In this episode of Medical Millionaire, host Cameron Hemphill delves into the crucial topic of financial management for med spa owners and aesthetic professionals. Cameron shares valuable insights on balancing offensive and defensive wealth building strategies for aesthetic professionals and achieve financial freedom.

Key topics discussed:

• The importance of investing your hard-earned money wisely
• Strategies for playing financial defense by cutting unnecessary expenses
• Tips for increasing your income and increasing profit margins in medical spas
• The power of living below your means and increasing your savings rate with budgeting tips for medical practice owners
• Investing strategies for healthcare entrepreneurs
• Balancing business growth and personal finance

Whether you’re a new injector just starting out or an established med spa owner looking to optimize your finances, this episode provides actionable advice to help you build wealth while growing your aesthetic practice.

Transcript: 

Hey, everybody.

Cameron Hemphill here, your host for Medical Millionaire.

Hey, thanks so much for tuning in and listening to our podcast. Our goal is to give incredible insight and value into the medical spa market. So if you’re an injector, you’re in the aesthetics arena. You’re in the aesthetic space.

This podcast is for you. All the episodes that we get into, we get into some really deep dive discussions around high level interviews with very successful entrepreneurs and injectors and business owners, insights on digital marketing, insights on how to invest your money, insights on how to prepare your mind. And the last episode that we dropped, we were talking about why cash is trash and cash flow is king. And there’s a lot of insight into that episode. So if you haven’t tuned into that one, definitely chime in and have a listen, because I have taken a lot of my time to study what successful entrepreneurs have done, like their failures, how they’ve been able to achieve successes and become elite performers.

And a lot of it is honed in on on what they have done in order to achieve where they’re at right, especially around the art of cash flow, and what that really means. So what I want to get into today, and keep in mind, we consult some of the highest level injectors and medical spa owners that are in the esthetics arena, and we consult them all over the United States. We have for years so growth 99 what we do is we do digital marketing, and we help move the needle for medical esthetics practices, right? But I also want to talk about why it’s really important to invest your hard earned money, and especially if you’re a new injector, or you’re, you’re in your early 20s, you’re in your 30s, you’re in your 40s, you’re in your 50s, you’re in your 60s, you’re in your 70s, whatever it is, right?

You’re, we’re all at these different age levels, and some of us are actually further along in our careers, and we may be quite young, right? So it’s, really important to understand why it’s so important to invest your hard earned money. I go to a lot of these esthetic shows and medical conferences and speaking engagements, and I see a lot of people walking around that are very, very successful, that have very successful businesses. They’ve done quite well. And there’s always that thought in my mind is, are these individuals investing their money, or are they taking their money and and living paycheck to paycheck? In some cases, this is true where they are making high level income, but they do have to have a next incredible month of sales to sustain their lifestyle, right?

And if that month falls behind, they can find themselves in a very interesting position, because they’re trying to keep up with the lifestyle that can’t support a very elite month, if you will, right? So it’s really important to really take a look at where you’re at currently and live within your means, right? So I’m going to talk about defense for a second, and defense when it comes to saving money, right? So there’s, there’s super interesting ways where you can save money, and money can just fly out your pocket very easily without you even knowing, right? So, so talking about defense, and basically, there’s a book that I read called The Millionaire Next Door. If you haven’t read it, it’s a really good book. It’s well known. A lot of people have it. A lot of people haven’t even read it, but I would encourage it, because it talks about how to play defense, and defense is really where you can find out how to win within the margins.

And what that means is finding certain areas where you’re overspending on items and and find a way to get a reduction, or find a way to outsource things and get a reduction, or find yourself like, if you’re going and spending, you know, 1020, $30 a day on like lattes, for example, one in the morning, one in the afternoon, right? Like, there is a way to reduce that cost. There is a way to buy a coffee machine. There is a way to make your own espresso. Like, there is ways to do it and actually even make. A more convenient factor for you, if you’re spending a tremendous amount of money on a fancy car that you’re driving, are you really? Is that really what’s making you happy, or is it the idea of what somebody else thinks of you that makes you happy?

