Steel and glass business of aesthetic medicine and cosmetology (Part 1)

It's no secret that the aesthetic medicine market is experiencing a real boom, especially against the backdrop of stagnation in other business sectors. Even the gloomy forecasts associated with each regular election, political crises, high currency volatility do not come true year after year.

And if 2014 brought losses and "rolled back" business roughly to the figures of 2010, then already in 2017 the results exceeded the wildest expectations. Instead of the predicted 10%, the increase was from 20 to 30%!
What are the current trends in business development of aesthetic medicine and cosmetology?

How to correctly use the strengths and weaknesses of this medical field? Read the article from a general practitioner, manager-economist, LNE Ukraine columnist Olga Suganyak specially for estet-portal.com.

Modern trends in the development of the business of aesthetic medicine and cosmetology

The main trend is, of course, connected with the growing popularity of EM procedures, and their availability, to be honest. If back in 2008, only the "elite" could afford the procedure of invasive correction by a cosmetologist (fillers, botulinum toxin). — financial elite of society, then today any school teacher knows about the miraculous hyaluronic acid.

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Virtually every specialist has a pool of such patients who save money for the procedure, just as our parents' generation used to save up for winter boots or a summer trip to the sea.

The medical business market is growing uncontrollably and, which is typical for developing structures, is beginning to obey the general laws of the global market. A clear structure of relations between market participants appears, they become a thing of the past, becoming the heroines of jokes, "cosmetic bags-homeworkers", the process of state regulation and products for work (introduction of technical regulations), and licensing of market entities becomes tougher. What are these painful, but completely inevitable processes and main tendencies

leading to? Moreover, in the conditions of ever-increasing competition and active, sometimes even thoughtless dumping, only the most professional and rational business will survive. About ten years ago, a talented cosmetologist-injector  could  quietly leave the clinic, taking with him a base of clients who trust his professional qualities. And without any preparation (even without banal estimates of income and expenses) he could start an individual career, gradually growing from a tenant of a room in a salon or a specialist at home & nbsp; into a separate full-fledged business unit.  Many modern clinics and salons (both here and abroad) got their start in this way.   But in today  conditions, patients are armed not just with word of mouth recommendations from girlfriends, but also with knowledge about drugs  for procedures (including their costs).

Every second person is not shy about changing specialists in their profile, depending on the required procedure.  “Here I will make an epilation – very cheap   and N has already  lips — after all, her hands are golden, & quot;, — this is not a bike, but a living monologue overheard in line with a beautician. So now you need to approach the matter much more seriously and thoroughly.

Structuring and innovation – this is, of course, boring, unpleasant and often far from the thinking of a classical doctor. At the phrase BDR (income and expense budget) or BDDS (cash flow budget), any of us get a cold shiver and desire to invest in a third-party auditor to independently evaluate our business and receive recommendations.  

How to sell medical clinic services: working with end customers

But here's the problem: the vast majority of companies existing on the market do not sufficiently know the realities of the market. Most of them give very superficial recommendations and assessments. A minority can boast sufficient professionalism, but it is very expensive and often too much for the average entrepreneurs, which include most domestic business units. And finally, are you ready to accept and implement such expensively paid consultations in your vital business,  if they completely contradict your

beliefs and vision

? So it turns out: either it's expensive, but it hurts and you don't want to, or it's cheap, but pointless. If you combine the owner and the key specialist of your business in one person, then there is only one way to rationalize: figure it out yourself, involving specialized specialists only for consultations. But the final result can be submitted for independent verification.  

Not in reality, of course. Just imagine that hypothetically you are preparing to sell your business to an independent person.

Prepare a complete – write down all your  assets, indicate and reduce their real value. Describe your business with its key revenue streams and be sure to include success/failure factors for these revenue streams.

For example, if 80% of the business's income comes from injection procedures that you perform with your own hands,  then there is no business, as such, which will immediately manifest itself during your long departure or, God forbid, illness.

If you are not driving  customer base, even if not in   an advanced CRM system, but at least at the level of basic control, in order to be able to insert the simplest database analytics into your presentation: how many clients have appeared in the last six months, how many have left, how many clients make you 80% of your revenue, what discount they have on average, then you don't have a client base.  What, what and how much, & nbsp; and who is responsible for this – basic questions that you should have written answers to.

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Practice shows that even such a simplified stage of business planning is very sobering in relation to one's own business, it demonstrates many "holes"; and makes you either go to the next stage of assessing and changing your business, or close your eyes and then go with the flow according to the principle “maybe I won’t drown.” And already in the

next article

we will talk  about "vampires" and «donors»  in the business of aesthetic medicine and cosmetology.