As a healthcare professional, you’ve got the magic touch to help people feel and be their best. But do you give your business the same time and attention you offer to your clients?
Many businesses falter – not because their owners aren’t great at what they do, but because they don’t make time for the tasks that come with running a small business.
Our advice? Ensure your business becomes and stays prosperous by checking on and maintaining its health every step of the way.
Here are 4 ways to help your small business stay in tip-top shape.
1. Charge What You’re Worth
When was the last time you raised your rates? Are they in line with the market value of your services? What about your competitors’? If you’re not sure, your business wants you to find out – stat.
First, do some research to find out what other professionals in your area charge and assess whether you’re more (or less) established or skilled than they are. This will help you set a rate that you can justify to yourself and your clients. Some professionals raise their rates by a small amount every year; others do a larger hike every few years. Give your clients fair warning of a price chance with a notice on your website and in your office.
When you manage your accounting in FreshBooks, you’ll be empowered to be a high-earning professional. Even better, you’ll project that image to your clients. It’s simple to create and customize an invoice, add your logo and personalize your “thank you” email. You’ll always look like the boss you are.
2. Ensure You Have “Anchor” Clients
Do you have a lot of “one-off” clients who come in to address a specific health issue, feel better after their appointment and then never come back again? On one hand, it’s great that your healing hands are so powerful – on the other, one-and-done clients are not ideal for your long-term business plan. You need a healthy balance of one-time, semi-regular and “anchor” clients, ones who consider your services an integral part of maintaining their health.
You might attract anchor clients by creating service packages that are focused on long-term health and targeting your marketing to appeal to people looking for lifestyle solutions. What’s more: With the right software you can track all activity by all clients, so you know exactly which ones are repeat customers and which ones are in and out.
3. Track Your Expenses As You Go
Tax time is stressful enough without combing through paper and credit card statements to unearth expense receipts. And they’re important. They’ll reduce the amount of tax you pay, helping your business’s bottom line stay robust. Regular expense tracking offers a real-time snapshot of your profit and loss. No more waiting until the end of the year to realize office supplies ran you a few hundred dollars more than you thought!
FreshBooks makes it dead easy to digitally record your expenses so everything is accountant-ready at tax time. You can even set up recurring expenses such as rent or subscription software so you don’t have to manually enter it every month. Plus, the mobile app allows you to do all your bookkeeping on your phone or tablet, wherever you are. You can even record the receipt for supplies or a round of coffee for your team before you’ve even left a store.
4. Embrace Your Key Performance Indicators
As a healthcare professional, you may feel out of your depth when it comes to financial reporting. It doesn’t have to be so scary! Think of it like exercise and diet: The more you can track and see, the more you can make informed decisions.
It’s the same with tracking your income and costs. If you want to grow your business (and let’s face it, who doesn’t?!), you’ll need to understand keenly where your money is coming from and where it’s going.
Understanding some key performance indicators (KPIs) will show you:
- How to master cash flow
- Which services are most profitable
- How you spend your time and where you can be more productive
- What areas of your business are succeeding
- Where your money goes and how to control costs
It’s a harsh fact that half of small businesses fail within the first few years of operation. One of the biggest reasons? Money.
As a healthcare professional, your primary focus is the care you give your clients. You are passionate about your skills and about your clients. But in order to grow a thriving business, you also need to care about managing your money. Then, you have a really great chance of beating those scary odds.
After all: It’s just like a human body, a small business will only grow and prosper with the right fuel, attention and TLC.
This guest post was written by FreshBooks for the Artichoke blog. FreshBooks makes invoicing and accounting painless for millions of small business owners.
About the Author
Heather Hudson is an accomplished freelance writer and journalist based in Toronto. She writes for a number of publishing, corporate and agency clients who depend on her to deliver high-quality, on-brand content and journalism with a fresh perspective. Learn more about her work at heatherhudson.ca.