E660 | Essential KPIs Your Cash-Based Practices Need To Track

In this episode, we delve into the world of physical therapy business ownership and explore the key performance indicators (KPIs) that should be tracked to ensure the success and growth of your practice. Danny provides valuable insights into the most important KPIs that every physical therapy business owner should be monitoring. 

One crucial KPI discussed is the percentage of patients committing to a package or plan of care. Danny recommends aiming for a 70% commitment rate, as this not only leads to better outcomes for patients but also generates more referrals for your practice.

Another vital KPI is the conversion rate from leads to evaluations to completed packages. By tracking this metric and minimizing drop-off rates at each stage, you can optimize your patient conversion process and maximize revenue.

Speaking of revenue, it is crucial to track both total revenue and recurring revenue. Doc Danny suggests that at least 30% of your gross revenue should come from recurring sources to provide stability for your practice. Additionally, aiming for an average of $200 per hour or more in revenue per hour will allow you to offer competitive staff salaries.

Visits are another KPI that should be closely monitored. Tracking new visits and recurring visits can help you identify trends and ensure that recurring visits increase over time, indicating patient satisfaction and loyalty.

To maintain predictability, tracking new package sales each month is essential. This KPI allows you to anticipate revenue and plan accordingly.

Profit is, of course, a critical KPI for any business. Aim for at least a 20% profit after all expenses, including a reasonable owner's salary. During periods of business growth, it may be expected for profit to temporarily dip lower.

In addition to the financial KPIs, Danny emphasizes the importance of tracking client satisfaction through the Net Promoter Score (NPS). Aiming for a score of 9 or higher on a 0-10 scale indicates a high level of client satisfaction.

Lastly, Danny highlights the importance of a "better human business score." This includes tracking owner self-care, health, relationships, and balance outside of just focusing on the business. By prioritizing these aspects, you can ensure a healthy work-life balance and long-term success.

Throughout the episode, Doc Danny emphasizes the importance of tracking these KPIs over time to make proactive, data-driven decisions. To assist you in this process, Danny shares a dashboard template that can be used to track these metrics. It's a comprehensive summary of the key points discussed in this audio, allowing you to reference and implement these KPIs effectively.

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Podcast Transcript

Danny: Hey, real quick, if you were serious about starting or growing your cash based practice, I want to formally invite you to go to Facebook and join our PT entrepreneurs Facebook group. This is a group of over 6, 000 providers all over the country. And it's a pretty amazing place to start to get involved in the conversation.

Hope to see you there soon. Hey, are you a physical therapist looking to leverage your skillset in a way that helps you create time and financial freedom for yourself and your family? If so, you're in the right spot. My name is Danny Matei. Over the last 15 years, I've done pretty much everything you can in the profession.

I've been a staff PT. I've been an active duty military officer, physical therapist. I've started my own cash practice. I've sold that cash practice. And today my company physical therapy business helped over a thousand clinicians start growing scale, their own cash practices. So if this sounds like something you want to do, listen up, cause I'm here to help you.

What's going on? Dr. Andy here with the PT entrepreneur podcast. And today I'm going to be sharing our. Key performance indicators that all cash and hybrid practices should be tracking. Now, this is a training that I did in our PT entrepreneurs, Facebook group. If you're not in that group, I highly recommend you head over there.

This one in particular is a lot of. Me sharing a a video or basically screen share of my computer showing the KPIs, what we're tracking and benchmarks for those. So it's going to be fine. You can listen to on the audio side and you're going to get a lot out of it. The visual side

might

be helpful for you if you're a bit more like me and you're more visual learner and you want to see things.

But what I'm going to be going over is in depth about a dozen. Key performance indicators that we want to track. And these are really just think of it as the, leading indicator data for your business, whether it's trending in the right direction or the wrong direction, right? It's if you worked with somebody as a client and you start looking at what they're doing from a sleep standpoint, and they're like getting.

Five hours of sleep every night and they always feel tired and, they are drinking before they go to bed every night. These are all leading indicators that something might happen, right? So if we can say, okay maybe we don't drink right before you go to bed and instead of getting five hours.

