Orthotown January/February 2021 - 66

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The area of financial discipline is the most neglected
of the five key growth strategies because few doctors
consider money management a strong suit; quite the
opposite. You may not enjoy all the financial management
aspects of running a practice, but as a business owner,
you must be adequately knowledgeable about-and
in control of-money. This includes things like
profit-and -loss statements, expenses vs. investments that
generate ROI, capital investments, properly managing
margin and debt, segregating business and personal
finances, and tracking where money goes.
Without a solid understanding and good systems, you
will inevitably fall victim to an iteration of Parkinson's
law, which essentially states that expenses rise to the
level of income. That means most people squander
additional revenue instead of using it properly to grow
their business, increase net income and achieve the
ultimate goal of increased net worth.
Of course, you should have an accountant and
trusted financial adviser to help you in this area,
but that doesn't absolve you of your responsibility to
understand and exert financial discipline as the business
owner. Learning to master this area is less intimidating
when you realize that making money on a large scale
is the result of learning to control money on a small
scale-that is, on a daily basis. That way you never have
unpleasant financial surprises. And you can make better
decisions based on knowing the true financial status of
your business, not just what you think is in the bank.
Here are essential disciplines you should have in place
so you always know the daily cash flow of your business:
* Collections: Know how much income you have
coming in each day.
* Outgoing checks: Sign every check that goes out.
Never delegate the checkbook. No exceptions.
* Credit card balances: Make an online payment
every few days to avoid a large monthly bill.

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Debt payments: Systematically pay off your
smallest debt, then the next, and the next.
Payroll: Know exactly how much your payroll
is per pay period.

In addition to paying today's bills, have systems
in place so you anticipate what's ahead, and have the
discipline to save for those things. You should have at
least these four subaccounts established, into which you
regularly set money aside:
* Major business purchases and projects
(new equipment, lobby remodel).
* Taxes (to cover non-W2 distributions
to yourself).
* Business savings (new building, real estate).
* Major personal expenses (college, wedding).

Conclusion
" The Big Five " growth strategies I've touched on in
this two-part series work together as the foundation of a
successful, profitable and growing business. These areas
are key focuses the Scheduling Institute helps doctors
with in its coaching levels to create and execute a growth
plan. At times you'll need to focus more heavily on some
areas than others, but they all require the investment of
your attention, energy and money over time.
Human capital and marketing are the first areas to
execute, and they will give you immediate results. Almost
every doctor we work with starts with a combination of
those two. Space and equipment, clinical duplication and
financial discipline are essential elements in raising the
value of your business. The ROI on these strategies is
not just incremental growth but an exponential increase
in business income, long-term growth potential and
personal net worth.
Moreover, you will be able to lead a more satisfying
life while enjoying maximum income and profitability
for yourself. And you will be maximizing sale value,
so you can eventually enjoy retirement all the way to
the bank! ■

JANUARY/FEBRUARY 2021 // orthotown.com

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Orthotown January/February 2021

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