What Really Makes a Med Spa Profitable

Bill Walker (00:09):
Welcome back to Aesthetic Appeal. Today on our episode, we have our very own Jessica Hunter, who is a globally accredited and well-known speaker in the aesthetic space. Jessica Hunter has been a consultant in aesthetics for over a decade. Many of you have either heard her speak or heard her on a guest podcast and some other venue. Please welcome the infamous Jessica Hunter, Jessica.

Jessica Hunter (00:40):
Oh, thanks Bill. I'm so happy that we get to do this finally and do kind of the formal introduction to all of your clients. And so yeah, really, really excited about today.

Bill Walker (00:51):
Give the listeners just a brief background, if you would, Jessica, how did you get into aesthetics in the first place?

Jessica Hunter (00:58):
Yeah, well, prior to aesthetics, I spent almost 15 years in medical device and supply. So I worked for some big companies that you would know, of course, global headquarters of 3M and Stryker in different capacities and sales strategic planning, and I really enjoyed it. I worked more into the hospital settings, but I met a recruiter on a plane one day. She and I started talking, and of course she was looking for someone to fill a role at Allergan as an external consultant. And I knew nothing about medical aesthetics at all, so it was totally new to me. But as she talked about the role, I started thinking, wow, this is a really interesting fit. And lo and behold, I ended up working for Allergan for five years as an external consultant, and I worked with their biggest clients at the time that were just looking, needing help on having to, how to grow their business, how to be more profitable, how to create more efficiencies within their operations. And I just learned the industry day in and day out from them, and I kind of combined my business knowledge with that, and that's how I kind of got involved.

Bill Walker (02:00):
So wait, you were at the very onset of the Allergan boom of developing the aesthetic space for the nonsurgical procedures then?

Jessica Hunter (02:09):
Absolutely. At the time, Allergan had about 80, 85% share of the market. So there was not other companies to purchase from. They had all these really top end dermatologists and gps and some nurse practitioners that were opening up private practices, but they had no idea how to run a business or generate revenue or understood profit margins. And so they thought, well, why don't we just hire someone who has the business knowledge to help them and they'll obviously buy more from us because that was sort of the growth plan and it worked out really, really well.

Bill Walker (02:39):
How did you end up going into running your own company? Because prior to uniting with Aesthetic Brokers, you were running a very large successful consulting company as well.

Jessica Hunter (02:52):
It also happened quite organically. It just kind of came to a head where a lot of my clients were from Allergan were sort of pushing me to go on my own for lots of different reasons. I just saw different ways of being able to provide support and resources to them that I just thought I had different ideas of how I wanted to do that. And so that's one day I just kind of was like, this is probably the better route. My clients just came with me, and that's how it started. And now since then, it's obviously grown to a whole different array of support that we offer our clients, but at the time, it was just me working with them one-on-one, starting with financial assessment analysis and creating strategic plans of how to grow and scale. That's really what it was, and just being able to be sort of that fractional CEO for them, but who knew the industry. And so I knew the nuances of what actually their p and l meant and what actually their service breakdown saying about their business. And so that was sort of the uniqueness of how I came into it.

Bill Walker (03:48):
So for our listeners, I want to amplify a comment that Jessica made. Aesthetic Brokers is a focus from our core of being a transaction advisory firm for practices that want to sell their practice to an investment firm. We constantly were getting inundated with requests for consulting services and help us grow our business and help us do the development that we need so that we can do a transaction someday. And so I'm looking through and seeing who in the space has a really great pedigree and a great background that I can refer these clients to because it wasn't something that we actively took on. And I was talking to med spa owners and buyers of med spas, and this name popped up time after time and it was, you need to talk to Jessica Hunter. Jessica Hunter is great. Have you talked to Jessica Hunter? Do you know who Jessica Hunter is?

