21 Jun What will you do differently in the new financial year?
Looking back at 2018/19
End of financial year is the time to look at your practice performance reports in detail. What went well and what can be done differently in the new financial year to grow your profit?
When assessing the performance of your business, there are two key variables to look at: costs and earnings.
Some questions to consider when analysing your costs over the last 12 months:
- Are there any expenses that you can do without? Any services / products that you did not use as much as you thought you would?
- For all ongoing expenses that you have, can you negotiate a better deal with the same or different provider?
- How many of your ongoing costs can you fix?
Fixing your costs maximises your profit. Having costs which proportionally increase with your earnings affect the growth potential of your business.
- Will there be any new costs to account for in the new financial year, including savings for business growth?
- What is your total cost forecast for the next 12 months?
Looking at your earnings over the last 12 months, here are some areas to think about:
- Where has the largest increase in earnings come from?
- What is the growth rate of new patient referrals?
- Who are your top referrers? How many new referrers? Which locations?
- What is the conversion rate of consultations to procedures?
- Are your high value item numbers growing at the rate you had hoped?
- If you conducted a patient satisfaction survey, what were the key findings?
- On an average week, how much time did you spend with patients vs doing administrative tasks for the practice?
- On an average week, how much time did you spend with patients vs business development?
- What monthly income do you need to attain in order to achieve desired profit?
Are the answers to the above questions above or below your expectations? What are the reasons for that?
Planning for FY2019/20
Once you have done the analysis, set your costs and earnings budgets for 2019/20 as a basis of your new financial year plan to achieve your profit goal. Ask yourself what went well and what could be done differently. Use these answers to formulate your plan. Having a plan in place is vital in achieving the set budgets and improving the performance of your practice.
“A goal without a plan is just a wish”
Antonie de Saint Exupéry
Monitoring the performance of your practice on a quarterly basis is essential to ensure you are achieving the set budgets and if not, putting the corrective measures in place to stay on track.
3 things to consider for your FY2019/20 plan, if you are not doing them already
- Outsourcing your non-core activities so you have more time for patient care
- Investing in your brand and marketing to grow your practice
- Fixing your largest costs
Imagine having a team of people to do the above analysis for you on a quarterly basis and provide you with the summary and recommended actions to take forward. Imagine having full time support in place for fraction of the cost. Imagine having an expert help with your commercial and marketing strategy. All you have to do is give your approval and the team will implement the changes, the strategies and the plans. The team will continuously monitor the performance, while you focus on patient care.
Make 2019/20 a year of doing things differently by outsourcing and see the difference it makes not only commercially, but also to your time, wellbeing and patient satisfaction.