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.” 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.
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Podcast #11: How to Buy Back Your Time so You Can Scale Your Practice Up