(04:50):
And I'm like, okay, now I need to know who Jessica Hunter is. And so that's how we came to pass was we started referring clients to Jessica and just the rave reviews from people of how she treated them, how they felt, the results that they achieved with her, it made me scratch my head and said, okay, well we need to figure out a way to partner together. And so I was thrilled when Jessica became head of consulting for Aesthetic Brokers. Now give us the 4 1 1 name off just really quickly, rapid fire. Give me some of the states that you've had clients in over the years for aesthetics.

Jessica Hunter (05:35):
Oh my goodness. I mean everywhere. So California, Florida, Texas. I have clients even in really small communities of Delaware or Illinois. So I think my clients, that's probably the most interesting thing about the work that I do is that it's not necessarily just big clinics that are in or LA or Dallas. I have some really big players that have really grown their business in a significant way. They're just needing to redefine or capitalize on some of their things to be able to do a transaction, which is what we're positioning them for, and be able to get their best value. Or we have some smaller people that are in some smaller demographics that are just 18, 24 months. So they kind of know enough to know that they need some help and guidance for sure, and they want to be on that pathway so that they can plan for three to five years and then at that time when they're ready, be in a position to make a profitable exit.

(06:35):
Because I think Bill, as you've probably seen, the worst scenario is having someone who would love to have an exit strategy, a plan for their future, and they'd love to do that tomorrow, but they haven't put the things in place to be able to exit in a really profitable strategic way for themselves. And so if we can get ahead of the game, figure out what someone's objective is, like I said, three to five years is sort of you and I, that's our sweet spot, then we can really, really help them so that it doesn't come to a point like that.

Bill Walker (07:05):
Who's too big of a client revenue wise and who's too small? Talk to that. Is there a bandwidth of that?

Jessica Hunter (07:13):
I would say being about a half a million dollars in revenue is probably the smallest and only because we need to know enough to know what to do. I think when you're really just starting, there's no such thing as kind of, I guess being too small because we do start out with people who are literally breaking ground. And I mean, that's a really fun place to be able to go through the selection of the space and have a really good financial business plan of what services we're going to offer and who we're going to hire, and we do all that, what systems we're going to bring in.

Bill Walker (07:44):
You're hitting on something. That's my next question. You hit exactly on my follow-up question to you, which is, okay, well what if I don't own a med spa yet, but I want to start a med spa. How long is it going to take me and how much money do you think I need to set aside to prepare to be able to open and be successful?

Jessica Hunter (08:02):
Oh, it's such a good question, and it honestly varies, Bill. It really does. Because when we talk to someone, a client who's opening up in Miami versus a client who is looking to open up outside Toronto, it's actually, they're just totally different numbers. I mean, it really, really depends on where they're looking, what that demographic is, what that footprint is. Are we looking at doing a space that's 10,000 square feet and incorporating wellness and aesthetics and building out that model, or are we looking at something that's only maybe 2000, 2,500 square feet, two or three rooms kind of build off slowly? So it really, really depends. But I would suggest having someone in your corner who understands the industry financially is so key. It is just someone who really knows, okay, what do we need to generate? How are we going to lay this out? What services are the most profitable? I mean, to start that way is so great. I cannot tell you how many clients are like, I wish I would've met you the day I opened.

Bill Walker (09:00):
What's the biggest budget for a client that you've ever had that you worked with to build out a facility?

Jessica Hunter (09:09):
Over 10 million, so 10 to 12.

Bill Walker (09:11):
Wow.

Jessica Hunter (09:12):
Yeah, so a lot of money for sure, and a lot of responsibility with a lot of money.

Bill Walker (09:17):
What's the smallest budget that somebody had that was said, I want to open my med spa. I'm thinking of a room or two rooms and I'm going to be doing the books myself first. I'm going to be the main injector. Jessica, how much money do I need to set aside? What's one of the smaller startup budgets?

Jessica Hunter (09:36):
I think you're probably pretty safe around the 200, 250 K. That's something that we've been able to work with for sure. I would say when we're looking at building it out from scratch, usually depending on how big that is, I mean, you just need that for the infrastructure. You need a hundred, 150, minimal really just to build, load a few rooms. So I think when we're really thinking about making very mindful investments with EMR, hiring the right people and getting sort of the tools and resources that you need to start with to be successful, I would definitely say that 250 mark can definitely be done.

