Steve – Are you afraid of investing in yourself and your practice because it might turn your profits upside down or actually decrease them?
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Upbeat music…for 4,5 seconds…
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Huyen – What’s up everybody, I am Huyen Truong and that was Steven Tait.
We’ve just finished talking to a practice who is a client of ours and for the past couple of years, their growth has been incredible and their profits continue to increase; after paying everyone and everything, they had $200K in profit (last year?), but they see potential for stalling, and they want to hit the next million dollar revenue number. He also wanted to bring on a number of different people but he realised that if he brings on more key people such as a new doctor or hire a Marketing agency to help them out with more aggressive marketing campaigns, which are some of the people they actually need to have in order to get to the next level, their profitability will go down.
And as expected, when he started bringing on these people, his profitability went down and he started feeling like hey I am failing, the business is failing, it is not doing well. I didn’t see it that way, so we had a great conversation, and basically what I said was look, it’s just the mind shift switch.
Steve – Let’s look at this problem from another angle…if you take all the money you are making and put it into your bank account, and then one day a stock broker came along and say hey you should invest this money into the stock market. So, you take some of this money out and start putting in into the stock market, and then you start looking at your bank account and going Oh my gosh I don’t have as much money as I did anymore.
It is the same mindset shift that you need to do with your businesses. Rather than investing into the share market, you invest into the future growth of your business and yourself. Investing in yourself, in your practice, and into its future growth generally comes with short term losses, but like most investments, we are in it for the long haul and that is when you’ll see the returns.
Huyen – If you are climbing a mountain it is never a direct path up, sometimes you gotta go parallel, sometimes you got to backtrack.
It is okay to go down on your profit margin in the short term in order to get to a bigger profit margin through growth in the long term.
The average profit margin of a service based business is around 32% in the US, but don’t feel that you have to be above this all the time.
Huyen – I remember one of my best decisions in running my business was to hire a full time staff to help me out with some projects I was working on a few years ago. I used to have all part-timers then, or contractors to help me, but then I realised that I needed to bring in a full time project manager to take over some of the workload that I was taking on to improve the quality of the projects. I was expecting some decrease in profit in that first financial year, but it turned out that was the highest revenue year we ever had. Because I managed to release myself from lower value tasks and focused more on the important things in the business. I wish I had done it earlier not after 2 years into the business!
Steve – In one of our previous podcast episodes, #11 How to buy back your time so you can scale your practice we took you behind the scenes of one of the most powerful productivity concepts we’ve learned as business owners: buying back your time in both your work and personal lives. A great example of buying back time is hiring people to do tasks so you can focus on high impact items that matter. So check out that episode.
Huyen – I think if you are investing in growth, if you are investing in yourself, it is okay to dip down, that does not mean that you are failing or your investment is not successful, or that the investment wasn’t worthwhile. You just need to know, hey it’s the short term and understands why it is dipping down below that threshold due to the higher upfront costs involved. But if investing in bringing new resources and things that will help you in the future growth, it is perfectly fine, you can do that, you can do that…
Just remember investing in yourself and investing in your business in the number 1 thing you need to do in order to get to the next level.
Steve – You are not getting your business to the next level by accident, maybe you’ve gotten so far by accident, but I doubt it because we imagine you are very talented. But you may feel like you’ve gotten here by accident, and now you need to get serious. Now you need to invest in yourself, now you need to build that foundation so you can get to the next level, what’s got you here won’t get you to the next level, the only way thru this is to invest in yourself regardless of whatever it is.
So that is our rant for today, we’d love to hear your comments. How are you investing in yourself and what is the number 1 investment that you’ve made in yourself and comment below. And If you haven’t subscribed yet, hit subscribe button (that little bell button) so you will never miss out any future episode.
Huyen – And until next time, go out there and make it happen! Wait, we do have one thing…an important call to action, our Online Course called “How To Use Webinars To Increase Patients and Referrals – Automate Your Marketing and Scale Your Practice” is coming out soon, make sure to go to onlinemarketingfordoctors.com/webinar-marketing-system and sign up to be notified as soon as our signature course released. Be one of our founding members to get special first access to it!
My team and I have put a lot of work into this, but we wanted to help simplify and make this modern marketing technique easier for everyone to do… so get this course, it’ll help you create an automated sales funnel machine for your practice that will help feed you more patients every day without you having to do a thing!
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