← Business School for the Rehab Chiropractor
Business School for the Rehab Chiropractor
How To 2x Your Revenue Without More Clients – Money Math for Rehab Chiros
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All right, guys, and all you podcast listeners, before we get going into this episode, just know we're trying something new. Once a month, we are recording a video version of the podcast. So this episode has me. I'm going to be on the whiteboard. I'm going to be drawing out numbers. It's about money math. And so if you're getting confused and if you want more information, if you want to see what we're actually doing, there's a link in the notes below in the show Notes, where you can click on YouTube and watch the video version of this podcast. So with that, let me get started. What we're talking about today is about money math. And I think it's one of the pillars of being a chiropractor that is least likely to be talked about and most likely to be forgotten. And the problem that most doctors have in business is that they're not good with numbers. Now, when I got into chiropractic school and I started working my way through the curriculum, what I thought is that because we are generally smart individuals, we are good with numbers and good with math and good with our personal finances. What I have come to learn later, not just chiropractors, but medical professionals in general, are oftentimes the worst with money. And the reason is because even though we're very smart, smarter than the average person out there, we are focused on helping other people. And because we're focused on helping other people, the financial aspect of it oftentimes isn't talked about. And so in this video, I'm going to walk you through a very simple process that I use. No matter if you haven't started your business, you're making 10k, 20k, even 30k. It's the process I use in my business that's making multiple millions, so I can get to multiple, multiple millions. And by the end of this, my goal for all of you is to have a lot of clarity on how you're going to set numbers and put it on paper so that you have targets on the wall, and then we can go back and figure out how to actually make the money. But it always starts with money math. What I want to start with here is something that I learned from Jay Abraham, a marketer, a long time ago. Because most people get stuck when they're trying to grow their business because they think there are so many different ways to grow their business. So what I'm going to do is I'm going to write down the only three ways that Jay Abraham talks about growing your business. Number One, you get more customers. And so most chiropractors, when they think about growing their business, they think, how do I get more new patients? And the old way of doing chiropractic care, the old way of doing business back in the 70s, the 80s and the 90s and early 2000s, was that when we struggle in business, we just think, where am I going to get my next new patient from? However, from what I've learned over the years, this is actually just a way, not the only way. And so the second way to get, to get, to make more money in your business is to charge more money. So, number one is to get more customers. Number two is increasing price. Now, if you are taking health insurance, this is a problem because you are stuck. In fact, you can't raise your price. Most of the time, it's going down. I have a friend now in St. Louis, she takes Medicare and her reimbursement is going down, down 9%. And so one of the reasons healthcare practitioners generally struggle to take insurance is because the cost of doing business has gone up. They have to pay higher salaries, the rent has gone up, there's hyperinflation, and their reimbursements are going down. So you can see at some point that doesn't work. Now, the third way to get more, to make more money in your business is going to be increased frequency. And so increasing frequency is the sales velocity in which people buy. So, so here's what I mean by that. If you see a patient once per week and they're making and you're charging them $50, if you see them twice a week now, that same customer is going to make you $100 instead of $50. If you have someone come into your practice and you're charging $100 for an adjustment and you add a rehab program, and now you can charge that same customer $200, you're increasing the frequency of which they're making a purchase. And so at that level, you're getting one person to pay you double the price. Not because you raised your price, because you. And this could go for functional medicine services. This could go for vitamins, this could go for supplementation. This could go for training packages. There's a lot of different ways that you can increase the frequency in which someone buys. So in order to recap this to show you, and this is it, guys. There is nothing more. It doesn't matter what business you are in, there are three ways. This is from Jay Abraham, in which any business can grow. Number one, you can get more new customers. You can just go out and market and get more new patients in the door. If this week you saw five new patients and next week you see 2, 10 new patients, your business will grow. Number two, you can increase the price. And so if you get the same five customers last week and you get them again this week and again the following week, those customers, if you charge $50 and now you charge $100, the same customers will make you double the money. And the third way is increased frequency. And so increase frequency in which they purchase. So if you have someone coming in and purchasing an adjustment for $50, and then you sell them another package or you sell them supplements, they are increasing the freque in which they buy from you. So based on all of this, and we know that this is a very simple process, if you want to grow your business, you can literally just take this and say, all right, which one am I going to choose? Now, here's the false belief. What I used to believe, because I went to chiropractic school and I had mentors, every old school chiropractor only talks about one way to grow their business. And there's a very specific