How Cutting Back on Business Costs Can Help Bring in New Revenue
When we hear the word cutback, it can cause feelings of stress. Cutting back can feel overwhelming – and knowing where to start is half the battle. So, where do you begin, and how can I help? As a healthcare business coach, I can help you look at the bigger picture and provide insight into where cuts can be made without hurting your healthcare practice.
5 Ways to Cut Back on Healthcare Business Expenses
Identify the Low-Hanging Fruit
Every business has low-hanging fruit that can be easily addressed. If you are looking to cut back on expenses, identifying these items can help you resolve issues that don’t require a high level of effort. By knocking off these easy-to-complete items, you are one step closer to cutting back your expenses. As a healthcare business coach, I can assist you in identifying things that can be cut almost immediately and reduce expenses right away.
Utilizing Wasted Space
Underutilized space can be costing your practice money and valuable real estate. Start by assessing your storage spaces, ensuring that all those items need to be kept, and, if so, do they need to be stored onsite. For example, many healthcare practices will only keep the primary files of their patients onsite to ensure they aren’t using up storage space just to hold documents that they don’t need to reference daily.
Next, investigate your conference rooms and personal desk spaces. If they are hardly being used, it may be time to restructure one or two of those areas to make room for a new service you can offer. Again, by identifying these spaces throughout your practice, you can optimize the space for new revenue.
Plan New Revenue Streams
Now that you have freed up space, start thinking about new revenue streams for your practice. The best way to do this is to tap into your genius zone. As a healthcare business coach, I can help you and your team utilize their genius zone and focus on those valuable skills that can drive new revenue into your practice.
Different types of revenue can include:
Expanding your customer base by supporting patients that speak a different language
Offering a new service that can bring in new business
Creating a more seamless process for a better patient experience
New revenue streams are different for every practice, so let me help you identify them today!
What is a Genius Zone?
A person’s genius zone is comprised of their natural abilities. This could include speaking a language, work experience, a college degree, a hobby, or experiences. By focusing on the natural abilities of your staff, you can create new revenue streams that go together with your team’s genius zone.
Utilizing your genius zone also allows you to work smarter, not harder, by leveraging the skills that already exist in your practice. As a healthcare business coach, I can help you target each team member’s genius zone and help create new opportunities while keeping your exit strategy on track.
Know Your Worth
When cutting back expenses, it’s also crucial to look at your current pricing and charges. Are you underselling yourself? Are you upping your rates as your experience and knowledge continue to grow? Knowing your worth and what to charge your patients is imperative to the success of your practice.
While cutbacks may always be inevitable, undercharging for your services can make cutbacks even more common and eventually cut into more important parts of your practice. So, stay on top of your pricing model and ensure you are charging prices that will drive profits. This allows you to work smarter, not harder, and keep your exit strategy intact.
While cutting back on expenses can be difficult, it allows you to look at your practice and ensure you are accomplishing what you set out to do. In addition, as you bring in more revenue, cutbacks will continue to go down until you are eventually using every aspect of your practice to the fullest.