Ep 185 The Global Economical Crisis & it's Impact on Aesthetics | Babak Moini

Episode 185 hosts Babak Moini (Co-founder of Laser Clinics Australia) Babak previously joined us back in episodes 45 and 59, where he shared his story and his predictions for what the COVID-crisis would mean for aesthetic businesses.  Two years on, we reflect on the post-COVID era and the current as well as predicted global economic crisis that is looming. We explore:  Babak's current view of the Australian aesthetic market Some of the key trends that have emerged since our last podcast We then discuss the financial issues including: Whether the predictions he made in April 2020 were right, wrong or are simply delayed and still going to happen  The post-COVID demand for injectables and what this showed about the resilience of the market What our governments did to cope during COVID and the hang over effects of these including: - stimulus payments and printing money to fund it - borrowing more money, increasing national debt - the effect of lockdowns & stimulus payments on the labour force - why this has caused hyperinflation, climbing interest rates and the implications of these problems We then brainstorm some countermeasures that clinics can take including: How to audit your business and better understand your margins and profitability How to improve cash flow How to negotiate with suppliers Managing debt  00:00 Introduction 01:03 Industry Changes Since the Pandemic   04:55 Rising Costs and Staffing Challenges   10:59 Competition Increasing Across Clinics   18:27 Why Prices Have Not Kept Up With Costs   26:25 The Problem With Constant Discounting   33:29 Understanding Loss Leaders and Value Proposition   41:37 Why Many Clinics Are Not Profitable   48:53 Knowing Your Break Even and Financial Numbers   52:09 Managing Cash Flow and Business Risk   61:45 Client Acquisition Costs and Marketing Strategy   68:49 Building a Strong Brand and Patient Experience   76:38 Why Not Every Clinic Will Survive   80:09 Long Term Industry Consolidation Ahead   86:34 Advice for New Clinic Owners   90:43 Final Business Lessons and Wrap Up ALL IA LINKS & CONTACT INFORMATION