Entrepreneur Secrets: Measure everything for higher profits
December 5, 2016
By Jerry Bellune
Remember measure twice and cut once?
That’s what carpenters do to avoid wasted lumber.
Most entrepreneurs don’t even measure once.
That’s a mistake worth correcting if it applies to you.
Our veterinarian measures everything in her practice.
Ginger Macaulay owns two successful practices.
She and her partner have developed their own system.
She described it for us at our recent Master Mind.
You can adapt it to measure success in your business.
She measures Average Client Transactions (ACTs).
That means, what each transaction produces in dollars.
• ACT from professional services by her vets.
• ACT from retail services (pet food, medication, etc.)
• Gross income and expenses per month from both.
• Net income is total income minus total expenses.
It’s a good idea to run comparative figures, too.
That’s gross/net this month vs. this month last year.
Next she ranks income categories that include:
• Total number of patient visits each month.
• Total number of new clients attracted.
• Patient count = number of each species treated.
This lets her know if:
• Patient visits are growing or not.
• Her marketing is attracting more new clients.
• The kinds of patients treated.
If the fist two categories are down, why is that?
And what steps might be taken to correct it?
Then she measures once a year:
• How often did each client visit the practice?
• What was given away in discounts or samples?
• Total transactions each veterinarian handled?
• Total revenue each veterinarian produced?
I suggest doing this quarterly with year-to-date data.
Doing it yearly is fine if its for annual bonuses.
But doing it quarterly shows who’s producing what.
And I’d share than with all revenue producers.
They need to see how they stack up in the business.
Need ideas to produce more revenue in 2017?
Email me for a copy of “Accelerate Your Profits.”
My address is [email protected]
Next: Planning your marketing for 2017
Want to share this with a friend? Be my guest.
We only ask that you tell them where it came from.
Invite them to send me their email address.
They can reach me at [email protected]
I’ll email this strategy letter to them each week.
©2016 The Bellune Company, Inc.
Neither MidlandsBiz.com nor The Bellune Company, Inc. makes any warranty as to the results that may be achieved from using this information. ©2015 The Bellune Company, Inc. All rights reserved. Requests for permission to reprint or circulate may be obtained by emailing [email protected]
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