The FOUR BUSINESS MODELS of Chiropractic Practice

The FOUR BUSINESS MODELS of Chiropractic Practice

Chiropractic Efficiency Chiropractic Expansion

Which Type is Yours?

Disclaimer :  I am not here to say one is better than the other. 

My goal in one of these videos is to show you how to understand your desired model so you can MASTER Your Chiropractic BUSINESS.

The result??  When you can focus your GAME PLAN – you get to your desired “End Game” much easier and MUCH FASTER…whether that is a retirement nest egg…more vacation time…or to pass your practice down to your kids…whatever it may be!…

Choose Your Desired Business Model below (click to play):

TYPE NUMBER ONE: The Chiropractic Owner-Executive 

>>>  For more details on the capacity limits of each practice type, as well as the typical income from each type – check out the article: How Much Income Should a Chiropractor Earn

TYPE NUMBER TWO: The Chiropractic Owner-Manager 

By understanding the ROLES you want to be doing on a day-to-day basis, you will be able to then identify your model’s “ceiling” for capacity and production (as there is a lot requiring YOU!).  As the entrepreneur (yes – YOU) you as the executive have the ability to bring on staff to free yourself  up in some of these roles.  That truly allows you to put your attention on Expansion to that capacity.

The decision is yours to make – how big do you want to go?….how much time do you want to spend inside the practice?

TYPE NUMBER THREE: The Low-Overhead/Low-Staffing Model

 

We hope you found these videos useful.  Knowing these different types would have been PRICELESS coming out of chiropractic college as we could have simply forwarded through the typical barriers to practice growth by knowing what the business model DESIGN could be!

The Chiropractic Business Academy (CBA) trains chiropractors to build profitable staff driven offices.  CBA does this by training the owner and staff, and providing ALL the administrative, marketing and sales tools needed to build profitable practices.

How To Build A STAFF-DRIVEN Chiropractic Office

How To Build A STAFF-DRIVEN Chiropractic Office

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There are correct and not-so-correct ways to “groom” your chiropractic Dream Team.  If you do it right, they will build a self-sustaining, staff-driven dream practice.

WHAT IS A STAFF DRIVEN PRACTICE? 

It’s a practice in which the staff members take an active role in creating the future of the practice.

Staff members do this by working effectively and efficiently, without the need for much oversight.  They are guided by the general direction of the owner through company policy and training.  They don’t need orders to know what to do.  Orders ARE issued, however, as a method of coordination but not as a necessary part of getting the staff member into action.

More important than just doing their jobs, the group members of a staff driven office create on their posts.  They don’t just handle the work created by the blood sweat and tears of the owner, but they create more opportunity for the organization through their own efforts.

In short, the work, the responsibility, and the energy needed to maintain or grow a practice are truly shared amongst all in a staff driven office.

WHY HAVE A STAFF DRIVEN OFFICE?

First, it’s more fun to play in a group that you like than by yourself.  Whether you are truly the only person in your office, or it just feels that way, I’m sure you can imagine that it would be more fun and more productive to have staff in your office sharing in the work, responsibility and rewards of practice.

Secondly, you can get more done with a group than you can by yourself.  Each person has a limit as to what they can accomplish alone.  This is what stalls the growth in most practices—the personal limitation of the owner doctor.  This limitation does not occur in the Chiropractic Business Academy model because it’s staff driven.  The only limitation is your ability to hire, train, apprentice and keep great staff, and to organize. The limitation is not your own energy, or time.

Lastly, you build an asset that will continue to pay you money after you retire, move on to another game, or that you can sell for a significant price.  Even the largest of chiropractic offices can’t usually be sold for more than a few hundred thousand dollars because the owner selling the practice is the person who wears all the major hats within the practice—and he or she is leaving!  What’s that worth?

BUILDING THE STAFF DRIVEN OFFICE!

It starts with an owner who is hatted as an executive.  He must know how to envision an ideal scene for an activity, organize it’s into parts, organize those parts into workable actions, and assign those actions to manageable posts that can be occupied by a staff member.

That executive must also know how to assign proper statistics to each of the activities and set up a reporting system so that vital information is logged and routed to him on a regular basis.   This allows him to monitor areas without micromanaging them, or having to do them himself.   It also allows him to predict future needs of the office, and reverse a downturn in statistics before that downturn crashes the income.

If that executive also logs significant changes in the organization against graphed stats, such as key hires or new marketing activities, he then has a tool on which he can look back to evaluate the effectiveness of changes on stats.

Key #1 of how to build a staff driven office is that the owner is trained in executive skills.

The executive must be hatted on how to find potential staff members.  It rarely happens that you will find a great staff member in an interview. It’s more likely that you will find a potentially great staff member in an interview.

By and large, great staff members are created, not found.  This is more a comment on our current education system and the commonly excepted work ethic of this society, than on any one individual staff member.

Most people are willing and need a lot of help.  Some are very capable and can be great with some training and guidance.  Few arrive ready to take on the world—because most in that condition run their own organization or have found their way into higher paying industries.

