Don't Make These Mistakes When Opening Your Chiro Practice
Are you opening up a chiropractic practice? Or maybe you've been open for just a few years? Then this blog post is for you.
That’s because I've helped hundreds of chiropractors open their practices or course-correct their existing practices, and I'm going to share with you the three biggest mistakes that are literally going to cost you seven figures if you make them. Let’s dive in.
Mistake #1: Waiting To Put Systems Into Your Practice
This is the first mistake that most new docs make. They wait to put systems into their practice.
They're all excited about opening their doors and getting patients into their practice, and they go out and do some marketing, or they pay for some marketing to start filling their new patient slots.
But there's no real system for onboarding a new employee. There's no marketing system in place to ensure that the new patient acquisition cost comes down as you fill your new patients schedule.
There's no real system in place where a patient comes in, and there is a regular cadence of progress exams to make sure those patients are progressing properly. And there's no real system to ensure patients pay, stay, and refer to the practice.
You see, there are systems within a practice that you, as the practice owner, need to make sure you're implementing into your system as the CEO. That is the system of building your Standard Operating Procedures (SOP).
We want to make sure that no matter which employee you hire and bring into the practice, they're clear on the steps that they follow to help you accomplish the work that you're engaged in every day.
So don't wait to put in systems. Now, the beautiful thing is you don't have to create these systems. These systems have been built by literally millions of chiropractors that have gone before you.
In fact, we've gone and scoured the best systems out there and put them into the Six Key Systems. You're going to want to know these systems for maximal success in driving towards your seven-figure practice.
In fact, let me give you a gift: a FREE guide I just got done building called the data-driven New Patient System. This is an opportunity for you to start the systems right.
Just comment below new patient system, on this video, “Don't Make These Mistakes When Opening Your Chiro Practice”, and we will get you that guide.
For faster delivery of that guide, just DM me directly on Facebook, and I'll make sure you get it.
Mistake #2: Not Tracking Your Data
I want to introduce you to Pearson's Law, which states:
“When performance is measured, performance improves. When performance is measured and reported, the rate at which that performance improves accelerates.”
It's not just your team's performance we're trying to improve. We're trying to improve your performance of becoming the operator of this practice, and making sure you're tracking data is key.
You need a measurement tool. That would be like playing a game and not keeping score. How long is that game going to be fun for?
What makes a game fun is you learn the rules of the game, you begin to work on better strategy in the game, and then you track the score. How are we doing? Can we improve it? Can we win?
Building a practice is an infinite game, meaning there's no finish line. But we absolutely can set targets. We can absolutely break down the data into the system items and the numbers that we want to generate from those systems.
When we're all focused and clear on that, your rate and ability to grow the successful practice will accelerate tremendously.
Mistake #3: Not Measuring Your Profit Levers
A profit lever is a formula that measures a sequence that, when optimized, will increase the profitability of the practice.
There are a lot of profit levers, and I don't have time to share them all with you today, but one of the most important ones that you've got to learn is what we call the Lever of Margin.
Margin is knowing how much it costs to deliver your services and how much you’re actually generating. That difference between overhead and collections is what we call margin.
And margin can be broken down into every single visit. A simple way to track this is by using this formula:
Total Collections
÷
Total Number Of Office Visits
=
Collection Per Visit
Next, calculate your “Cost Per Visit”:
Total Overhead
÷
Total Number Of Office Visits
=
Cost Per Visit
Now find out the difference between those two, or the margin between those two, because the bigger the margin, the better business you actually have in place. And the smaller the margin, the more volume you have to do.
Think about this for a second. McDonald's is a billion-dollar-a-year company not because of massive margins but because of its volume. So, you have to understand the business model you've set out to create and build your practice.
So, are you a small-margin practice that has to have a high volume? Or are you a larger margin practice where you don't have to have quite as much volume, and you still generate insane profitability?
As a business owner, you need to become laser-focused on these margins. You need to build them into your practice. Every service you provide and product that you sell, this is the key to growing a successful practice.
In Conclusion
So, these three mistakes that early practice owners are making are costing them decades. To recap, they are:
Waiting To Put Systems Into Your Practice
Not Tracking Your Data
Not Measuring Your Profit Levers
In the world of chiropractic practice, avoiding common pitfalls can be the key to long-term success. Remember, it's not just about opening your doors and hoping for the best. It's about having solid systems in place, ensuring that every aspect runs smoothly.
From onboarding employees to marketing strategies, these systems are your backbone. And don't forget the power of data. As the saying goes, what gets measured gets improved. So, keep track of your performance metrics.
Lastly, understand your profit levers, particularly the Lever of Margin. This knowledge will shape your business model, determining whether you thrive on volume or high margins.
By steering clear of these three mistakes, you're not just saving money but investing in a thriving, prosperous future for your chiropractic practice. Here's to your success!
