Next Level Pros Podcast - Episode #147 Summary

Title: Losing $50,000 Every Month to $23,000 Profit in 60 Days / Increase Profits

Host: Chris Lee

Guest: Amber (Owner of Three Podiatry Clinics in Portland, Oregon)

Release Date: May 20, 2025

Welcome to Next Level Pros, where host Chris Lee delves into the inspiring journeys of successful entrepreneurs. In Episode #147, Chris interviews Amber, who shares her transformative experience of turning her podiatry clinics from a monthly loss of $50,000 to a profit of $23,000 in just 60 days. This detailed summary captures the essence of their discussion, highlighting key strategies, insights, and actionable advice.

1. Background of Amber and Her Business

Amber owns and operates three podiatry clinics in Portland, Oregon. Her husband is one of the podiatrists at their clinics, alongside two other doctors. The team also includes a clinic manager, billing manager, and additional support staff.

Key Points:

• Operations Before Joining Next Level Pros:
  • Managed the business alone with her husband.
  • Faced daily operational chaos without clear guidelines or accountability.
  • Resulted in significant financial losses, with a net operating income of -$144,000 from January to March (02:00).

Notable Quote:

"It literally was like fighting fires every day and trying to… Just like a disaster." — Amber 01:31

2. Joining the Next Level Community

Amber connected with Chris after attending a Kyle Mallion event where Chris spoke about fundamental business principles and AI tools. Impressed by his approach, she followed him on Instagram and eventually decided to join the Next Level community despite financial struggles.

Key Points:

• Decision to Join:
  • Recognized the need for drastic change to escape the worsening financial situation.
  • Borrowed against their Home Equity Line of Credit (HELOC) to invest in the community (04:20).

Notable Quote:

"It was really scary. I mean, it was a heavy lift for us." — Amber 04:20

3. Strategies Implemented to Turn the Business Around

Within two months of joining the community, Amber’s clinics shifted from a loss to a significant profit. Key strategies included:

a. Implementing Accountability and Metrics

• Staff Accountability:
  • Established clear metrics and Key Performance Indicators (KPIs) to ensure employees understood their roles in achieving success.
  • Introduced a chart of accounts to categorize and track expenses accurately (04:53).

Notable Quotes:

"Accountability of our staff members was probably like the biggest driver." — Amber 05:20

"We jumped in hard to the metrics immediately with Trent." — Amber 06:30

b. Enhancing Marketing Efforts

• Transition from No Marketing to Strategic Spending:
  • Initially, there was virtually no marketing expenditure.
  • Introduced pay-per-click (PPC) campaigns, significantly increasing call volume and patient bookings (03:30).

Notable Quote:

"We were doing no marketing. And so we started implementing marketing strategies." — Amber 05:53

c. Optimizing Operational Processes

• Billing and Insurance Management:
  • Improved accuracy in insurance information collection to reduce claim rejections and payment delays.
  • Implemented regular reporting and held the front desk accountable for billing metrics (44:32).

Notable Quote:

"If you could measure it, then you could control it." — Trent 07:37

4. Financial Analysis and Opportunity Costs

A significant portion of the discussion centered around understanding and leveraging opportunity costs to optimize profitability.

Key Points:

• Current Performance:

  • April closed with a $23,000 profit (04:46).
  • Identified a potential $73,000 swing from negative to positive (05:20).

• Capacity Utilization:

  • Each clinic has a maximum capacity of 24 patients per day.
  • Currently operating at approximately 40% capacity, indicating substantial room for growth (09:00).

Notable Quote:

"You have cost of marketing, a cost of acquisition that scales, and you have $23,000 extra from this last month. The best advice I could give to you is spend $23,000." — Chris 00:01

5. Staffing and Compensation Structures

Amber and Chris delved into the nuances of compensating medical staff to align incentives with business goals.