Bill Walker (10:12):
When I'm listening to you speak, I'm hearing this thick southwest Texas accent. Yeah. Is that right?

Jessica Hunter (10:21):
No, no, no. So I am born in Canada. Yeah, born in Canada. My mom is American, my dad is Canadian. They actually met, my mom was a librarian at Brown University and my dad had a hockey scholarship there. I don't think he actually hung out in the library, but somehow their path crossed and my mom moved up to Canada to be with my dad. So that's sort of their love story of how they met and how I'm sort of this half breed I always call myself.

Bill Walker (10:52):
So here's great about Jess is when you meet Jessica, what you'll find is she truly is Canadian nice. I mean, it's surreal. There's so much so kindness that oozes out of the conversation and then you're like, oh wait, there's a killer great white shark under there. So Jess, division one athlete, D1 team sport contact sport player. What'd you play in undergrad?

Jessica Hunter (11:19):
I played basketball. Yeah, I played basketball. I always say I was never the best player on the team. I just wanted to be

Bill Walker (11:27):
A grinder, a true grinder. I know your hours. What time do you typically start your day, Jessica?

Jessica Hunter (11:32):
Oh, I'm so embarrassed to say this. Yeah, so both my husband and I are early risers, let's just say that for context,

Bill Walker (11:38):
Who is a hockey player. Oh yeah,

Jessica Hunter (11:40):
Yeah. Now a hockey coach to our little boys, which is, listen, a whole nother thing. So I get up at four 30, I work out and I always listen to a different podcast. I'm a big in being curious and humble as an entrepreneur. And those two things I think really lead to successful entrepreneurship because you should be curious to learn more about things and not know that you know everything. And that's sort where the humbleness comes from is the more you sort of seek to understand. I just think the more you can learn and you're never learning is one of those great things. You're never tapped out. There's always something you can learn. So I spend my mornings like that. My kids get up at around six, we do breakfast and pack lunches, and I'm in the office about eight 15 after they kind of roll off to school in preschool and do their thing. And that's sort of my day every day.

Bill Walker (12:29):
You talked about understanding the financials, understanding the analytics of the business numbers and key performance indicators, and I think there's something really unique about Jessica Hunter from the perspective of being a consultant in the aesthetic space because you have your MBA as well.

Jessica Hunter (12:49):
Yeah, I did my MBA while I was working at 3M, so I didn't have kids at the time, so I would do three or four hours of school in the morning. I would work for 3M and I would do projects all weekend and papers all weekend.

Bill Walker (13:04):
It just goes to add another feather in the cap of, it's not just about understanding this broad and diverse and complex industry that aesthetics is. I think one of the things that you do so well is you pair industry acumen with what I would call business truths, like fundamental facts of business that are must have practice procedures and SOPs. And I think that's such a rarity in this space because too many people rely too heavily on one thing and you're great at both. I think it's important to highlight that. Let me ask a question here, because I believe in listening to you educate me a lot of this is educating the client. So what's one of the most common misconceptions that you've seen clients have to overcome as you start their consulting journey with them?

Jessica Hunter (13:59):
I think there's a number of things. I think one of the things that comes up 99.9% of the time that we have to really reassess and reevaluate is how they pay their staff. I think this industry is unique in the sense that it is a provider based industry. Not that there isn't other industries like that, but a huge amount of our expenses are dedicated to paying our providers. And there is no sort of rhyme or reason of how that's done. And I think a lot of people in this industry just sort of throw out numbers or throw out sort of tactics. And the reality is you really have to evaluate your staff and you really have to understand that they have to be performance and production based. You just can't pay somebody anything because you will not be make money. It is just, I always say our top two line items though we have any sort of movability or able to kind of play with is cost of goods and our payroll.

