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Research Outline
Prepared for Andrew W. | Delivered October 19, 2020
Botox and Skincare Clinic Investment Research
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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.
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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:
The yearly gross revenue for the first three years was
$45,000, $145,000, and $230,000
, respectively;
The yearly expenses for the first three years were
$20,000, $55,000, and $90,000
, respectively; and
The yearly net revenue for the first three years was
$25,000, $90,000, and $140,000
, respectively.
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.
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