A wellness modality can generate revenue and still be a bad business investment. So how do you determine whether the numbers actually work?

In the previous episode of Wellness Means Business, Casey Conrad shared seven factors to consider when deciding whether a new wellness or recovery modality fits your customers and business.

Now it's time to put on your business hat.

In this episode, Casey breaks down the financial side of investing in wellness technology—from understanding the real cost of the investment to choosing a business model, calculating capacity and margins, determining break-even and figuring out how much utilization you'll actually need to make money.

You'll learn:

• Why the purchase price isn't necessarily the true investment
• The hidden costs that should be included when evaluating a wellness modality
• Why you should decide how you're going to make money before you buy
• Different business models, including à la carte services, packages, memberships, premium tiers and add-ons
• The difference between direct and indirect revenue
• Why capacity and throughput can dramatically change the economics
• How variable costs affect your actual margin
• Why revenue and profit are not the same thing
• How to calculate break-even in terms you can actually use
• Why conservative, realistic and aggressive projections matter
• How customer acquisition cost and lifetime customer value affect the equation
• Why even a great modality can fail if nobody knows how—or wants—to sell it
• How to validate your assumptions before scaling the investment

The goal isn't simply to own great wellness technology. It's to build a profitable wellness business around products, programs and modalities that genuinely improve people's lives.

Before making the investment, ask:

What does this modality need to do to earn its place in my business?

And once you've determined that the modality fits your market and the numbers work, there's another challenge:

How are you going to successfully launch it?

Continue with the next episode of Wellness Means Business, where Casey walks through how to launch a new wellness offering without letting it quietly disappear into your existing business.