Insider Circle
Practice Marketing Tips
Let’s face it. Practice Owners are in a perfect “financial storm” of low reimbursements, Medicare cuts, and inflation, because today’s healthcare system doesn’t value you or what you do. It continually makes cuts that eat into your profits and threatens the existence of private practices. But when you have the right marketing budget, you’ll be less stressed about your practice finances. Marketing creates revenue, but figuring out the right budget is a stressful challenge. You don’t want to overspend compared to your cash flow… but underspending can also cause your return to be not worth the investment. EASY 2-STEP MARKETING BUDGET CALCULATOR: The U.S. Small Business Administration recommends 7-8% of total revenue be spent on marketing. I’ve also heard smarter people than me say “5% to keep your business running, 10% to grow your business.” So, both as a practice owner and now for Practice Promotions, this is what I find to work best:
1. Set up a spreadsheet with current revenue & expected over the next 3 months. 2. For each month, calculate 7-10% of total revenue depending on if your goal is to grow aggressively or you are trying to stay about the same.
3. Repeat this process every quarter.
Statistically, underspending is MUCH more common for PT clinics than overspending. And that can be super deadly! Marketing is the oxygen of your practice. If you’re underspending, you’re cutting off your own air supply! But the beauty of this system is you don’t have to have a huge budget , you just have to plan the right percentage. Remember, budgeting is NEVER about guesswork . You can be confident in your marketing spend with this simple formula! Calculate your marketing budget right now. Are you underspending? And if so, how else can you invest in your marketing? When you’re confident in your marketing spend, you’ll be less stressed about finances.
MARKETING BUDGET EXAMPLE
Let’s say a clinic averages just over $83,000 per month ($ 1 million annually) and is trying to achieve a moderate growth level. Their marketing budget would look like this each month:
EXAMPLE
MONTH 1
MONTH 2
MONTH 3
Expected Revenue:
$83,000
$83,000
$83,000
Percentage
8%
8%
8%
Marketing Budget:
$6,640
$6,640
$6,640
PracticePromotions.Net/PPC SCAN THE QR CODE OR VISIT
Made with FlippingBook Converter PDF to HTML5