Featured in the October 2015 Edition of Independent Practitioner Today
‘If you can’t read the scoreboard, you don’t know the score. If you don’t know the score, you can’t tell the winners from the losers.’
– Warren Buffet.
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 business ‘scoreboards’ that is critical. You must know your facts and this means your numbers. Numbers don’t lie. Ignorance is not bliss and facts won’t cease to exist just because you ignore them.
Is your practice actually profitable?
While a review of accounting statements or tax returns will tell you if your operation is in the red or the black, you need to know an awful lot more than that. For example: is each patient you treat profitable? And did the new dermal filler campaign you just completed bring the return on investment you originally estimated?
Taking the time to determine the cost of acquiring new patients, as well as the potential long-term profit margin for specific patients groups can help you fine-tune your pricing and zero in on your most successful marketing avenues, culminating in increased profitability.
In my latest article for Independent Practitioner Today, I explain why measuring and managing your data is the key to sustainability. Key message – you can’t sustain something unless you know what is working and what isn’t.