I’m a sucker for playing around with my business income and expenses. I’m always looking for ways to save money, I use metrics to track ROI of investments I make, and since starting Profit First I’m energized when I find ways to reduce operating expenses. So I’m sharing with you some of the ways I’ve reduced expenses without sacrificing growth.
1. Request rate increases with insurance companies you are in network with…
…and unpanel with those that have unreasonably low rates. I’ve become a hustler in this arena, and I request increases yearly from any insurances my group practice is on. As a group practice, you have clout and more visibility, and all it takes (in most circumstances) is a well written fee increase request. Download mine and edit it to your needs. Go get your well-deserved rate raise! You’d be surprised by what you may get-I recently got a 38% increase with our lowest paying insurance, which brought it on par with the higher paying insurances.
2. Request discounts with your operating expenses.
Think: EHR (yep, you can ask!), credit card processing fee rates (yep! I’ve done it!), internet, fax, email, payroll, phones, you name it. I’m happy to report that any that I’ve asked have been happy to give a discount to a happy customer.
3. Become an affiliate/referral for services you use and love.
Often, they will give you a steep discount or reduction in your cost to use their services. For example, if you use Gusto for payroll they’ll happily send you a referral bonus for every person you send their way who starts using them. Ask any other sources you use if they offer referral bonuses. Simple Practice has something similar. It’s an easy way to reduce your own costs all for telling others you love to use them.
4. Chop expense.
Think subscriptions, food you buy in the office, water (switching to a service over bottles, and any other things that are unnecessary.
5. Marketing costs.
Are you tracking ROI on how you spend in the marketing category? Most group practice owners don’t. And they often continue to spend in areas that aren’t providing referrals or giving them a good return on investment in some way. Start tracking your referrals and see which of your marketing efforts are paying off. For example, I spent $25 a month for years on Good Therapy and received maybe one referral a year. I axed it. What can you axe?
6. Increase your full fee rate.
We increase ours by $5 each January. The common thing I hear is that many don’t increase their rates often enough. Remember, cost of our leases go up yearly, as do many of our expenses, so it may be time to evaluate that.
7. Hire another therapist.
This may be obvious, but if you want to increase income and have the space for it, you may want to consider hiring another therapist (or whatever type of wellness provider your office employs).
8. Offer groups, workshops, retreats, intensives.
These are fun, outside-the-box ways to increase revenue, offer a new service, AND reach the community in a new way. All of these options have the potential to produce income that is higher than a typical hourly session. Fair warning, they also take more prep time.
9. Make an e-course for your clients.
Another way to increase income and have passive income, is to make e-courses that cater to your clients. Work with teens? You can make courses on teen relationships, teen anxiety, self-injury, parent education, etc. You can also have your clinicians make e-courses (or the framework for it, and you can build it) and offer them a flat rate for putting the materials together or you can offer a royalty or percentage of sales even, so they get the rewards for years to come.
10. If your office space is full, consider providing services outside of the office.
You could collaborate with local schools to have a clinician in your group practice offer in school counseling, consult with local larger businesses to have a clinician do workplace resolution services or relationship/leadership skill building. Or you could partner with a local park district to be able to offer groups in their building or go to another wellness provider or yoga studio and partner with them to offer services out of their location. You reach more potential clients because those you partner with have their own clientele.
There you have it. 10 ways you can increase your revenue by next quarter. I’d love to hear if you decide to take the challenge and how much you are able to increase your revenue by! Be sure to send me an email and let me know!
Maureen Werrbach is a psychotherapist, group practice owner and group practice coach. Learn more about her coaching services here: LEARN MORE HERE