Key #2 is that the key staff members are trained in some or all of the executive skills, just as the owner. 

It is also critical that all staff are trained thoroughly on how to perform their job duties and on the general administrative workings of the office.

Staff pay should somewhat mirror the incentives of the owner.  A business operating in a capitalistic system promises certain rewards to an owner, in exchange for value provided by that business to society.  If the owner of a company provides value to others, in excess of the resources he expends providing that value, he earns a profit.  This is a good incentive.

If staff members earn greater compensation, as the business provides greater benefit to the community in excess of its expenses, then the staff member will most likely work harder, smarter and more efficiently, to continue expanding the company—just like an owner.  Not all staff will respond this way, but the ones you want, will.

Key #3 is to pay a low base and an incredible production bonus for staff.

In chiropractic practice, we have a worthy purpose and an effective method of achieving that purpose.  A staff driven office has a leader who sets the direction of advance.  It can be the owner, or someone designated by that owner.

Key #4 is to be the leader of your group. 

Everyone wants to go somewhere, and you either need to lead or get out of the way, by assigning a leader and letting them lead.

This is by no means a complete list of everything you need to build a staff driven office—but if you get these points in, you’ll be well on your way.

The Chiropractic Business Academy (CBA) trains chiropractors to build profitable staff driven offices.  CBA does this by training the owner and staff, and providing ALL the administrative, marketing and sales tools needed to build profitable practices.

Get Chiropractic Staff Trained and Expand!

Chiropractic Marketing Chiropractic Staff Training Chiropractic Training

Get Chiropractic Staff trained and Expand!

Do you know what to train your staff on?

Chiropractic Staff Training Everyone knows they should train their staff. But on what exactly? Why is it important?  Look at your staff as the foundation of a house.  If you built a house on a wobbly foundation, no mortar to keep the bricks together, the bricks didn’t quite match up and maybe some of the bricks were deteriorating, would your house stay up or be stable? No, it absolutely would not.  You would start building and maybe you would get it completely built but then it would come tumbling to the ground.  The same goes with expanding any business.  If your staff are only partially trained, have limited skill and limited knowledge anytime you tried to expand or grow, you may make some head way but then it would come crashing down again.  Then you have that ebb and flow of production going on.  Does this sound familiar?

 

Employee Training

There are two main things that each of your staff should be trained on.  Their own particular position and every other position in the office.  You may think that your staff already know how to do everything for their position because you  have had them for a year or more.  But how often do they come to you with questions or problems for you to handle that you feel they should know how to deal with by now?  Think back and create a list of all the different things your staff bring to your attention that you think they should be able to handle on their own.  Take the items you wrote and decide what would be the procedure to handle each one. Put those procedures in writing, ALWAYS.  Start by getting your staff trained on those procedures.  Make sure they know it completely and feel confident to handle everything listed without your help.  This is a gradient process, the key is to keep doing it.  The more you do it the more stable your staff become and thus your foundation becomes more stable.                                                                                                                                Now lets build that house (or practice that is)!

 

performance trainingNow, this is just a little tidbit to get you going.  Remember that the more stable your staff are the more they can handle, the better their performance and the more you can grow and MAINTAIN your growth.  At Chiropractic Business Academy we have many  courses to train your staff.  We have precise and successful systems for Reception, Marketing, Patient Educator, efficiency, organization, chiropractic management, planning, financial planning for profits, policy writing, business planning, hiring staff and more!

 

 

 

 

 

 

The Chiropractic Business Academy is your source for effective chiropractic marketing, business development (think entrepreneur!), chiropractic seminars, and now: chiropractic products!

Masterminding Chiropractic Marketing at Surf Camp!

Masterminding Chiropractic Marketing at Surf Camp!

Chiropractic Expansion Chiropractic Seminars Chiropractic Training

Chiropractic Marketing and Business Mastermind!

Costa Rica Chiropractic Surf Camp

This past September, 24 Chiropractors joined us for the 1st annual Chiropractic Marketing and Business Mastermind (yea, okay, it was a surf camp!)

 

chiropractic marketing surf camp

 

If you didn’t hear, there was a big earthquake in Costa Rica while we were there.  We took this picture to let everyone know we were all alive and well.  We look great don’t we?!

The days were filled with fun and lots of surfing.  It just so happens that we came when the swells were big from a prior storm off the coast(sorry newbies!) but everyone took it on in style.  By the end of the week everyone was able to stand up on their boards and actually surf! HECK YES! There were tons of thrilling and leisurely activities going on.  Groups of doctors were zip lining, four wheeling and getting relaxing massages on the beach.  And if you just wanted to hang out, there was always a group at the pool kickin’ back. Don’t you wish you were there?!

