It’s time to dump living paycheck to paycheck. Let’s discuss the business of owning your own nutrition business or private practice – with a focus on profitability while maintaining the highest standards of patient and client care. Today we’re covering budgeting for financial success, managing your overhead costs and generating revenue. Stay tuned for future private practice profitability topics!
Budget for Financial Success
In your business plan, you have outlined your budget and financial projections for the next few years. Doing so will help cushion you against any financial “surprises” as you operate. Plot out your expenses, fees and your revenue goals. Revisit your budget as often as you need to – some of us look at our budgets daily, some weekly, some every other week. You’ll come to learn what works best for you. We suggest using Mint.com to track your business finances, or another similar secure online portal for doing so.
It’s recommended that you have enough cash on hand to live on (and to cover your expenses) for approximately six months into the future. But be smart and plan for the unexpected – you may be more risk averse and wish to have a larger safety net than that. Meet with your accountant and financial planner on a regular basis to make sure you’re on track to live the retirement lifestyle you have always envisioned for yourself!
Manage and Track Overhead Costs
Let us revisit expenses for a moment. Your overhead costs are those business costs not related to your direct services. They include things such as rent, administrative costs and marketing, and they are all line items in your budget. Take a look at your expenses and think about where you may be able to cut back. Can you share an office space with another healthcare professional? Or put your diplomacy skills to good use and negotiate a lower rent, or avoid a rent increase, on your existing office space. Perhaps you have the skills (and the bandwidth…!) to develop your own website instead of outsourcing this project – go for it!
Whenever you are faced with a business cost, think about whether it is pertinent to your business, and whether it is pertinent at this time. You’ll certainly want to make sure you set aside funds to have Healthy Bytes manage your credentialing, contracting and billing – now that is a smart investment, if we do say so ourselves!
In terms of generating revenue, think about how you’re bringing in income. Are you solely providing one-on-one nutrition counseling services? If this is the case, make sure your rates are competitive for where you live.
In addition, think about offering other services such as group counseling, workshops, seminars or packages to your clients and prospects. Be creative! You may also look outside of your office and provide lunch and learns, wellness presentations and more to businesses and organizations where you live. Think about how you generate passive income on your website as well – via an e-book that you write, a tips sheet that you create, a meal plan package, etc. The possibilities are endless!
What questions do you have about the financial aspects of your business? Your Healthy Bytes team is here to help and support you!
Note: The resources mentioned above serve only to give you general information and a general sense of understanding. Links from Healthy Bytes to third-party sites do not constitute an endorsement by Healthy Bytes of the parties or their products and services.