Operations Archives - Acara Partners

BLOG

FTC Rule Bans Non-Competes, What That Means for Your Med Spa

April 25, 2024

In a groundbreaking decision on Tuesday, April 23, the Federal Trade Commission (FTC) issued a final rule to ban non-competes nationwide. Non-compete agreements are clauses within employment contracts that prevent employees from working for a competing business. This shift in U.S. labor policy will have a significant impact for employers and employees within the healthcare industry where non-competes are often implemented. These regulations will take effect in 120 days.

So, what does this mean for the hiring process and employment contracts for your aesthetic medical practice? Let’s break down the FTC’s ruling and what this means for each party involved:

Employers

Under the final rule, employers nationwide are prohibited from using non-compete agreements in employment contracts that restrict employees from working for or starting a competing business. Employers must now reevaluate their hiring process and employment contracts to comply with the FTC’s new regulations.

Employees

Both independent contractors and workers of an employer, whether paid or unpaid, are subject to this rule. Employees now have the freedom to pursue new career opportunities within their industry without legal restriction. This decision represents a significant milestone for labor policy and employee rights.

Existing non-competes

Existing non-competes can only remain in force for senior executives who earn more than $151,164 annually and who are in policy-making positions. While existing non-competes for all other employees do not have to be formally rescinded, employers will have to provide notice to those employees that the agreements will no longer be enforced against them. New non-competes will be banned for all employees including senior executives. We recommend consulting with legal counsel regarding proper compliance within your state as legal challenges are likely to arise.

Alternatives to non-competes

You have other options to protect your practice’s sensitive information, patient records and other investments without needing to resort to non-compete agreements. Employers can enforce trade secret laws and non-disclosure agreements (NDAs) to safeguard their business’ interests. To retain staff without non-competes in place, the FTC recommends shifting hiring strategies to improving the work environment and offering competitive compensation packages.

In conclusion

We reached out to our trusted healthcare attorneys at Dental & Medical Counsel, P.C. for their legal perspective regarding the FTC’s final rule:

“The FTC’s ban on non-compete agreements signals a shift in labor policy, prompting aesthetic medical practices to rely more on alternative legal instruments like NDAs and trade secret laws to protect proprietary procedures and information. Assuming the law is not challenged, practices must now prioritize creating an appealing work environment through investment in employee development with technology such as HR for Health and competitive compensation while bolstering legal frameworks for confidentiality and data protection to navigate the new regulations and retain top talent effectively.” – Ali Oromchian, J.D., LL.M., Dental & Medical Counsel, P.C.

By remaining informed, adhering to legal advice and using proactive compliance techniques, your aesthetic medical practice can adapt to this change and thrive. Contact us to learn how our business consulting services can help you navigate today’s ever-changing business environment.

BLOG

Steps to Opening a Successful Med Spa

April 1, 2024

A medical spa can be a lucrative and satisfying business venture when developed correctly. Launching a successful med spa in today’s thriving market requires a considerable amount of time and dedication. But with the right guidance and expertise, you can turn your dreams into a reality. At Acara Partners, our business consulting experts help you thoroughly establish everything, from your target market and capital investment to your service offerings and staffing.

Backed by our decades of industry experience and knowledge, we’ve outlined the steps to opening a successful medical aesthetic practice — from conceptualization to doors open:

Define your business’ concept.

Developing a solid concept for your business establishes the key components of your vision and mission. Will you specialize in a specific area of aesthetics? What services will you offer? How will these services help enhance your practice? During a business envisioning at Acara Partners, our team will collaborate with you to answer these questions and more as we envision the potential of your business’ vision, mission, concept and program components in the marketplace.

Determine the viability of your concept in a defined market area.

Now that you have established your concept, you will need to determine who will be your target market and where you will be located. Once you have a defined market area (DMA), it’s time to get to know your competitors, including their service offerings, pricing, technology and equipment, customer service, breadth of retail skincare lines and the overall quality of their facility. When you work with Acara Partners for your market assessment, we will conduct an on-site market visit to your DMA, perform a competitive analysis and intelligently forecast sales for the first five years of operation.

Identify your necessary capital investment.

How much money you will need to successfully launch your business can include capital requirements such as professional fees, construction build-out costs, equipment and technology, pre-opening payroll, working capital and so much more. Acara will present the estimated start up investment costs and a full set of financial projections for the first five years of operations in a financial model. Looking at the illustrated future of your business can help you determine whether this venture will be a good return on your investment.

Create a business plan and select your ideal location.

Most med spa owners will apply for bank financing. Lenders will look for good credit (usually a 700+ credit score), a detailed business plan outlining your concept and plan for achieving success, projected financials and owners’ equity (20-25%). The summary of a business plan is a combination of your market strategy, organizational structure and financial position. The next step in the planning process is one of the most important decisions you will make: selecting the site for your location. Acara Partners will work with you to develop a strong business plan and provide guidance throughout the site selection process, including during lease negotiations and discussions about TI allowance and rent abatement.

Build a space that is visually appealing and operationally efficient.

All the pieces come together in this final phase of your business development — from your building design and establishment of services to your management structure, staffing and training. When running a successful med spa, it’s important to have the operational, sales and marketing knowledge needed to meet your goals. Acara Partners offers ongoing business consulting, brand development and marketing strategy to ensure a smooth operation within your practice, promote brand awareness and penetrate your target market at the highest possible level.

Acara Partners can help you bring your unique vision to life, guiding you through every step of the launch of your new practice. Contact us to learn more about the business development process and how you can get started today.