10 care health private top
by Alexander Kohl, Passionate Management
This is part 6 of the 7 Biggest Business Mistakes Health
Practitioners Make.
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Financial stability means that your income is equal to or higher than your
living expenses on an ongoing basis.
Why is the lack of financial
stability an important mistake in the successful running of a health
practice? If you worry about whether the next income is going to be enough
to cover your expenses, you are stressed. This reduces the focus you can put
on building trusting relationships with your clients, because you always
have in the back of your mind that they need to come for a session.
Working Out Your Financial Position A time-frame of 6 to 12 months is
normal to build up a sustainable client base if you really work on it
actively. So when you start out (or want to take your practice to the next
level), do a quick calculation on how much money you need to survive the
next 12 months (it is always good to plan on the safe side).
Take into
account your private expenses like rent (or mortgage), electricity, water,
rates, phone, car, food, fun things you do (cinema, eating out, holidays),
insurance. Add your health practice expenses like consumables, equipment you
need to purchase, marketing you want to do (any advertising, business cards
or website), any additional training to update your skills, membership in an
association, insurance, a lawyer, accountant or bookkeeper and any other
expenses.
Add that up and put an extra 10% safety on top for any expenses
you might have forgotten.
Then add up the income for the next 12 months
you can be certain of (e.g. interest payments from an investment, child care
benefits, other government support, a job you might have, etc).
If you
had a stable income from your clients in the past 3 months (either the same
amount each week or rising continuously), you can also factor that in.
Are You in a Stable Position? Now compare your total expenses with your
total income. If the income is higher than the expenses, you are financially
stable. If the expenses are higher than the income, you are unstable and are
losing money.
Please note that you might need to factor taxes into this
calculation as well. If you are uncertain how to do that, speak to your
accountant.
The Solution If you are in a financial unstable
position, there are two long term solutions: reduce your expenses or/and
increase your income.
To increase your income you could get a part-time
job that covers the gap until your practice has grown to a secure level of
income.
To hope for more clients to solve the financial instability
usually puts more stress on you which puts a strain on the relationship with
your clients and reduces chances of your success.
Once you are in a
financially stable position, it is time to concentrate on actively building
your client base. Now you can do that from a place of strength with their
best interest in mind.
Already posted: Mistake 1: Being a Jack of
All Trades Mistake 2: Producing a Brochure Mistake 3: Neglecting Your
Current Clients Mistake 4: Hiding at Home Mistake 5: Failing to Plan
'How to Avoid the 7 Biggest Business Mistakes Health Practitioners Make' Get
your complete report for free at:
http://www.passionate.com.au
