Efficiency and profitability go hand-in-hand; a business that operates efficiently will have more controlled costs and in turn higher profits. This rings true for aesthetic practices and med spas as well. In fact, many of our clients ask us, “Am I really maximizing my clinic and personnel?”
There are numerous metrics that help manage efficiency, including gross margin, utilization of resources/equipment, and operating margin.
One of the Key Performance Indicators (KPIs) we recommend keeping an eye on is revenue per square foot. Revenue per square foot is annual revenue divided by the business’ total square footage. Although this KPI is most commonly used in retail businesses, it can serve as a powerful benchmark for any medical office, surgery clinic, and medspa.
From coast to coast, our clients’ aesthetic practices and med spas generate from $565 to $685 in revenue per square foot.
In calculating this KPI, be sure to consider the entire practice. The goal is to confirm any wasted or underutilized space that could be lowering your revenue per square foot (and space that you could be taking advantage of).
No matter how your practice measures up to the average, monitoring this metric over time helps identify potential opportunity and inefficiencies in your business.
- Control overhead and fixed costs, relative to revenue performance
- Increase sales capacity by adding more staff and services
- Explore new revenue streams like leasing vacant office space
- Eliminate operational waste and take advantage of your entire space
Do you track revenue per square foot? What other KPIs matter most to your business?
Atlas works with our clients to maximize all areas of their practice in order to improve efficiency and boost profitability. We leverage your business data to accurately paint a picture of your business performance, with our real-time practice management dashboard.
Experience the dashboard first hand and schedule your demo today!
See what some of our clients are saying about how AtlasKPI has transformed their business.