Securing Financing for Your Medspa or Aesthetic Medical Practice


This past Tuesday I gave a webinar on securing financing for your Medspa or Aesthetic Medical Practice.  This webinar was sponsored by Eric Hansen, Financial Adviser at Merrill Lynch.

I outlined the preliminary thought process for investing in a new medspa or aesthetic medical practice, for the purchase of capital equipment or for the acquisition of an existing practice.  The Webinar presented how to identify all costs involved in each scenario in order to avoid the pitfall of being “short” cash when you need it most: launching your practice or a new procedure.

In addition, I discussed the risk/reward formula as it relates to your equity/debt ratio plus touched on SBA lending and the 4 Cs: Concept, Credibility, Collateral, and Credit.

If you weren’t able to make the Webinar, you may listen to the recording.

Please join me for my next webinar on Tuesday, February 7th at 1:00 p.m. EST: Opening a Successful Medspa or Cosmetic Aesthetic Medical Practice.  Sign up here.

FXA

Best Practice: Capitalize Your Business


The most successful cosmetic medical practices nationwide are well-capitalized businesses.

This means that they have the financial wherewithal to continually invest in new technology, marketing, human capital and physical plant.

One of the most important reasons to be well-capitalized ties to another Best Practice: Stay on Trend. Each year it is essential to add new services to stay on trend. This needs additional investment capital infused into your practice: reinvesting profits, adding equity, securing a lease or bank financing. It is important to be able to make these investments on a timely basis to remain competitive, as the marketplace is constantly changing.

Now, this doesn’t mean to just invest in a new laser. When launching a new procedure or treatment that needs new technology it is essential to look at all costs involved. There are marketing costs to update your website, brochure and launch a focused ad campaign. There are training costs, building costs and of course the cost of the new laser (or whatever technology you are purchasing). Don’t be fooled to think that the new technology is a “field of dreams” such that you will buy it and “they” will come. A complete launch is essential, otherwise you will find that you have a dusty laser sitting in a closet generating no revenue.

FXA

Hair — It Is


Hair — we have it in areas we don’t want it and we want it in areas we don’t have it!

A few members of the Acara Team recently attended a workshop on automated hair restoration techniques, presented by NeoGraft in New York City. Dr. Steve Mulholland delivered a very engaging presentation covering the history of hair transplantation all the way through to the present day procedures. No need for strip grafting, scalp excision or hair follicle separation. The hair restoration technology available to both men and women today is minimally invasive, leaves no unsightly linear scars, boasts a quick recovery time and is more natural looking. We not only learned about the procedure – we witnessed a live case! A very cooperative patient of Dr. Mulholland’s graciously agreed to have his procedure performed live in the room.

The scalp is anesthetized, and a small round cannula extracts hair follicles from donor areas where hair is thicker, denser and genetically programmed to continue to grow. The harvested follicles are then transplanted back into the patient’s balding areas. In the past, this FUE (Follicular Unit Extraction) technique has been difficult and time consuming. With the automated hair transplantation device by NeoGraft, the procedure time is cut in half.

With the end of the year upon us we should all be looking at new procedures that keep our practices on trend and increase revenue.  This is one procedure that could easily add revenue to a successful cosmetic practice.  With the vain baby boomer population aging, the demand for hair transplants is increasing.

Of course, to guarantee a strong launch it is essential to invest in a few key ingredients: team training (both clinical and sales), technology (the NeoGraft device) and a marketing program to drive leads.

To learn more about the new hair restoration technology visit http://www.neograft.com/

Top 10 Questions to Ask When Buying a Cosmetic Laser


It has been 20 years that I have been in involved in identifying and purchasing cosmetic lasers for spas, medical spas and cosmetic medical practices.  Through the years I have either purchased for my companies or for Acara clients over 50 cosmetic laser devices.  There is nothing like practice to become good at something.  Earlier this week I held a Webinar to share my knowledge and expertise in the buying of cosmetic lasers.  The Webinar, “Top 10 Questions to Ask When Buying a Cosmetic Laser was so well received that I thought I would post the content here on our blog.

To help simplify the process, I focused on the 10 questions you should ask yourself and your vendors.  But before you even get that far your first step is to determine what services you want to offer or should offer based upon your market, competition and positioning.  Once you have that identified you can begin to ask these 10 questions.