Let's get eight because we know that's like the benchmark. Then all of a sudden we started to see improvements on the back end of how someone feels physically, how they're recovering, all those things. And running a business and treating patients and working with athletes for performance goals, there's a lot of similarities, there really are, and it's just about understanding what to track, what is.

Like the right ratio, what's acceptable what's not. And then from there, it's really being a good detective about why are these things happening, what needs to be adjusted. And the sooner you can start to gain clarity in your business of whether you're doing the right or wrong things, the faster you're going to be able to make the appropriate changes that are going to lead your business in the.

The mistake that a lot of business owners make is it's so overwhelming for them that they don't do anything and they just each month. It's just literally like they have no idea what's going on. And I've been there because I've done the same thing. It's the most stressful way to run a business that I've ever.

That I've ever done. It's the worst. I would never go back to it. I want to know data. I want to know what's going on. And honestly, anybody that is going to even look at buying a business, they're not going to buy a business unless there's like a track record and there's data of what's going on, otherwise they're guessing as well.

So you really need to create. Clarity and consistency in your business, because for you, that's going to help in a number of ways, running your business, but also creating an entity that has far more value. So hope you like this one. Make sure you stay all the way to the end. I go all over a bunch of KPIs, why you need those and what they mean.

And the last thing for me really is I wanted to hammer home why you need to really be taking care of yourself at the same time. And one of our key performance indicators is very unique to us. It's our own way of scoring how you're doing outside of business in your own health, your own, mental, physical health, personal life, all of that to make sure we're not missing the mark.

Cause if you're. crushing it in business and you suck at life, like not a good place to be. We don't want that. You don't want that. So we've got to make sure that we're helping people live a well rounded, balanced life, but also have the success that they want with their business and help the people that they want to help as well.

So hope you like this one. And I will talk to you next week. All right, what's going on PT Entrepreneur's Facebook group and the PT Entrepreneur's podcast. Thank you so much for listening. If you are listening to this on the podcast and you want to see the video version of it, make sure you head over to Facebook and join the PT Entrepreneur's Facebook group.

All you got to do is search for PT Entrepreneur's. It's the only group that's titled that. We've got 6, 500 members that are in there. And this is one of those ones that you're definitely going to want to watch. The video up because I'm going to be going over key performance indicators that you need to be tracking in your cash practice.

So what's a key performance indicator, right? Basically it's set data that we want to track that is important for the business to be looking at on an ongoing manner. The reason is this allows us to be proactive about decision making, not reactive. And it's very similar to working with patients and tracking the right things, right?

If we're looking at their ability to move through range hopefully very objectively, we're looking at things. We're testing strength. We're testing balance. We're testing power. Think of it like taking somebody through a. Post op ACL, rehab protocol. We have certain benchmarks that we want to see.

And if we don't see those being achieved, then we know that something is off, right? Something isn't maybe working the way that we want. Our timeline is off. Maybe healing process is going to be elongated. Maybe it's a graft issue. There's other things that could be happening, but if you're not tracking anything, you don't know if something is going the right direction.

Or the wrong direction. And for us, we want to make sure that it's going to be going the right direction with our business. And we do that by tracking the right key key performance indicators or KPIs, right? So what I'm going to do today is actually something that, I wasn't sure if I was going to do or not and partially because I can name all these KPIs that you need to track and, talk about what they are, why they're, they are what they are, but behind the scenes in our in PT biz, we've been actually putting together a A dashboard for all of our clients that we will end up rolling out probably next month.

So if you're listening to this and you're one of our clients we have been working behind the scenes on something that is going to help you organize your business more so than what we already have in place. And we've been really dialing this in. And what I want to do is be able to show show this in video, talk about it.

On this podcast and in the Facebook group and highlight what that looks like. As you watch this, you could say, okay, I'm going to take this and I'm going to build something similar in Excel or whatever you want to do and track this stuff yourself. If you're one of our clients, this is going to get dropped into their account basically.

And they're going to be able to have this auto populate for them and track the right things. And then it's a. Clear snapshot where we can actually see what's going on in their business in a very in a very timely manner. But there is a lot that we track and I'm going to go over a good bit of it.

