John Davie - Physio Business Growth
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PHYSIO BUSINESS GROWTH: The Science of Physiotherapy Business Copyright ©2020 John Davie All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means-electronic, mechanical, photocopy, recording, or any other-except for brief quotations in printed reviews, without the prior permission of the author. Phys io B us ine s s Growth | 2
CONTENT Introduction.................................................................................. 4 Chapter 1: My Story...................................................................... 6 Chapter 2: The Physio Business Growth Blueprint ....................... 9 Chapter 3: The Pyramid................................................................ 12 Chapter 4: The Profit Optimiser Road Map................................... 16 Conclusion................................................................................... 24 About the Author.......................................................................... 25 Phys io B us ine s s Growth | 3
Introduction Welcome to Physio Business Growth. I have one goal, “to help owners of private practice physiotherapy, and physical therapy businesses to improve their profitability and lifestyle, without being overwhelmed or overworked.” I believe it’s not an accident that you’ve picked up this eBook. Our objective is to help you develop business acumen around your specific business to ensure that you achieve from your business what your hard work deserves. Anyone who has spent any time with me in person or online, has heard me say that physiotherapy is one of the most rewarding professions. We impact individuals’ personal health, we have a positive influence on family dynamics, and we do immeasurably good work in communities. However, we are not nearly remunerated well enough for the good work we do. Physio Business Growth exists to rectify that. Our goal for all clients, is to create a business that produces substantial profit, year in and year out; which increases every quarter, delivers an outstanding service at every patient touch-point and operates independently from the principal’s or director’s everyday presence, so they can live the lifestyle they deserve. Phys io B us ine s s Growth | 4
Contemplate these questions: 1. Do you own a business, or do you own a job? 2. Are you a physio or physical therapist (PT) who happens to promote these services or do you have a professional marketing organization that happens to be a physiotherapy or physical therapy operation? Based on how you answer these questions will determine your end point. The difference is the business acumen of one answer as compared to the other. Consider this: Richard Branson owns Virgin Airlines and he doesn’t fly planes, he owns a large chain of gyms and he doesn’t work as a personal trainer, he owns a railway and he doesn’t drive trains. I know your business is not that size, however, let’s think about the same principles: the fundamental point that stops private practices from thriving, is not knowing the critical business building activities or how to implement them in a specific order applicable to your circumstances. Owners just end up being busy and sometimes frantic, working hard but not making any headway and often feeling like they’re just constantly swimming against the tide. This often accumulate into a feeling of being overwhelmed and overworked. When it comes to business activities, people often think, “I’m doing all I can, I can’t possibly add any new activity to my already overburdened schedule…” What if there was a better way?......... Why do some very average clinicians create thriving businesses and other tremendously talented clinicians struggle to create business success? Here’s a clue, it has nothing to do with your clinical skills and everything to do with your business acumen. Phys io B us ine s s Growth | 5
Chapter 1: My Story I‘ll let you know the secret. It is not about doing more. It is about doing less. It’s about changing what you are doing and replacing it with activities that build long-term profitable structures that provide outstanding service whether you’re present or not. I came across this concept early in my career when somebody asked my father, “So, John’s the physio in the family?” He turned around and said, “Oh, no, John is a businessman who happens to be a Physio.” This impacted me and it took me a while to realize what he was talking about. From that point on, I made it my mission to find out why some practices thrived and why others that started strong, then hit a ceiling. To put things into perspective, my Dad was my business mentor. Here is my story: Fresh from graduation, for about a year, I worked for New Zealand’s Olympic physiotherapist. After this, I went to my Dad and told him I wanted to go into business for myself. He was excited. He encouraged me to begin looking for any practices that were for sale or to start one myself. At that point I stopped and told him, he had the wrong idea. What I meant was that I wanted to learn how to be a painter and paper hanger like him and take over his business at some stage. This floored him. My Dad came from a blue-collar background and he had a wonderful business. Mum and he often went on holidays abroad, had a holiday house, and spent a lot of time with the family. What I realized was that most people in the Physio/PT profession, lived a hectic lifestyle, they worked long hours and often weekends, they didn’t go on any long breaks for fear of their business suffering and they didn’t have the family time I had experienced. I didn’t want that lifestyle as a long-term endpoint. I was newly married, and I wanted to spend more time with my wife and soon-to-arrive kids. Phys io B us ine s s Growth | 6
