Mar 12, 2021
Hey Rhinos, Dr. FJ Schofield
I want to go over an abbreviated version of some of the content I covered during our Digital Training. During the time of this video we are currently working through Covid-19, but this will be on YouTube for years to come so if there’s ever any crisis or recession this is valuable information you can use.
When I was in my 9th Trimester at Chiropractic school and my friend and I were putting together a business plan. You know, you’re excited, you’re ideological “we’re going to average 15 NP visits/week and we’re going to ….” So I show my dad, and he goes “you know this is great, and maybe you will grow this way. But you have to plan for the worst case scenario. You have to plan that some weeks you might only have 2 or 3 New Patients in the beginning, or none.”
You have to plan that way, you can expect the best, that’s great, but plan for the worst. In any crisis, whenever times are difficult, any planning period, it’s always best to plan for the worst. Expect the best, but plan for the worst.
So the most dangerous thing you can do right now in this crisis is be overly optimistic and assume it’s going to be done in a couple weeks. You have to plan as if this is going to go on for months and months and months. Plan for that, and if it doesn’t, GREAT, if it does, you’re ready for it.
So you need to Profit Forecast – Where are you going to be, if you continue to run like you’re running, where are you going to be in 1 month, 2 months, 3 months, 5 months…
So you need to know your numbers. We have a 6 week average excel sheet we send to our Rhinos for them to plug their numbers in. If this is your first time figuring your 6 week averages out, start with the 6 weeks just prior to this crisis starting. Compare your “normal running” 6 week average with your last few weeks in this crisis. You’ll then know, “okay, I’m operating at 50%”. Okay now let’s forecast that out in 5, 6 , 7, 8 weeks operating at 50 % (or whatever that looks like for you) and see what that looks like. Okay, now these are our costs, this is where we’re operating, are we profiting? So you got to know your numbers and you have to forecast out. Don’t be overly optimistic!
Then you want to look at your missed billing report – your receiving accounts. Know how much is out there and then typically how much can you recoup within 30 days or 60 days.
It’s great to do a weekly forecast, biweekly, monthly – Any kind will give you any idea of where you’re going to be if this issue continues on for months. We don’t know, so we really have to plan for that.
So how much of your missed billing and aging can you get in a short amount of time? Where are we at, in current office operations, where is the performance at. What are we doing
Then you have to Project “as is”
If things stay as they are for the next 3-6 months. Can you turn a profit during that time. So you have to know your cost & your office performance. The next video will be about reducing overhead, where to turn a profit and how to keep your cash free. The number one thing is to make sure your business stays alive and that you can take care of your team and make payroll.
This is all going to position you to do that. So you got to be very, very real with what’s going on. Don’t be delusionally optimistic – the number 1 thing to take away. Just like when you’re opening your practice, you had to be real. Plan for the worst, I can’t say that enough. Hopefully you have saved money, and that you don’t have 3 homes and 7 cars that you don’t use. Know your numbers, how your office is operating and your cost. If this continues, how will you be in 6 months? Can you still turn a profit? This is the first 3 steps.
Remember, there is always opportunity after this is done.. It’s always darkest before dawn. THIS IS WHY WE TRAIN. This is why we talk about thriving in the jungle, this is what being a Rhino is about. You wanted to be a business owner, this is what you signed up for and this is why we train. TO be READY for these moments.
-Dr. FJ Schofield