So that's what I'm going to do. I'm going to share my screen. I'm going to show show you all of the KPIs that we have been tracking, and I'm going to go through what they mean and why we actually want to track all of these. So let me share my screen real quick.

Okay, so this is the dashboard that I want to go over for KPIs. And there's quite a few of them, but we're going to start with the first one, which is package sales percentage. So package or plan of care is when somebody commits to solving a problem with you. Both with them agreeing to do the work and then paying for it, we found that this leads to a better outcome.

We found that this leads to the highest percentage of completion of visits of the full plan of care to get them better, as well as it increases the likelihood that somebody is going to refer somebody your way. So what we like to see as a benchmark for our businesses is 70 percent package conversion percentage.

This is a dummy account. So this is data that we just pulled from from other businesses. But in this scenario, we could look at this and we could say, okay this individual is 50 between 37 and 50%. We want them higher, especially if this is an individual, like you're the owner. Usually we'll have owners will be somewhere in the 80 to 90 percent range because they're going to be better at selling the thing that they own.

Staff members might drag that down a little bit, but even still, we still want to see that percentage benchmark be in this area. So this is important because if people are not doing this, we see a drop off around visit two to three. That's when most people have symptomatic change, and that's where you'll see people just stop coming in.

They think, okay, my back feels better. I don't have pain anymore. But it's not that they solved the problem. They basically just resolve some symptoms. They have some short term symptomatic change. So then they go back to whatever it is that they want to do. Probably aggravate their back again.

And then they think that you didn't do such a good job and that's not a great place to be. As a clinician, as a business owner you, your reputation will suffer because of that. And by having people commit to package and plans of care, we find that they get a far better outcome and it's better for our business because it adds a lot more predictability to what we're doing.

So it's a great win. The only reason somebody is not doing this cause they don't know how to sell it, right? That's typically we see the big problem is from there. We want to look at leads to evals to packages. So if we look at these metrics here for a second. So for instance, if we say, all right we had 25 evals or 25 leads, then that could be coming in through contact requests.

That could be contacts that you generate from a local marketing event that could be digitally. If you're doing any sort of like digital lead generation, that could be guerrilla marketing on social media where you're doing a lot of outreach whatever it is, you should be compiling these and you want to know how many leads you're getting each month, right?

So leads are really the top of the funnel or the entry point into your business from there. A lead is going to turn into an eval. So if a lead turns into somebody that's actually coming in, then that's what we want to know as well. So what percent of people that are going to be a lead are going to come in and turn into an eval for you?

This is the area where you want to know what your baseline is and an area where there can be a lot of drop off. A couple of things could be happening. Maybe your lead generation is not very well targeted, right? So maybe you're getting a bunch of leads, but they're not coming in. We see this a lot with digital marketing.

I was looking at an account the other day and they had 130 leads that they had generated in like a two month period. And of those 130 people, they only had one person that had actually come in as a client. And as I started looking at that, you look at, okay, are there sales? Not great.

What's the follow up process, all these things, but if these things look okay, then it's probably lead quality. So it's probably really poorly quality. So in this scenario we have 25 leads turns into seven evals, and then that turns into packages. The actual, I'm sorry, this is eval scene.

So eval scene would be your show rate. So they booked seven and then six of them came in. So packages would be in here. So you want to know leads. To evals book to eval shown. So how many of these evals book are actually coming in as a show showed up evals and you want as close to a hundred percent as you possibly can.

You're not always going to be there. But that's a sign of drop off between your initial conversation where somebody saying, yes, I'm coming in and then they end up coming in or they don't. And that can be a lot of different things. That could be wait time. Maybe your staff is as a long wait wait time.

And then they get frustrated. They go somewhere else, maybe you weren't clear enough about the next steps. Maybe they just. They said yes to an eval because they weren't completely convinced that you were the right fit. And then they were finding other things in the meantime, and then they canceled.

But these are really important. You want to make sure you're tracking how many people you're getting into your system, from a marketing standpoint each month, how many of those people are booking evals and how many of those evals are actually showing up. These are all big drop off points for the business.

