“In private practice, the ability to read and understand your ‘scoreboard’ is critical” – Pam Underdown
If you ultimately want to grow your practice, you must first learn how to identify and diagnose those activities that are sabotaging your financial results. And you must know how to correct those mistakes so that the results you desire can be achieved.
It is always important to be aware of your expenses, but heightened sensitivity is even more relevant in a down economy, and frivolous spending needs to be curtailed. So, if you haven’t done so already, now is the perfect time to capture and analyse the following results and start comparing them (month on month, year on year):
2. Number of new patients
3. Percentage of revenues to overhead costs
4. Average number of patients per day
5. Average order size per patient
6. Revenue streams broken down by procedures and treatments
7. Return of investment (ROI) for each promotional effort
8. Waiting times
9. Cost per Patient (determining the cost to acquire and maintain a patient is the key to maximising profitability)
This data will help you determine where to spend your time, money and resources to put more efforts in certain areas like patient flow and staff training and less in areas that are not helping you or your bottom line. Ensure you keep great records again this year so you can compare your numbers to last year, because these numbers are either getting better or worse but definitely not the same. Better yet, compare month by month and quarter by quarter so you can change course mid-year if you need to.
Go through your database and study your accounts receivable carefully. You’ll see certain pockets of positive results that you can get more of, if you simply put some effort into promoting them. Look for trends. Which are your most popular procedures performed? Which procedures are the most profitable? (taking into account how much of your own time is involved)
The fastest and easiest way to increase your revenues is to replicate your successes again and again.
Like it or not, the business of aesthetics is a game and like any game there are winners and losers. There is fierce competition and a set of rules. There is not one competitive sport out there that has an announcer who says “Don’t worry we don’t have a scoreboard as no-one looks anyway”. But yet, that is how the majority of people play the game of business. There are bad moves and good moves but it is the strategy and the ability to read and understand your practice ‘scoreboards ’that is critical.
If you’re serious about growing a highly profitable and successful aesthetic practice filled with your ideal patients, you’re in the right place.
Our online training programme teaches you everything you need to generate a steady stream of new patients, avoid peaks and troughs in bookings and maximise patient retention. Click on the image below to learn more.