Episode 193 | Knowing When to Stop Growing
WITH MAUREEN WERRBACH
- Episode 193 | Knowing When to Stop Growing 00:00
Hey Group Practice Listeners! This episode is going to be quick and exciting! Join me as I talk about how to know when to stop growing your business. While this topic is quite ambiguous, I will go through all the reasons why it’s important for your business in the long run.
In this episode we cover:
- What does the law of large numbers tell us about the state of our business?
- When to know when you’re reaching market maturity.
- Understanding when it’s better to take a break from growing your business.
- Reducing burnout by recognizing your inflection point.
- Keeping your business healthy by pruning unnecessary services.
This episode is sponsored by TherapyNotes. TherapyNotes is an EHR software that helps behavioral health professionals manage their practice with confidence and efficiency. I use TherapyNotes in my own group practice and love its amazing support team, billing features, and scheduling capabilities. It serves us well as a large group practice owner.
Do you ever wish for a financial therapist who could relieve you from the last few months’ bookkeeping, talk you off the edge when you’re running into issues with Quickbooks, or help you work through a profit plan for growth? GreenOak Accounting does just that! GreenOak Accounting is an accounting firm that specializes in working with group practices. Their value goes WAY beyond bookkeeping; they can help you get on track for financial success. Schedule a free consultation by going to http://greenoakaccounting.com/tgpe
Welcome back this week. I wanna talk about a topic that’s been talked about a lot lately, and that’s the idea of how to know when to stop growing. It’s something that feels ambiguous because. As you grow, it just feels like there’s so much need for that. It wouldn’t be hard to continue to grow. So there isn’t this natural stopping point or place that you can get to where you feel like, yep, this is our growth has sort of kept.
And this is as big as I wanna get. It’s really this space that everyone feels like, how will I know that now is the time to stop growing? So I wanna talk a little bit about this. And there are a few things that you can think about when it comes to just initially knowing when to stop. One of the things is the idea of the law of large numbers.
The larger a business is the more, the entire business needs to work harder in order to work well. And it’s a concept that doesn’t make sense when you’re smaller. And those of you that are really large well-established group owners will know what I’m talking. There’s this assumption that the larger you get, the easier it is because your press factor for your business is established.
Clients are calling without having to do a lot of marketing. Maybe it’s easier for you to find employees to hire, but in reality, those things might all be easy, but the larger you get, just the more work, all of the cogs and the wheels need to have. In order to be successful. There’s a lot of work and people have to work a lot harder in leadership systems structures that need to be put in place and refined and made better constantly in order to be successful.
And so it’s actually a lot of work and sometimes the law of large numbers tells us, Hey, I’m getting tired. And at the size that I’m at, can’t grow anymore without being too much on all of the leaders that we have. There isn’t really a need to have more people in leadership. The second thing to think about is just market maturity.
You might have limited geographic growth. If you have a single location, there’s going to be a natural stopping point in market maturity. Unless you decide to expand into other geographic areas, or maybe you are just less willing to market new offerings. So maybe you have kept yourself on what type of offerings.
Maybe it’s just one on one therapy. Maybe you do therapy in groups. Maybe you offer therapy and psych testing and med management, but you are in a space where you’re just not willing to add new types of services or offerings to help grow your business. And if that’s happening, you’re reaching market maturity and.
Sort of making a decision that you don’t wanna expand your market into other types of services, which is totally okay. The last thing is psychological self-protection. If you’re finding yourself in a space of complacency or being apathetic, or just not wanting to take risks anymore, or you’re cutting corners, or you’re feeling disengaged in your business.
It might be signaling to you that it’s time to stop growing because you need to protect yourself psychologically. You might be getting burnt out or just be in a place where the growth phase is not causing or giving joy anymore. And when I talk about stopping growth, It’s not a forever thing. It can be right.
We might decide that we are at the growth stage that we wanna be at. We don’t wanna grow anymore, but it could also be that we just don’t wanna grow anymore right now. And maybe that, uh, psychological self-protection doesn’t need to happen in six months or a year from now when you’ve been able to rest and coast.
And it’s actually really healthy. For businesses to go through growth phases and go through rest phases. If you’re in a continuous state of growth, it’s actually really unhealthy for your business. And there’s a potential for growing too quickly for your ability and your capacity or your business’s ability, your capacity.