Then we've got revenue, right? So this is just gross revenue. Very easy to pull this, right? So any payment processor that you have your EMR even should should track that as well. But this is just how much money did you make in the month, right? And this is going to be different for every business, different stages that they're in.

As an example, this is one where we'll see people in this range, where there'll be somewhere between 20, in revenue. It's typically when It's a solo provider with an admin and maybe they just brought on a another clinician. So this is a stage where you're building more people in your business.

The other thing that we want to see is recurring revenue. So how much recurring revenue did you have in your business of the 27, 000 4, 100 in this example. And we want to start tracking that because we want that to grow steadily as our business grows. And I'll talk about percentage of that here in a second, but it's really important because that money, that revenue shows up.

Without you having to go out and market really hard to get people in the door and it creates stability. It creates consistency in hiring in in management of how you're going to make decisions. And the more recurring revenue you can generate in a business like this, less stress you're going to have running a business like this.

Okay. It's very important that you're tracking that and you're building that. And there's a number of different ways to do that. We're not really talking about that right now, but you definitely want to make sure that's a benchmark that you're tracking. So revenue per hour, this is a big one that we see people are very low on all the time.

So the benchmark for us, from what we've seen on average, now this depends demographically depending on where you're at, like if you're in New York city uh, in like Manhattan, 200 an hour average is not going to be high enough, but across the board, if we were to average out all of the clients that we work with.

This is typically the benchmark where most people are going to want to be. There's outliers above and below that, right? Like you might be in a very low cost of living area, but that's the threshold that we see people need to be at for average visit, right? So the average visit we want to see is going to be above 200.

And the reason that is, is we want to be able to pay. A very competitive salary to the staff members that we bring on. We have to provide benefits. We need the revenue to be high enough to where we can actually create great jobs for people and not necessarily just burn them out. That's why that benchmark is where it is.

And like I said, it could be higher, could be lower, but this is one that we want to track. Every single month. And it might go up and down. It depends on a number of factors. You might say let's say in a month, you have a decent number of like comp sessions for, from networking purposes, or maybe you had a scholarship athlete that you were working with.

Each of those visits, you have to account for a zero for those if they're a comp session, right? So if you get a handful of zeros, it can drag your average hourly down. But this still has to be added into the equation. It's, and it's one of the things that, we have to take into account as we're looking at.

The average revenue, because that dictates what we can actually pay staff. It's very important to track that. And 200 is the benchmark for most most markets. So we have visits, not just visits, but how many of these are recurring visits? So visits with people that are on new plans of care is one thing that would be in this example.

120. And then in this example, how many are those coming in for continuity purposes? So in many cases, we'll have things like performance training that people are doing where that's one on one, or maybe they're coming back to do some sort of health coaching option. We have a lot of clients that are very well rounded when it comes to nutrition and sleep.

And. And and really helping them dial in training so they may have it, something like that. Some people are running like some private training classes and people are doing straight nutrition things. Whatever it is, we're looking at what amount of visit volume is coming back in on a recurring basis, not a new basis, right?

So again, we're trying to track this recurring revenue side of the business, and we want to independently be aware of that. And ideally, it should be snowballing. It's not infinitely going to snowball forever, but as you add more people, those people add more people that are coming back on a continuity basis and that increases your recurring revenue.

Okay. So visits, you want to see how many new visits plans of care that are being completed and then how many people are coming back on a recurring basis. New packages is another one. How many new packages did you have each month as a marker of, gross revenue that's leading towards that. And a lot of times this is a Paid in full on the front end.

So this really helps with what's called your cash collected position, which allows you to be in a better cashflow position and allows you to predict hiring and scale into standalone spaces more so than if you're spreading everything out, which is a little bit slower for that money to come into your accounts.

Also, when someone pays you in full. The likelihood that they complete their plan of care is very high. It goes up quite a bit, right? Cause they've already paid for it. So they're going to do the work, which is great. Cause when you pay attention. So new packages, you want to make sure you're tracking that.

