Profit Killer #1 – No Clear and Measurable Financial Plan 2

Profit Killer #1 – No Clear and Measurable Financial Plan

Profit Killer #1 – No Clear and Measurable Financial Plan 3

How To Set Clear Monthly Sales Goals With Team Buy-in 

If you feel uncomfortable with the financial analysis side of your business, you are not alone. Add to that the concept of open book accounting, and most business owners will start to balk.  

But knowledge is power: If you know and share your performance, and use it to set clear and measurable sales goals, it will build staff collaboration and teamwork and ultimately increase your revenue.  

Our 1 Hour Revenue Plan will show you how. 

Revenue Planning + Measuring Expenses = Financial Health 

You will need to review past sales to set realistic sales projections. Sort your revenue by category or service type so you can see the number of appointments, staff members, and facility requirements necessary to produce your new sales goals. 

Optimally, as a starting benchmark, you should have two years or more to review, but less will do. Divide your total sales or income by 12 to find out your average monthly revenue. 

List your services by name or treatment area, and set up your chart of accounts to match. This will give you actionable intelligence going forward. 

Monthly Revenue Worksheet 

Download our monthly revenue worksheet here. 

Identify and list your own profit centers in the spreadsheet and fill in the average monthly numbers. Divide the average monthly revenue by the average cost per service to get an initial benchmark of the number of appointments you are currently doing per week and month.  

The goal is to create a measurable process to see that appointments are increasing. The appointment analysis provides checks and balances for staffing and capacity needs, as well as marketing budget. 

Service Mix Ratio 

The percentage of sales coming from different profit centers – the service mix ratio – is vital to the fiscal health of your practice. If you make 90% of your income on surgery, your practice will experience steep income dips if, for some reason, the surgeon becomes unavailable. 

Take the time to review your service mix and consider which services you need to do more of to balance out your ratio. In doing so, take into consideration current industry statistics. 

Weekly Revenue Tracker 

Now that you know your numbers, it is time to motivate your staff to improve these numbers. To improve teamwork and motivation, you must set clear monthly goals and measure sales performance weekly. Introduce a bonus system for exceeded goals. 

Download our Weekly Revenue Tracker that takes only minutes per week to maintain. 

An educated staff is your best staff. Update, print, and post the goals and results in the break room on Monday mornings for your team to view. This allows the team to modify behavior and strategies to meet the goal. 

Setting your goals 

When you set monthly sales goals, you need to share the previous years of sales and then increase them by 10% or more if you have new technology, staff, or your marketing brings in additional clients. Do not change the sales goal once the month begins.  

You can raise the goals dramatically if you show your team the number of weekly appointments it will take to get there by treatment type and what you are doing in the business to make that possible.  

For example, you might have purchased a new micro needling pen and HydraFacial machine, hired extra staff to increase capacity, or increased your online marketing budget to attract additional new patients. 

To explore this topic in more detail and learn how to use our planning tools, purchase my newest book Top 10 Profit Killers for Plastic Surgeons and Medical Spas.

The MedSpa Business Profit Blueprint - Top 10 Profit Killers For Plastic Surgeons & Medical Spas - Available On Amazon Now For $29.97

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Projected Growth Consulting Cancels Participation In Aesthetic Management Partners 2023 Owner Summit

September 20, 2023 Our team at Projected Growth Consulting eagerly anticipated connecting with our beloved community at Aesthetic Management Partners 2023 Owner Summit in Phoenix, Arizona, this year. Unfortunately, we regret to inform our community that we have had to make the difficult decision to withdraw our participation from this event.

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