reason for that. The reason why chiropractors back in the day only thought about one way to grow their business is because most of the time they took insurance and most of the time they just tried to build more volume in their practice. You and I both know my chiropractor growing up, he would see seven to eight patients per hour. He actually, here was a setup. No one made an appointment. You would show up. He bought an old house that had eight rooms downstairs, and at any given time, he had eight rooms going on at once. Where he would put someone in the treatment room, he put heat, stim and adjust. He would go to the other room and he would adjust the next patient. Heat, stim and adjust, go to the next room. It was a conveyor belt. And so in one hour, he would see 8, 9, 10, 15, 2025 patients. He charged a very low fee. He never raised his fees. He didn't sell them anything different. He just continually got new customers. But I'm here to tell you in 2025, the way they grow your business, actually, this is the worst way. And so when I coach people, the first thing I have them think about actually is how can we grow your practice if we could never get another new customer. So now let me bring you into my story. From 2015 to 2019, I grew my chiropractic practice to a business that was fine. I had 30 minute appointments. I started working and treating patients and seeing them at $60 a session. And then I went to $70, and then I went to $80. Then I went to $95. And I never thought that anyone would pay any more than that. The problem that I had was that by 2019, which the exercise I'm going to show you in a second, I realized that my business was not going to grow anymore based on the current model. And so I want to show you this so you can see the decisions that we made and the results that happened. So in 2019, I had been in business four years. I now had three staff and then myself. So we had four total people. And we were trying to take the next step of business growth. And I looked at our current model. We were seeing 30 minute appointments, and at the time, I believe we were charging like $125. And so I looked at our current numbers and I said, I really want to grow this business. I think we were doing about 300,000 in revenue. And as I looked at those numbers that we were doing 300,000, I started to think about, how can we double this business? So if I want just double this business, I needed to put a plan on paper that was going to get us to 600k. And so I started to do the math. And at the time, what our customers were paying us per session, on average, they were paying us lifetime value, which is how much is a customer worth. They were paying us about $1,000 total. And what that means is that every time I got a new customer in the door, they paid us about $1,000. So if I spent money on marketing or I got this amount of new patients, if I got 10 new patients times $1,000, that would make us about $10,000. And so as I started to look at the math to get the 600,000, it very quickly became apparent that I did not have the marketing infrastructure, I didn't have enough money to spend, and I didn't have the skills to be able to double the business in the current model that we were in. And so remember this, at the end of 2019, I sat down and I said, we have to change this business model. And it was at that point that I sat down with Ashton, our associate chiropractor. And I said to him, I said, listen, I don't know that we can do this in a way that we have been doing it. I don't know that we can treat patients for 30 minutes at 1:25, because what we're making per customer and what our lifetime value of the customer is. I don't have the marketing infrastructure in order to grow the business the way that I want. So I proposed to him, I said, listen, I have a lot of friends that are physical therapists and they are all doing one hour treatment sessions. Now, if we can go to one hour treatment sessions, what that means is we can probably go from 125 to about $200 per session. And if we can go for $200 per session for the same amount of sessions, we can go from making a thousand bucks to now $2,000 per new customer. And so with that, without getting any more new customers, we looked at and said, we have an opportunity to double the per customer, double per client. And if we can do that, we have a chance to go from 300,000 to 600,000. And so I sat down with Ashton at the time, I said, listen, I think this is the best move for the business. And he looked at me and said, you know what, I've been meaning to ask you, I think this is the best move for the business. In fact, I want to treat patients for an hour. I think we give them more value. I think they will get a lot more out of it. There's so many patients that I want to spend more time with, but I just don't have the time to do it. So in December 31st of 2019, we said on January 1st, 2020, we are going to change this business model. We are going to go to one hour sessions at $200. And so in January we started this new process and it was amazing. We got the same amount of new patients. And I thought we were going to have a lot of objections that we were too expensive, but actually in January we got the exact same amount of new patients and all of them were happy to pay. And so now Instead of making $1,000 per new customer, we now doubled the business and we made $2,000 per new customer. And so in January, we absolutely crushed it. In February, we absolutely crushed it. In March, for the first two and a half weeks of the month, we absolutely crushed it. And then the world ended. You all know what happened in March of 2020. So from the end of March of 2020, I want you to pay attention to the dates here. From the end of March of 2020 until Labor Day, we did not step forward foot in our office. We did some virtual sessions. And we just figured it out with that from being closed for like two months, more than two months in person, by the end of 2020, and pay attention. Our business grew 34% in one year of revenue by doing nothing other than changing the structure that we had. And I tell that story to all of you here because in our business, the thing that we always speak about before