Now here's one that is again, back to the recurring revenue side of things. So this is our monthly recurring revenue percentage of gross revenue. So again, this is recurring revenue, but what percent of your gross revenue. Is coming in from recurring revenue, and this is really important because as we scale these businesses, what we don't want is to be in this, what we call eat what you kill position where all you have is new patients and then they're completely discharged.

This is traditionally how most physical therapy practices are run that are insurance based. Now, this is one of the unique advantages we have at being a cash based practice is we can work with people on an ongoing basis. And we're not too worried about insurance telling us whether we can or not, right?

It's just a part of what we do. So if we're not exercising that, if we're not moving people to things, they're going to help them with long term goals, assuming we can do that, right? Don't sell somebody into something they don't need, but if you can help them achieve a goal they have, and they like working with you.

Why not have them come back? I did this for years where I just would discharge people, and they would independently come back. And I would get frustrated with them because I didn't want them feeling that they were dependent on me, but I didn't realize is there's a value that people assign to working with a professional to achieve a goal that they have.

That's why there's coaches, right? We just turn into a higher level coach for a lot of these people that feel a lot of trust and security with us because we've helped them work through something very uncomfortable for them, whatever injury it might be or whatever. So when we look at, percentage of gross revenue, that's recurring revenue, that's really important because that's a sign of our revenue is coming in without us having to go out and find a new client.

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we really want these businesses to be around 30 percent or more. So that means, if you're making a hundred thousand dollars in a month, we want you to have 30, 000 of that coming in from recurring business that you're not going out to find me. If you didn't get a single new patient that month, at least 30 percent of that month, 30, 000 of that month would show up.

She'll be a pretty bad month for you. But it's way better than zero and it puts you in a much better position that 30 percent really gets us to a place where we're covering almost, all our fixed costs and it should be a big chunk of our of our staff salary overhead as well. So it puts you in a great spot to not have to be as stressed out about finding new business.

The next thing is an NPS score. So it's a net promoter score. Net promoter score is one question. It's how likely are you to refer a friend or family member to our business? And there's different ways to phrase it or whatever. It's a scale of zero to 10, right? Obviously 10 is the best. Nine is great.

Eight and seven are okay. Anything below a seven is not good. That means that they are technically considered a detractor, right? Seven or eights are neutral and nines or tens would be considered promoters, people that really like your business. So you want to know where your business is at across the spectrum, right?

And what we want to see is. The average be a nine or above for a net promoter score for our clients because we want them to have, amazing businesses. They're doing great on the customer success side client experience that they have engineered into their business outcomes. Obviously we assume those are going to be great because you're great clinicians.

And then. We want them to know where they're standing objectively with people, because if they're a nine or above, the likelihood that they're going to refer somebody our way or be willing to refer some more way if we ask them is far higher than if they're like a seven or an eight, because that means they're not really like they don't dislike what you're doing, but they're not really a big fan.

But if there are nine or 10. All of a sudden, now you got people that really love what you do, and they're much more likely to tell other people about that. That's really important information to know, who those people are and where your your practice sits. Profit is the other thing. They say it's not about how much you make, it's how much you keep, and that's profit.

And there's, profit will be higher or lower during different stages of your business. When it's just you when you're the only person in the business. Your profit is going to be high because you're not going to have much overhead. You're the one doing all the work. Once you take your salary out, your profit is going to be pretty high.

But, and there's a difference also quickly wrap this up between profit and owner's compensation, total owner's compensation. So when I look at we, let's say, last week I did a finance call with a bunch of our clinic owners, and we were looking at different metrics. And one of these is, profit owner's compensation, tax accounts that they're allocating money to, this is total owner's compensation, right?

So if you were to add all those up, it's going to be a lot higher than the profit benchmark that we have. The profit benchmark is what's there, what's in the business after you have paid everything out for your overhead, your staff, all your expenses, including your salary, like a reasonable amount of money for your salary.

And the reason we want to know that is if you were to go to, let's say, sell your business one day, someone that's buying your business is going to want to know how much profit is in that business. And if they're an investor, they're going to hire somebody to run that role that you're doing. And if you have no profit and they can hire somebody to do that, the business is worth a lot less than if there's profit for them to do a lot of times a clinician buys another. Clinicians practice. And in that case, they assume that role, but they still want to see that there's profit there. Not necessarily just that the owner is doing everything because that's not really a business. That's just somebody doing everything, making money.