Right? So it’s a mindset thing, and I think it’s really important to take a step back and realize what truly makes you happy, and are you allocating those dollars to something that makes you happy and do? And does spending those dollars really put you in a position to care what other people think about you or are, or do you have humility? Do you have the discipline and do you want to be separate from everybody else, right? So back in my early 20s and early and on in my career, I had fancy cars, and I’ve always been a pretty good income producer, but I’ve had expensive lifestyles as well, and as I’ve gotten older and as I’ve gotten more mature, I’ve really honed back on those lifestyles, because I realized what was most important to me, and what the thought and the belief of what I thought was important was really more like fantasy. It was more like a fairy tale. It was it was just not real, right?

So if you can find ways to save and win in the margins, right? It’s okay to not have $1,000 car payment, right? I think the average car payment in America right now is north of $500 and I think it’s south of 700 which, which is very high in I mean, there’s some places that you know, people pay rent of what people are paying for cars, right? And it doesn’t make you any less than what you are. It’s just it can put you in a position to say, okay, like, if I have a cheaper car, maybe I have a two or $300 car payment. I’m used to a $700 car payment.

Well, now you have a $400 spread. So if you have a $300 car payment, you’re used to seven there’s a $400 spread there. You can take that money and you can invest it, and you can invest it into an asset that produces income, such as a stock or such as a piece of real estate or such as maybe even a cryptocurrency or whatever, right? I’m not a financial advisor. I’m not, you know, licensed in anything like that. This is just what I’ve read and what I’ve learned in trying to help anybody out there that is trying to get to that next level, right? So anywhere that you can find yourself winning, in the margins, it’s all over the place, take the time write it down on paper, or find a piece of technology or a tool set that you can figure out where is all my money going, and how can you create a budget to where you can actually start winning in the margins and saving a lot of the income that you make so you can store it and eventually buy an asset that produces additional cash flows, right?

So if you think long term, if you’re thinking about wealth, if you’re thinking about generational wealth, right, this is something that you really need to have at the top of your mind.

Okay, the other thing I want to talk about, as well as is the complete opposite side of this, which is offense, right? So defense is very, very important. It’s a way where you can find the ability to save, live with frugality, but at the same time, you don’t want to, you know, save every single penny and not enjoy your life, right? You want to have a fulfilled life. You want to have nice things, I’m sure, and that’s okay. There’s nothing wrong with that. If you like a latte, go buy a latte, right? There’s no problem with that. So what I’m getting at is you also have to play incredible offense, because offense is what puts you in a position to attract.

Two additional ways to create wealth. So if you play really good offense, I’m talking about income right now, sales right and putting yourself in a position to understanding where is your current revenue from your business? Is it growing? What percentage is it growing? And is your revenue growing? But is your bottom line growing with it. So really, in that case, if your revenue grows by 20% and your bottom line also increases by 20% you’ve gone nowhere, because you’re now making the same spread, you’re making the same profit, and now you probably actually have more problems, because you have more customers and you have more staff and you have more product. So in some cases, it would actually make sense to come back a little have less of a clientele, less of a staff, run more lean and make the same profit, right?

So as you’re scaling your business, or as you’re scaling your commissions, or whatever the case is, make sure that it’s in a position to where the top line, revenue is always going to accelerate the bottom line, so that spread is constantly increasing. And if you can do that month after month after month after month after month and have really good organic growth, it’ll put you in a position to where your offense is continuing to grow, your income is continuing to grow as inflation rises, you will beat the inflation rate because your income is growing okay.

Now, if you have good income and you have really good defense, knowing where to win in the margins, that creates a very massive spread, and in some cases, I’ve seen people get themselves in a position to where they can have a spread north of 4050, 6070, and even 80% and what I mean by that is they’ve been able to set up a lifestyle to where they can Live on 40% of their income or, or, or 20% of their income, and have these saving rates, 60% 80% okay, so some quick math for you. If you are, let’s just say, Okay, you’re, you’re $100,000 a year income producer, right? It? Let’s take it up a notch. Let’s go to a million dollar a year income producer, okay and you live with frugality. You live with humility.

