Performance Matters - Idea #22

Run the Practice like the business - because it is. Make no apologies for the need to make a fair and reasonable profit.

Profit is the reward for taking risks. Profit provides jobs for people and job security. Profit provides competitive wages and benefits. Profit provides continuing education. Profit produces skilled team members. Profit creates opportunities for professional advancement. Profit buys new equipment. Profit allows innovative programs. Profit allows community service and leadership. Profit contributes toward influence.

Even non-profits need a positive margin to remain healthy and relevant - "no money, no mission".

How much profit should one expect from a practice? Well it depends on the decisions you make - not just the big ones but all the little ones that add up over time.

Practices that I have benchmarked in recent years have margins that range from about -40% to +45%. WOW what a range. Too many Practices accept inadequate profits. Think about it... 75% of practices statistically do not perform in the the top quartile of performance. 50% of Practices perform below average.

Every Practice has opportunities for better profits.

The only things that hold them back are an understanding of the possibilities, the decisions they make and the actions they take. Every Practice represents unrealized potential and promise!

The way to earn a fair profit is not through budgeting but instead through profit planning. There is a difference - a big difference.

Be willing to take your reward for the risks you take, the service you provide, and the value you create. You deserve it. Your family deserves it. Your community deserves it.

Take your Profit and live generously! Need help... just ask.

Bob

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Performance Builders