Key Points:

• Doctor Compensation Models:

  • Mizuho: On a fixed salary ($135k annually), incentivized to work harder without direct financial rewards.
  • Golf: Paid a percentage of collections (28%), motivating her to increase patient volume.

• Opportunity Costs:

  • Detailed calculations revealed that re-structuring compensation could unlock significant profitability, emphasizing the importance of aligning pay structures with business metrics (17:00).

Notable Quote:

"If you can enhance incentive structures, you can ensure that your front office is no longer a liability but an asset." — Chris 51:36

6. Marketing Strategies and Opportunities

The conversation explored both traditional and digital marketing avenues, emphasizing the importance of measuring effectiveness.

Key Points:

• Current Marketing Spend:

  • Initially minimal, focusing on referrals and basic PPC campaigns.
  • Considering expanding into Facebook and potentially TV commercials to reach broader audiences (59:27).

• Recommendations:

  • Test and Measure: Start with incremental increases in PPC budgets and monitor results before scaling.
  • Diversify Marketing Channels: Explore social media advertising and local billboards to capitalize on high-margin services like orthotics (60:10).

Notable Quote:

"If you turn up a Facebook ad, people may be feeling pain while they're scrolling and decide to seek your services." — Chris 60:10

7. Operational Improvements and AI Integration

To further enhance efficiency, Amber considered integrating Artificial Intelligence (AI) to handle front desk operations.

Key Points:

• AI Scribes: Potential use of AI to assist doctors with charting, allowing them to see more patients without compromising appointment quality.
• Front Desk Optimization: Training and incentivizing front desk staff to improve booking rates and customer interactions.

Notable Quote:

"Once you're there, now work on refinement, orthotics, sales, up sales. Those are all just slight, like training or whatever." — Chris 57:11

8. Conclusion: Impact of Next Level Pros

Amber attributed her business turnaround to the strategic guidance and community support provided by Next Level Pros.

Key Points:

• Financial Recovery: Transitioned from significant monthly losses to consistent profitability.
• Strategic Insights: Gained clarity on opportunity costs, marketing efficacy, and operational metrics.
• Actionable Steps: Implemented measurable KPIs, restructured staffing, and refined marketing strategies.

Notable Quote:

"Next level has made a tremendous impact in our business. I mean, like, we talked about, we were negative, it was terrible, and now we're positive." — Amber 63:39

Key Takeaways for Entrepreneurs:

1. Metrics Matter: Implementing clear KPIs and understanding financials are crucial for business health.
2. Opportunity Costs: Recognizing what you’re missing financially by underutilizing resources helps in making informed decisions.
3. Incentive Structures: Aligning employee compensation with business goals can drive performance and profitability.
4. Strategic Marketing: Investing in scalable and measurable marketing channels can significantly impact growth.
5. Operational Efficiency: Leveraging technology and optimizing staffing can maximize capacity and reduce costs.

Notable Quotes with Timestamps:

• Chris at 00:01:

  "You have cost of marketing, a cost of acquisition that scales, and you have $23,000 extra from this last month. The best advice I could give to you is spend $23,000."

• Amber at 01:31:

  "It literally was like fighting fires every day and trying to… Just like a disaster."

• Trent at 07:37:

  "If you could measure it, then you could control it."

• Chris at 57:02:

  "The most important thing you can, you can focus on right now is fill in your calendar."

• Amber at 63:39:

  "Next level has made a tremendous impact in our business. I mean, like, we talked about, we were negative, it was terrible, and now we're positive."

Final Thoughts

Amber's journey illustrates the profound impact that strategic planning, accountability, and community support can have on a struggling business. By meticulously tracking metrics, optimizing staffing, and strategically investing in marketing, Amber successfully transformed her podiatry clinics into profitable ventures within a short timeframe.

For entrepreneurs facing similar challenges, this episode underscores the importance of understanding your numbers, leveraging available resources, and making informed decisions to drive business growth.

Note: Timestamps correspond to specific points within the podcast transcript for reference.