Is Your Business Model Broken?
Without the right model, achieving business goals can be impossible.
Imagine you’re chatting in a bar about your business. You confidently say, “I’m going to become a millionaire.” When asked about your business, you reply, “I have a coffee shop with four seats, and we sell coffee for three pounds a cup.” This scenario raises immediate red flags. The model you’ve described makes it highly unlikely to achieve such lofty financial goals.
Five Keys to a Successful Practice Model
To ensure your business model is set up for success, take note of five critical components:
- Property
- People
- Products
- Prices
- Patients
Property
The property refers to the physical space your business operates in. The number of rooms and sites you have can significantly impact your revenue potential. For example, a one-room clinic is unlikely to become a million-pound business due to limited capacity. It’s crucial to choose a property setup that aligns with your business goals.
People
Your team is your greatest asset. Deciding between employing associates or hiring full-time staff can drastically influence your business outcomes. Employed staff can help you build your business collaboratively, whereas associates might work elsewhere, affecting consistency and profitability. Additionally, consider the roles and employment types for support staff, such as bookkeepers and administrative assistants.
Products
What services or products do you offer? It’s essential to design a menu of services that leaves enough margin to sustain your business. For instance, offering high-end treatments can push up your average spend, making your practice more profitable.
Prices
Pricing is more than just a number; it’s a strategic decision that reflects the value of your services. If you undercharge, you might struggle to cover your costs. Conversely, appropriately pricing your services ensures you can maintain a healthy profit margin. Pricing should be based on careful calculation rather than emotion, ensuring your business remains financially viable.
Patients
Knowing your target audience is crucial. Are you aiming to serve athletes, children, or price-conscious shoppers? Identifying your ideal patient helps tailor your marketing strategies and service offerings to meet their needs effectively.
Putting It All Together
By combining these five elements, you can create a robust business model that supports your goals. Consider each component carefully to ensure they align with your business vision and objectives. For example, having a clear understanding of your property, people, products, prices, and patients will guide you in making informed decisions that drive success. Without a solid model, you risk ending up like the dreamer with a small coffee shop aspiring to make millions.
Ready to refine your practice model? Book a free call with us today to discuss how we can help you build a model that leads to success.
