M 53 Investing With Profit First Hiring your next associate or purchasing a piece of…
Are you willing to incur the extra headache and expense necessary to double the clinic collections if it only means a mild increase in actual profit? We discuss hard numbers and the guest has free calculators to help you manage when to hire new people.
Welcome back to a doctor’s perspective. Today on the program, we’re talking about the clinic gym hybrid podcast and making accounting simple. And it’s with Greg Crabtree from simple numbers book. And he’s got a bunch of free tools at simple numbers dot meet isn’t me.
Okay so let’s talk about let’s say you make 250,000 profit a year, I want to make a million well this guy says, Hey look, let’s see what employees you have, who you have and who how much you make and how much you bring to the table. And he’s like, you might find that with the staff you have without increasing overhead and having to hire more people, maybe you can get to like 500 or 400.
But to get to the next level, you got to hire more people, maybe you know, your goal is lofty. So you need to have secondary clinics, third clinics and all that. And you might find yourself, whoa, all this headache is not worth that extra income, because he was given an example. And one client was making like 2.1 million, they want to get the 5 million. But in reality, when it’s all said and done advertising, he only would have made an extra 250,000.
So that we’re good, I’ll stick with what I have 750,000 property, yours is good enough, or whatever it was. So that was interesting, you know, look on things. The next big takeaway for me was, okay, let’s say you had 250,000 profit, you’re going to pay yourself and you make a choice, you can pay yourself all of it. And then the next year, you’re starting back from like square one, just not a good idea. You do want to keep some you know, on a rainy day, but his point to was what if you wanted to do less in the business, you want to work more on the business.
So maybe you’re doing a lot of the social media, you’re doing the editing the podcast, you’re doing a lot of the marketing, could you pay somebody 40 or 50,000, next year to do that job for you and get way more out of her. And here are him and you just treat more people is which is where you make most of your money in the most dollar per hour. So yeah, so maybe you just pay yourself 150, take that extra 50. That’s your salary for the person next year, and you still have 50 in the bank.
And that’s a much wiser use of your money, maximizing your time, which is the high dollar and having somebody else who’s better at it probably than you or any way to do it full time and you get to reap the benefits both ways.
After that, he talks about himself how he doesn’t charge hourly anymore, it’s based on a case feed the logic I don’t want to pay an accountant an hour late fee. So it’s better to charge case me so again, kind of going back to the if you’re not taking insurance is easier. It’s not as 50 bucks for an adjustment. But guess it’s not really what we do is not time-based the adjustment can take a minute architect, five minutes, you know all the other stuff, the rehab, the exercises, all of that is time.
But like with this whole point of this podcast is creating a specialized clinic gym combination with the gym part is not billable and all that kind of stuff is just cash thing. So you kind of start with one.
Another thing he said if you want to a 50% year to year increase in return. If you could do 75 to 90 that’d be better. But that seems like a lot. If you’re going to hire somebody you want to get a two to one nice a two to one return. So if you paying a chiropractor 100,000 you know, you need to add about 3% for you know, increase of overhead, you know the cost of goods.
So you’d want to get about to 10 to 250,000 collected to pay that person that hundred thousand. And the sum up is that all these calculators on his website that are free to use simple numbers that download a few of them pretty cool, little complicated, but he figured out the biggest takeaway I have each person you have in your office.
Getting the most out of each one before going and investing in another staff person is the biggest way to increase your overhead without actually getting the most production out of each person, including yourself. So that’s what I got for you. It was entertaining. It was thought-provoking. Send a message on Facebook or wherever and we start a dialogue about this which thoughts dr Justin Trosclair we just went #behindthecurtain
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