we decide to grow, before we decide to make a business plan, what we talk about is if it doesn't work on paper, it will not work in real life. And so that is a long winded way of telling all of you if you want to grow your business, we have to make sure it works on paper first. So with that, I want to show you. So this next section is going to be for a new business owner who hasn't even opened up yet, and they're starting at zero. And so when I think about business planning, and I'm going to do three stages here, let's say you literally haven't started your business. Typically, what we tell our new Kyrabbiz 101 members is that if you're starting at 0, goal, 1 is to get to 10k. And the reason we pick 10k is because what we look at, we say that if you can get your business as fast as possible, make 10k a month from zero, I would say you're in business at that point, right? You're not making a ton of money, but you can pay your rent, you can pay your bills, you can take home a little to feed your family and you're going to be okay. Now, again, cost of living, I get it, there's a lot of factors to it. But if we just say you're starting at zero as fast as possible, we can get to 10k. And when people take Kyrab is 101 that haven't started yet, usually they do even better than this within the first month because of all the things that we teach them and what we're going to talk about in a second. So let's just say you want to get to $10,000 in revenue. Let's go an extreme level. If you were to get one customer to pay you $10,000, one person to pay you $10,000,. You will have hit your goal, you have made $10,000 in a month. And then let's kind of go the other way. And so if you get 10 brand new patients that pay you $1,000 each, that'll also get you to $10,000 goal. Now at the next stage, we can look at somewhere in the middle of the two and what most commonly happens in our model when we teach people how to market correctly and price and to Handle. Objection. We typically say they can get four customers to pay them around $3,000, while four times 3,000 is 12,000. And that new patient, that new customer has done $12,000. Now, one of the major false beliefs that I want to go through in this podcast and in this video is price and amount of customers. The false belief that I have to break that you listen to this podcast, need to get out of your head, is most people think it is easier to get 10 new patients to pay you $1,000 each. That is the quickest way to making 10,000, but it is actually the complete opposite. It is actually significantly easier to do the complete opposite is why I started there. And you're not going to believe me when I say this. It is easier to find one, one in the Greater Dallas, Fort Worth, Louisiana, Bangor, Maine, wherever you are, it is easier to find one, one patient, one person to pay 10,000. However, because most people don't believe me, it's usually in the middle that it is way easier to find four people to pay you 3,000 than it is to find 10 people to pay you a thousand. And if I can help you understand the false belief that you're going to go through a lot less pain than I did, if you go into business thinking that you can charge 10 customers $1,000 and you think that's going to happen overnight, you are 100% wrong. And so if you're listening to the podcast or watching this video, I just, again, I hope you believe me, because it's true. I made this mistake from 2015 to 2019, and my business didn't really change until 2020, when I understood this concept. So this is how to make your first 10,000. We put it on paper and this is exactly where we start. Now, let's say you're already making 10,000. The math doesn't change that much. Let's say you're making 10,000 and the next goal is to get to 20,000. And so if you're at 10,000, the goal is going to be to go to 20,000. And so now we always say you're making 10k, you want to get to 20k. The gap is 10k. And so if we go back to our first structure, we just look and say, if you're making 10,000 and you want to make more money, what can you do? Well, go back to J. Abraham, number one, we can raise price. And so if you're currently charging $100 per session. Well, if we go to $200 per session and you get the same amount of customers, you're going to double your business. The next thing you can do if you're charging $100 is sell them other things. And so if they' $100 for an adjustment, can you sell them Funk med or a training program? And that's going to add $100 to it. So that gets you to that $200 mark and that business now doubles. Now I've saved the worst for last, which is to just get more new customers. So if you're charging $100 and you're making 10k, you are thinking that you need to double your patient volume. And if you double your patient volume, then you're going to make $20,000. You can do that, but I promise you, it's going to be the slowest, most ineffective and most frustrating way to grow your business. And so if you're at 10k right now and you want to get to 20k, then you have to really understand that there are only three levers. Number one is price, Number two is selling something else, and number three is going to get more new customers. And what I focus on with my Mastermind members is helping them understand how they can charge a better price and how they can sell their customers other things. Now I'm going to warn you, one of the hard lessons that I've learned over the years is that you can't just raise your price willy nilly. If you raise your price but do not have the requisite sales skills, you do not give the customer service, you do not know how to handle objections, you do not help people understand why your service is worth significantly more than anyone else in your town or your area, you are going to get price shopped. You are going to get objections. The reason why I did it, could do it in 2020 was I would already learn sales skills. I just didn't have the business to back it up. But if you think for one second that you can just willy nilly raise your price without giving a better service, better experience, better outcomes, you're going to be out of business. And so I would warn all of you to not go about just raising your