sprinkle of aesthetic experience, I was bitten by the entrepreneurial bug. Starting up a medical spa seemed like a no-brainer: buy the products, inject the products, and watch the cash roll in like a scene from a heist movie. This was my first mistake. I fell for the dream that it would be as easy as pie. Running a business is hard—really hard. I had no clue; running a medical practice is even harder. I bought into the fantasy that in a couple of years, I’d be earning six figures, sipping piña coladas on a beach. Instead, I’m just trying to figure out how to pay off the $300K I borrowed.

Embarking on the journey of entrepreneurship is like signing up for a roller coaster ride—without knowing there’s a 200-foot drop. Transitioning from a successful career in nursing to the dazzling world of aesthetics and starting a medical spa is a bold move. But as a critical care nurse, I thought I could handle anything. The allure of being your own boss and reaping the financial rewards can be enticing, but the reality is you earn every dime.

While the prospect of offering aesthetic treatments and services for a profit may seem like a straightforward path to financial success, the truth is that running a business, especially a medical practice, requires meticulous planning, financial acumen, and a deep understanding of the industry. The misconception that success will come quickly and effortlessly can often lead to disappointment and frustration, much like finding out that the “free trial” of life comes with a hidden subscription fee. Building a sustainable and profitable business takes passion, time, dedication, and a willingness to adapt and be very in tune with your market.

Love It

Love whatever it is that you are doing; love everything about it. If you open a business, you will live, eat, and breathe it. You’ll spend every waking moment sacrificing for that new business, like a parent with a new baby—you will lose sleep. In order to make it in the competitive market, you must immerse yourself in all of it: the culture, social media—you must keep up with the trends and provide those services. I didn't take the time to really evaluate if I loved aesthetics that much. The hard truth was I didn't.

Word of Advice

Take a moment to reflect before making a decision. Do you have a passion for aesthetics? Aesthetics remains a part of healthcare. It's essential to follow best practices, as issues can arise. Are you truly sure that the representative from the filler company is correct? Is it safe? Does aesthetics align with your values? Conduct a thorough assessment of your strengths and weaknesses and determine how you will leverage your resources. Embrace authenticity—it's your greatest asset! Trust your own judgment when making business decisions. If you prefer to remain small, honor that instinct. Brand in a way that makes you happy because you will be living it.

Plan Ahead

Plan ahead. That means everything from what products you are going to carry to what point of sale system you are going to use. Name the spa with "medi-spa" in it. This makes you more searchable. Keep it simple, which is hard to do. Many have great names, but now there is AI. Utilize every tool you can digitally to get an edge.

• Financial Planning: Engage a qualified and experienced Certified Public Accountant (CPA) who can efficiently handle your payroll and other financial matters. A good CPA will not only ensure that your payroll is processed correctly and on time but will also provide valuable insights into tax planning, financial reporting, and compliance with regulations. Attempting to manage accounting on your own can be fraught with risks, including the potential for errors that could lead to costly penalties or missed opportunities for deductions.

• Digital Presence: In today's digital landscape, establishing a robust online presence is essential. Start with a professional website. Spend the money to have it done right. Ensure it's user-friendly, visually appealing, and SEO-optimized to attract customers. Connect your social media platforms like Facebook, Instagram, Twitter, and LinkedIn to create a cohesive digital ecosystem. Including a booking portal on every page. Consistent branding across these channels reinforces your identity. Actively manage your online reputation by responding to reviews and engaging with your audience. A strong digital presence builds trust, crucial for customer attraction and retention. Digital marketing, including content marketing, social media marketing, SEO, email marketing, and pay-per-click advertising, drives traffic and increases brand awareness. Leveraging these tools effectively broadens your audience and converts them into loyal clients. Investing in a comprehensive digital strategy is necessary for business success in a competitive market. If it's not your cup of tea, hire someone.

• Customer Interaction: Hire someone to answer the phone and instant messaging. That phone call or text you miss is a client you just lost.

Emergency Protocols

Get your medical director in line. I recommend someone local to you in case of any real emergencies. While these are elective procedures, they come with risks. You must be prepared with an emergency protocol for vascular occlusions. There are several resources on the market for protocols. You must collaborate with your medical director on which one to use, which can be tricky if your medical director is remote and cannot directly teach. It's just a slippery slope.

I belong to an online group of aesthetic professionals, and I highly recommend joining that type of group for resources, support, and a wealth of knowledge. I have seen in this group horrific complications from vascular occlusions. It is statistics. It is not if, but when. You must know how to avoid and treat vascular occlusions.

Technology and Systems

Decide on your electronic medical record and become familiar with it. Many come with a point of sale system as an option. I recommend that to simplify inventory. There are multiple systems out there such as Square. In my experience, Aesthetic Record was a comprehensive EMR and POS.

Money

In the aesthetics business, success is measured when you hit a million dollars in sales for the year. A MILLION DOLLARS. That affords the owner to make $100K a year. Not exactly rolling in it. It just seemed to be unreal, but it’s the real deal. One would think the profit margins would be huge. They are not. When you start subtracting operating costs, it is minute. An example of this is when I inject the average Botox treatment, which is 30 units, I make $50 after all the expenses are accounted for, and I charged on the high side.

I would recommend you have a million dollars to start off with to maintain operations for the period of three years for a small two-injection room spa. It was nothing to spend $10K in a day, and those were small orders. The preference is to buy in bulk; it’s where there are deals and discounts. The smaller orders, the more it is per vial or syringe. That is my other recommendation. Stick with one or two brands to get better deals by buying more. But be ready to have money to spend. Do not start this project on a shoestring; you will be in it for the long haul, and this takes time.