That's more like a job and you can't buy a job. I guess you could, but it's not worth much, right? It's not what somebody is going to invest in. So we want to see that there's profit of 20 percent or more outside of what you're paying yourself. Now this is going to fluctuate up and down depending on the stage of business that you're in.

So we like to view these as growth cycles. So you're going through a growth cycle and let's say you're in this stage, for instance, is like a good example. Let's say you're between 20 and maybe 30, 000 a month in revenue. You've just moved into a bigger facility with more overhead. You've just brought on staff.

That's really not that efficient just yet. Their schedule is building. You have administrative, staff in place, which can be shared across a lot more people than just you and your other staff member who is not even all that busy yet. You're operationally like very heavy and as terms of in terms of cost, like you're paying for more than what you need.

Thank you. But it gives you the opportunity to grow into that, right? You might have a facility that has three offices in it. It's just you and one other person. So you're paying for that every single month, but you want the ability to absorb people quickly. So you move into a space that's bigger than what you just need at that moment, because it's also very painful to have to move.

So during certain stages, we're going to see profit dip below 20%. We'll see profit be above 20%. And it just depends on where you're at in that stage. So let's say you're at the beginning of that stage. It's not abnormal for that profit to go down to five to 8%, somewhere in that range, you may have certain months where you just break even your zero, and as you build now, all of a sudden, that person's schedule gets 50 percent full and now you're back up to 10 percent profitability. They're at 75 percent full and now you're back up to 20 percent profitability. And then from there you bring on another staff member and you're not going to see as much of a dip.

As you bring a second person, a second staff member on as you did with that very first one, because the very first hire, the very first administrative person, the very first office that you move into, that is not a small sublease space. It is the hardest move financially to make because you are taking on the burden of a lot of overhead for more than what you actually can use at that time.

So you can grow into it. So these stages that I'm talking about right now, if you're in that right now, and you're thinking to yourself, man, I am not nearly as profitable as I used to be when you were in your little sublease space. Yes, that's true. You're not. And if you just stay where you're at, it's a terrible decision.

If you're, if you just move into a bigger space, you hire one part time person and a full time admin and your revenue doesn't increase. You just increase your overhead substantially without increasing your actual like revenue at all. So you, no one would do that unless the assumption was you're going to grow into more than than where you're at right now.

In this stage, it can be hard for a lot of people because they see their profit go down. They're used to being very profitable when they have basically no overhead in there, but they're doing all the work. And what you're moving towards at this point is more and more passive work. Or maybe the right term is non active work.

Let me put it that way. That means you're not the one fulfilling all the services. Now you may be the one that's still out there marketing your business. And you're obviously leading your business. You're running meetings, you're organizing everything. You're the one that's like moving towards the vision that you have, but you're not the one fulfilling all the visits that's slowly going to start to get.

Moved over to staff members so that every time somebody buys a new package, you're not the person that has to fulfill on that. You have great staff that's going to do that and you move more into a business owner role and that business owner role allows you to focus on much higher level things in the business.

And you can decide to treat how, however much it is that you want once you get to a stage where you have that flexibility to do so the profit side, we'll see this go up and down, but this is something that we do want to track and it's not. But it's not as simple as I need to be at this benchmark.

Otherwise I am not doing so great. There's just so many nuances to it. It's very much depends because if you're moving into a standalone space and your profit is at 5 percent and you're like, oh my God, I made a huge error. No, you didn't. You just are in a growth stage where you're going to be less profitable.

Don't freak out. I did. I remember when we got to this stage, I was like, what in the hell did we do? I should just go back to my little CrossFit gym office with no windows. That was basically like, 400 bucks a month and just do that again. Because I was making more money doing that than it was.

We moved into a standalone space like net, take home. But as we grew, over the next few years, it was completely different. And it was the best decision we ever made. But man, going through that's tough if you're not aware of the difference. So if you're in that stage right now, it's hard. If you've already gone through that stage, congratulations.