1. What Laser companies do I want to receive quotes from?

  • Do they offer a device that meets my needs?
  • Manufacturer or Distributor?
  • How long in business?
  • Country of Origin?
  • Do they have their own service team?
  • Who are thier luminaries?

2. Who can I speak to that has used the same laser for at least 3 years?

  • Receive a long list of references
  • Check their website for additional references
  • Ask the references:

- Service issues?

- Results?

- Ease of use?

- Responsiveness of Service Team?

- Responsiveness of Sales Team?

- Quality of Training?

3. Can I have a demonstration and test drive the laser prior to purchasing?

  • Receive a demonstration
  • Ask to test drive the laser (not always available or advisable)

4. How adaptable is the system for future upgrades?

  • Can additional lasers be placed into the system?
  • If you come out with a newer version how do I upgrade?

5. What marketing support do I receive from your company?

  • What consumer advertising has been done?
  • What marketing support materials are available?
  • Is there an online portal to access this information?
  • Will you support an event to launch the laser services?

6. Are there any consumables?

  • List all consumables and their cost
  • What is the cost per treatment

7. What training is included with the purchase of the laser?

  • Who does the training?
  • Where does the training take place?
  • How many on my team will be trained?
  • Can I buy additional training?

8. What type of warranty/service agreement is included with the purchase of the laser?

  • How long is the warranty for?
  • What does the warranty cover?
  • Can I purchase additional years of warranty up front at a discount?
  • What is the turnaround time for a service call?
  • What is the number of service calls per laser per year?
  • What is the process to place a service call?
  • What internal diagnostics are in the laser to help with the service process

9. Clinical Questions

  • What wavelengths or filters are available?
  • What are the deliverable spot sizes/footprints?
  • What is the range of energies at each deliverable spot size?
  • What is the deliverable pulse time in milliseconds at each of those settings?
  • What is the wattage ability of the cooling system for the patient?
  • What is the cooling range in degrees C?
  • Is this a 110v or 220v system and why that choice?

10. How much does the laser cost?

  • Make sure you compare quotes “Apples to Apples” (same number of warranty years, etc.)
  • Negotiate
  • Special offers?
  • End of quarter deals?

Make sure you document the answers to all of your questions comparing each company and or device.  Remember you are about to make a very significant investment, you need to give it the appropriate amount of time needed to make a sound business decision.

I’d like to thank Patrick Clark at Medical Laser Dynamics, one of the country’s top laser training companies www.mldynamics.com and Steve Witt at Sciton, one of the worlds highest quality laser manufacturers www.sciton.com.

FXA

New Techology: Not a Field of Dreams


This coming Thursday, April 1st I will be holding a Webinar at 1:00 p.m. EST titled “New Cosmetic Medical Technology: Don’t Make it a Field of Dreams“.  It will review, first-hand a blog entry I posted back in September.

Essentially, I’m going to discuss what you need to do to insure when you purchase new technology it doesn’t just become dusty in the closet.  I will review the step-by-step approach Acara takes to introduce a new technology to a practice.  Starting with how to prepare your facility, team and of course the most important step: develop a marketing plan to launch the technology.

Register here for the upcoming Webinar.

If your in cosmetic medical device sales you should forward this information to your current and potential clients.  Physicians see their technology as successful not when it works but when it sells.

FXA

Zerona vs Zeltiq: Melt or Freeze Your Fat!


I read an interesting article in the New York Times a few days ago.  It was discussing Zerona and Zeltiq.  Zerona is the low-level laser device that “melts” fat and the Zeltiq is the Cryo device that “freezes” fat.  The article was essentially a mixed review discussing how some people have achieved successes and others have not.

The one missing discussion in the article is that (this is specific to Zerona, since I have experience with Zerona in a few of Acara locations) there was no discussion around how these types of programs have to be lifestyle driven in order to achieve success.  As with Zereona, if you are willing to drink 2 liters of water, walk 40 minutes and take a Niacin supplement every day for 4 weeks in combination with your Zerona treatments, then you will see results.

