The DNA of a Beautiful Business: Med Spa FAQs
Ben Hernandez, Skytale Group Partner and Co-Founder, recently sat down with Aesthetic Record to discuss just what makes a beautiful business—one that’s ready for sale. He also answered some med spa FAQs. You watch the interview below or read on to check out the med spa FAQs.
Aesthetic Record offers software as well as tutorials, webinars, and podcasts to help aesthetic practices grow. We’re always grateful for a chance to put our heads together and dream about the future of the med spa space.
Med Spa FAQs
Here are a few frequently asked questions Ben answers in the podcast:
FAQ: What makes a beautiful business in the med spa industry?
When med spa owners’ ears perk up at the word “sale,” it’s important to first consider the health of the business. There are a few factors that make up what Ben calls a “beautiful business”:
- A clear vision. What’s in your business’s DNA? Why did you start your business in the first place? What clients do you aim to serve and with what services?
- A well-functioning team. Each person in the business understands the DNA and is assigned a clear role. Team members work together toward a shared vision and excel at their specific objectives.
- Strong data collection. A beautiful business knows its financials and KPIs and forecasts this data over time. It uses data to fix mistakes and reach goals.
Ultimately, a med spa that’s enticing to investors has a secret sauce. It’s replicable. And it can run without the owner’s constant oversight because it has a solid infrastructure and systems that work.
FAQ: How is the value of a med spa calculated?
A simple but trustworthy evaluation of a med spa’s value comes from calculating its EBITDA—Earnings Before Interest, Taxes, Depreciation, and Amortization. This number represents the business’s free cash flow. And it’s a good way to measure and compare different businesses by the same metric.
Read more about how to build maximum value in your medical spa.
FAQ: What are some considerations for selling your life’s business to an investor?
Ben often says that selling your medical spa—or any other business you’ve built—is one of the most important things you’ll ever do. You’re handing over your life’s work for a price. So why not treat it as such?
A good investor will take what you’ve built and, ideally, make it even more profitable. They’ll take over backend operations like accounting, finance, HR, and compliance so you can focus on treating patients. This can be a great formula—”a separation of church and state,” as Ben puts it.
It’s worth considering how long you, the owner, are willing to stick around after the sale. And don’t buy that one-way ticket to your retirement destination just yet. Skytale warns clients that the investor will likely want the seller to stay on for four to five years or more. Your expertise will be needed to help the business continue to grow under new management.
FAQ: How does a consultant like Skytale Group help med spas grow and scale?
A person going through the sale process alone may struggle to find offers, know their market value, and find the best deal structure. In the same way, you wouldn’t sell your house without a realtor or file complicated taxes without an accountant, Skytale helps business owners navigate the landscape.
If you’re specifically interested in selling, a consultant like Skytale can help by:
- Introducing you to dozens of interested, viable investors.
- Compiling the paperwork that investors will ask for so you can focus on your business.
- Successfully navigating you through one of the most important things you’ll do in your career and your life.
When we first connect with a client, we sit down together to understand their long-term vision for the business. Do they want to sell, keep the business in the family, give the business to charity, or some other goal? Whatever they decide in those meetings, it tends to come true. Every action they take will align with that vision from then on.
Partner With Skytale to Start the Next Phase of Your Business
Is growing, scaling, or selling on your mind? Did these med spa FAQs pique your interest in working with a consultant? Skytale Group offers consulting for clients in the healthcare space, 90% of whom are in aesthetics or dentistry. Most, if not all, of our clients are interested in growth. We act as an outsourced CFO and operational strategist to get you on track to where you want to go. Contact us today to take the next step into your business’s future.