Dad took this on board and said something very wise. He said, “Over next 12 months, as you travel around the world playing water polo,” (I was still playing internationally at that stage, and we were involved in a number of international tournaments,) “Take time at the end of each tour and study what the best of the best are doing in different countries”. “After 12 months, we’ll sit down and put together a business plan and see if it can create the lifestyle and income you want from physiotherapy. If it can, then we’ll go ahead and begin creating the ideal business. However, if it can’t meet those profit and lifestyle demands, then we’ll begin getting you ready to take over my painting business.” It was a win-win. I either take over Dad’s business or I have a business plan that will allow me to succeed and prosper. So, after several months, we put together a business plan and were able to implement it with speed because I’d learnt so much from others who were successful and willing to share. From that point on, we went full-steam ahead. We didn’t listen to the nay-sayers, and within three years, we were twice as big as New Zealand’s next biggest practice. It was at that stage that Dad’s comment, “Oh, no, John is a businessman who happens to be a Physio,” made sense. From that point on, I’ve spent the next 25 years studying the principles of success and what made for an elite functioning private practice. Health issues meant I needed some time out of the business completely. I spent this time contemplating what I could have done better or differently. I continued to study and learn more about business, leadership skills, coaching and motivation. I worked on myself as a business owner, husband and father. Sport’s injury physiotherapy, injury prevention and the science of strength and conditioning were in their infancy during the 1970’s and 80’s. As an International athlete during this time, I had many injuries. I was fascinated by the incoming research and used my own experience to fuel my desire be the best physiotherapist I could be, to help not only my athlete patients but also the up-and-coming young athletes along with the mum and pop weekend warriors. Phys io B us ine s s Growth | 7
My chronic health issues mean I have spent my life in physiotherapy treatment rooms as a patient and as a business owner. Every experience brings new insights and inspires solutions for challenges facing both patients and business owners. Years later, in creating Physio Business Growth, I’ve had the good fortune to have a number of world authorities come onboard and offer additional insights. Consequently, ‘Physio Business Growth’ has resources from global authorities in a variety of different formats, including video tutorials, webinars, podcasts, eBooks, research papers, downloadable hard copy and innovative software. These have been put together in a variety of structured programs specifically to help the private practice business owners grow and prosper. We never stand still at Physio Business Growth. We are constantly looking to improve our content, our production and presentation. We learn from each of our clients and their unique situations, strengths and weaknesses. Currently this allows us to effectively relate and work effectively with MSK and niche physio and PT owners across numerous countries. New technologies and research are thoughtfully perused then adapted and adopted where applicable. We love the way our Boardroom (advanced) clients come together and share ideas, solutions and resources with each other. This continual collaboration and research keep us at the cutting-edge of best business practice for our industry. Phys io B us ine s s Growth | 8
Chapter 2: Physio Business Growth Blueprint Consider this question: Do you think in five years’ time, a newly qualified graduate could come out and make a significant impact in their market? Well, of course they could, because I know I did it. I’ve worked with a number of others who have done this as well. If that is the case, why can’t that person be you? Right now, you know a lot more than any new graduate who is coming into the market. The key thing that stops a lot of smart people from progressing is a lack of business acumen. Let’s face it, physio and physical therapists are clever. We must be, to get into our university courses and qualify. However, we’ve had little or no training in the business knowledge and skills that are required to develop and create a thriving, prosperous private practice. Phys io B us ine s s Growth | 9
As a result of this, we’ve developed The Physio Business Growth Blueprint which represents the activities with which every elite, high performing private practice operates. There are four quadrants within this model, and this is what we call the 4Cs. Each of these Cs has two components. These make up the overriding components required to stand out in today’s busy market. They are: 1. Culture a. Leadership b. Team Culture 2. Commercial Requirements a. Marketing b. KPIs 3. Clinical Expertise a. Elite Service Model b. Performance Coach 4. Customer Service a. Patient Centred Service b. Practice Management 1. Leadership skill acquisition & developing a team’s culture make the Culture Component. 2. Measuring your KPIs (Key Performance Indicators) and marketing make up the Commercial Requirement. This includes the activities and skills to positively move these numbers. 3. Having an elite clinical service and performance coaching routine to deliver these high-quality services make up the Clinical Expertise. 4. The patient-centered customer-service concierge model and practice management systems comprise the Customer Service section. Phys io B us ine s s Growth | 10
Imagine your business is made up of eight components and the ceiling restricting your business growth is determined by the segment with which you are least good at. Your success is determined by how big your circle is. The larger the circle, the higher the success rate, the higher the efficiency within your business, the higher the patient and staff satisfaction and most importantly, the higher your profitability. Our objective is to help you take each of these sections and push them out as far as possible. Physio Business Growth programs are designed specifically for this. Phys io B us ine s s Growth | 11
Chapter 3: The Pyramid Phys io B us ine s s Growth | 12
