Warum Med-Spa-Betreiber bei 7 Millionen Umsatz stecken bleiben

0:00Unternehmer/Gast I sell, I wanted to say this originally as like transformation optimization, which means Botox, filler, hormones, peptides, and weight management. Thank you. There we go. I think a product we can talk about, right? We do 6.7 million in revenue a year. We'd love to be around 20 million a year, 2025. What's stopping me? Probably which lever to pull next. >> Yeah. >> Is this being recorded because I Y'all call it the woman in the red dress. Oh, we are. I probably shouldn't say this.

0:26>> That's why I do it. >> My partner and wife is the CEO. She some We call it squirrel in our house. The woman in the red dress. And so sometimes shiny object syndrome. So I think it's like what lever do we need to pull next? >> Okay. >> Cuz she We get a little distracted. >> Okay. You can just say you collectively get distracted. No one's going under the bus. That's right. Yes. Okay. So how You have one location, Bee Cave, or more than one? >> Three locations. All of them in Bee Cave?

0:51>> No, two downtown, one in Bee Cave. >> Okay. And so that's kind of like your Austin presence. You want to open more in Austin? >> We do. I think we could probably get at least five, possibly seven, in Austin and surrounding areas. >> Yeah. I mean, it's a good market. It's growing. There's plenty of money. Okay. So we're doing 6.7. Oh, calm down, Ed. I knew it. Yeah. Okay. So So you said the woman in the red dress is holding you back. Why is she holding you back?

1:20>> We our focus changes from time to time. I think one thing that we were going to do, we were going to build a 10,000-sq-ft wellness like center in downtown, and then all of a sudden realized like, "Hey, this isn't going to get there." So I had to be the husband that says, "Hey, finances This doesn't work financially." So we pivoted to start doing smaller 1,200- 1,500-sq-ft locations, take the highest ROIs from the wellness side, the the aesthetics, put it into one, rinse and repeat the model.

1:46>> Love it. >> But sometimes hearing that from the husband is not the easiest thing. >> Okay. What's your wife's name? >> Brooke. >> Brooke. Okay. So Brooke, if you're listening to this, um so >> [laughter] >> Um the job of the business is not to satisfy your entrepreneurial urges. It's to satisfy the customers. Um, and so we have to do what they want. And every the moment we try and serve us instead of them, they immediately know and then they go somewhere else to the person who's serving them more. And so, um if you have a model that you have like great returns on capital, you know how to fill it up. I think med spas are an amazing market right now. People are only getting older, they want to keep looking younger and they have all the money. And so, yeah, love it. Um, really love the med spa space.

2:28Um The thing that's holding you back is just that you don't want to do more of the thing that's working. >> [snorts] >> No, I think it's just realizing what is that next thing cuz sometimes you start looking, is it operations, is it people, is it this, is it that? >> stops you from getting from three to five? >> Simple. I think proving out this next model that we're about to do right now is the key to it of knowing it, getting it booked, uh and I think then from that it's just going to be capital.

2:54Alex >> What's about So then what Okay, couple questions. One, what's profit? >> Profit right now is about 15%. >> 15? >> Mhm. >> That's a little low. >> Yeah. >> Um Okay. Why don't we fix the current ones and get those to like 35 or 40 and then do the the fourth one once we fix the current ones? >> Yeah. >> Cuz I think what I'm afraid of is that you'll spread yourself too thin.

3:21>> Agreed. >> And so it's like I'm guessing the first one had better margins than the second and the third. >> They did. >> Right? And so here's here's This happens for literally everyone so don't worry about it. Um, store one works really well. You guys are both in business, founder magic, amazing. And you say, "Hey, wouldn't it be cool if we just did twice as much money?" And you're like, "Yes, let's do it." So you open up the second location, split attention, right? And then this one uh comes up not as high as the first one. This one comes down a little bit because you guys are guys aren't there, but that almost all came from the bottom line. >> Yeah.

3:47>> And so now you're like, "Wait, so now I have twice the liability, but I'm almost making the same amount of money as I had with just one, but now I have two. And then you're like, "Okay, but that's that's our new baseline." So, when we open our third one, then we'll still get our, you know, at least a 50% improvement. And then what happens is like, this one actually never really got the full lift as you wanted, but you picked your location better here because you thought a little bit more about it, right? And you got your square footage a little bit more tight, and you knew the few services you're going to do. And so, then you do that, and this one's a little bit more profitable, but it's way smaller top line cuz you haven't really jammed it as much. And then you're like, "Okay, now I'm going to open up." Right.

4:17And [laughter] so, so like, I think you just needed what you you over expanded, which really just means that you under talented. >> Yeah. >> And so, right now, within the three locations you have, you guys probably need to fill backfill to be the talent. >> Mhm. >> Drive the the margins back up. You might need some model tweaks um in terms of pricing and sales motion. How are your current customers right now? >> Mostly organic. Well, I say organic, we're we were heavy on Instagram. We got shadow banned for a peptide post because meta sucks, but that's neither here nor there. And so, we do have done some meta ads, not super heavy, but predominantly it it's been SEO and organic. That's been the lead for us.

