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07 June 2024

Why your business is not making money

Hello, lovely readers! How are you all doing today?

Over this next month, I want to dive deep into getting you to think about the real state of your business. And trust me, this is not the time to bury your head in the sand, because for the next four weeks, I’m going to be focusing on this topic intensely. Stick with me, though, because I promise it’s worth it.

Is money, or the lack thereof, one of your biggest stresses in your business or life? Let’s get down and dirty with this issue because it’s something we simply cannot keep avoiding. This month, we’re going to explore how to make your clinic or practice permanently profitable.

So many business owners, before they work with us, tend to put their clients and team first, leaving their finances as an afterthought. This approach often leads to unpredictable cash flow, especially during holidays and the summer months. Many are also investing heavily in clinical CPD, hoping it will boost their income, but this alone doesn’t guarantee profit. If this sounds familiar, you’ll want to keep reading!

Money itself is neither good nor bad; it simply amplifies who we are inside. It allows you to fulfil your purpose and do the job you were meant to do. We’re playing the long game here, which means we can’t afford to run out of cash. You probably started your business either as an NHS physio on a steady income, feeling unfulfilled, or working for someone else, thinking that going solo would automatically lead to financial success. While it’s true that doing great work and serving your community is essential, profit doesn’t come automatically. Your business must serve you too.

Imagine you’re on a plane during an emergency. What do they tell you? Put your own oxygen mask on first. The same applies to your business. If you’re burnt out or if your business isn’t profitable, you can’t help anyone effectively. Your clients need your business to be profitable so they can receive the best version of you in the therapy room. Many business owners wait until their year-end accounts to determine their profitability. But profit shouldn’t be something you calculate once a year. Instead, it should be baked into every transaction, every service, and every appointment. We need to move away from the old way of transactional accounting and adopt a model that ensures profit in every aspect of our business operations.

Therapists often struggle with charging what they’re worth, dealing with cancellations, or setting boundaries. This guilt can lead to undercharging and financial instability. This month, let’s tackle this guilt head-on and shift our mindset. You deserve to make a great living from the valuable work you do. Let me share a story. My husband and I were in the Cotswolds with our dog, Toby, when he cut his paw on broken glass. The emergency vet charged us £837 for a short procedure. There was no hesitation or discount, just the expectation that we would pay what was necessary. We need to adopt a similar mindset in our profession, understanding and valuing the transformations we bring to our clients’ lives.

Traditional accounting methods focus on income minus expenses to determine profit, which often leaves little predictability or stability. The Profit First model flips this equation: Income minus profit equals expenses. This approach ensures that profit is prioritised and helps you manage your finances more effectively If you have a team of therapists, their performance directly impacts your clinic’s profitability. It’s crucial to have open, honest conversations about their performance and ensure they are aligned with the clinic’s financial goals. Our Therapist Transformation course can help your team up-level their mindset and performance, ultimately boosting your clinic’s profitability.

This month is all about money and profitability. Let’s shift our mindset and embrace the idea of profit as a positive and essential part of our business.

Thank you for reading along with me today, if you haven’t already then hit join on this Facebook link and join other like minded clinic owners. You can also see details of my next free upcoming Masterclass which is one that you will not want to miss!

Katie X

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