We’ve found that owners of private practice businesses fit into one of four categories and we’ve created a visual for this called the Physio Business Growth Pyramid. Our objective is to help owners to grow and move up the levels. We are sure that most of you would ideally like to sit in tier 3 or 4, however in reality most businesses we start working with are tier 1 or 2 with some knocking on the door of achieving 3. Take a look and see where you fit. Hobbyist The first level is the Hobbyist or self-employed category. The person who owns a wage or job, or more accurately, the job owns them. They work long hours, predominately clinically, often more than 50 hours a week; they earn less than AUD $100,000 (or £50k) and often some staff members earn more than they do, yet they carry all the risks. They often feel overwhelmed and are tired and struggling to move to the next level. It’s important that anyone on this level develops the fundamentals of business with someone from the outside. This will allow them to develop a game plan. It’s too difficult when stuck in the mire of busyness, to see what needs doing or what needs to stop or change. Owns a Job At this second level, owners employ 2.5 to 5 full-time equivalent therapists and have personal income of less than AUD $150,000 (or £75k). They typically still work a full case load and have likely hit a growth ceiling. These owners need to develop a more structured program, so that business can operate and deliver outstanding service without relying on the owner or the director being there controlling all things. Phys io B us ine s s Growth | 13
Business Owner True business owners live on the third level. They have developed efficient systems, processes, procedures and protocols along with an annual marketing plan that can be switched on and off to deliver predictable numbers. They work 2-days IN, 2-days ON and 3-days OUT of the business each week, and they at least earn AUD $250,000 (or £125k). The business can operate totally independently from the owners needing to be present while still producing an optimal profitability. Scaleable Business Owner The fourth level is the Group Business Owner. These owners work predominantly on the business. They produce high quality clinical results in all their businesses with new growth strategies being implemented as required. Operational processes are in place to ensure the ideal patient experience is occurring at every touch point; their personal income is more than AUD $300,000 (or £150k) and they have a lifestyle free of business constraint. They engage other people to manage the nitty gritty of their businesses and can now scale their business through additional clinics or revenue streams. Hope is not a strategy Not everyone wants to be at this top level, however right now I’d like you to consider where you fit and where you would ideally like to be. Understand it takes commitment and changing your current activities to move from one level to the next. I want to reinforce this: any change always starts with the end-goal in mind. This is essential to make an upward step. Phys io B us ine s s Growth | 14
Too many people are so busy being busy, tied up in activities that are not category one business building activities. Your objetive is to only work on category one activities which are: I. Establishing policies and procedures, protocols and operational activities so that a high-quality service is delivered and every patient touch point, so the business can operate independently from the owner needing to be present II. Marketing activities III. Quality control and quality development throughout the business Too many practice owners hope that their business will take off, or they consider some people are lucky and others are not. Let’s be clear on this: hope is an extremely poor strategy when it comes to business success. It is imperative to have a personalized structured plan. Not a one-plan-fits-all type of program. While all good plans have must do components. Every business has its own nuances which need to be considered. These nuances include the business owner’s specific skill sets, personal experience and any professional passion. The location of the business (country / state / region / rural / urban / CBD / suburban) is also a consideration. You should start building your business based on your individual experience with your desired end point always in mind. Phys io B us ine s s Growth | 15
Chapter 4: The Profit Optimiser Roadmap At Physio Business Growth, we’ve developed a road map as a guide to help private practice owners move up to the levels of the Physio Business Growth Pyramid. This has three phases: Throughout this roadmap we have developed a number of unique tools, processes and protocols to accelerate your progress. Phys io B us ine s s Growth | 16
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Analyse Phase This initial phase is where we use the business diagnostic to identify revenue leakage areas as well as the growth potential. From here, we develop a bespoke action plan specific to your needs, nuances and aspirations, which include a number of criteria we work with to ensure a smooth transition. Firstly, and laying a strong foundation for future growth, is the importance of being humble, smart and courageous. Anyone looking for growth in their business needs to be humble and smart enough to ask for help from someone who has gone before and produced their aspired results, all the while being courageous enough to act. The next part of the roadmap requires commitment to follow through with the action plan bespoke to your business requirements utilizing the “90-Day Productivity Stack” which helps you embed clear, prioritized and a trackable action plan. The third component of the analyse stage, is structuring your work week so that you can put into place your action plan with certainty and confidence through the 2-2-3 work week structure Phys io B us ine s s Growth | 18
Structure Phase Basically, this is where we plug the holes that exist in your business operations and lay down the growth foundations that will produce the profit and lifestyle you desire. Holes are revenue leakage. There is no point in growing the number of patients, if the business is hemorrhaging revenue. This is an action phase. Each business works to embed strategically sequenced activities, applicable to the unique nuances of the business. You’ll need to work through these, one step at a time. This will prevent being overwhelmed and make sure that each component is fully embedded. This empowers you with thorough understanding and knowledge based on every business component required. Phys io B us ine s s Growth | 19