4:54>> Yes. And that only happens because you're in a market that the supply demand curve is stupid, yeah, not because it's a good business practice. And so, I I'd I want to be like to be real with you. Um if you learn how to acquire customers from PPC and uh social from paid, you'll crush everyone because everyone else is just like the amount of times I've had heard this conversation with a med spa owner, it's like, like, "Hey, how are you getting customers?" Like, "Well, we just kind of like put the sign up, and then people kind of just come on in, and some people heard of us, and like, you know, I I have a little bit of reputation in the area." Like, little little big in the community, you know what I'm saying?

5:31Alex >> Yeah. >> [laughter] >> Yeah. And I have the dumpster trucks, and I have the you know what I'm saying? Um and so, um But anyways, you you do you do you do a service. >> That we we have our own Botox company. We just started >> your own Botox Yeah, yeah, exactly. You've got We've got medical labs and don't leave money on the table. Um Um So, either way, next steps. I would go back into the business. I do think you probably need to tweak the packages that you have. Like, is it a membership model or is it just

5:57>> have some memberships, specifically on the wellness side, and then we do a beauty bank on the aesthetics side. >> Yeah, so there has to be a developed sales motion. Are you staying with us? >> I'm staying with y'all. >> You should, yeah. >> Xavier? >> Because we'll basically like What we need to do is we need to walk through multiple sales motions. So, we have to come up with the membership bundle so that every single person leaves with a membership or very high percentage of them do. We walk through that motion. Then we're going to get way more revenue retention, and so that way we can expand margin, number one. And I'll bet you right now you're not fully utilized for all three of the facilities.

6:25>> Right. >> Right. And so, with a membership we actually can optimize scheduling too, way way more easily. And so, that way we can have our basically our sessions per hour per technician with aesthetician just goes way up, and so your revenue per square foot will go through the roof. >> Yeah, we ran into the issue You're right. My wife has an incredible name. She's a top 100 injector in the country. And so, immediately everybody wanted to see Brooke. And then we brought in number two, so you got full. And then three, and then we had so much demand, but we didn't have enough injectors on the aesthetics side. And so, now we backfilled that talent. We have enough.

6:56Now it's like now we got to start pushing more people. >> You will also need a talent model to retain them because they'll start walking with your customers. Um and so, we'll have to create a career path for those injectors. Happens a lot in medspas. Anything that's like uh like anything that's like one-on-one, and they're the really developing the rapport, when they leave, they just take a big swath with you with them. And so, there's ways that we can structure it. One, the career path, but two, just like the way the model works so that we can make sure that they're loyal to the brand rather than to the injector, which can be tougher cuz people are like, "Well, Sarah knows the way I like my lips done or whatever, right?" Um but anyways, it's all it's all up solvable.

7:34A lot of it though has to do with pay. And so, we probably have to pay the people more, even though you're like, "Wait, my margins are thin." So, in terms of how we actually have to fix this is we have a basically a sales motion thing we have to fix number one, which then ladders into what's the model in terms of membership so that we can maximize revenue per day per I was going to say rep but per technician or whatever and then from there we can then spend more and create a better career path for them to stick and then actually get higher quality town so that when you do step away the thing will actually make money and then that becomes the record replicable model.

8:09>> Yeah, that's the hard thing getting getting Brooke out of the business and when she was 60% of the revenue we're down to 23% of the revenue trying to replace me on the ops biz dev side so we can step backwards. How we've kept them one like top talent is so we created a phantom stock program is what we did so each new location has where we don't believe manager some some med spas are out there will be like hey we're going to give it to a manager and they're going to oversee these three locations. We're going to give them the equity. We don't we think the relationships with the providers so the buy-in is giving them to vest into a schedule in the phantom stock they hold in and they stay longer.

8:41Alex >> Okay. >> That's been the way we're trying to >> On the gym side. >> Yeah, to keep our talent. >> Yeah. Good. We still need to fix the sales motion and the model on the membership side. >> Got it. Sounds good. >> That's what I would focus on first. >> Amazing. Thank you. Appreciate it. >> it. >> If you're a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling roadmap, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly where they got stuck and how they got past it. And so we broke it into these 10 stages and we made this little kind of quiz thing where if you put in your business information it'll tell you where you're at and the most important part for you what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources and finance. And so no matter what you're struggling with someone else has already struggled with it and solved it. And so I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information and if you want us to actually help you de constrain the business and you're trying to scale, we'd love to help you out on the thank you page. You just book a call with my team and we will look at the business, see if we can help. And if we can, we'll invite you out to Vegas and we'll do this in person live.