Five reasons your aesthetic business could fail (and how to avoid them)

You would not drive a car without driving lessons, but most people do not get ‘business lessons’ before they open a clinic

With the warm breezes changing to bitter cold winds and the threat of lockdown constantly lingering, it is worth reminding ourselves of one critical fact: how we run our businesses in the good times dictates how well we survive the bad times.

If your business has an ‘underlying health condition’, like inconsistent cash flow, high overheads, underperforming staff, idle assets and multiple debts, then your ability to weather the storm of an economic downturn is severely compromised. Furthermore, research has shown that 50% of new businesses fail in their first year and an astonishing 80% fail within 5 years—and that is data from before the pandemic!

This is a sobering reminder that the risk of business failure is now higher than ever—especially in the aesthetics industry. It is entirely possible that many people, even those that appear to have it all together, even some of the ‘big guns’ who seem to dominate the industry, could be a few bad months away from total collapse.