Income Report

These reports will get more involved in the future but for now I’m just sharing the raw data.

 

Why am I reporting income?  DC On Fire has taken a new direction.  I am in the midst of re-building my practice after taking my eyes off the proverbial “ball”.  As a result, my practice declined to a level that although still profitable – it is nowhere near what it can be.

I let that happen because I allowed myself to get distracted – fat and lazy.  To get more on that story, check out this episode HERE.

So…DC On Fire is now about sharing the journey about what I am doing to merit the moniker…”DC On Fire”.

Income reports are another way to stay transparent in sharing the journey. If I can rebuild, so can you.

To make heads or tails of what these numbers represent – listen to the podcast episode HERE. “5 Metrics You Gotta Know – To Make Your Chiropractic Practice Grow in 2016 and Beyond”

But in the meantime…here is a quick summary of that the numbers mean.

Income Reports Explained. 

There are a few numbers you should know and they should be at the tip of your tongue and know them like you know your name.

  • Average overhead – true overhead
  • How many PAYING customers you need to see to make that happen.
  • How many PAYING customers you need to see to pay to keep your entire life afloat -personal and business.
  • Lastly – how much does it COST you to adjust one patient
  • What you WANT to collect and the number of patients you need to see to make THAT happen.

VAD = Visit average dollars.  Total collections over a given period divided by total adjustment visits.  That is what you are actually collecting on a per adjustment visit basis.

Stop Loss = What is COSTS YOU to adjust one patient. Total “no-shenanigan” business EXPENSES in a given period (at least one business quarter) divided by total adjustment visits.

Personal Stop Loss = Same as “stop loss” except you are grouping all your personal fixed expenses (mortgage, loans, food, car payment etc) AND business expenses together. This describes what it costs you to adjust one patient with ALL your expenses in mind. This is an eye opener.

I was actually going to publish dollars and cents…. until I realized that that was virtually meaningless.  A hypothetical 30K in collections to some is a massive amount of coin…to others it barely covers overhead.

What I am using instead is a ratio of expenses to revenue on a per patient basis.

VAD : Stop Loss and VAD : Personal Stop Loss.   If the number is 1.0 then I am breaking even.  Less than 1.0 I am in the red and greater than 1.0 means I am ahead.

Actual Collections : Desired.  Same rules apply.  Anything greater than 1.0 means I am meeting my goal.  Keep in mind – my goal can change (and so can yours) which means the exact same collections can yield a ratio of 1.0 or greater for one time period and less than 1.0 in another.

To make heads or tails of what these numbers represent – listen to the podcast episode HERE. “5 Metrics You Gotta Know – To Make Your Chiropractic Practice Grow in 2016 and Beyond”