What’s a Strategic Partner to a Nurse Injector?

Running a 1-3 person medical spa can be incredibly rewarding, but it often includes burnout and a limit on business growth. One strategy that entrepreneurs often benefit from is selling a partial stake in their medical spa to a Strategic Partner who comes in with operational expertise. Generally this involves continuing to work at the business you created as an employee and part-owner, while your new partner takes on administrative work, marketing, usually with the intent to grow and sell a group of med-spas to a larger buyer down the line. This article explores the how this works, and the benefits and downsides.

How it works.

Most nurse injectors started out wanting to treat clients and reap the perceived financial rewards of running their own business. If they become successful, they usually find that the business grows to the point where they’re pulled in too many directions. Many complain that the business causes burnout and interferes with relationships and family.

A Strategic Partner is a business that has expertise in precisely the operations side that the nurses dislike. Bringing staff with experience in marketing, operations and human resources, they purchase part of the business and bring this expertise to grow the business. They also allow you to sell part of your business now, continue to be paid well as a nurse-injector, and then sell the business again once the business has been grown out.

Here are the Benefits

1. **Operational Support:**

The Strategic Partner typically assists in the day-to-day operations of your spa, bringing on managerial support, marketing and accounting expertise. You take home cash for the partial sale of the business, and ongoing paycheque as an employee-owner and focus on looking after your clients.

1. **Capital Infusion:**

One of the most significant advantages of selling a majority stake to a Strategic Partner is the frequent injection of capital into your medical spa. This additional funding can be used to hire staff, renovate your facilities, or enhance your marketing efforts, all of which grow your share of the business.

2. **Industry Expertise:**

A Strategic Partner brings valuable industry-specific expertise to the table. They can provide insights into business strategy and improve operational efficiency. This knowledge reduces client turnover and workload on you.

3. **Networking Opportunities:**

Strategic Partner work with multiple spas, all planning to sell the larger chain of businesses together in the future. This has two benefits. First, with many different members, best practices can be shared throughout the chain in a way that rarely happens elsewhere. In addition, larger businesses sell for more than smaller businesses. In this way, five locations are worth more together than 5 locations are separately.

4. **Risk Mitigation:**

Sharing ownership with a Strategic Partner can help spread risks and responsibilities. At present, you ARE the business, and if anything happens to you or business conditions in general, you can lose your entire investment of time and money. With a Strategic Partner, that situation improves enormously.

6. **Increased Business Valuation:**

As the medical spa experiences growth and success with the Strategic Partner's support, the overall valuation of the business is likely to increase. This can result in a more profitable sale in the future. In addition, larger businesses are simply easier to sell, while viable buyer for a small business are rare. A Strategic Partner grows your business with you, brings you together with other businesses, decreases burnout and increases profits for everyone.

Here are the Downsides:

1. **Loss of Control:**

Selling a majority stake inevitably means surrendering a significant portion of decision-making authority. You need to find someone who works well with you and your team.

2. **Profit Sharing:**

Strategic Partners typically expect a share of the profits generated by the business. Your initial payout from selling part of your business means you get paid as an employee, and profits, if there were any, are now split.

4. **Dependency on the Partner:**

The success of your medical spa becomes partially reliant on the performance and commitment of the Strategic Partner. If the partnership sours, or if they fail to deliver on their promises, it will have adverse effects on your business.

In conclusion a Strategic Partnership allows you to enhance the value of your medical spa. By improving services, increasing revenue, and building a larger business, you grow your business with less stress.

You probably have more questions than answers, so reach out today for a no-risk discussion.

doctor@waterloomedicalcosmetics.com