The 1st step is the “Cultural Matrix” to lay down the leadership and cultural foundations that’ll accelerate your growth exponentially. These are the attributes that every high performing business has in abundance and for a business to thrive these elements must exist and be adhered to. The “Roadmap” ensures a smooth growth transition occurs so you can build with certainty and clarity as to what needs to occur in what order. This helps reduce that feeling of being overloaded or overwhelmed that often accompanies many private practice owners, so you can build with confidence. The 3rd component of this stage is embedding the highly successful and sought after concierge-patient-centered model, so that you are assured that every patient receives an outstanding service at every patient touch point. This has the ability to totally transform business so that your patients become raving fans and refer all their friends and family members to you as a matter of course. Phys io B us ine s s Growth | 20
Scale Phase The ability to scale, build and soar occurs when the fundamentals are all in place and are operating at a highly developed level. At this stage you can maximize the existing potential and create financial prosperity, security and lifestyle choices that you have always desired. Phys io B us ine s s Growth | 21
At this stage it is essential that you are measuring all your metrics through the “KPI Tracker” which is the only business performance tracker just for physios. It gives physio clinic owners the power to see business performance for what it really is and track more than 50 things about physio staff performance and patient appointments, to always know where you stand. The physio KPI Tracker helps your physio business reach new heights through: • Peace of mind knowing your business is always where it should be. • Identifying areas that need support or a different approach. • Revealing the most profitable and capable clinic staff worth investing in. • Knowing how much each service contributes to your profits. Once you know what you are measuring, you then require a “Performance Coaching Formula” that your whole team buys into with the associated “Performance Coaching Scorecards” to effectively change the metrics, skill sets or behaviours, so that they match the ideal customer / patient journey. Phys io B us ine s s Growth | 22
It’s once you’ve got all the service deliverables functioning at a high level that you open the flood gates through effective internal, external and digital marketing strategies. The “Marketing Matrix” will help guide you along the path to ensure you are maximizing every available marketing opportunity so that you penetrate deeply into each of your target markets. The last step on this roadmap is leveraging your way to wealth and a healthy lifestyle by building a team of leaders who have the skill sets to deliver an outstanding service at their particular task. We have an in-depth practice manager’s program designed specifically for this. Phys io B us ine s s Growth | 23
Conclusion If you are a business owner, and you want us to help you create a business that meets your personal aspirations and produces a significant profit, while delivering a highly developed service at every patient touch point, all without your continual presence - then please, reach out and see if we can help. Like many business owners before you. We’ll help smooth the path to meeting your business aspirations through a proven structure and many “done for you” templates and processes. All of which will reduce the stress and sense of being overwhelmed. If you think that sounds like you, then why not schedule a free 30-minute discovery session. In this session, we will dive deeply into what you are looking for and also what is holding you back from achieving the business success that you deserve. You need to take action if you want to change your end result. If you are not ready to discuss how we could help you and your business right now, then please check the resources page of our website where you will find a range of free materials designed to get you thinking about your business in the best way possible. www.physiobusinessgrowth.com Phys io B us ine s s Growth | 24
About the Author John Davie John Davie is the CEO of Physio Business Growth. He comes from a business and sports background. John is considered an international business authority in Physiotherapy and Physical Therapy Business Development. He mentors numerous business owners around the globe. Sports Medicine Qualified as a physiotherapist, John created Australasia’s largest single physiotherapy facility, which according to the national health insurance company, was twice the size of the next biggest NZ physio business and was created in only a 3-year time frame. Presenter John has presented in numerous countries for the Oceania National Olympic Committee, various sports medicine organizations and various business groups He covers topics on sports medicine, strength and conditioning and business in general. Strength and Conditioning Specialist John also qualified as a Certified Strength and Conditioning Specialist through the National Strength and Conditioning Association of America and developed a sports training business for elite athletes for numerous NZ sports teams and associations. Author John has published a book titled “Marketing: The Heartbeat of your Business” specifically written for allied health businesses, as well as a motivational book currently being written, titled “The Transferable Characteristics of Elite Sport into Life”. In association with Wayne Smith (past All Black coach & assistant coach) John featured in a video titled ‘The Magnificent Sevens’ on training for elite sport with specific focus on Sevens Rugby. Phys io B us ine s s Growth | 25
Athlete As an athlete John represented New Zealand in Water Polo for over a decade, won medals at the New Zealand Surf Lifesaving Championships, and was a titleholder in the Canterbury Long Distance Swimming Championships. Coach John has also coached at elite levels in water polo, rugby union, rugby league and Canoe Polo. He also spent time coaching in the field of swimming for people with disabilities. In the area of strength and conditioning, John has worked with men and women in the sports of rugby union, rugby league, netball, hockey, softball, water polo and touch football Phys io B us ine s s Growth | 26
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