From 1929 to 1939, the world endured a severe economic downturn that would later be referred to as the “Great Depression.”
This economic turmoil resulted in a difficult period for most companies…but not all of them.
Some brands where able to make great strides during this time. These successful companies were different sizes and came from different industries. What they had in common was the fact that they kept investing in growth while others cut back.
Right now, the entire world is dealing with the effects of the coronavirus pandemic. So we are sharing 3 tips for private practice owners looking for ways to grow their practice during hard times.
Trim the Fat
Now is the time to be brutally honest about the necessities in your business…
And to cut anything that is unnecessary.
This sounds simple, but it’s a task that many business owners struggle with. Particularly when it comes to making hard decisions about personnel. Or past investments that have yet to produce a return.
Now is the time to take a deep dive into your numbers to find areas to cut back.
Marketing expenses are often the first thing put on the chopping block when it comes to trimming the fat. But eliminating marketing will also impact your revenue and may slow your recovery. Keep the big picture in mind before making the call to stop or cut back on marketing.
Realize that Everything is Cheaper Now
Be fearful when others are greedy. Be greedy when others are fearful.Warren Buffet
Over the past few months, the hiring market for PTs has completely flipped. In the past, some owners struggled for months to fill PT job vacancies. Many private practice owners expressed how hard it was to compete with HOPTs and POPTs practices when it came to hiring new grads.
Now, that situation has flipped. And the same is true for the real estate market. Now is a great time to hire new PTs and/or renegotiate the terms on recurring expenses like rent.
Plan Ahead Now
No one can predict exactly what will happen in the economy. But, it’s a given that there will continue to be cycles of growth punctuated by periods of decline.
In the last two decades, the U.S. experienced recessions in 2001, 2007, and right now in 2020. And there will likely be another recession approximately 10 years from now.
Again, the exact time and circumstances are unknown, but that doesn’t mean you can’t plan ahead.
One exercise is to develop a “Grey to Black” plan for your practice. This Grey to Black plan is a financial forecast that looks at what would happen if you lost 25%…50%…or even 100% of your revenue.
How much time could your practice remain open? What steps would you take to minimize the damage?
Taking the time to plan ahead now will help you make better decisions during an actual crisis. Don’t let yourself be caught off-guard a second time.
Right now, times are tough for businesses. But growing your practice is still possible.
PTs provide a vital service helping people in pain. It’s important that PT owners do what they can to ensure their practice survives hard economic times so you can continue to provide this service to your community.
We’ll be going more in-depth on the topic of Growing Your Practice During Hard Times during the upcoming Breakthrough Virtual Summit.
Tickets for the Summit are free, and the event will take place 100% online. Click here to reserve your spot.