I think that stage is actually. Harder than even starting. I think it's a very difficult stage to uproot yourself from the moderate success you're having as a solo practitioner to then become a a business owner, which is a hard thing to do. Now, the last thing for us is what we call our better human business score.

So we care. We don't just care how your business is doing. We actually care how you're doing as a as a human being, as a person. And this is an aggregate of a number of questions where you're self writing yourself. It has to do with things like, how many workouts did you have this week?

How many days off did you take? How it like personal. Numbers, right? Personal sort of things that we want to track to make sure that you are enjoying your life along the way and not necessarily just focusing on business. So if you're just scoring incredibly low on our better human business score, that means that you're just not.

Living a very well rounded life and you're just focused on business alone and you're letting your health, your mental health, your relationships and your friendships around you really suffer. And we want to make sure that we keep an eye on that along the way. Let's be honest, like this is, it's just a business.

That's it. If we really strip it down, it's a game that we get to play. We get to play this game. It's like real life monopoly. We get to build businesses that really help people. And, we get to. Employ great people as well. Like it is one of the great joys of my life has been employing other people and helping give them great jobs, and create a culture that they enjoy being a part of where they are thankful to have a job with a company that really cares about them.

That's actually helping people is it's more valuable to me than the monetary side of a business. It's great. It's great. And if we just. Stress out and we just focus solely on the business and we have tunnel vision. It's so easy to miss out on all the great things that come along as well.

And in particular, as you're getting started and as you're growing, and as you hit these different growth cycles and your stress goes up because of the demand on you as a business owner, as well as developing as a person at the same time, you can really limit your growth. Or decline in a lot of areas like your physical health, your mental health, the relationship with your spouse your kids, if you have them, your friends and family, your hobbies outside of it, man, adventure in life, like it's.

It's not everything, it's just the thing that allows you to do the things that you want to do and it allows you to be a creative person and function in a business that lets you use your skill set as a clinician to really truly help other people. It's what a great fit, right? But it's not your world.

It's not everything. And if you let it become that you're going to burn down all the other important things in your life at that time. And by the time that you wake up and you realize that it's man, I think I really screwed up. It might be too late. I have plenty of friends who, it's hard for them to.

I have terrible relationships with their kids beyond their, second, third marriage and try to salvage some of that when they really wake up and realize that they've just been selfish and they have been Ignoring all these other parts of their life. It's hard when you wake up and all of a sudden you realize man I'm like 30 pounds overweight.

And it's really creating a lot of problems for me. And I've had family do this one, my godmother is a serial entrepreneur. She puts whatever I've done in business to shame, and I didn't even know any of this until years ago. This was probably five years ago. She called me up and she had an auto immune disease.

She'd been diagnosed with that was very rare. And. The doctor basically told her is Hey, this is something that we really only see get expressed under high levels of stress. It's not that common. And he says, genetics loads the gun and lifestyle habits pull the trigger. And she basically had this, really nasty autoimmune disease that is much better now.

But the reason that it's much better is. She decided, all right, it's time for me to focus on my health. And she'd grown a business, to hundreds of employees that she had over a number of different States. And and she has been winding that down for the last few years. Intentionally, because she cannot take the stress that comes from that, it's literally killing her and it's a hole that she has to dig herself out of, but she's doing a pretty good job of it right now.

But I tell you what, if she go back in time and she could take care of herself along the way, I guarantee you she would do it with all the stuff that she's had to deal with over the last few years. So we don't want people that we work with. To end up in those positions. In fact, I think that is the greatest failure.

You have all the success in business and no, no success anywhere else in your life and everything else you've burned down the process for achievement of what making some money. Who cares? Like it's fine. We want to make money. Like it's we want financial independence. But we don't, we do not want financial independence at the expense of physical mental deterioration and having no relationship with people that matter the most to us.

So please keep that in mind. This is one of the reasons why I put that in here. And I think it's grossly understated by anybody that's talking about how you should start, grow, run a business. And maybe for us, it's such a big part of what we talk about because of our own personal challenges that we've had to face with that.

