As of now, the Global Market Insights Inc. estimates the global hair transplant market will surpass $31.0 billion by 2025, with single session hair restoration procedures expected to lead this growth. That’s one lucrative opportunity for new entrepreneurs and a particularly compelling one for those considering entering this market—so long as you put the right amount of time and research into starting up and maintaining your new business. That last part can seem a little daunting, but the process of building out and launching a successful hair restoration business is a little easier when broken down into steps.
Here, we outline the basic steps to create and launch your own hair restoration business. Use this guide as a jumping off point to create your own customized checklist as you work through the steps to take your hair restoration dreams to reality.
This first step may seem like quite an overwhelming task but investing the extra time and work now will pay off later. In fact, according to one study of fast-growing companies—defined as those with 92% annual growth in sales or more—71% of these companies have business plans. A second aggregate study found that while companies can find success without a business plan in place, those with plans saw 30% faster growth and experienced greater success than those that didn’t have a plan. It’s clear, then, that business plans can help you easily navigate through the industry with a clear idea of what sets your business apart and how you’re going to make your mark. Consider your business plan a roadmap: the more details there are, the easier it will be to navigate all the inevitable twists and turns.
For those looking for a low-budget option, business plans are entirely doable on your own, even if you happen to have little experience in this area. Many free comprehensive business templates can be found online to help provide a basic structure and guidance. For those who have a little more cash flow or connections, consider employing an experienced business consultant or taking on a business mentor. Whichever option you choose, take your time to ensure details are accurate and every aspect of your business plan is covered as best as possible.
The business plan created in this first step will now serve as a reference tool when securing financing, even if you decide to fund your business yourself. There are several ways in which you might secure financing for your new hair restoration business, albeit options may vary based on your demographics, the specifics of your business, the neighborhood, region, or country in which you plan to operate, amongst other factors. Small business loans, government grants, and signing on family and friends as creditors are three common ways to secure financing for a new hair restoration business. However, there are some less traditional ways of funding your business such as crowdfunding or reducing the burden of your biggest purchases.
One such consideration may be to seek out a device from a provider that offers additional benefits that help manage expenses elsewhere in your business. For example, Venus Concept offers a comprehensive business solutions program alongside each hair restoration device, making Venus Concept the perfect partner for a growing practice. With ongoing educational training and account management support, low-cost consumables, complementary marketing assets, and on-demand technical support available with each system purchase, your clinic’s success becomes a top priority, even before your business opens.
Once your finances are in place, it is time to make your money work for you, beginning with one of your biggest recurring expenses: rent. With about 20% of the average business’ budget dedicated to rent or mortgage payments, finding the right location for your hair restoration business is imperative to your clinic’s success. As a general note, your rent budget should be determined based on projected net revenue. Choosing a location with a more conservative rent-to-revenue ratio is favorable unless there is a compelling reason to choose a higher rent-to-revenue option.
Use your business plan to lead your location scouting. The location you choose should be aligned with the overall branding plans and values outlined in your business plan, starting with right neighborhood in which you’re more likely to find your ideal prospective patient. For those less familiar with their city’s neighborhoods, working with a knowledgeable real estate professional is advisable.
You’ll also want to consider the amount of space you’ll need, whether other businesses in your area are competing or complementary, and some additional factors like parking and curb appeal. For those working within a strict budget, getting creative with space and considering additional revenue streams like leasing a portion of your space to a physician or aesthetician offering complementary services, may help secure your ideal location even when it may seem out of your budget.
While your brand persona and business plan act as the backbone of your business, this foundation will afford little basis for success without the support of quality results utilizing a trusted and in-demand hair restoration device. According to that same Global Market Insights 2018 Hair Transplant Market report, demand is moving in favor of the Follicular Unit Extraction (FUE) transplant method, with a compound annual growth rate (CAGR) from 2019 to 2025 at 28%.
While the hair loss market is large and complex, the right hair restoration treatment device can better support customizable treatments that will allow your hair restoration business to deliver outstanding, personalized results to your ideal patients. While traditional transplant procedures are more invasive, can leave a linear scar, and require significant downtime, ARTAS iX™ and NeoGraft® FUE hair restoration devices leave no visible linear scar, are minimally invasive, and require minimal downtime, allowing patients to return to their regular routines within the same week.
