Intentional Scaling Part 5: The Numbers That Actually Matter | GP 337

accounting, business growth stages, financials, hiring clinicians, numbers, practice management, predictable success, scaling, therapy entrepreneur, therapy practice growth

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How can you tell whether your growing practice is becoming profitable? Which financial numbers tell the real story behind your business? Are your clinicians generating sustainable revenue, or just keeping the practice busy?

In this podcast episode, Brandon Shurn discusses your financial strategy in the Intentional Scaling Series | Part 5

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In This Podcast

More growth doesn’t necessarily mean more profit
The most important numbers to track
Balance your client length with your clinician cost
Brandon’s reflection questions

More growth doesn’t necessarily mean more profit

When we talk about growing and expanding the practice, more money, more clients, more cash coming in does not always equal more profit. (Brandon Shurn)

You want to track your practice’s financial growth? You will need to get clear on a specific set of numbers that will show you how well your practice is doing, because just having more clients in the door doesn’t necessarily mean that the practice is successful.

Many practices have streams of clients, and can still be losing money.

Therefore, don’t look at growth as the sole indicator of your practice’s financial success and profit, look at:

1 – The revenue

2 – Expenses

3 – Cash flow

The most important numbers to track

Cash flow is the amount of money that you have left after you’ve covered all of your operating costs, [such as] taxes. (Brandon Shurn)

When it comes to the real growth and profit of your practice, your cash flow is the most essential number to know.

Your cash flow is your financial liquidity that is left over once you have paid all of your practice’s essential operating costs.

Balance your client length with your clinician cost

You want the scales to – at least – balance before they can tip in your financial favor. There are another two numbers you need to calculate:

How much it costs to have a clinician at your practice, which includes all the operating costs to keep them, pay them for their time, and be able to see clients
How many sessions a client on average completes at your practice with a clinician

These two numbers need to balance out before you can start looking at the revenue as profit.

Just because money is coming in does not make you profitable, it doesn’t mean that there’s profit there. We need to get to that break-even point. (Brandon Shurn)

Brandon’s reflection questions

1 – Do I understand my true profit margins?

2 – For how can I sustain a new hire without profit?

3 – What are my key financial metrics?

4 – What is my worst case scenario, and what’s my plan for it?

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Meet Prof. Brandon Shurn

Brandon Shurn, Ph.D., LCPC, LMHC, AFC®, NCC, is a licensed clinical professional counselor and the founder of EmPower Me Holistic Counseling, a fully virtual Maryland-based practice. He’s also a full-time professor in Seattle University’s online Clinical Mental Health Counseling program. With extensive experience launching and directing university training clinics, Brandon now focuses on helping therapists design and grow impactful, sustainable practices. Outside of his work, he enjoys fitness, yoga, Wing Chun, golf, reading, and spending time with his family and dogs.

Visit Empower Me Counseling, and connect with Brandon on Instagram and LinkedIn.

Email him at: brandon@practiceofthepractice.com

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