For many entrepreneurs, each new year is a time to reflect, reassess, and fine-tune our strategies. To me, that’s never felt truer than it does today. Last year was a rebound year for many practice owners, all about recovering from the turbulence of 2020. Many of us devoted time to reevaluating systems, marketing strategies, and even our teams.
After so much change — and so many challenges — 2022 will be about rebalance.
That’s why in this blog post, I’m sharing the insights I’ve gathered from researching and interviewing dozens of top leaders in the aesthetic wellness industry. We’ve unpacked topics including:
- The state of the economy
- Industry consumer trends
- What the future holds for women-owned businesses
Beyond clinical trends, we’ll explore the overarching business strategies that will help you reach your goals — and how they break down into super-specific and actionable marketing, sales, and service packaging choices. Are you ready for a little medspa business education? Here’s what you need to know about managing a medical spa business or aesthetic wellness practice in 2022.
Holistic aesthetics and wellness services
Your basic aesthetic medspas are just so last year. This was one of my top forecasts for 2021, and one year later, it’s even clearer.
The wellness industry is trending at a cool 4.4 trillion dollars. Amidst a global pandemic, that’s pretty impressive! Consumers are more invested in self-care than ever, and they’re willing to spend serious dollars on their emotional, spiritual, and physical wellbeing. If you want your aesthetic wellness practice or spa revenue to reach your goals, you need to meet those demands.
It’s not just about looking youthful — patients expect to look and feel more youthful, healthy, and rejuvenated after investing time and money into treatments and procedures. This is reflected in top trends like IR Saunas, IV vitamin infusions and pushes, regenerative medicine, hormone replacement therapy, biohacking, hydrotherapy and hyperbaric, and diet counseling.
When managing a medical spa business or aesthetic wellness practice this year, put yourself in your clients’ shoes. We’re all over-stimulated, over-programmed, and in a constant state of action.
Picture your practice as a home base for empowering patients to commit to an aesthetic journey that’s about holistic, whole-body wellbeing. Services could include proprietary bundles, membership programs, and long term care plans, as well as simple, clear packages and programs that can be incorporated into their weekly routines. The goal is to guide each patient through a comprehensive yet simple to implement conversation about their beauty and wellness goals.
The discerning patient
Not too long ago, there was one breast implant on the market, one aesthetic laser in a town, and one neurotoxin available. Patients would seek providers for their skill, not the price of their medical procedure. They’d rely on word of mouth referrals and find comfort in being treated by the most established or experienced provider they could afford.
It’s safe to say those days are over. Managing a medical spa business has changed forever, and patients are more discerning than ever. Ready-made, cookie-cutter marketing templates from your device or injectable companies simply won’t cut it any more.
In 2022 it’s going to be critical that aesthetic wellness business owners learn how to differentiate their message, establish clear market positioning, and focus on addressing unmet needs in their marketplace. Often, that means taking advantage of medspa business education — much like the programs we offer at KLC Consulting!
Injector turned entrepreneur
If you’re a podcast listener, you know how passionate I am about this massive new industry trend. In 2019, a board certified plastic surgeon asked me, “What are we going to do about these injectors taking over our industry?”
He saw consumer demand trending toward nonsurgical, minimally invasive, and more immediate, high impact procedures with less downtime — and he believed injectors held the magic bullet to answering that demand.
At the time, my (somewhat sarcastic) answer was, “If you can’t beat ‘em join ‘em”. But his concern was that if he put energy into hiring a good injector, they’d just leave, taking his clients with them.
This dilemma stuck with me, and the data backs him up — the popularity of injectables and fillers shows no sign of slowing down. According to the Aesthetic Society data, in 2020 they represented almost one third of nonsurgical procedures in our industry.
I personally know close to 20 injectors who have left or are leaving their employer and branching out on their own in 2022. COVID-19 has inspired so many people to give up making money for someone else and go out on their own. In fact, the rate of new entrepreneurs rose 24% over the past year!
So, if you think you’re the only game in town right now, it’s time to get on your toes. Expect competition to triple over the next two to three years, as young, hungry business owners are determined to claim their stake in your market.
But don’t fret. Statistics tell us that 80% of these self-assured entrepreneurs, sadly, will fail. The 20% who make it? They’ll help our entire industry get bigger, better, and stronger, as a collective.
These new injector turned entrepreneurs could make excellent colleagues, employees, or even partners for your business. As I mentioned, the discerning patient is looking for results and is willing to pay for them. That’s why there’s growing demand for most talented expert injectors with already established businesses.
This past year, I had the good fortune to partner with a world-class skincare company to design and deliver an innovative business development program for their resale partners. As someone who started my aesthetic career a decade ago launching a medical grade skincare product, it’s been fascinating to see the advancement and prioritization of skincare and retail in medical provider practices.
From skincare to nutraceuticals, apparel, and wellness tools, retail kept many aesthetic businesses alive and thriving during COVID-19. In fact, in 2021 alone I met several solo providers who had built thriving seven-figure personal brands and ecommerce businesses by educating patients on at-home treatments.
Through this process, my team learned that the average aesthetic patient makes between 5-7 skincare purchases each year, but only 30% of those purchases are made in the physician’s office. That means while most patients will gladly take education and recommendations from their provider, they’d still prefer to repurchase online through Amazon or at big box retailers such as Sephora or Ulta.
During lockdowns, and now as we navigate the variant influx, many consumers are opting to invest their aesthetic budget into home-use friendly skincare and supplements. In 2022, a retail strategy is no longer a luxury, but a vital part of managing a medical spa business or aesthetic wellness practice properly.
Medspa business buyouts
The final trend we’ll see in 2022 is multi-location corporate buyouts of solo and small chain practices and medspas.
According to Market Watch, the industry will see continued growth in 2022. The global market is expected to grow by $31.5 billion by 2025, with a compound annual growth rate of 13.3%. Businesspeople and investors are always looking for low-risk, high-reward industries to invest in, and aesthetics is at the top of their list.
That means we can expect a surge of outside funding coming into the aesthetic wellness market in response to impressive aesthetic wellness practice or spa revenue. Buyers are primarily looking for well-run, multi-location clinics that have already established successes to add to their portfolio. That spells lucrative cash flow, standardized operations, a built-in leadership team, and systematized processes, setting the stage for successful further expansion. In 2022, prepare your business to scale — not just to attract patients and team members, but to appeal to potential buyers, too.
Managing a medical spa business in 2022
This year, our industry is primed for growth, but only the strongest will survive. It’s going to take working smarter, getting more deliberate in the way you approach your business as a leader, and transitioning your role in your business from overworked employee to well-directioned CEO.
If you’re looking for a partner to help you through that process this year, we’re here for you. If you’re new to the KLC community, my podcast is a great way to get started. It’s a space for personal conversations and deep learning.
Check out the podcast now, and get ready to scale your business in 2022!