And, very hard lessons learned that hopefully if I can help anybody avoid that, let's do that. Cause it's not good. It's very hard to come back from and it's also time that you just don't get back. You can't go back in time and relive, things in a better light than what you did.

It doesn't work that way. So if you can understand this along the way, man, what a difference it makes. And I really do think it helps with the longevity of somebody because. In business is so hard to just keep going. It's a tough game. It'll beat you up. You'll start questioning whether you're doing the right thing or not.

It happens all the time, and the more you can be well rounded and deal with that and be resilient outside of the business, the better it's going to be. So that's our metrics. I'll go back through these here real quick. So percentage of package sales lead to eval show revenue, total revenue, and then recurring revenue, your average hourly rate.

Number of visits you had that were new number of visits that were recurring your number of new packages. percent of revenue that is recurring compared to gross. So what percent of your overall revenue is attributed to recurring revenue, your NPS score for your clinic, your profit. So how much money do you have left after all expenses and your salary?

And then for us would be your better human business score, which would be a marker of your health and your well roundedness outside of your business. So that's it. That is the KPIs. Like I said, You can take this, you can just run with it and you can build something like this out into a Google sheet or into an Excel sheet.

This is something that we, like I said, we've been working on for a long time and we're going to be dropping this into our into our clients businesses here shortly. And that way they'll be able to just. It'll auto populate. They'll be able to have these great, graphs and charts that they see that they just pop up automatically and they get a very quick snapshot of where their business is.

And we're excited for them to have better clarity with that. If this sounds like something that you feel like you need help with tracking, you need help with actually learning how to run a business. That it's our bread and butter. This is what we do, head over to physical therapy, biz.

com. Take a look at what we do, see some of the clients that we work with. If you'd like to, you can go ahead and set up a time to chat with our team. If you're there, if you're at a stage where you're either trying to start grow, scale your practice and you want to do so with as much predictability and certainty as possible, which is really that's what we do.

This is something that at this point, we have a combined almost a hundred million dollars in revenue between all the practices that we work with. On a annual basis that's not total, that is annual. And in the last 12 months, the people that we work with have seen about 65, 000 new patients.

So it's an enormous number of people. It's a lot of data. It's a lot of repetitions. And it's something that we are every day trying to get better and better at and become world class at and trying to iterate as much as we can. I know. Don't be surprised if. There's going to be like a ton of people that are sharing something similar after I release this, because they're just going to, they're just going to model it and then they're going to release it.

But, this is all things that we've been working on for a long time and created specifically for our community. So I hope that this does help you. I hope that you can, if nothing else take these numbers, start tracking them yourself and put your business in a much better place to be able to really be predictable, be.

Clear have that data that you need just like just as if you're trying to treat somebody as a patient, right? You're not just gonna go in there blind to be like, I don't know. Let's how do you feel? It's all subjective. No objectively what else is going on, and I want to have a plan of what I'm gonna do with that Better or worse, whatever that data shows and what that means to me and what that means to this client.

The same thing has to be said for your business. And that's why you gotta take this level of detail and apply it to, to your business. And if you don't know how to do that, you need to learn it. It's that simple. So anyway, as always, hope this helps. It's a lot of, it's a lot of data. Like I said, if you're listening to this on the podcast.

And you want to see the video head over to physical therapy, or I'm sorry, to Facebook and go to PT entrepreneurs, Facebook group. And you can watch that video in there once you get approved. So as always, thank you so much for For watching and for listening and we'll catch you next week. Hey peach entrepreneurs.

We have big Exciting news a new program that we just came out with it is our PT biz part time to full time Five day challenge. Over the course of five days, we get you crystal clear on exactly how much money you need to replace by getting you ultra clear on how much you're actually spending. We get you crystal clear on the number of people you're going to see and the average visit rate you're going to need to have in order to replace your income to be able to go full time.

We go through three different strategies that you can take to go from part time to full time. You can pick the one that's the best for you based on your current situation. Then we share with you the sales and marketing systems that we use within our mastermind. That you need to have as well. If you want to go full time in your own practice.

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