Break through the barriers and have both.
You have a practice if you are a doctor or a provider of any service.
Sooner or later, many of you must also create and run a business that supports your practice. This is where practice owners struggle.
It seems simple enough, but there is a wide gulf between a practice and a business that supports a practice.
Difference Between a Chiropractic and Healthcare Practice and a Chiropractic and Healthcare Business.
Let's look at some key differences:
Goals:
The goal of a practice is to provide professional services and deliver outcomes of that profession.
The goal of a business is profit.
Structure:
A practice is structured around and dependent upon the owner/provider.
A business is structured around and dependent upon systems, including goals, policies, and procedures.
Scalability:
Practices are generally harder to scale because they depend on the limited time and expertise of the providers.
Businesses can be scaled more easily by replicating systems and hiring added staff to meet growing demand.
Succession and Sale:
A practice's value is closely tied to its owner and reputation, making it challenging to sell or pass on.
A business, if well-structured, can run independently of its founder and can be sold or transferred more readily.
I spent 8 years researching the chasm between the practice and business models. I discuss this in my book, The Goal Driven Business.
You need to have a practice, of course. I define a practice as: "A network of relationships that are developed and sustained through communication and service."
And so long as you are operating at 60% or less of your full capacity as a provider, your business concerns are manageable. You have the time to adjust and treat your patients, chat with them, and go to Costco for supplies. You are essentially a part-time provider.
To operate at full capacity, you need to create a business structure.
Organizational Barrier to Practice Growth
But doing so is like going from propeller airplanes in the 1940s to jets that go faster than 767 miles per hour, which is the speed of sound. The conventional airplane's dynamics falter and control is lost as the speed increases. Many pilots lost their lives as their planes crashed in an attempt to break the Sound Barrier.
Similarly, there is a structural barrier, an Organizational Barrier, that causes growing practices to hit and likewise crash or stall.
The ideal is to continue nurturing your practice while gradually building a business infrastructure that allows you to operate at full speed, increase your profit, and still provide excellent service and outcomes. And at some point, pass it on profitably.
Despite the onslaught of advertisers that brag about million-dollar business owners in health care, real money is made by building an enduring practice supported by a solid business structure.
Love your patients and team, and improve your service. Strengthen relationships. Then, if you want to grow, schedule time to work on implementing the structural components for a business vehicle that will take you to your goals.
Want help in doing this? Contact me any time. Link
And read The Goal Driven Business.
Seize your future,
Ed
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If your practice building efforts aren’t taking you to your goals,
there are reasons -- many of which are hidden from you.
Find out what they are and how to sail to your next level by getting and implementing my book, The Goal Driven Business.
The Goal Driven Business
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