I suspect that numerous other businesses face concealed costs, including software subscriptions, insurance, licensing, and accounting, among others. I also overlooked the impact of product waste and shrinkage, both of which affect your return on investment (ROI). Ultimately, it’s all about the ROI. I realized this only when it was too late. I was purchasing in small quantities to stay within budget, which resulted in higher expenses. My ROI was lower compared to my competitors who bought in bulk.

Business Plan

Have a business plan. Does the community need another medi-spa? Probably not. You should stop right there. If you are in an area of low concentration of a service, then you find yourself lucky. Really look around. Is there a need? Do you bring something unique to the table? This is where being yourself is important. Have a plan. There were things I didn’t consider as being important… visibility. Look at where you are going to locate yourself. Is parking adequate? Is your location easy to get to? These are all things I could have saved myself some grief.

Marketing

When it comes to marketing, meticulous planning is crucial for success—kind of like trying to assemble IKEA furniture without the instructions for me. Allocating a significant portion of your operating budget, around 10 percent, to marketing activities is a wise investment. Developing a clear and compelling brand identity is essential to stand out in a competitive market.

• Reviews: Reviews play a pivotal role in shaping consumer perceptions and influencing purchasing decisions, underscoring the importance of managing and monitoring feedback effectively. In hindsight, having a well-defined and strategic marketing plan can make a significant difference in the trajectory of a business.

• Outsourcing: Recognizing your strengths and weaknesses, especially in areas like social media management, is key to leveraging the expertise of professionals. Outsourcing tasks such as social media management and website maintenance to skilled individuals can streamline operations and enhance the overall marketing strategy.

• Customer Interactions: Within the realm of customer interactions, the first point of contact holds immense importance. Ensuring a seamless and efficient initial engagement with customers can set the tone for the entire relationship. Embracing technologies like Artificial Intelligence (AI) can revolutionize customer interactions by providing personalized and efficient solutions, potentially reducing the need for a full-time assistant.

• Technology Proficiency: Having a team member well-versed in technology and proficient in handling various applications is invaluable in today's digital landscape. The ability to adapt to evolving technologies and utilize them effectively can give businesses a competitive edge and streamline operations. By prioritizing ease of contact and leveraging technological advancements, businesses can create a customer-centric approach that fosters loyalty and drives growth. People expect ease of operations.

Have a Good Team

Hire cautiously, fire quickly. I kept people on far past the expiration date. Way past chances. I am not a good leader that way; people walk all over me. It’s important to know what your strengths and weaknesses are.

Have robust and effective administrative systems in place to ensure that your business operates smoothly and efficiently. It is crucial that clients can easily contact you, whether through phone, email, or online chat, and that they can swiftly access the services or products they are seeking. In today's fast-paced market, if you are not the first to respond to a potential customer's inquiry or need, there is a significant chance that you will lose that sale to a competitor who is more responsive. The next person who answers the phone may very well secure the business that could have been yours. It is essential to prioritize responsiveness and accessibility in your customer service approach. Clients should be able to book at the push of a button.

Be very cautious about the partnerships and relationships you establish in your business endeavors. Choosing the right business partners is akin to entering into a marriage; it requires careful consideration and mutual understanding. A poor choice in this regard can lead to complications and challenges that are difficult to navigate, much like a bad marriage that feels inescapable. It is vital to conduct thorough due diligence before entering into any business agreements, ensuring that your values align and that you can work collaboratively toward common goals. The dynamics within a team can profoundly impact the overall performance of a business. If the staff is not adequately trained, motivated, or aligned with the company's objectives, it can create a ripple effect that undermines productivity and customer satisfaction.

Once again, I can't emphasize enough the importance of having someone skilled in social media. Showcasing before and after photos on social media is crucial. You need to display your work. I was overly cautious about HIPAA and avoided posting pictures, which was a mistake. People are visual and want to see the results, as they should. It's a delicate balance between social media and respecting client privacy. Many prefer to keep their procedures private. It's a challenging situation. I never pushed the matter.

Problem

Reflecting on my journey, I realized that the root of the issue lay within me. I lacked the unwavering passion required to wholeheartedly invest myself in aesthetics. It became apparent that there were numerous aspects I struggled with, areas I was simply not proficient in, such as marketing, social media, and technology. These were skills I didn't realize were crucial for success.

Transitioning from a world dominated by paper to one driven by technology proved to be a significant hurdle. The younger generation, adept at selfies, self-checkouts, and Instagram, seemed to have a natural advantage over me. I found myself grappling with this new paradigm, trying to adapt to a rapidly evolving landscape. It became apparent that if I lacked proficiency in certain areas, the best course of action was to delegate and seek help from those who excelled in those domains.

Lessons

The one thing I really learned through my experiences and observations in the business world is that you have to genuinely love whatever it is that you are doing for a business for it to be a success. This passion is not merely a fleeting interest in money; it is a deep-seated enthusiasm that drives you to wake up each day excited about the challenges ahead. When you are passionate about your work, it translates into the quality of your products or services, influencing every aspect from creativity to customer service. This love for your business fosters resilience, allowing you to navigate the inevitable ups and downs that come with entrepreneurship. It empowers you to put in the long hours, to innovate, and to continually seek improvement, as you are not just working for profit, but for the fulfillment and joy that your business brings. Ultimately, this heartfelt dedication can inspire your team and resonate with your customers, creating a loyal community that believes in your vision.