(14:52):
That's it. That's all we got. And cost of goods can be set sometimes because they are what they are or our suppliers are who they are. But our payroll is a very, very high expense item for all of my clients. And it's not about paying less, it's about being strategic and mindful for paying on experience and expertise and production and productivity. And I always have the saying where I always say everybody is treated in a way where they're fair, all of our staff, so we treat our staff all fairly, but they're by no means equal. And we're sort of in this fuzzy industry where everything's warm and fuzzy and it's hard sometimes for our owners to get, but it is this idea that you have staff that are actually should be paid more for their value that they give to your business than others. And so that's the number one thing that I think there's so much misconception on and just misunderstanding and misguidance on how to pay your staff in a strategic way.

Bill Walker (15:53):
Let me ask you this, what kind of a timeline do I need if I recognize, okay, I need help and I've got to get somebody from the outside who knows what's going on in the industry, what kind of timeline do I need if I'm with you? And I don't know, I'm a million to a million and a half of revenue sales total and I want to grow by 50% just so I'm throwing a random number.

Jessica Hunter (16:19):
Well, there's a few things. So one we want to measure in terms of what your capacity and what your resources are like. So I think that's first and foremost. I mean, I can get you there quicker if we're not at capacity and I have the resources to play with and the resources being a team and staff, right? Again, if you're saying, oh, we have this nurse ejector and she only can do neurotoxin, for example, well, we have some limited capacity there. So you have someone who's 10 years and can do everything and it's like, okay, great, we can fill her books, we can create reoccurring revenue and essentially just have a higher revenue per hour from her versus someone who doesn't have that sort of expertise or experience yet. So it depends. But one of the things that we do really well, I think you and I bill, is when we take a look at the business and we kind of assess it, we're able to pinpoint where are our constraints and how do we address them today.

(17:11):
And I'm really, really fortunate that I have a group of females on my team that are versed in different areas. So carrie's our operational manager and she really comes into play when we're like, listen, our constraints are, we don't have a software. We don't have an EMR tool that is going to allow you to grow and scale to the way that you need to. What you're using right now is your main constraint. And so she comes in and really optimizes currently what you have and or implement something new that we provide and that really hands-on support of how do you move the needle, how do you change your behaviors when you are also limited on time and resources? And she's an amazing, amazing tool. She came from the software world in our industry, and so her expertise and experience is great. So she and I work kind of tandem.

(17:57):
I'm doing financial planning and understanding, and she's coming in to really assess your operations and making sure that those are efficient. And then we have Kayla who does all of our clients hiring. So she is recruiting, hiring, and onboarding. Because the second constraint of course, is our personnel. Do we have the right people in the right roles doing the right things? Do they have the right roles and expectations? Do they have the staff? Do they have the assessment and sort of measurements for their performance that there should be? And we implement that because that's a huge key piece too. So it's sort of this idea of not just assessing a business, but then how do we make those really actionable to our clients when we realize that there are some limitations to their everyday business?

Bill Walker (18:38):
It's one of my favorite things about you I think, is that the implementation factor is so tangible. And I think that that is really value add because it's easier to come in and tell people what's wrong. It's a little harder to roll the sleeves up and help them fix it. And I just really admire the thought and effort that goes into checking off the boxes of the get shit done category.

Jessica Hunter (19:04):
Yeah, I mean, we really want these guys.

Bill Walker (19:06):
It's incredible.

Jessica Hunter (19:07):
And girls to be so successful, I mean, I think again, as any entrepreneur in small business person, if you do it for the money, you'll never really be successful at what you do because the money is never right, the end result. I think it's about you do actually do it because you really, really love what you do and you know that you can significantly impact someone's life. And I think that sounds so cheesy and so corny, but I think the reality is when you do have that love and that sort of ambition to help somebody, yeah, you're like, okay, how can I make this better? How can I make this more tangible? How can I help facilitate this when I know they have four kids full-time derm practice opening up their own medical aesthetic, private practice, moving from insurance pay to, there's all of these things, so, so how can we make this successful for them? And it's taking some of that hands-on things that they just don't have time for. And I think that's really one of the keys to success.