And so having time to coast and stop growing, even if it’s just temporarily is actually really healthy for the business. So when thinking about stopping or growing. You know, it’ll be time to stop at least temporarily, but potentially long term. If you’re not aligned with your vision anymore, if you’re not motivated or you’re feeling burnt out, if you don’t have scalable systems in place, you wanna have scalable systems in place in your business.
Before you continue to grow, you don’t wanna retroactively have to change or shift your systems to meet where your business is at size-wise. You wanna. proactive. Maybe you’ve hit a speed bump. It’s time to stop and work on that speed bump and stop growing. Maybe you’ve reached an inflection point, which is like this moment or an event that requires change before growth.
a good example of that is COVID was an inflection point, right? It was a moment. It was an event that required all of us to make a change shift. Remote work right telehealth before we could focus on actually growing our businesses anymore, or maybe you’re in a space that you’re unwilling to delegate anymore than you have.
And that it signals it’s time to stop growing. Because if you continue to grow without wanting to delegate, you were gonna get burnt out some signs that it is time for you to grow. It would be your systems are scalable. You have all the support you need in place, both in leadership and in person. Your office space maybe is not be maximized and has the space to actually grow.
There’s a community need your community is telling you by way of calls or by way of emails that they’re looking for therapists it’s in line with your vision to continue to grow. And you’ve pruned any unnecessary services that allow for your business to grow in a healthy sort of way. And that’s something we also don’t talk a lot about is the pruning of unnecessary services.
Oftentimes business owners. Add services continuously and then not look back at those services to see are they doing what they’re intended to do? Are they as successful as I want them to be? Whether it’s in revenue, whether it’s in the actual need in the community. And so sometimes pruning or getting rid of services.
It might feel like it’s a lack of growth because you’re taking away, but that pruning is similar to shrubbery and plants, right? Is when you prune, it actually allows for better growth in the areas that are the most needed in your community. So I want you to end with some self-reflection and thinking about whether are you not aligned with your vision?
Are you not motivated? Are you feeling burnt out? Do you feel like your systems are not scalable right now? Do you feel like you’re in a space where you’ve hit a speed bump that needs to be focused on, is there an inflection point at this moment that you need to be focusing on that requires change before you start to grow again?
Are you feeling like you’re unwilling to delegate anymore right at this moment? Or are you feeling like you’re ready to slow down? Think about those questions or those statements. And if you’re resonating with any of these, it might mean that it is time to stop growing at least temporarily, but potentially long term.
All right, I’ll see you next week. Thanks for listening to the group practice exchange podcast. Like what you heard. Give us five stars on whatever platform you’re listening from. Need extra. Join the exchange, a membership community just for group practice owners with monthly office hours, live webinars, and a library of training.
Ready for you to dive into visit www dot members dot the group. Practice exchange.com/exchange. See you next week.
Thanks For Listening
Thanks for listening to the group practice exchange podcast. Like what you heard? Give us five stars on whatever platform you’re listening from. Need extra suppor? Join The Exchange, a membership community just for group practice owners with monthly office hours, live webinars, and a library of trainings ready for you to dive into visit www dot members dot the group practice exchange dot com forward slash exchange. See you next week.
Here are the resources and guides we recommend based on this episode
* I am an affiliate for some of the businesses I recommend. These are companies that I use in my own group practice, and make recommendations based off of my experience with them. When you use some of these companies through my links, I receive compensation, which helps me continue to offer great free information on my podcast, blog, Facebook group, and website.
Meet your host
Maureen Werrbach is a psychotherapist, group practice owner and group practice coach. Learn more about her coaching services here:
The podcast is structured so that you get practice building tips in small doses, where an episode can be listened to (and a group practice building lesson can be learned) in a single car ride.
Episodes are structured into categories: coaching sessions where I coach a group practice owner on a specific topic, tips of the day by yours truly, real talk where you get to be a fly on the wall while an established group practice owner and I talk about the highs and lows of ownership, and trainings done by experts in the field.
Don’t miss an episode! Download The Group Practice Exchange Podcast on iTunes, Stitcher or Google Play and don’t forget to subscribe and rate TGPE
* The content of this post is intended to serve as general advice and information. It is not to be taken as legal advice and may not account for all rules and regulations in every jurisdiction. For legal advice, please contact an attorney.