August 15, 2021
What is profit and does your clinic need it?
In this episode you will discover why as a clinic owner it is critical you plan to be profitable and know your numbers.
We address some of the guilt and mindset issues clinicians face when it comes to talking about money.
You will discover a few simple strategies you can implement to start looking at your finances, facing your fears to stop the 3am worry!
Lunchtime Live’s with Celia and Kate
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Or check out the transcript below
Kate Markland: Hello, and welcome to the clinic owners business club lunchtime live on Wednesday 25th November with Celia Champion and myself, Kate Markland. Today, we’re talking about the importance of planning for profit in your practice. And if you remember yesterday, we started to talk about the 1% gains and the little gains that you can get incrementally over time. And that follows on really nicely to planning for profit. Celia how have you seen those principles applied to clinics to help them improve their profitability over time?
Celia Champion: I think it’s just kind of just recognizing marginal gains. So if you just try and get one more new patient a week, eventually that adds up a few. if you just look at one, one specific supplier, you know, one a month and, and review it, those kinds of changes can add up. So it’s just all those little small incremental changes that you make that actually make a big impact. It’s not necessarily saying, Oh, well now we’re going to ditch a whole lot of suppliers and it’s actually just reviewing everything very, very meticulously and just looking for those marginal gains , obviously you want to still keep quality but when you’re changing those marginal things, your bottom line can definitely improve
Kate Markland: Wonderful Celia has mentioned that perfectly, that one of the things that we can look at immediately is suppliers and look at which supplier contracts we can either cut because we no longer need. Although the majority of people already have done that on the back of COVID, which sometimes can be just renegotiated because we need something different or perhaps it is time to swap telephone supply or broadband supply because you just never looked around before. With regard to revenue, looking at the revenue that each team member brings to the business because obviously team members have an impact on the health of your practice. And it’s really important that as the owner, you understand what is, and then you can start looking at the what-if’s, what are the things that that person needs to do to improve their performance or contribute differently to the team. And that might be some training, or it might be more financial understanding or awareness. It can be all sorts of different things.
Celia Champion: In terms of, in terms of pricing as well. W hen you’re looking at putting your prices up, I know that practitioners agonize over it. but it isn’t, it’s necessary to do, you know, to make sure that you’re actually keeping your business profitable. And even if you look, when you look at it and you’d say, well, I’m going to put it up a pound or two pounds. Let’s say you treat 2000 treatments in a year when you put it up by one pound, it’s making you an extra 2000 pounds in a year. And one pound is negligible. I would suggest looking at a bit of a higher increase, so, you know, five pounds, and then you suddenly looking and thinking, wow, if I’m doing five pound increase, that’s going to make a 10,000 pounds, impact on my bottom line. I think we need to flag that it’s not about you coming across as profiteering. It’s about you making a healthy profit so that you can keep on treating patients. But you know, those small little gains, they all add up
Kate Markland: And many people and the many practice owners on the back of COVID are now in a position to starting to plan for 2021. And obviously hopefully for quite a different year from what 2020 has been. And once you’ve understood what you need your revenue to be, to meet all of your overheads, to meet all of your salary costs and to meet your personal revenue, you make sure that you’re starting to build in a profit plan as well, so that your business is sustainable and can grow and can continue to contribute rather than the exact opposite, which is an awful lot of heartache and potentially going broke. So it’s important that profitability is built into your business plan for the next year. And just, you can look at expenses, the amount of appointments you need to deliver the services that you’re delivering and also the charging. And some of those things will need to change and will need to evolve. But just as we spoke about yesterday, there could be 1% gains. It can just be little things at a time.
Celia Champion: Perfect. The other thing that I think practitioners can really, be changing, it’s not a big impact, but it can make a small marginal impact is that a lot of practitioners get very excited about products. So they’ll go to a conference and they’ll see the latest product. And, you know, so they see the latest, or this is a great role of a foam roller, for your patients or the Sparky balls
or the vitamins, or, you know, all those kinds of things. And you get all excited about them and you bring them into your practice because you really believe that they will add value to your patients, and then you don’t sell them to your patients. So if you believe that every patient of yours or 80% of your patients would benefit from having a foam roller or benefit from a particular pillow or whatever it is that you sell, that you truly believe in, why are only 1% of your patients getting offered those things. So, you know, that can be a small marginal gain as well. And it would be far better having the products that you have in your clinic, in your client’s homes, rather than in your store and covered just kind of gathering dust and not making you any money.
Kate Markland: Wonderful. So hopefully given you some hints and tips as you’re planning for 2021 on the things that you can be thinking about to start making sure that your plan for next year ensures that your practice remains in gains in terms of profitability. So it’s sustainable in the contribution it can make to your community. Tomorrow’s Thursday and Thursday’s is where we are always thankful. And we’ve been thinking about the positives that we deliver as clinicians to patients. And then also that, the value that we bring as a practice owners to our local communities as well, we’re going to start answering any questions on the Thursdays to thank you for listening to us. So it’s Live Q+A tomorrow. If you’ve got any questions, you’d like us to answer, then we will be answering them every single Thursday. Hope you’ve enjoyed the lives this week. And we will see you back at one o’clock tomorrow. Lunchtime, take care, have a brilliant day. Bye-bye
Celia Champion: Bye.
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