Bill Walker (20:08):
Let's walk somebody through a process of, Hey, I want to reach out to Jessica. So they go to the landing page Aesthetic Brokers. They fill out the basic name, phone number, email a short little commentary if they want to add some commentary. And then that gets to you, Jessica, for the consulting team. Walk them through a little brief snippet of the journey of what are the buckets that you like to look at and what does that process look like for you to come in and help assess and then help implement.

Jessica Hunter (20:41):
Well, I think the very first thing too, Bill, is, is that you and I definitely look at these clients and say, where are they at their stage of their journey? Are they ready to have a transaction today? And because the one thing going through and partnering and becoming part of a brokerage, there's lots out there that I had that opportunity to get to know. And I think the thing about aesthetic brokers that I really, you and I really connected on was just being true and doing what's best for the client. And I love that about you and your team on the brokerage side is just making sure that you're making the right decisions for what they need and being very transparent about that. And so I think when your clients are coming to you, you're so great at that saying like, listen, I actually just think you need to spend some more time with Jess.

(21:24):
This is the things you need to do, and then we'll take you to market just so that you're not disappointed on the expectations for all of the hard work and blood, sweat, and tears that you've given your business. And I don't think everybody's like that. So I just want to say that in that piece that that's something that I think is truly unique that we provide that not everybody does. And I love that essence of it. And then from there, I think when we have someone who's maybe just not quite ready to go ahead and go through that process with you, we take a look at first and foremost financial assessment. So I say the thing that none of my clients can get out without me is we sign an NDA and they have to disclose their p and l, so their profit and loss statements from the last two years.

(22:02):
And then more importantly than that, their service breakdown and how they pay their providers. So there's a bunch of financial documents that I insist on because I do believe that you cannot give strategic advice to somebody without really understanding their business and their financials are really what's happening in the business. There's no lies there, there's no coverups. That's really what's going on. And so we always start there, and from there we'll be able to lay out sort of strategically, what is our priorities based on where the constraints are for the business to grow and scale. So then second piece is of course operations, where we're identifying what those are and we're helping you implement that, whether that's typically an EMR system or technology that needs to be implemented. We're leading our clients through that process and that journey. And then the second piece is of course, we call it talent acquisition, which is Kayla helping them find the right people in the right roles.

(22:55):
And then lastly, we talk about marketing strategy because we can't talk about how to externally market your services, your providers, your offerings without really understanding, okay, where do we have the room to grow? Where do we want to grow? What is the most profitable parts of our business that we are looking to grow? It's that 80 20 rule, and being very mindful of what that marketing strategic plan looks like, I think is so important and it just can't happen day one. So I'm not that consultant. I unfortunately just wouldn't feel comfortable about that without really understanding your business first and making sure that that marketing strategy is really aligned to where we want to go for the future.

Bill Walker (23:38):
Alright, Jess, rapid fire questions here. There's no wrong answer. There's no right answer. It's just what you see and what you know. I am coming out the gate and I want to get into the wellness med spa space on wellness number one service offering you would consider.

Jessica Hunter (24:00):
GLP ones a hundred percent.

Bill Walker (24:02):
Next is energy-based devices. What procedure do you think in 2026 is going to have the most stickiness with recurring clients

Jessica Hunter (24:12):
Stacking treatments and creating up with treatment plans where we are doing more than one treatment in one session and or series of treatments.

Bill Walker (24:21):
That's good advice. That's a really good one. Next one is neuromodulator under 40 opinion, yes or no?

Jessica Hunter (24:30):
Yes.

Bill Walker (24:31):
Neuromodulator over 60, yes or no?

Jessica Hunter (24:34):
Yes.

Bill Walker (24:35):
Alright. Most interesting wellness service offering in the space that maybe doesn't have the longest track record for scientifically backed, but you like it because you're an athlete and you use it.

