What is your major consideration when investing
in technology?
In the past decade, there has been a “Tsunami” of technology in health and aesthetic medicine. This is borne out of the evolution of virtual reality, artificial intelligence and digital solutions. Daniel Kahmeman’s “prospect theory” found in their research that people in general and investors in particular do succumb to human weaknesses of over confidence, hindsight bias, regret avoidance and generalising from small numbers.
Investment advice is usually personal since investing is a plan and not a product or procedure. The patient actual or expected demand for a service of the available technology plays a major role in investment in technology. My practice recently decided to invest in Splendor X due to growing a demand for hair removal which cut across both sexes and age groups.
The technology status evolution, and artificial intelligence is equally important. Newer technology with artificial intelligence tends to be intuitive leading to quicker procedure time, increased revenue generation and expected profits. The newly introduced tax offset for equipment less than $150,000 coupled with the low prevailing interest rate is a major factor for investment in technology. It is a great incentive that should be utilised if there is a need to genuinely introduce new technology into the practice.
Technology changes quite often with newer advancement/ development, the reliability of the products and the training/ upscaling and warranty and the availability of good customer support services are essential factors that influenced my desire for new technology. Also the running cost / consumables play a major role in my selection of technology. Investing in technology with low running cost leads to cost effectiveness and invariably increases the revenue generation of the practice.
Finally, investment in technology should be done wisely as this could make or break your financial independence.
What will be your next investment from the technology category?
Investment in technology can be very challenging and costly, therefore, one needs to weigh its cost effectiveness and associated risk. Technology is ever changing and with the recent outbreak of COVID-19, one needs to exercise caution in making any decision even though the health sector was not badly affected, the aesthetic was significantly impacted because of the virus. With the prevailing situation and market force, I would be more inclined into investing in technology with nanotech and artificial intelligence. Nanotechnology is very attractive due to its unlimited application opportunity in medicines.
This article first appeared in the September/October issue of Professional Beauty magazine. Download the issue here.
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