Track the numbers that count

Monitor the right numbers

The saying “drive for show, putt for dough” is a popular phrase among golfers that refers to the importance of having good short game and putting skills. The phrase is used to remind golfers that good drives may be impressive, but it is the ability to sink putts that can win tournaments and make or break a round of golf.

The same is true in business regarding turnover, profit and cash. High turnover may be impressive, but it is the ability to make a profit and have cash in the bank that will keep you in business.

Many clinic owners are easily able to tell us what their turnover is or number of treatments per month, but few can tell us how much profit they have made each month. ??

How much profit have you generated each month in the last quarter?

Be good at more than just generating turnover

Having the ability to hit long drives off the tee is important, as it gives a golfer the chance to hit the green in fewer strokes. However, having good driving skills is only part of the equation. To become a successful golfer, it is also important to have good putting and short game skills. Being able to execute chip shots and putts with precision and accuracy is often the difference between winning and losing. A golfer with good putting and short game skills can often make up for a poor drive by sinking a putt or making a great chip shot so it is not all about the drive.

Being able to attract lots of new patients into the clinic is great, but you need to retain them to make a profit. This means you need to be attracting the right patients to your practice, you need to make sure you have the right people in place to deliver the service and you need to have the right tools and training for them to be able to carry out their roles to get the best results for both the patient and for the business.

Where is your game of business falling short?

Keep track along the way

Unless you are a brilliant golfer, it is unlikely you will remember how you faired on each hole. That is why golfers have a scorecard with a space to enter the number of shots after each hole. Now adays with all the apps available, data such as accuracy of drive, the type of club used for each shot can also be recorded at the time.

In business it is vital to monitor the important numbers regularly. Practice management and accounting software systems can make this easy to do as long as the correct data is being recorded in the right way (Rubbish in, rubbish out!) In some cases, you might design your own ‘one page’ dashboard so that you can see the important numbers in relation to each other.?

One can get carried away with tracking all sorts of numbers so it is important to decide which numbers you want to track on a daily / weekly / monthly / quarterly and annual basis. Think about how the different numbers impact your business and what you would take action on – you can’t manage what you don’t measure.?

What numbers do you need to know at your fingertips?

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Prepare for bad weather

In golf, there is apparently no such thing as bad weather, just a poor choice of clothing and equipment. Whether it is the weather itself or the lay of the ball, one needs to be equiped to cope with challenging situations.?

As a business owner, you need to be prepared for the unexpected and have a plan in place to ensure your operations continue to run smoothly. Having contingencies in place can help you weather economic downturns and keep your business afloat.

The first step in preparing for bad economic weather is to have an emergency fund. This fund should cover three - six months of your regular expenses. Having an emergency fund in place will ensure that your business has the resources it needs to survive any financial storms.

Next, you might want to think about your different sources of income so that you are not entirely reliant on one source. For example, if you are heavily reliant on insurance and third-party patients, you might think about developing your self-payer market.

How do you need to prepare for bad weather?

We do hope the above thoughts help you to enjoy your work, achieve your vision and feel more confident as a business owner. For more on which numbers to track, sign up for our next Friday Focus Session