Why Knowing Your Numbers in 2023 Should be Your New Year’s Resolution!
Learn how to use these 2 free tools from APX Platform to identify your KPIs and know your practice’s numbers
We all are aware of the elephant in the room…a hard economic year ahead and constant talk of a looming recession. That’s why we wanted to kick off the year with some quick tips and two free tools you can take advantage of to help your practice thrive despite a down economy and a bear market.
For so many aesthetic practices, knowing your numbers is a struggle. In fact, “Which numbers should we be tracking, and how do we evaluate those numbers to enhance our profitability?” are two of the most common questions our APX team gets.
Part of our mission is to listen to our clients and develop tips, tools, and resources to help solve common challenges. So, here are some best practices to adopt a more data-driven mindset for 2023 as well as two free tools to help you understand and track your numbers to work smarter, not harder.
Best Practices to Become More Data Driven
If you’re only tracking money-in and expenses out, you’re likely missing opportunities to trim the fat and or experience tremendous growth by knowing how to analyze your data or P&L and making the appropriate changes necessary. As we always say, “You have to inspect what you expect,” because you can’t track what you don’t measure.
Now more than ever, you MUST know your numbers. Why? Because data doesn’t lie. It is factual and not based on emotion. With a down economy, it is more important than ever to know, track, and analyze your data, so you can streamline and choose to focus on the services that have the highest ROI (return on investment).
Whether you are an owner or a manager running a medical aesthetic practice, to get a true grasp on your practice’s overall financial health, performance, people, productivity, revenue, profit, equipment, expenses, etc., taking a practice assessment is vital. It is one of the most important steps you can take to recession proof your business.
Not only will it identify areas of strengths within your practice, but also areas of opportunity for growth to improve efficiency and profitability.
Remember, being busy does not always mean being profitable. Our clients often tell us they are so busy, yet they want to know:
- Why are we not growing as fast or generating as much revenue as we would like to?
- How come our schedules are not full?
- What reports should we be running?
- Why isn’t our website generating more leads?
- Or we are getting leads but why are our conversions low?
- What should our revenue per hour be?
- How do we know what procedures are the most profitable?
- How do I pay my team?
- What equipment should I buy?
- What should I charge?
- Should I offer a loyalty program?
As a result of these repeated questions, our team has created a FREE comprehensive Practice Assessment tool to analyze your entire business from the ground up.
What is a Practice Assessment and Why should you Perform One?
A comprehensive Practice Assessment is a series of questions that helps to identify the gaps in your practice, allows you to course-correct, then make the changes you need to implement right away!
You can’t make an accurate diagnosis without the proper information. Just as you would never make a medical diagnosis without a set of diagnostic parameters or tests, you cannot diagnose what’s working and what’s not in your practice without taking what we like to view as the “Ultimate X-ray.” A Practice Assessment allows you to take a deep dive and really evaluate your business as well as uncover missing revenue and growth opportunities, so you can pivot and make informed decisions on what to change.
Completing a Practice Assessment can help you to:
- Take a deep dive into all of the departments of your business. Sales, Marketing, EMR, Equipment, Pricing, Compensation Structure, Leases, P&L, CC fees and more
- Determine your Revenue per Hour as a business, by provider and by service category and compare it to industry benchmarks (More on this below)
- Know what treatments yield a high or low ROI
- Evaluate your conversion metrics. They should be 70% or higher
- Put call tracking into place and evaluate your phone conversions so you don’t lose thousands of dollars.
- Streamline your consultation process, build long-term treatment plans, and create follow-up protocols.
- Understand your cost of goods
- Align your compensation plan with the company goals
- Make sure your payroll is 30% or less of your operating costs and if not, where to make cuts.
- Channel your marketing dollars in the areas that are most important
While this may seem a bit overwhelming, the APX Platform team is here to support you. We have created a FREE, simple yet powerful Practice Assessment Tool you can complete right now by clicking HERE. After answering a series of questions, you’ll have an opportunity to schedule a complimentary follow-up meeting with one of our APX specialists to review your results and discuss how we can help you exponentially grow your business and improve efficiency, productivity, and profitability.
FREE Revenue Per Hour Calculator: A Critical Key Performance Indicator (KPI)
A critical KPI to understand and measure is Revenue Per Hour. You must understand:
- Revenue coming into your practice as a whole
- Revenue per the category of services to determine which services are most profitable
- Revenue per provider to determine how productive and profitable they are
We want you to be able to make good decisions about our business. We want you to be able to set goals. We want you to be able to incentivize your team appropriately. That’s why APX created a FREE Revenue Per Hour calculator to help you gain a better understanding of where your money really comes from and what is profitable and what is not. This first-of-its-kind tool allows aesthetic owners and managers to fill in some key data, and then find out immediately their Revenue Per Hour. Subsequently, you can schedule a follow-up call with one of our team to go over your results.
Remember, our team at APX is here to support you to ensure 2023 is the year that you know your numbers!