Combining next-generation surgical techniques with decades of data to improve every detail of the hair restoration procedure for both the doctor and the patient, the NeoGraft® and ARTAS iX™ systems*, available through Venus Concept, are designed to help your new hair restoration clinic excel with ease. NeoGraftⓇ features an articulated workstation, a new recipient site-creation handpiece, and a more efficient pneumatic motor. Together, these enhance consistency in implantation sites, automatically count grafts and implants to streamline paperwork. It further ensures all of the necessary tools are within your reach throughout the treatment all while delivering consistent pressure and less noise for a more comfortable patient experience. The ARTAS iX™ robotic hair restoration device features an advanced three-camera stereoscopic vision system with high-quality resolution and a seven-axis robot arm to enable automated procedures with optimal accuracy. ARTAS iX™ enables you, the practitioner, to tap into robot-assisted precision harvesting, intelligibly analyzing and selecting quality donor grafts with improved ease. Robot-assisted site-making also allows for accurate and safe implantation to protect existing terminal hair while creating optimal natural-looking results. A customizable treatment device like the NeoGraft® hair transplantation system or the ARTAS iX™ robotic hair restoration system can be a game-changer in this rapidly growing industry.
For the most part, hair restoration and medical aesthetics clinics are often owned and operated by physicians or medical professionals. Whether you fall into this category or happen to be a new entrepreneur who may lack the certifications but has the vision, you simply can’t run the clinic alone. Finding the right staff can be difficult, let alone the right staff at the right price for that tight start-up budget.
To begin, you might consider hiring only for the roles absolutely required to run your clinic: a receptionist or administrator, a medical director (if you don’t fill that role yourself), and one or two staff to assist the physician with treatments and consultations. For those utilizing the NeoGraft® hair transplantation system, you’ll have another option at your fingertips: the NeoGrafters™ program. With a free app available for download via Google Play or the App Store, the NeoGrafters™ program allows your clinic to schedule skilled, certified, and insured hair restoration technicians at the click of a button, allowing you to staff your clinic only when needed. The app allows physicians to quickly and easily create a booking request, choose their preferred technicians based on availability, review all estimated charges, and tap into the benefits of lead generation and direct patient referrals, all while delivering optimal, consistent patient results with the NeoGraft® hair restoration system.
The final step is to actually launch your hair restoration business. A successful launch takes careful planning and targeted efforts to promote your new business and build brand recognition. Start several weeks out and focus on creating intrigue while establishing your brand identity. When you start to post online, don’t give away too much before the big launch. Establish one or two key points about your branding that sets you apart. Consider what makes your hair restoration clinic innovative and different and introduce your brand through the lens of those key points. This will help to strengthen brand awareness among prospective patients and better carve out your spot in a competitive industry.
Pre-launch is also a great time to start building out your email list. Rather than launching your website too early, consider using your URL for a landing page that requests email addresses in exchange for offering prospective patients priority when your appointment calendar opens up or an invite to your launch day event. Offering benefits keeps prospective patients engaged with a sense of value well before they’ve entered your clinic.
For those feeling a little overwhelmed with everything all at once, this isn’t the step to cut corners. Rather than leaving your launch to the last minute, hire a professional agency to help you make this first impactful splash. 2two5™, perfect complement to Venus Concept’s business development benefits, is an advertising agency that leverages the most effective digital marketing tactics alongside compelling creatives, offering an effective all-in-one marketing solution. The agency’s advertising strategies are informed by today’s most accurate, real-time targeting capabilities to better ensure you’re delivering the right ads to the right prospective patients—and all at the right time to help your hair restoration clinic see a successful launch.
By creating a detailed business plan now, prioritizing professionalism, and opting for devices and services that are capable of supporting business growth, you’ll be setting up your new hair restoration business for long-term success. While you may need to pivot or tweak your business plan along the way, those opting for NeoGraft® and the NeoGrafters™ program* or ARTAS iX™ will access all the benefits of a Venus Concept partnership to support you as your clinic grows. Essentially, you’ll have a team and a wealth of business and treatment knowledge available every step of the way.
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* Device availability varies by country or region. Contact an expert for more information on options available within your country or region.