Episode 26: Navigating Changes in Profitability in Group Practice (with John Clarke)

As your group practice grows, you might assume that automatically increases your profits, but that isn’t always the case! Adding more clinicians to your team can increase your expenses in ways you might not have thought, which may eat away at the revenue you’re bringing in. This week, we’re chatting with John Clarke about how to build your group practice while being mindful maximizing your profitability. John Clarke is a successful private practice owner and business coach! He offers coaching sessions and courses for group practice owners that are looking to become highly profitable. John is the host of the Private Practice Workshop Podcast, and has thousands of views on his Private Practice Workshop YouTube channel. Episode Highlights: Every private practice has a number of processes that should be set-up with the intention to scale Types of processes: Financial, Marketing, Operations, Computer Systems, etc. Don't compare your practice to other practices - do what is best for YOUR business Take your time to be methodical about how you set your private practice up for financial success. Meet with a financial advisor to determine a compensation structure for yourself and your clinicians that your business can healthily manage. Once you have those pieces in place, you can focus on how to manage your remaining profit. There are a number of expenses that incur when bringing on new clinicians On top of paying your clinicians a fair compensation, you will also pay for software, advertisements, office space, upfront costs (such as headshots), training, and more. These costs can add up and quickly cause a reduction in profits. Links & Resources: John Clarke Private Practice Workshop Private Practice Workshop Podcast Private Practice Workshop YouTube Total Money Makeover by Dave Ramsey The Personal MBA by Josh Kaufman Blue Ocean Strategy by W. Chan Kim GreenOak Accounting Therapy For Your Money Podcast