price. He said to raise his price. It isn't going to work unless you have the sales skills. So when I work with people, I warn them, if you raise your price and you don't learn how to handle objections and how to market correctly and how to sell what I call in a silo to a new customer, then then you're not going to be successful. Here's an example. If you're listening to this or you're watching this, you probably cringe when someone asks you, why are you so expensive? Well, I can tell you I love that question because it gives me an opportunity to sell and communicate to that patient and help them understand why I actually am more expensive. And so if that question scares you, it's because you don't have the requisite communication skills. Now, I can help you with that. So go into the show notes below, click the link for Kairo Biz101, jump on a call with our team to see how we can help. But if that question scares you, I promise you, you don't have the requisite sales skills. Now let's go crazy. Let's go crazy and just say, all right, this works at no money. It works at $10,000 a month. But Justin, does this work? Does this work if you're making 500,000? It's the same exercise. And I would argue one thing I've learned is I've spent more time around high achievers and people that make a lot of money is the bigger their business gets, the more simple it becomes. And so let's just say you're making $500,000 and you want to double the business and get to 1 million. There's still only three ways. I know people want to complicate it. I know people think there's a magic solution out there, but there isn't. If you're at 500,000 and you want to make a million, the first thing is if you're charging $200 per hour per session and you go to $400 per hour, then you will double your business. Now, if you're reading this, say, that's crazy. No one will pay that much. My practice does, so I know it's possible. The second way to grow your business here, if you're at 500 and want to make a million is is to sell them other services. So let's say you're at. You're currently getting $200 per hour per session. And then you can add or bolt on service like a training package. And a training package now adds another 200 that will also double your business. That'll get you to that $400 an hour mark. And then the third way, if you're currently, I'm just making the numbers up. Let's just say you currently get 20 new patients. You get 20 new patients a month. If you figure out a plan to get to 40 new patients a month and don't change anything else in your business, your Business will double now at this level. And the reason why this. I pause and hesitate here is because you have to have a very specific and strategic marketing plan, which involves hiring more people, which involves getting more output from those people, and which also involves spending more money on your marketing. And so if in this third example, if you wanted to just double your new patient volume and you currently spend $1,000 on ads, most people think, okay, I'll just spend 2,000, I'll double my volume. What more than likely needs to happen is you need to 4x your marketing spend maybe 6 or 7x in order to double your business. Because as the business grows, the marketing becomes more challenging. You get more bad leads that aren't qualified. So you need to overcome that by getting more volume into the funnel. Again, we're playing a different game at half a million, and we have to have different conversations, but at the most basic level, it's the same every single time. What we call this in Cairo, Biz101 or in rehab, Cairo Mastermind, we call this money math. There's a lot of different iterations of this. I just talked a little bit about how we do this with marketing, but it's the exact same structure whenever I'm building a business. And now our businesses, fortunately, have done over three and a half million dollars per year. I promise you, the structure doesn't change. If we want to get to $10 million, that's still only those three options. If your practice is making 20,000, want to get to 40, there's still only three options. Now, the challenge becomes when you put the math on paper and you see how it's going to work, where business owners either live or die or grow is how they execute. But the money math will never change. And so this, what you're getting here during this podcast, what you're getting in this YouTube video, is exactly the structure I use. It's what I teach everyone. It's what I do internally with my company. And if it feels very easy and simple, it should. This should not be complicated. As I said before, the biggest problem that people have is they think that when it gets bigger, it gets more complicated. And that is 100% not true. And so finally, my ask for all of you. If you're looking to grow your business and you want to make more money and you want to take your business to the next level, I encourage you to use this exercise and do money math every single time in order to build the plan so you can build the business so you can make more money, get more free time in your life, put more money in your pocket, and finally build the business of your dreams. Hey, do me a favor. If you like this style of podcast, send me a DM on Instagram to let me know we can absolutely produce more of these type. And to make sure you don't miss any of our new content on YouTube, please tap that subscribe button. And if you're looking for more help so that we can help make you more money, build the practice of your dreams, and get you more free time, click on the link in the show notes below, book a strategy call with our team and we'll see how we can get you to a million dollars a year. All right, guys, I hope you enjoyed this podcast. If you haven't subscribed to the podcast, can you please do so? It helps us get more people involved and it helps people to see when it comes out and we can get more followers and get more people into this Rehab Chiro community. I would greatly appreciate it. And if you're finally ready to take the next step in your business, go into the show notes below, click the link, book a strategy call with our team and we will see you on the other side.