You’re okay with with having less and knowing Less is more, and in your mindset, you are happy with having, you know, taking a walk and looking at nature and basically just living more simplistic, instead of having more things, more materialism, right? If you can think in that way, then it will ultimately put you in a position to play good defense, right? And if you’re playing good defense, and back to the math calculation, let’s say you’re a million dollar income producer, and let’s say you live on let’s call it 30% of your income, okay, 30% of your income, right? So, so now you have a spread of $700,000 right? And a lot of that’s going to be taxed, right? So, so you know, even like 50% of that’s going to be tax. But if you can put yourself in that position, and let’s bring the tax into play, actually. So you have the million dollar income, let’s say 50% is going to the IRS, right, because they’re going to get that money.

I mean, they know you’re going to spend it right, so they’re going to want to get it up front. So now you have a 500 call it net, okay? And you live on 300 you’ve been able to store a $200,000 spread. Now, what can you do with a $200,000 spread after 12 months? We’re talking one year, right? You can invest that money very strategically into assets that produce income, okay, and over the life of your career, especially if you’re early on in your career, and you’re able to just continue to stack income and stack cash and store cash and invest assets and live within your means. With frugality, you’re going to find yourself in a position where you’re going to start creating wealth, and that is going to become very addicting. It’s going to become something that you’re going to admire, and it’s going to make you more hungry and it’s going to make you more happy, right? So in our family, we live with a lot of frugality.

We live with a lot of humility. My kids go to go to a school that I like to call the organic school, but it’s very, very simplistic. It’s like ant anti you know, media, less is more. Let’s let’s go outside like let’s play with sticks, let’s learn the Earth. Let’s garden. And my kids absolutely love it, and I can see the smile and joy in their life. And it’s really helped us too to to embrace frugality and less is more. You. And in fact, in my family, we actually have, we only have one car. We could buy another car if we wanted to, but we have one car and we share it. And it’s actually kind of nice, because we get it all be in the in the car, in the in the family ride together and go experience things and be able to have some really fun conversations.

It doesn’t create any inconvenience. And what it also does is it puts us in a position to accelerate our margins and accelerate our savings rate, right? So that’s been something that’s been really helpful for us. Now, not everybody can do that, right, but, but there are certain ways that’s just like a living example, and then if you’re in a specific business where you’re creating new customers and you’re finding strategic ways to increase either your your sales through increasing your costs or putting people on membership programs to where you’re building up reoccurring revenue, right? Or you’re also putting in a position to where you you’re able to increase your profits by decreasing your bottom line, you’re going to want to hone in on this stuff and really look at it daily.

Because what is, what is going to give you the most ROI, what is the reason that you’re basically exchanging your time, which is the most valuable asset, we have to doing what your craft is right by going to your business, going to your practice, and being away from your family and what you’re doing to basically exchange time for what you’re doing. Why are you doing what you’re doing? Right? You obviously love providing a service that’s creating value for your for your clientele, and that that definitely makes you feel wholesome, right? But there’s also the income factor.

There’s also the dollar versus time factor, right? So my advice to you would be to figure out a way to create incredible offense compounded by incredible defense, and then, based on that marginal spread store that and invest in an income producing asset, not a liability, an income producing asset that pays you monthly, gives you that little drip you need, and puts you in a position to really think long term on generational wealth. Okay, so I hope you guys got a lot out of this episode today. Thanks so much for tuning into Medical Millionaire.

This is Cameron Hemphill. If you found this content valuable, please share it.

Let’s keep the conversation going. Head into iTunes, leave us a five star rating and review. We love that. And also, if you’re interested in what we do, growth 99 again, we have full digital marketing. We’re turnkey digital marketing ad agency for everything medical and medical aesthetics, right? So cosmetics injectors, anything in that regard, we have a course on how to take your Med Spa the next level.

We have a book on our website that you can download for free. So take advantage of the resources and reach out. If you guys want to talk, let us know, until next time, happy injecting you.