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14 July 2023

The Importance of Financial Education for Clinic & Studio Owners

As a business owner, I often find myself reflecting on the lack of financial education we receive throughout our academic journey. From school to university, there seems to be a significant gap in teaching essential money management skills. I can’t recall a single instance where I was taught about personal finance, investments, or business ownership. It’s a common issue that extends across different countries, whether it’s the UK, Canada, or the US. The consequence is that many individuals spend their twenties stumbling through financial decisions, only to realise in their thirties that they missed out on the power of compounding and wealth building. This lack of knowledge often continues well into their fifties and sixties, hindering their ability to enjoy life beyond work. It’s a shame because understanding how money works opens up opportunities for early enjoyment and a more fulfilling life.

 

The Challenges Faced by Business Owners:

When it comes to business owners in fields like Physiotherapy, Pilates, or Osteopathy, the lack of financial education is even more evident. Many individuals venture into entrepreneurship because they were never exposed to the knowledge and concepts necessary to navigate the financial aspects of running a business. We tend to operate our businesses based on our programming, belief systems, and money mindsets, which are shaped by our upbringing and surroundings. These factors often dictate the decisions we make when starting a business.

The reality is that many clinicians-turned-business owners lack a plan when entering the entrepreneurial world. They take impulsive actions without proper planning and find themselves unprepared for the challenges that arise. Furthermore, they lack a fundamental understanding of how money works, which leads to rapid growth without the systems and infrastructure necessary to sustain it. Business owners may find themselves overwhelmed by HR, hiring, marketing, or financial management aspects, ultimately resulting in burnout and sometimes even selling their businesses prematurely.

 

The Importance of Money Mindset and Education:

One of the most significant mistakes business owners make is putting the needs of their clients above their own. We are traditionally trained to prioritise client care, often neglecting our own financial well-being. However, it is crucial to understand that taking care of ourselves financially allows us to provide better value to our clients in the long run. Just like the oxygen mask metaphor on an airplane, we must prioritise our own financial health to effectively serve our clients.

 

Developing a healthy money mindset and acquiring financial knowledge are vital for business owners. By understanding how money works, we can make informed decisions and plan for the future. It’s essential to have an action plan and seek guidance from mentors or coaches who have experience in running successful businesses. Asking for help and investing in the right resources can make a significant difference in our financial and entrepreneurial journeys.

 

My Personal Journey:

For me, the turning point came during my master’s degree in physiotherapy. A clinical instructor, Margaret, posed a question that fundamentally changed my perspective on the profession. She asked me to look around the clinic and identify the number of clinicians over the age of 55 actively practicing. I struggled to find even one. Margaret then asked how those individuals were earning income if they weren’t practicing. This simple yet profound question made me realise that as clinicians, our ability to earn income through direct patient care is limited. Unlike other professions, such as lawyers or accountants, who can work independently until a later age, our physical demands and caregiving responsibilities restrict our earning potential. It became clear that we needed to explore other avenues to grow our wealth.

Margaret’s question sparked my curiosity about how the wealthy generate income and maintain their financial well-being. I delved into the world of personal finance, seeking knowledge about investing, wealth building, and financial independence. This journey led me to recognize the importance of financial education for business owners.

 

The lack of financial education for business owners, especially in industries like physiotherapy, is a significant issue. Many individuals start their businesses without proper planning or a solid understanding of how money works. They often find themselves overwhelmed and burnt out, unable to sustain their growth or enjoy the fruits of their labour. However, by developing a healthy money mindset and seeking financial education, business owners can change the trajectory of their businesses and personal finances.

Understanding key financial numbers, such as income, expenses, and profitability, is crucial for business owners to make informed decisions. Regularly reviewing these numbers and seeking guidance from mentors or coaches can help business owners stay on track and avoid common pitfalls.

As business owners, we must prioritise our financial well-being alongside the needs of our clients. By taking the time to educate ourselves, seek guidance, and develop healthy money mindsets, we can create businesses that thrive, provide value to our clients, and allow us to enjoy a more fulfilling and prosperous life. Let’s break the cycle of financial ignorance and empower ourselves to take control of our financial futures.

That’s where we come in.

If you feel overwhelmed with the  numbers, and feel like you’re on a financial roller coaster of never having enough, we need to talk.

You may know that we offer a free strategy session to help you map out a way to take control of your finances in your business and life, without having to give up your boundaries and health.

All you need to do is click this link below and a together we will have a really valuable strategy conversation that could just be the one that changes everything for the better.

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