Botox and Skincare Clinic Investment Research

Goals

To determine the net margin and revenue of a typical Botox and/or skincare clinic, ideally including specific financial metrics for individual locations. This will be used to evaluate an investment opportunity.

Early Findings

Treatment Earning Potential

  • The National Laser Institute provides a useful summary of how much revenue can be generated from various popular skincare treatments. The revenue, treatment, and predicted time frame are detailed below:
    • Botox takes 5-10 minutes, has an average price of $305, and potential revenue of $1,540 per hour;
    • Intensified Pulse Light takes 30 minutes, has an average price of $433, and potential revenue of $866 per hour;
    • Laser Hair Removal takes 30 minutes, has an average price of $306, and potential revenue of $612 per hour; and
    • Coolsculpting takes one hour, has an average price of $1,681, and potential revenue of $1,681 per hour.
    • Other popular skincare treatment information is available here.

Summit Medical Center

  • Summit Medical Center in Colorado identified Botox as being a niche area within the market that they felt they could use to their advantage. They developed a business case in 2018 based on a one practitioner practice. The business case developed revenue and expenditure predictions for the first three years based on ten patients per month in year one, thirty patients per month in year two, fifty patients per month in year three. The predictions were as follows:

Botox Market Growth

  • The global Botox market is expected to increase at rate of 8.9% between 2020 and 2026. It will reach a value of $8.9 billion in 2026.

Aesthetic for Profit Practice

  • When four physicians with established, successful cosmetic practices were asked the most profitable treatments, Botox was considered a highly profitable treatment. Other profitable treatments were laser Vbeam, cool sculpting, laser hair treatment, laser genesis, and Infini's radiotherapy.

Summary

  • Unfortunately, there is very little publicly available information regarding revenue levels for skincare clinics. This is because the majority of the clinics are privately owned, and the information is commercially sensitive. Overall, the information available suggest that Botox and laser genesis are two of the most profitable treatments in this area.
  • Given this, we adopted a lateral approach to identify valuable information when evaluating an investment opportunity within this area. This included market growth, predictive modeling, profitable areas within these practices, and industry determined prices and revenue potential.
  • There is little doubt that continuing to search for revenue information would be fruitless. However, there are several research areas commonly evaluated when considering an investment opportunity. The proposed research path incorporating these aspects are detailed below.

Proposed next steps:

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