9 mins
Entering your entrepreneur era
Hart Medical founder Eleanor Hartley reflects on her journey from employee to entrepreneur and shares her steps to a successful transition for budding business owners
ELEANOR HARTLEY
Eleanor Hartley is an aesthetic nurse practitioner and NMC registered midwife with a core focus on women’s health and wellness. On completing postgraduate studies in aesthetic medicine, clinical dermatology and an MSc in Advanced Clinical Practice, she demonstrates her keen interest in the psychosocial context of health and a commitment to advancing clinical expertise. Serial entrepreneur Hartley launched her clinic Hart Medical in Mayfair, taking a holistic approach to balance and optimisation of face, body and wellbeing.
Stepping into your ‘entrepreneur era’ unlocks a realm of autonomy and financial freedom for medical practitioners. Clinic ownership allows for direct control over all aspects of the business, from building your brand, creating your clinic’s culture, to the service offering and the implementation of innovation. This autonomy and empowerment to realise your own brand vision will conceivably lead to boundless satiety in your career, life – and ego – for the brave hearted business-minds of our industry. Alas, with great freedom comes great responsibility. The pivot from your safehaven of job stability, income, pension, and work-life balance to the risky road of financial sacrifice, uncertainty and the sleepless start-up hustle is a minefield to manoeuvre. Clinic owners must navigate between financial planning, clinical governance, digital marketing and HR amid the rapidly changing landscape of aesthetics, steeped with regulatory indecision and looming socio-political change. This incertitude is not for the faint hearted, requiring a huge mindset shift towards long-term planning and risk management. Twelve long hard months into my own clinic journey, here are the pivotal lessons I’ve learnt through the struggles and successes alike.
1. MASTERING THE MATHS: FINANCIAL LITERACY AND ACCOUNTING FOR SUCCESS
Financial literacy is the cornerstone of any successful business, providing the knowledge and skills necessary to make informed financial decisions, manage resources efficiently, and ensure long-term viability. The journey to financial literacy can seem daunting, particularly for a practitioner whose experience lies strongly in patient care. But the investment in acquiring these skills pays dividends in the long-term business strategy for aesthetic entrepreneurs and business owners.
Mastering the basic financial statement – profit and loss, balance sheet and cash flow – provides insights into your financial performance and can be used to help with budgeting, forecasting and projections. In the early days of your business, reducing your cash conversion cycle (the time it takes to convert your investment, such as stock, into income) will significantly improve your cashflow and financial stability.
TOP TIPS FOR REDUCING YOUR CASH CONVERSION CYCLE
1. Negotiate terms with selected suppliers: By consolidating the number of suppliers you use and placing larger orders, you can leverage your purchasing power to negotiate favourable payment terms. This strategy allows you to spread out your initial outlay costs over a longer period, improving your cash flow management.
2. Leverage business credit: Utilising debt financing, such as business credit cards, can help you manage the costs of large bulk orders. This approach enables you to take advantage of reduced bulk order pricing without requiring a substantial upfront investment, optimising your working capital.
3. Initiate pre-payment from clients: Implementing a policy of requiring a 50% deposit at the time of booking can significantly improve your cash flow. This practice reduces your cash conversion cycle by ensuring that a portion of the payment is received in advance, helping to cover immediate operational costs. It also minimises the risk of cancellations or no-shows, safeguarding both your time and your investment in inventory.
Investing in AI-integrated accounting software can simplify bookkeeping and financial reporting without activating an extensive financial team. Selecting a proficient electronic medical record (EMR) that feeds into your accountancy software will streamline your processes by formatting and categorising financial data. Choose a business bank account that also facilitates accountancy integration, so that items are coded as you purchase, and you are prompted to upload receipts and invoices minimising retrospective paperwork and mountains of receipts when it comes to filing VAT.
2. FUNDING YOUR DREAM: TO BEG, BORROW OR BOOTSTRAP
With the significant outlays required to establish your new aesthetic clinic, securing funding is one of the most critical facets in realising your new business venture.
Bootstrapping: The self-funding route
Bootstrapping refers to the process of self-funding your startup costs using your personal savings or immediate business revenue to fund operations. Bootstrapping your business at the beginning can be highly advantageous for several reasons. Firstly, it allows you to retain full control of your company, this autonomy can be essential for making swift decisions and pivoting strategies without leaning on investors or lenders who may have a different vision. Investing your personal funds also lends to the inclination for resourcefulness and frugality – and you may be more compelled to prioritise spending on essentials and find cost-effective solutions. This habit of frugal financial discipline can be invaluable as a business grows, ensuring that you maintain a healthy cash flow and avoid unnecessary debt. The ability to demonstrate successful management and growth with limited resources may also make your business more attractive for future investments, proving its viability and your own selffinanced investment in the venture.