The nights were full of intense, work your butt off masterminding on chiropractic marketing, working out personal and business ideal scenes, how to get to next year’s goals and overall business expansion.   Everyone was working as a team to confront and handle any stops and barriers to their office expansion!  I think this made them sweat as much as taking on those big waves. Yikes!  All in all, they had as much fun and excitement hammering out their business expansion as they did during the day’s fun filled activities! HOORAY!

chiro marketing surf camp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Here is one of our doctors ready to take on the waves of Costa Rica!  He is a natural, by the end of the week we saw him doing head stands on his board as he was riding it in! CRAZY!

This was such a hit that we already have doctors signing up for next years Surf Camp/Business Seminar! For all you snow lovers look out for our Ski Camp coming to Utah this winter!

Signing off another fantastic week here at CBA!

Yours in Expansion,

CBA Team

 

The Chiropractic Business Academy is your source for effective chiropractic marketing, business development (think entrepreneur!), chiropractic seminars, and now: chiropractic products!

 

 

 

 

 

How to Lower Chiropractic Overhead

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At one time or another, and maybe quite often for some, this questions of “What should my overhead be..what is my chiropractic marketing budget…how do I pay staff?”, have probably crossed your mind. There are many ways to decrease your overhead including…

  • Eliminating Unnecessary Expenses
  • Finding Cheaper Supplies
  • Grassroots & even Guerrilla Chiropractic marketing techniques
  • Putting Staff on Production Based Pay.
  • Making Better use of your facility by leasing what you do not need.
  • Doing more work yourself instead of having someone else do it. (This one is an illusion that actually costs you more money than it saves you).

And there are probably many more ways to lower overhead. At the end of this article I will provide you with a list of areas that I reviewed earlier this year and found real savings!
Important to know, there is false data that circulates around our profession (some of which is taught by practice management firms) regarding what is the correct percentage of your practice gross income that should go towards the expenses of your practice.

To say, “It’s X percentage.” (implying it’s the same for each practice) is not correct. Guidelines can be helpful, but to use the same percentage practice to practice will likely result in bad decision making.

Another incorrect statement would be that your office overhead should be, “As low as possible”. Ideally, your overhead is efficient (not unnecessarily wasteful). Regarding the idea of getting your overhead as low as possible, realize that the closer your practice overhead approaches zero, the closer you are to not existing as a business!

The answer to this question of overhead is not a black and white issue that sorts out in a short discussion. The answer to the overhead question which most closely approximates being absolutely correct would be, “It depends on many factors, most of which you can regulate.”
A well trained Chiropractic Executive understands that it is the expenses of a practice which actually grow the practice (if you have good expenses). Don’t forget to include your time as an expense. In fact, it is the Chiropractic Executive’s time which is his most valuable resource—meaning that the dollar value of his time is much higher than any other cost of the practice. This is because he is trained to build and run the entire show—so, if he gets too tangled up in activities that he’d prefer not to do, he loses time and energy he could be using to expand the clinic.

So, how do you determine proper overhead? Well, it takes a full understanding of Business of Chiropractic as well as a full review of your own life and practice goals to determine the answer to that question. But, I can help you begin to see and consider some of the key points necessary to this discussion.

Key point #1) What role do you want to play– in or with your practice? The answer to this question will go a long way to answering the question of what should your overhead be. For instance, your practice building strategy will vary depending on whether you want to treat all the patients yourself compared to hiring an associate(s).

The concept that the right action for every chiropractor is to achieve the lowest possible overhead and minimize his time in the clinic to 3-4 days and maximize his take home pay, right?

One may consider that false ideas may get in the way of your expansion. A clear view of what is right for you may require corrective lenses in the form of true data on the subject of Chiropractic Business. The training provided by The Chiropractic Business Academy is geared to give you the fundamentals you need to organize and grow the practice of your dreams—not the practice of my dreams or anyone else’s!

For more information about how we can help you, check out the rest of our website and give a call to my office.
888-989-0855
I am looking forward to meeting with you!
Eric Huntington, DC

Oh, yeah. And here’s a short list of places to find money!
1. Place your heat/AC unit on a timer (available at Home Depot) so it does not run when you are not using the office.
2. Review the key points of your tax returns when you get them back from your accountant. I found an $11,000 mistake on one from 2 years ago— due to me having provided incomplete data to the accountant. (Hello refund in December!)
3. Always call and ask your creditors to refund any penalties they assess. It usually works.
4. See if you can reduce the size of your dumpster or lessen the service schedule.
***Always require 3 quotes prior to making a purchase. (This may not be necessary with small routine supplies).
5. If you provide a supplier with a lot of business, ask for a ‘wholesale’ discount or discount tier of some kind.

6. Reduce your phone bill by signing up for Vonage. Vonageis an internet based phone system that dramatically reduces your cost for business phones. You will need to register on Vonage.com, purchase a phone number from the site and choose a calling plan.

6.a. When you office starts expanding fast and you need more phones, consider a phone system like Talkswitch (Talkswitch.com), rather than using the phone companies complicated and costly multi-ling PBX system.

7. Print your own promotional materials rather than running everything to Kinko or other copy place.  The most economical color laser printer we have found is the Okidata series.