2016: The Business Math Problem You Must Solve
December 2nd, 2015 // 12:13 pm @ Scott Manning
Happy December Everyone!
What an amazing time of the year, though every month has some element of amazement as long as you are willing to take advantage of it and make the most of all you’ve got and all you’ve been given.
As I have said here so many times, you want to finish strong at the end of the year and start fast at the start of the next one. It’s so important to build momentum going into January.
In your business it’s imperative you have broken down your goals, objectives, projections, statistics and key performance metrics that will allow you to know that you are on track.
If you look at your income or revenue goals for the year: what amount of money, customers, growth has to be achieved? You should be able to break it down to the hour, if not minute, how much your time needs to be worth and how much your company must generate.
When we are looking at our targets, we get as specific as how many leads must be generated every single day and by which sources we can count on to produce a certain number of leads. We know if we can’t allocate for every single lead that must be produced we are going to be in trouble.
So many business owners approach their success in such a naïve and helpless way where they are not looking at the actual problem: the origin of where the money comes from.
Here’s an example, with our Dentists, we have the most successful big breakthrough dental practice transformation company (dollar for dollar of production and net profit growth) than anyone in the world. And that’s saying a lot because dentistry is one of the largest healthcare sectors and niche industries period.
Dentists are beat up one side and down the other on their “production” or the daily dentistry that they do per day and then they track the collections, which is obviously what goes into the bank account.
Seems to be that simple huh, how you make the money and how much money you made.
Big problem.
These are, as I like to explain, not “causes” they are “effects”. They are what happens as a result of other things happening.
You can’t just say… “Oh shit, I’m only making $5,000 of production per day, damn, I want to make that $10,000 per day.” Or you say “I have a $1,000,000 practice and want to go to $2,000,000.”
Fine. Easy. Good Goals.
But, the real question is how does that breakdown. If you want to do $167,000 per month then we now need to know how many days you are going to work and how many hours per day and then we know exactly what each hour must be scheduled at for you to hit your goals.
That is just one part of the equation.
Now we need to say okay, what is your average patient diagnosis…where the dentistry is created…so we now know what type of patients, procedures, and how many people or how much dentistry needs to be placed into your schedule.
It has to come from somewhere.
It’s easy to figure out the number and to track your results what is more complicated and is the secret to all business success is to go to work on HOW YOU ARE GOING TO CREATE THESE NUMBERS.
In Dentistry, there are 5 major production / income / revenue streams in a practice so we know how much each of those has to be worth and we know how much each patient in each category is going to be worth.
So we can end up with a specific formula and we can reverse engineer our way into exactly what must happen every single day, every single hour, with every single team member, patient and in every individual treatment room.
Now nothing is left to chance or accident.
We call this deliberate dentistry. Or for any business deliberate growth.
I have been teaching and working with entrepreneurs and business owners of all walks of life on this very advanced concept of reverse engineering your success and orchestrating the growth of your business that you envision and you say you want.
There has to be a plan and there has to be specific actions and systems.
Now is the time you must be thinking about this. You want to go back through the past 11 months and look at exactly what your numbers were and figure out what reality is like. Then you can set goals for next year and build a bridge in the middle of these two things that connects them together.
It’s the beginning of December…the countdown has begun…get ahead of your New Year by taking this very seriously and not leaving your success up to “what happens”. The money you make every day, week, month and year is either ‘just what it is’ or it’s exactly what you have designed and created it to be.
As the great Zig Ziglar always said “You can’t hit a target you do not have…” but just having the target is not good enough, you should know exactly everything that has to occur to create and result in that target. That is what business is about.
Your 2016 profits are going to be exactly what the answer to your business math problem gives you.
You have to have the right equation before you can get the right answer. Now is the time to be working on this until you get what you want. Why would you want to be doing anything else – this is where success is designed.
Category : Blog
