Components of a Successful Medical Aesthetics Practice
The medical aesthetics industry continues to grow at an accelerated rate. It is estimated that the minimally invasive medical aesthetics segment will double in size over the next five years. While such a growth trajectory may make you think that every practice in the industry stands to reap huge benefits, it is only those that embrace the fundamentals that make for a strong practice that will realize the great fortune that comes with being in an industry that is experiencing such high demand.
Below are some, not all, of the factors that contribute to a successful medical aesthetics practice. While most will be known and seem like common sense, it is not the knowledge of these factors that leads to success. It is the application and consistent execution of these fundamental business practices that separate the good from the great. It is also a practice's strength in these areas that separates those who receive below average offers from those who walk away with high multiples when it comes time to exit.
People. It all starts with hiring the right people. You’ve heard this before. We all have. Spending the time and putting in the effort necessary to acquire and develop great people is where the difference lies. Most rush through the process because they feel the stress that comes with needing someone to fill a position. Good people are not going to make for a great practice. It takes great people. This is where it all begins. This is the core of your business. This is the foundation for becoming great. Go slow to go fast. I am sure you’ve heard that before as well.
Purpose. Why are you doing what you do? Purpose cannot be about money. If it is, you will eventual fail to achieve great things. Identify your why and the values that drive it. Share your values and purpose with everyone associated with the practice. Be sure to dig into values when conducting interviews. If you hire people with misaligned values you will suffer the consequences of never achieving a shared vision. Lack of alignment will harm culture and never allow the practice to achieve its full potential.
Vision. The team must know where they are headed and why. The vision needs to be purpose driven. Everyone must buy in and commit to making the vision reality. The creation of a vision is not intended to be an exercise in futility. It is intended to motivate and drive action. Use it to do just that by talking about it until everyone can speak to it and act upon it with confidence and unwavering dedication. “Where there is no vision, the people perish” Psalms 29. The same is true for medical aesthetics practices.
Plan. You must have a plan in place if you want to have any chance of succeeding at a level that truly matters. A plan keeps everyone focused and accountable for achieving the vision. That said, the key word here is accountable. There must be accountability for getting done what needs to get done within a specified timeframe. The plan must be driven by a business operating system. This system is the mechanism for ensuring action and accountability, which ultimately leads to results.
Culture. Culture is the key to sustained success. Everything you do and how you do it becomes a part of the culture. This includes what you tolerate. If you turn your head when you witness a team member behaving in an unacceptable manner one time, they will do it every time you are not watching. If you allow negativity to grow, negativity will become the norm. There's a saying, "What gets measured gets done". In this case, what you tolerate is what becomes normal. Great practices demand a culture of excellence and accountability. Expect it. Inspect it. Hold the team accountable for executing it.
Marketing. Engaging, consistent, and authentic marketing is a major contributor to success. Marketing cannot simply be social media and paid Google campaigns. Lazy practice owners rely on the easy way to do things, such as social media marketing. Traditional face-to-face marketing is still the best means for developing relationships and creating buzz about a brand. Face-to-face marketing is time consuming and tiring. However, as the great stoic Marcus Aurelius said, “The impediment to action advances action. What stands in the way becomes the way.” If it is hard, it is probably worth doing. Those who engage in relationship based traditional marketing are those that grow the fastest, retain clients longer, and withstand the test of time. Why? Because relationships matter. Warm interactions matter. People matter! That said, you can also develop relationships with responsive social media. In fact, you should. Engaging and responsive social media is what can get you noticed with a client base outside your local marketing reach. However, you must be diligent. Prospective clients expect a response to their direct messaging. Failing to do so in a timely manner will lead them to look elsewhere.
Compliance. This should go without saying. However, regulatory compliance is one of those things that can go south quickly. People get busy, which can lead to cutting corners and forgetting. Noncompliant behavior can lead to safety concerns or an embarrassing and potentially business destroying sanction from a regulatory body. Additionally, it can lead to poor record keeping, which can lead to missed opportunities to demonstrate the effectiveness of your services to your clients. This is also where missed business development opportunities lie. When clients can get excited about their results, they are more willing to explore other services and treatments. This factor rolls up to culture as much as anything. No one wants to be non-compliant. Therefore, a culture that includes accountability must be developed and maintained. This factor also trickles down to the last item on the list, leadership.
Products and Services. High quality products and services that get results is the expectation and none other should be tolerated. If there is a question about the efficacy of a service or product it should not be a part of your business offering. Clients expect to get what they pay for. It is the responsibility and obligation of the practice to deliver on that expectation. Failure to do so will lead to lost credibility, lost clients, and a failing business.
Experience. When you really think about it, any medical aesthetics practice can offer the same products and services as another. Afterall, you are not creating the technology. You are utilizing the technology as a problem-solving solution. Therefore, the only real differentiating factor is experience. You must make this a top priority if you hope to have a chance at making the vision reality. What makes mastering experience so difficult is that everything you do impacts experience. The people you hire, their skills and knowledge, the results they achieve for clients, the aesthetics of the practice, the sounds, the smells, cleanliness, team presentation and appearance, product and service quality, customer service, etc. It all adds to or takes away from the experience. EVERYTHING YOU DO MATTERS!
Leadership. Great practices are led by people who are heavily involved in the business and dedicated to continued improvement of self and the practice. They lead with purpose and are driven to be the best. They value relationships, leverage their talent to the fullest of their ability, and provide their team with the time, tools, and training necessary to deliver on their responsibilities to the highest level possible. They model expected behavior. They value and appreciate the contributions of all involved. They recognize and reward those that are performing as expected. They also exit those that are not driven or able to run for the roses. They know the strengths of each team member and place them in a position to succeed. Great practice leaders work on the business. They drive the plan, ensure consistent implementation of systems and processes, know and manage the numbers tightly, and grow relationships at all levels of the practice. Great leaders own the results and look inward when they are falling short.
While the 10 components listed above are not all the contributing factors of a great practice, they are the most easily observed and a great starting point. If any one or more are not present, the practice will not achieve its full potential. If your practice is struggling to achieve the level of performance you expect, grab the bull by the horns in each of these 10 areas and do what you know what you need to do to gain control of the situation. You just might find that things get a little easier when accountability for execution becomes a cultural norm. As Jim Collins wrote in Good to Great, “A culture of discipline is not a principle of business, it is a principle of greatness.”
Renaissance Leadership Group is a medical aesthetics practice development firm driven by the goal of helping entrepreneurs realize their vision for their practice.
Visit Renaissance Leadership Group at www.renaissanceleadershipgroup.com to learn more.
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