The Practice Development Scale

If you were going to buy a practice, wouldn’t you prefer it to be “turnkey?”

If you were to work as a chiropractic doctor or provider in another clinic, you’d want it to be “turnkey,” right?

Or, as a support professional and assistant, I bet working in a turnkey office would be your preference.

WHAT IS A TURNKEY PRACTICE?

The term “turnkey” implies that the necessary operational elements of a practice are in place so that all the owner or practitioner has to do is “turn the key,” and the practice just goes!

A turnkey practice is so well organized that the stress level is low, the revenue is high, and the service outcomes are excellent.

Consider a scale of 1-5, where 5 is a turnkey practice, and 0 is an insolvent practice.

SCALE OF PRACTICE DEVELOPMENT

___5: Turnkey Practice

• The practice is fully equipped and operates at close to full capacity. It is ready to be sold, to bring on additional providers, or just happily and profitably cruise.

• There is a strong, established patient base ensuring regular revenue.

• Administrative, billing, scheduling, and management systems are highly efficient.

• The practice is financially robust, accumulating income over expenses each month.

• The practice has a trained and established manager who ensures the seamless operation and continuity of all systems and procedures.

• Staff are highly skilled, well-trained, and capable of independently managing the practice. Morale is high.

• The business owner spends just a few hours each month on administration.

___4: Well-Established Practice

• The practice is well-established and runs well.

• There is a large, loyal client or patient base.

• Administrative systems are efficient.

• The practice is financially stable.

• Staff members are trained and experienced.

• The owner spends a few hours each week on administration.

__3: Growing practice

• The practice is showing signs of growth.

• The client or patient base is stable and increasing.

• Administrative systems are more organized.

• Financial health is improving.

• Staffing is more stable, with ongoing training.

• Owner works hard each week

___2: Basic Operational Practice

• The practice has the basic elements required for operation.

• There is a modest, gradually growing client or patient base.

• Basic administrative systems are in place but may be inefficient.

• Financial stability is tenuous but improving.

• Staff are present but may lack competence or numbers.

• Daily admin operations are dependent on the owner

___1: Struggling practice

• The practice is operational but faces significant challenges.

• There is a small, inconsistent client or patient base.

• Administrative systems are inefficient or nonexistent.

• Financial difficulties are prevalent, with cash flow issues and potential debt.

• Staff may be minimal, overworked, or inadequately trained.

• Owner stressed by dealing with administrative tasks

___0: No Practice / Insolvent

SELL, CLONE, OR CRUISE

Once you have achieved turnkey practice, you can sell it for the highest price.

Or, you now have the option to add another provider profitably. There is no limit – if you develop each provider to a turnkey level before adding more.

But the third option is just to cruise and have fun seeing patients with a great team supporting you and the practice. This option allows you to continue helping your patients while integrating your personal life with your practice life.

In a subsequent article, I will list the key roadblocks, some of them hidden, that can get in your way from creating a turnkey practice. I will also show you how to get to a turnkey practice faster.

But just knowing this scale will give you a map to better chart your course to success.

Keeping the end in mind,

Ed

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