COVID-19 gave us all forced downtime in our practices in 2020. While none of us would have ever chosen this particular situation to take a “pause” in our businesses, what we learned is that success is directly related to how we maximize any unexpected “pauses” or challenges.
The old rules are out the window as we enter a new paradigm and adapt to new ways of doing business. We simply cannot return to the old ways of doing things and bury our heads in the sand.
The good news is it is never too late to do the necessary work so that you can operate at a higher level, which translates to increased profitability and efficiency.
A practice assessment can identify the gaps in your practice; allow you to course correct; and make the changes you need to implement now!
Top Three Reasons to Perform a Practice Assessment:
1. You Can’t Make an Accurate Diagnosis Without the Proper Information
Just as you would never make a medical diagnosis without a set of diagnostic parameters or tests, you cannot diagnose what is working in your practice and what isn’t without taking what I like to call the “ultimate X-ray.” A practice assessment allows you to take a deep dive and really evaluate your business as well as uncover missing revenue and growth opportunities so you can pivot and make informed decisions on what to change.
2. You Have to Focus on the Whole Wheel, Not Individual Spokes
Our Practice Assessment tool enables a robust, comprehensive analysis that asks probing ques- tions and requires you to provide meticulous details about your business. We will evaluate every area of your practice to get the full picture, not just a piece. A wheel does not turn properly unless all the spokes are in good shape. Specifically, you should look at your:
- Revenue sources and goals
- Facility and overhead costs
- Services offered and profitability
- Strengths and weakness analysis
- Patient retention
- Lead generation sources and follow up • Consultations and conversion rates
- Website & SEO
- Information technology
- Human resources, staffing and compensation
You will get a high-level summary report with concrete action steps that, if implemented, will turn your business around. Action creates energy and movement. Information with implementation creates change.
3 You Can’t Track What You Don’t Measure
You must know your numbers. Analyze your data and know your numbers so you can stream- line and focus on the services that have the highest return on investment (ROI). In addition, this will enable you to determine what changes you need to make going forward. Completing a Practice Assessment will help you:
- Analyze your cash flow
- Determine your revenue per hour compared to industry benchmarks
- Know your profit per treatment
- Evaluate your conversion metrics. Are they 70% or higher?
- Put call tracking into place and evaluate your phone conversions so you don’t lose thousands of dollars
- Streamline your consultation process, build long-term treatment plans and create follow up protocols
- Understand your cost of goods
- Align your compensation plan with the company goals
- Make sure your payroll is 30% or less of your operating costs and if not, where to make cuts
- Maximize scheduling software
- Channel your marketing dollars in the areas that are most important
- Optimize and ensure your website is converting leads
- Put the proper Standard Operating Procedures (SOPs) and Job Descriptions in place so you are legally compliant
If you could identify these gaps and see up to a $100,000 ROI from implementing even a few of the recommended actions, would that be worth the investment?
There is no better time to complete your Practice Assessment and invest in your team. Understand your business in ways you never have before. With systems and structure in place, everything can change for the better.
About the Author
Ms. Ross is a world-renowned practice management consultant and international speaker in the aesthetic industry who has helped hundreds of medical aesthetic practices launch, grow and scale to upwards of $1M in revenue growth a year and beyond. She launched APX by Terri Ross in 2021, a business intelligence training and growth platform that provides solutions and analytics for the medical aesthetics industry in the areas of sales, finance and operations.