Goal Setting: 3 Ways to Increase Your Private Practice Income

Private Practice Income: 3 Ways to Increase It
3 Ways to Increase Your Private Practice Income

As you assess your 2018 business results you may be using this information to set your 2019 goals.  If you have a goal of increasing your 2019 revenue, then here are 3 ways to do so.

Market Yourself & Your Services

Naturally, helpers are a little adverse to “marketing”.  We tend to view the term as salesy or pushy.  However, marketing is simply the act of letting people know that you exist.  You are letting them know that you are available to help them.  By holding back, you’re really doing people a disservice because someone may need you and they don’t even know that there is someone who can help them.  If you currently have appointment slots to fill, and you want to fill them, then put yourself out there.  You WILL acquire new clients.  It’s a win-win:  Helper + New Client = Revenue + Healing

Outsourcing = Time to Take More Appointments

Business owners wear many hats – especially solo practitioners.  Take stock of the administrative tasks you perform on a daily, weekly, monthly and annual basis.  How much time do you spend on these items?  Get a notebook and really track it.  At the end of a month you will be shocked at the time spent on these activities.  How much additional income could you be making if you outsourced some or all of these tasks?  Let’s take a look.

For the sake of illustration, let’s assume you spend 1 hour / week on administrative tasks, 50 weeks / year, and you could be making $125 / hour helping a privately paying client.  Doing all the administrative work yourself, you will spend 50 hours / year on administrative tasks.  These 50 hours would cost you a gross $6,250 of revenue / year (50 hours x 125 / hour).  If you could outsource these tasks for $62.50 / hour it would cost you $3,125 for the year (50 hours c $62.50).  Your net profit (revenue minus cost to outsource) would be $3,125 or $260 / month. 

One task to look at outsourcing is payroll processing.  Solo practitioners spend hours, over the course of a year, processing their own payroll, submitting taxes to each taxing authority, and filing all necessary quarterly and annual reports.  Outsourcing your payroll services can free up productive hours, pass the payroll burden to a qualified service provider, and increase your overall revenue.

Modify Your Hourly Rate for New Clients

As a professional, who’s established a relationship with each client, it can be hard to increase hourly rates for existing clients.  So, at the beginning of each year, revisit your hourly rate and consider increasing it.  Think about increasing your hourly rate by a percentage or dollar amount that covers the increase in your cost of living and increases in your business expenses.  You may also think about your own pay and consider the inclusion of a reasonable raise.  Think about, and reward, your efforts of adding value to your client’s well-being and healing.  As a fun fact, if you average 20 clients per week, 50 weeks per year, then every $5 increase in your hourly rate equates to $5,000 of additional revenue per year – that’s $417/month. 

If you’re uncomfortable with adjusting your rate for current clients, then don’t do it.  Instead, think about rolling out your new rate for new clients.  Before you know it, your clients will be at your new rate.

Summary

While we are helpers, we are not charities.  We own a business, with real business expenses, and our business provides us with our livelihood.  It’s hard to do our best work when we ourselves are struggling financially.  It can feel a little foreign, but we must change our mindset and treat our businesses as businesses. In doing so we need to make sure it’s profitable and able to provide us with an appropriate living.  Just as costs tend to go up over time, so should our revenue.  If your 2019 business goals include a new revenue goal, then I hope this article has provided some ideas for accomplishing that.  If you would like to discuss business profitability, taxes, or payroll services please feel free to reach out.