4 Simple Ways to Sequence & Double Your Practice Income at the Speed You Desire
The key fundamental in leading your practice to achievement is by knowing your GAP at all times. Your GAP is the distance between where your current practice is, financially, and where specifically you want it to be. It’s the foundation, the core in which too many doctor’s fear or stray away from that costs them money, time, frustration and feeling unfulfilled.
The GAP, notably, creates tension. This tension is the feeling of being pulled towards your vision or being driven towards your vision. The pulled tension is stress. The driven tension is passion.
You have to have some level of tension in your practice in order to grow. It’s a requirement, growth demands tension, it’s a universal law, not one I made up. The challenge is, if you have set your GAP to high, or the distance between where you are currently and where you want to be is too far, you will experience tension as fear, pressure, stress or overwhelm. That is not fun! Nor will it set you up to win.
If you have properly set your GAP that resonates with you, creates inspiration or motivation, and yet, challenges you at the same time, your GAP is right on!
Clarity is all about knowing exactly where you are and where you want to be. That looks like, when broken down, yearly, monthly, weekly and daily numbers of patients and profits. Most doctors make the mistake of setting goals, then trying to accomplish them without knowing if it’s realistic, doable or not. When you set a goal, you have to know what the goal requires in order to accomplish it, otherwise, you’re in fantasy land.
In my TRIPLE PPP workshop, I cover this in detail using my practice driver spreadsheets. My clients simply put in their goals starting backwards, from the end of the year to-date so they can see if they can reasonable accomplish their goals.
For example, if your goal is 25 new patients per month, and currently you’re seeing 12 new patients per month; your GAP is 13 new patients. Very simple, right?
But, here is the hard part. You have to know what your close ratio is. I call it your AUTO ENROLLMENT ratio. It’s the number of new consultations or exams that you do that result in a new patient. It’s a percentage. Using the same numbers above let’s look at the numbers more clearly.
GOAL = 25 new patients/month
Current= 12 new patients/month
Enrollment Ration= 50% (for every 10 consults you do, the net results is 5 new patients)
With those numbers, to reach your goal you need to add 13 new patients per month. That is doable, its realistic and should be exciting not stressful.
BUT, here is the kicker. If you’re enrollment ratio is 50%, in order to add 13 new patients, how many new consultations or exams would you need to do to meet your goal?
The answer is 13 multiplied by your enrollment %. In this case it would be:
GAP (13 new patients) x .50% (enrollment ratio) = 26 new consultations or exams.
Now, how do you feel about driving in 26 new consultations on top of your current consultations? Does it add stress or inspiration to your energy?
This is simple, basic practice fundamentals that get overlooked, way overlooked and by not knowing specifically where you are, you cannot accurately diagnose what you need to do, or feel great about accomplishing it, nor can you really determine if you can do it.
This is where far too many practices get a little lost. This should be the first thing taught to you in your final semester of medical school. Unfortunately it’s not and it cost Chiropractors a lot of trial and error and frustration, especially in an unhealthy world that needs your care. You don’t have time to figure out how to become successful; meanwhile patients lives are really at stake while you are figuring out how to get them in your office.
Here is where marketing comes into play. If your GAP requires 26 new patient consultations to meet your goal, how are you going to get 26 new people in your door?
- Is the marketing in place now or do you have to figure that out first?
- Do you have the marketing budget to accomplish it?
- Are you skilled enough at marketing to drive 26 new consultations in your door?
If that answer is NO, then the tension in your GAP just became stressful.
If the answer is YES, then the tension in your GAP just became exciting.
If we were to go deeper into this, your marketing calendar is the most vital aspect of your business. It’s what drives your business. It’s the gas in your car. I don’t care how nice and amazing your car is, if there is NO gas in it, you’ve have a got the most amazing car that you cannot drive.
To generate 26 new consultations, you would need to somehow reach upwards from 100 to 1,000 people to get 26 to your office. If you send an email offer to 1,000 people, you would need a 26% response rate. That is tough, doable, but tough. I think you get the point.
So, what is the answer, what are the four ways to increase your practice and sequence it?
First, let’s discuss what sequence is. It is simply the order in which you FOCUS the 4 ways to increase your patients and profits. Here are the 4 ways:
- New Patients- utilizing your marketing calendar to drive in new consultations each month.
- Multiple Purchases- having patients purchase multiple items (nutrition, products, etc.)
- Repeat Patients- increasing the time/wellness plan so patients continue to come in.
- Referrals- always having the entire family to come in and asking for referrals (especially kids).
It is important to note that you must always know your patient value. What does the average of all your patients spend in your office? Typically, $1,000 is a good starting point. If you focus on number 2, multiple purchases and number 3, repeat patients you can increase the value of the patient and your profits at the same time. Then, new patients would not be first in the sequence, if you have enough patient base, you can increase profits by utilizing the other 3 ways.
When you know your GAP you can sequence your practice in the right order. A practice that is generating over $350K can easily focus on numbers 2-4 and generate more profits, patients and passion without having to do external marketing. So the sequence for that practice would look like this:
Multiple purchases – Repeat Patients – Referrals – New Patients
A practice under $350K would need to focus on numbers 1-4, new patients, multiple purchases, repeat patients and referrals and in that order.
This is not complicated, it’s just a step that gets forgotten or you have not been taught.
To recap, there are 4 ways to increase your profits and patients. You must always know your GAP so you know how many new consultations you need to meet your goal, your enrollment ration% and that is driven by your marketing calendar. Lastly, once you know your GAP you can decide what order to sequence steps 1-4. A healthy practice can focus on numbers 2-4 and not have to have a large external marketing program, a practice that needs to grow must focus on numbers 1-4 and in that order.
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