The Financial Calculation Behind Every Smart Growth Decision
Manage episode 522440728 series 3680389
Hitting that point in your clinic where the waiting list is growing, your schedule is bursting, and you’re thinking, “If I just hire one more person, everything will feel easier”?
But here’s the catch: growth doesn’t always equal profit. In fact, hiring out of sheer overwhelm (rather than actual numbers), can pull your clinic further away from financial stability.
That’s why understanding one simple metric can change everything: your contribution margin. (Don’t worry, it’s less scary than it sounds!) In this episode, we’ll walk through how to calculate your estimated revenue per visit, the difference between variable and fixed costs, and how the contribution margin affects your break-even point. By the end, you’ll feel a whole lot clearer about whether hiring truly moves you forward… or just adds to the chaos.
References
The 90 Day Clinic Launch Blueprint teaches the financial, marketing, and operational essentials to get your practice up and running in just 90 days. Get on the waitlist here.
Download my free guide 6 Steps to Opening a Clinic here!
Book a free discovery call today
Audio Stamps
[00:50] Don't Hire Too Early: Why overwhelm isn't a good reason to add staff and the importance of data-driven hiring decisions.
[02:02] What Is Contribution Margin: The financial metric that reveals how much each patient visit contributes to covering fixed costs and profit.
[03:40] How to Calculate Contribution Margin: Breaking down revenue per visit, identifying variable costs in your P&L, and running the actual numbers.
[10:49] Understanding Your Break-Even Point: How fixed costs impact profitability and when your practice shifts from covering overhead to generating profit.
[12:28] Using Contribution Margin for Hiring: How to evaluate whether adding staff makes financial sense for your practice.
[13:37] 90-Day Clinic Launch Blueprint: Amanda’s launching a new practical mini-course covering key financial metrics, marketing, and operations for new practices.
To work with Amanda Sabicer or find out more, check out her website at www.amandasabicer.com.
21 episodes