managing and marketing a successful practice managing a practice is a journey not a destination...
TRANSCRIPT
Managing and Marketing a Successful Practice
• Managing a Practice is a journey not a destination
• Profit is a reward for taking a risk
Chris Swaffin- Smith B.Sc. M.Phil.
www.privatepracticereflections.com
Common Errors
• INVESTING IN TOO HIGH A LEVEL OF FIXED COSTS TOO EARLY
• POOR PRICE STRUCTURE• NOT SORTING OUT A LEASE PROPERLY• NOT WORKING OUT HOW MUCH YOU NEED TO EARN TO
LIVE• NOT PLANNING• IGNORING SUPPORT AND HELP THAT MAY BE AVAILABLE
Why do businesses fail ?
• CASH• CASH• CASH• LACK OF ENERGY AND VISION• PLANNING• UNREASITIC VIEW OF COSTS AND REVENUE
What do successful People Do?
• RESEARCH THE MARKET AND KEEP CLOSE TO POTENTIAL PATIENTS
• NETWORK• CLEARLY UNDERSTAND THE FINANCES OF THE BUSINESS• WORK HARD,BE PERSISTENT,AND BELIEF IN WHAT YOU
ARE DOING• THINK OUTSIDE OF THE BOX BUT STICK TO YOUR
KNITTING
Which of these financial techniques do you use?
• Cash Flow Forecasting
• Profit Forecasting
• Breakeven Analysis
SWOT Analysis Opportunities
• Are their opportunities for new forms of treatment in the area?
• What is happening demographically• Are there opportunities for multi discipliniary
treatment centres
What is my Practice Good at
• What do we do well in our practice• What do your patients see as your strengths
and why do they come to us.• In what ways are your staff an asset• What clinical specialisms do we offer• In what ways are accessibility and location
important to our patients
What are we not so good at within our Practice
• Making the best uses of our resources. Associates and treatment rooms
• Are you working the number of hours that you want in order to achieve a sensible work /life balance?
• Are you treating the type of patients you want to? • Are you making an adequate financial return?• Are the treatments that you offer up to date? Do our patients
know all they about what we do• Is your Surgery up to date and in good decorative order?
Options in relation to SWOT
• Match Strengths to Opportunities• Focus on Strengths to Reduce Threats• Work on Weaknesses to combat Threats• Work on Weaknesses to be more able to take
advantage of opportunities
Price
• Cost Plus Pricing• Market Led Pricing• Time Based • Fee Based• Fee per Item• Fee per time of week• Fee per professional
Factors that impact on Financial Health (Revenue )
• Number of Treatments Per Year• Average length of Treatment• Number of weeks worked in a Year• Capacity ( either per chiropodist or per treatment
room )• Type of pricing structure• Proportion/ mix of different types of treatment• Percentage of no shows or non payers
Factors that Impact on Financial Health (Costs )
• Level of Fixed Costs.• Earnings of Principal.• Percentage of fee taken by associates.• Proportion of treatments completed by Principal and
by Associates.• Other variable costs ( such as credit card fees )• The time the Principal spends on managing in rather
than on the Practice
Breakeven
• This occurs at the point in the year when you completed the number of treatments at which;
Total Revenue = Total Costs. (Price x No treatments ) ( Fixed + Variable Costs)
What would happen if you…..
• Increased your fee per treatment by £2 ?• Increased the number of treatments per week by 10?• Changed the percentage that you offered your associates
from 50;50 to 60;40 in the Practices favour• Increased your income from the Practice by 10%• Reduced the number of treatments you did by 10 per week
and allocated these to an associate
I could not possibly put my prices up because……..
• Some of my patients could not afford it .• I will lose patients and I would feel hurt about that• I would be charging more than the other Practices in the area.• I earn far more money than I know what to do with now.• I am simply not good enough to charge more• Why charge more when I am so happy doing what I do and treating the
patients I am.• Could not possibly charge more as it would mean that I was earning more
than my partner and they would not like that
Pricing as a Strategy
• Deciding how much to charge your patients should not be looked at in isolation.
• Fees charged should be part of your strategy in terms of what you are trying to achieve.
• Balancing ,how much you personally want to earn, with the hours you want to work ,and the type of work you want to do
HOW WELL AM I DOING?
FINANCIAL PERFORMANCE
WHAT WOULD BE THE IMPACT IF I:
• Increased my prices by £2 per patient
• Reduced my fixed costs by 5%
• Charged a premium for patients attending during out of normal working hours
HOW WELL AM I DOING?
PATIENT ACCEPTABILITY
• PERCENTAGE OF REFERRALS.
• NUMBER OF REFERRALS
• NEW PATIENTS
• NUMBER OF RETURN PATIENTS
• PATIENT FEEDBACK
HOW WELL AM I DOING?
INTERNAL MEASUREMENT
• PERCENTAGE OF PATIENTS TREATED ON TIME
• THE % OF AVAILABLE APPOINTMENTS BOOKED
• THE AVERAGE TIME BEFORE SOMEONE CAN BOOK AN APOINTMENT
• THE PERCENTAGE OF PATIENTS WHO ARE FOLLOWED UP WITHIN A TIMESCALE
So how can I survive and continue to prosper ?
• Financial plan and identify the potential impact of alternatives.
• Look for ways of using your resources more effectively.
• Clarify what you do and what you are good at and make sure your patients know this
• Remain flexible but focused
So what can I do to survive and prosper ?
• Hold on to your patients.• Remain confident but realistic.• Look for ways in which you may be able to
work together.• Ask the questions about what you are
doing ,that you have never asked before• Keep selling
Marketing Strategy
Existing
Patients
New
Patients
Existing
Services
Market
Penetration
Product
Development
New
Services
Market
Development
Diversification
Benefits of Marketing
• Increased patient satisfaction• Increased team motivation• Enhanced sense of purpose and direction• Greater likelihood of professional development• Increased awareness of market opportunities
Factors that impact on Perceived Value
• Location – convenience ,appearance ,car parking ,ease of finding etc. Also appearance inside ,cleanliness, appropriateness of décor etc.
• Service- reception ,promptness ,timely and relevant information ,times available , length of time before appointment.
BENEFITS NOT SERVICE FEATURES
Product/Service
• Benefits vs Service Features• Benefits generally Psychological• Processes for Delighting the Patient
Place- Internal Environment
• Do the Pictures on the Walls appeal to your patients or do they reflect your tastes?
• Are magazines relevant ,tidy and up to date?• Flowers etc?• What other messages are you trying to get across?
Place considerations the elderly
• Access must be easy and uncomplicated• If you have parking who should spaces be
allocated for • Seating must be comfortable and not too low• Visitors cards must be appropriate and
readable
Promotion
• PERSONAL SELLING
• SALES PROMOTION
• DIRECT MAIL
• TRADE FAIRS
• ADVERTISING
• SPONSORSHIP