Everyone asks the question: is it the lifestyle changes or the Zerona that “melts” the fat?  Well, does it really matter?  If by paying between $2,250 and $3,000 for 6 Zerona treatments you feel forced into changing your lifestyle thus losing 3 – 12 inches, then I’m not sure why anyone would care…Zerona or walking or water or Niacin: be happy with 3 – 12 inches.

The locations offering Zerona that are successful have someone on the team that is a great life coach.  When you have a team member that understands that this is not about performing a few procedures and the patient has less wrinkles or age spots its about coaching, coaxing, reprimanding, mentoring someone through a lifestyle process then it works.  Not all practices can accomplish this successfully.

Another approach to Zerona (or possibly Zeltiq) is to do it in combination with a Medically Supervised Weight Loss program.  We have one location that doesn’t charge for the MSWL program if you sign up for Zerona (they do charge for the food supplments).

Just a few thoughts on melting and freezing fat…for you to chew on over the weekend.

FXA

Zerona #1 on Most Popular Procedures: American Health & Beauty


Zerona, the body slimming non-invasive procedure is #1 on the Most Popular Procedure list today on American Health & Beauty.  Acara has had great success increasing cosmetic practice and medical spa sales throughout North America.  This is a

Zerona Lipo Laser Body Contouring Event at LibertyMD in San Deigo

lifestyle procedure.  Your patients need to commit to a daily protocol that includes walking 40 minutes, drinking 64 ounces of water and taking a niacin supplement for a period of 4 weeks.  During the middle 2 weeks they

receive 6-4o minute Zerona treatments.

FXA

Synergy with Syneron? Candela Acquisition by Syneron


It looks like Syneron and Candela, two of the top cosmetic laser companies in the world, will become one.  Not sure whcandelaat this will mean to physicians and medical spas but I will be watching as it all unfolds and keep you posted.  The deal isn’t anticipated to close until the end of the year so this will be of interest in 2010.

Check it out here: http://www.businesswire.com/news/home/20090909005641/en

FXAimages

New Technology: Don’t make it a “Field of Dreams”


Most of the time when a new medical device is being added to a Practice, the physician and team do a tremendous amount of research on the technology, the efficacy and the outcomes for the procedures.  But what doesn’t happen is the research to determine if they will be successful implementing and launching the new services into their market.  AnSciton Joule expensive piece of equipment is not a “field of dreams”, an “if you add it they will come” approach will only produce minimal sales results.

When launching a new service it is necessary to conduct a certain amount of internal and external analysis.

The internal analysis should includes:

  • Checking facility requirements (space, electrical, lighting, HVAC)
  • Insuring your ability to secure financing
  • Reviewing staffing and training needs
  • Assessing your Practice’s ability to develop and launch a marketing plan

The external analysis is somewhat more complex and should include:

  • Identifying the size of your market
  • Conducting competitive analysis (including pricing review)
  • Assessing your market’s potential
  • Estimating sales projections

In today’s ever changing world of cosmetic medicine, the Acara team truly believes that an Aesthetic Medical Practice or Medical Spa needs to stay on trend and thus be adding new services on an as needed basis.  For sustainable success, it is important to be the “first mover” in your market with new services.  Don’t be the “competitive responder”, the practice that is adding the service because everyone else is now offering it.

There is inherently more risk with this approach but as they say in business “the greater the risk the greater the reward”.

FXA

Financing Your Medspa or Aesthetic Medical Practice


I know what I’m about to say sounds like a sales pitch for a bank, but honestly Acara has no connection to any bank, we are just excited about Bank of America’s financing program for physicians.  bank of america logo

Bank of America has a financing package that is very attractive for Medical Spas and Aesthetic Medical Practices.  It is a simple interest loan (with a  quick approval and short form application) with attractive interest rates that are much better than any lease available.

The real beauty about it is that you can finance equipment purchases either for 5, 7 or 10 years.  Unlike a lease, if you want to pay it back early, there are no prepayment penalties.  If you attempt to pay back a lease early the lease company charges you the monthly lease amount times the number of months remaining on the lease.  Thus extreme pre-payment penalties.

If you’re seeking to expand your practice or medical spa with new technology or develop a new location, call me and we can discuss Acara’s services, and I would be more than happy to connect you to a Bank of America contact.

FXA

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