Jessica Hunter (24:53):
Ooh, I use a few things. I do like NAD plus. I like what it does a lot.

Bill Walker (24:58):
Ooh, that was not what I was expecting to hear. Interesting.

Jessica Hunter (25:02):
I do, I do. I like it more than our B twelves than some of our other supplements that are out there in terms of performance base and recovery. So I would say that's one of my personal favorites for sure. I also think on a client base in terms of how we can position it, it's another conversation, but it's a great one and it can do really, really well for your practice.

Bill Walker (25:22):
Jess is out here giving away the milk. Everybody's tune in on this.

Jessica Hunter (25:25):
I know that's a good one.

Bill Walker (25:26):
Okay, let me ask infrared sauna. Yay or nay.

Jessica Hunter (25:30):
My husband just for a gift, just bought me a sauna. Yeah, one of these like, listen, it's not that big. It's like a four person, wood burning.

Bill Walker (25:39):
Merry Christmas. Oh, it's a four person.

Jessica Hunter (25:41):
It's a four person.

Bill Walker (25:41):
So Merry Christmas to you.

Jessica Hunter (25:42):
Yeah. Yeah. So he's been promising it for a long time finally. And he's a construction guy. So finally he found one that met his needs and it showed up actually on our patio a couple of weeks ago. So we've been using it almost every night. So we're big sauna people really, really like it. Our kids are actually in it almost every night. It's crazy. So Wood burn sauna, a hundred percent is where it's at.

Bill Walker (26:04):
Wood burning Sauna, man.

Jessica Hunter (26:06):
Wood build a little fire in there. It's great.

Bill Walker (26:08):
Wow. Cold plunge. You're in Canada. I mean this is a question for all you Canadians out there. Cold plunge, yes or no?

Jessica Hunter (26:17):
No. I know I'm supposed to say yes, but it's just like we have the hot tub and the sauna. We're warmth people all day long. Yeah.

Bill Walker (26:26):
Alright, I like it. Best thing that you've heard a client declare helps for anti-inflammation.

Jessica Hunter (26:33):
Ooh, GLP ones. GLP ones have been amazing for inflammation in general.

Bill Walker (26:41):
Last question because I know we're tight on time. Your prediction for something not necessarily the biggest or the most profound, but give me something that you predict in 2026 is going to be a surprise in the aesthetic space.

Jessica Hunter (27:00):
Ooh, tough one. Tough one. I think we were really concerned about the volatility of the wellness side of the business this year. I think we're going to see that dissipate quite a bit. There are some factors that have made it a little bit more consistent now, and I think we're going to see the shift now into, when I say wellness, into really focusing on home loan replacement, really focusing on longevity. I don't think that's a big surprise to any of us, but I think we're really going to see that shift because of the ability for profit margin. So I think that's going to be a bigger shift than we anticipate. For sure.

Bill Walker (27:40):
I asked Jessica to please put a vault with all the secrets in there because there's so much, she's so kind. She will tell you everything that you want to know to help you, and I think it's just a testament to her genuine care for people in this industry to want people to do well. If you want more information about Jessica Hunter, you can go to Aesthetic Brokers' website. You can also go to her personal website to look up her previous experience in the consulting space. She really is a true, kind, caring, and grinder personality of an expert in the aesthetic consulting space. And so thrilled to know Jessica Hunter, thank you for being on this episode, Jessica.

Jessica Hunter (28:26):
Oh, thanks. It's always great. Bill, thank you so much.

Bill Walker (28:29):
If you like that episode with Jessica Hunter, you're going to like the next several as they come down the shoot because Jessica will be hosting a monthly episode on Aesthetic Appeal to answer your questions and concerns about consulting in the aesthetic space and how to improve your practice. So whether you're on the health span side of the house or just the strictly aesthetic side of the house, if you look better, you feel better. If you feel better, you are better. Hit Jessica up with all of your email questions and we look forward to answering those on the coming episodes of Aesthetic Appeal for Aesthetic Brokers Podcast. Be well. Thank you.