27. How profitable are you?
How profitable are you?
One of the best lessons I ever learned in business was between the 6th and 7th month of my business being open.
My wife and I opened our office and worked like crazy, screenings, talks, networking groups. We hustled. In month 6 of being opened, we collected $35,000.
I thought we were rich. Our bank account was loaded, and all this money was coming in.
What I forgot was our rent, business loan, Xray payment, and her chiropractic student loans had all been six months deferred, and we hired a full-time CA.
All a sudden, that 35k was not as much as I thought. It was a great lesson, and it’s not what you make.
It’s what you keep, and profit is the most important stat.
Knowing this, make sure you monitor your costs and profitability, not just your gross collections.
I am blown away how many docs have no idea what their cost of running their practice is, please don’t run your business blind, it’s dangerous and could bite you in the ass one day.
Dr. FJ Schofield