As with any business that hopes to be profitable and grow, it’s critical that you track the performance of your practice over time. But what should you be measuring, and how can you do this in your practice every day?
Key Performance Metrics & Why You Should Track Them
There are six key practice metrics that are most important to monitor on a daily and weekly basis to help you keep tabs on how your business is growing over time.
- Completed Sessions The primary driver of your practice’s revenue and the single most important metric to keep track of on a daily, weekly, and monthly basis.
- Average Fee per Session You likely have several services you offer in your practice, and the weighted average of these fees over time (i.e. the average based on the fee and the frequency for that service) has a big revenue impact.
- Revenue The key financial measure you need to track that’s the simple product of Completed Sessions and Average Fee per Session.
- Service Type Mix See what the most popular services are that you offer, and track the impact of new services you add to your practice.
- Attendance Mix Track the attendance of your clients so you know the impact of no-notice cancellations and no-shows.
- Sliding Fee Scale Impact Know how much you’re discounting your fees, how that stacks up against your desired sliding fee target, and how it changes over time.
Below is an example of the Owl Practice Dashboard that updates in real-time so you can easily monitor your practice’s key stats and growth.
Sign up for a free trial to set up your practice dashboard.
The financial benefits of growing your practice are quite clear. In most practices, costs are relatively fixed – they do not go up with each additional client you see in your practice (e.g. office rent, mobile, Internet, insurance, practice management system).
The good news is that once your monthly costs are covered, any incremental appointments you have with clients are direct profit to you. At Owl, we call this your marginal practice profitability (e.g. $150 per appointment).
Here’s an example of Owl Practice’s Monthly Practice Profitability Calculator used to understand the impact of increasing weekly clients from 10 to 18 per week.
Download the Monthly Practice Profitability Calculator here so you can figure out the impact of growing your practice’s clients on your bottom line.
As always, please leave comments or contact us anytime: https://owlpractice.ca/#!contact