When working with therapy business owners, my coaches and I are often asking the question, “how can you save money, too?” Because not only do we want private practitioners to make more money, we want them to learn how to manage their income, too, so they are not wasting money on services or products they don’t need.
One area that we look to save money is in the cost of therapy office buildouts and maintenance. While it can be tempting to spend thousands of dollars with your landlord for the promise of a beautiful new therapy space to work from; you really do need to take a deep look at whether the expense of this is worth what it costs.
For example, one of the therapy business owners that we coach had moved into new office space, and he was only planning to be there for 3 years. The space was quite functional but the landlord brought in a designer to ‘help make the space look nice.’ The designer suggested some changes in order to upgrade the office suite, at a cost of $15,000 in buildout dollars to the private practitioner. My client was initially excited about this idea; but then ran the numbers. He realized he’d be paying an extra $5000 per year to upgrade space that he wasn’t even sure he’d be staying in past three years. The space (as is) was nice enough, and other than adding some new wall posters, he decided not to spend his money there. In a sense, he saved himself $15000 over three years.
Another client of mine spent a great deal of money furnishing her therapy office, only to realize that all her clients preferred just one chair in her office- they all sat there no matter how much other furniture she had in the room. As a result, she realized that the amount she’d spent on expensive furniture for her office was probably unnecessary– she could have just spent some money on a very nice patient chair or two, and saved the rest.
Do you see what I mean?
It’s not that I don’t want to have a nice office or nice furniture. I just want you to understand if these items are really going to make a difference to your practice and your practice profitability. Sometimes (and I’ve been guilty of this too) we spend money on expenses like these because they make us feel good, not because they necessarily represent the best business decision.
Other places you might look to save money?
You can try to renegotiate any existing phone contracts, merchant account fees, or service fees you pay each month. You can see if you can reduce expenses by cutting back on unread magazine subscriptions in your waiting room, or by skipping the super fancy phone system.
Again, it’s not about depriving yourself or your business of what it needs; it’s about being smart and thoughtful about where you spend the money you’ve worked hard to earn.
Again, if you want to learn how to increase your profits in your therapy business as it is right now, do join me for: How To Make More Income Without Getting One New Client.