Why Do Clinic Owners Need To Know Maths & Psychology?Jan 29, 2022
Running a practice is about making mathematical decisions within the context of human psychology!
You will flop without either, will get away for a long way with just one of them, but to ensure your practice is watertight you need both!
Why does maths matter?
In an industry where the margins can be tight, you need to know your margins. If you don’t know your numbers it could be costing you more to deliver a service than you are actually making. Staff costs and rent are typically the highest cost centres of any practice… and low-value delayed payment insurance agreements often make up the highest percentage of income!
Just think about that….. if you are running a business with a high cost to low revenue ratio how long is it going to be sustainable? The answer usually is for as long as the owner is willing to tolerate it and bankroll it with their own blood sweat, tears, and capital!!
So whilst you might have thought this was going to be another article about client psychology and buying behaviour… you can see the first place we need to start is with your mindset and any limiting beliefs you might have about money, maths, what it is you can achieve and the value you offer!
Don’t get depressed or into a sump (have a good cry then let’s get on)… you have incredibly valuable skills. And you and I know the collateral damage that has been done over the last few years means your skills are needed. But before we talk any more about client psychology and the psychology of buying we need to think about you…. committing to identifying, improving, and overcoming any obstacles.
Knowing your numbers provides you with clarity of where you are now.
It gives you a line in the sand from which you can move forward to create stability, consistency, and the opportunity to grow your practice.
Your healthcare business should be delivering you reliable, predictable profitability year on year… but this won’t happen by chance… it happens by design, and step 1 before you do anything else is looking for money leaks.
A money leak is spending on things that
- are neither 100% necessary to “keep the lights on” in your practice
- nor do they deliver a return on terms of money or time
The average clinic will be able to save at least 10% with this one exercise, and great news…. that saving goes straight to the bottom line!
I promise you have got this!
In all likelihood, you are just one decision away from turning things around.