If you aren’t profitable, then you’ll start to get really disillusioned and lack the confidence to be able to contribute and give your maximum contribution to your community and team. So today we are talking about why it’s important we focus on wealth creation within your health care business.
Looking at your numbers is the one thing that a lot of practitioners attempt to avoid. Often I if I speak to a clinic owner and we start to talk about numbers they will quickly tot up how many clients come through the door but have no idea how much revenue that equates to nor how much profit it relates to.
But there is a big problem because most businesses fail due to lack of profitability. And many clinics are barely surviving.
Many clinicians and clinic owners are afraid to face the truth about their financials.
How can it be? I have done all my training, I have all these certificates, I get great results for patients, I made a clinic out of nothing… but where is the money I have nothing to show for it and struggle to pay the rent and meet payroll month after month.
The reality is most clinic owners are drowning and don’t know what the difference between revenue, profit and cash, simply relying on what is in the bank today to make decisions about what to spend and how to run their business. Even if the numbers are worse than you fear, rather know that and be able to put something in place, to make a plan, to turn them around.
You are not alone… feel angry, feel annoyed but don’t despair… it is easy to set up a clinic but no-one trains you how to run one.
And you accountant probably does your accounts retrospectively so when you meet them for your annual review you are looking at information that is 18months old and possibly it is delivered to you in accountancy jargon.
What is Profit?
Revenue is the amount of money that comes in to your business, from this you must apportion some for expense’s including your salary, some for tax and some for profit.
Most clinicians and clinic owners are passionate about the contribution that they make to clients’ lives. And want to, increase that impact. So set up clinics or our healthcare business as a labor of love, really, not really motivated financially. What clincian’s motivated by is helping people get better and using professional skills to do that.
But if you don’t progress from being a technician to being a business owner, and don’t start looking at the numbers, you can find that your passion starts to drain you. And wake’s up at three o’clock in the morning with worry, because you don’t know what those numbers are what they mean and what the impact of is.
I Worry I Will Be Seen As Money Grabbing
Clinicians often worry more about the fear of being seen to be money-grabbing than the health of their business. Which makes no sense as with out a financially viable business you will have no practice to help clients from.
It’s really important that you at the value what you bring to client’s lives and start to understand the impact you make on their lives and not feel guilty about charging for the right price or feel guilty about the fact that we’ve got a spreadsheet that shows us the numbers of our business.
Stay In Your Zone
If a client has chosen to come you, it has been a deliberate choice on their behalf. They have chosen to make an investment. The worst thing you can do is means test the patient and worry about affordability. You are not a financial advisor, they have not asked you for help with money. You are a clinician and they have asked you to help them with their pain or problem which you are an expert in and do have qualifications in. Stay in your zone and do an awesome job by them! Your job is to be the expert physio in the room and your patient can manage their finances. You’re, you’re not a financial manager, you’re a physio a podiatrist, or a therapist.
Create A Super Successful Plan
RUNNING A PRACTICE IS NOT ABOUT DOING A MILLION THINGS – IT’S ABOUT THE RIGHT FOCUS IN THE RIGHT AREAS.
To this you need a plan which is executed.
The implementation of a plan properly and professionally will deliver results. Consistently doing the right activity will deliver consistent results
With a plan properly in place, things will start to work, you will crack the rhythmic consistent acquisition of clients, and track the right things that keep you on track.
You will get:
- A copy of the same template business plan I use to organise my thoughts and ideas into an actionable business plan.
- Focus on what you need to do and what to check in on.
- Clarity on what to monitor and measure. Some things will go according to plan, some things better than plan, and some things worse than planned. Thats why knowing you numbers and where you are going matters
What are you waiting for? Get started with your plan today.
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