Managing and Marketing a Successful Practice

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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

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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

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Why do businesses fail ?

• CASH
• CASH
• CASH
• LACK OF ENERGY AND VISION
• PLANNING
• UNREASITIC VIEW OF COSTS AND REVENUE

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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

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SWOT

• Opportunities and Threats External
• Strengths and Weaknesses Internal

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Which of these financial techniques do you use?

• Cash Flow Forecasting
• Profit Forecasting
• Breakeven Analysis

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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

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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

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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?

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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

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HOW DO I KNOW HOW WELL I AM DOING ?

• FINANCIAL PERFORMANCE
• CASH FLOW
• PROFIT
• GEARING

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SOME TRUISMS

• Profit is an opinion, cash is a fact
• Turnover is vanity, profit is sanity

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Price

• Cost Plus Pricing
• Market Led Pricing
• Time Based
• Fee Based
• Fee per Item
• Fee per time of week
• Fee per professional

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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

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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

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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)

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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 5050 to 6040 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

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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

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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

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Pricing Options
Low Price High Price
Low Value Economy Skimming
High Value Penetration Premium
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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

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HOW WELL AM I DOING?

• PATIENT ACCEPTABILITY
• PERCENTAGE OF REFERRALS.
• NUMBER OF REFERRALS
• NEW PATIENTS
• NUMBER OF RETURN PATIENTS
• PATIENT FEEDBACK

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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

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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

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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

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Marketing Strategy
Existing Patients New Patients
Existing Services Market Penetration Product Development
New Services Market Development Diversification
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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

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MARKETING MIX

• PRODUCT/SERVICE
• PRICE
• PROMOTION
• PLACE

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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

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Product/Service

• Benefits vs Service Features
• Benefits generally Psychological
• Processes for Delighting the Patient

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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?

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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

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Promotion

• PERSONAL SELLING
• SALES PROMOTION
• DIRECT MAIL
• TRADE FAIRS
• ADVERTISING
• SPONSORSHIP

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WHAT ARE YOU GOING TO DO NEXT?

• Key actions to take
• Key things that you have learned