Debt funding
Debt financing is a method by which your business raises capital by borrowing money from external sources. For startups, debt financing can be an attractive option as it allows you to retain full ownership and control of your business while accessing the funds needed for operating expenses and growth. Debt financing involves borrowing capital from external sources to cover the costs of starting and running the clinic. Debt is typically from banks or financial institutions, repaid over an agreed period with interest. Typical lines of debt may be term business loans, credit cards, overdrafts and equipment leases or financing. Equipment finance allows you to purchase or lease the latest medical devices without the significant upfront capital, giving you immediate cash flow benefits as you can generate revenue and begin making return on investment immediately. It frees up capital for day-to-day operating expenses and a monthly payment plan allows maintenance of steady cash flow alongside the growth of the business. Interest payments on debt are often tax-deductible which can also provide financial relief.
Equity funding
Equity funding from angel investors or venture firms requires selling a stake in the company in exchange for money. It is seen as high-risk, high-reward, and it comes with a certain prestige. Though equity funding does have advantages for business startups, it also has its pitfalls. Venture capital (VC) or private equity (PE) investors can provide substantial capital in exchange for share equity in your clinic. This option is suitable for practitioners with a solid business plan and high growth potential. Attracting angel investors or business partners can also provide the necessary funds, but it’s crucial to have a clear agreement outlining each party’s roles and expectations to avoid potentially catastrophic pitfalls and disputes.
3. FINDING YOUR TRIBE: CO-FOUNDERS, COMRADES AND COLLEAGUES
No man is an island, and on the journey to building your business, you don’t want to be stranded on that island alone. Isolation stunts innovation while collaboration cultivates growth, hence building a cohesive team will lay a strong foundation for the ecosystem of your entity. In a service-led environment teamwork is essential for delivering and maintaining a high-quality service, going far beyond meeting the client’s basic needs. Understanding their drives, preferences and concerns is key for consistently meeting and exceeding expectations. The delivery of this encompasses a multidisciplinary team from clinical care, problem solving, logistics, finance and people management that goes beyond the initial service delivery and transaction. While the founder delivers leadership and vision, a collective approach is required for a business to successfully scale.
Co-founders and partners may bring a united hierarchy to the company infrastructure allowing the business to pool a more varied skills stack, sharing operational and financial burdens. However, cofounders and joint ventures do pose the risk of differences in vision, decision making, work ethic, commitment levels and misalignment with growth aspirations. As ventures scale there may become divergence in the founding vision and the companies financial or operational performance. For those choosing to set up with a co-founder, partner or indeed a friend, outlying clearly defined roles, equitable salaries and financial agreements with contingency plans for managing conflicts or discordance in decision making can safeguard against future disruptions, legally underwriting these plans is also critical. Assembling a cohesive and proficient team stands at the core of any aesthetic clinic’s success. The journey towards creating an empowering work environment begins with meticulous recruitment. Leveraging professional networks and platforms facilitates the discovery of individuals whose skills and values align with the clinic’s mission. These avenues not only assist in identifying talented professionals but also in embedding the clinic within a community of peers, enhancing its credibility and resource pool. The significance of team dynamics cannot be overstressed. A clinic’s staff is its most valuable asset; hence, fostering a culture that prioritises collaboration, continuous learning, and mutual respect is paramount.
Safeguarding the business and its employees involves more than just legal protections; it requires building a foundation of trust and accountability. Implementing clear policies, setting transparent expectations, and recognising and rewarding contributions are all strategies that fortify this foundation. Such an environment not only attracts high-calibre professionals but also nurtures their growth, ensuring that the clinic not only survives but thrives in the competitive landscape.
4. DEFINING YOUR VISION – MARKETING MASTERCLASS
In a competitive and vastly growing field, your clinic’s visibility and reputation are paramount to attracting and retaining clients. A well-crafted marketing and public relations strategy is the linchpin for differentiating a clinic in a saturated market. Before starting your own venture, a market analysis of competitors will allow you to pinpoint unique value propositions and identify gaps. Developing a clear strategy for entering the market begins with defining your brand story – be clear in your vision and your message and use this to underpin all that you do. Brand vision refers to the ideas behind your business that will guide the future; this will reflect and support your business strategy, differentiate you from competitors, resonate with your target market, inspire and motivate your employees to become a key driver in your marketing and sales funnel.
Developing a compelling online presence is another critical aspect of a robust marketing strategy. This includes your professional website that highlights the clinic’s services, expertise, and success stories, alongside active engagement on social media platforms where potential clients spend their time. Thought leadership through blogs or guest articles on health and wellness platforms, and engagement in landmark aesthetic events and awards further establishes the clinic’s authority in both the B2B and B2C landscape, cementing you as a business leader.
KEY TAKEAWAYS
The transition from employee to entrepreneur is fraught with tradeoffs, and in the realm of clinic ownership, the essence of longevity lies in crafting a business model that not only withstands the test of time but also flourishes. Taking the plunge from employment to entrepreneurship in the medical aesthetic field allows you to pave the way for a thriving business standing testament to clinical excellence, patient satisfaction and financial freedom. By considering the reflective considerations outlined in this article, you can navigate the challenges and seize the opportunities that come with owning your own clinic. Remember, success in entrepreneurship is not just about financial gain; it’s about building a reputable brand, providing exceptional care and trailblazing the future generation of change-makers in our ever diversifying and growing industry.