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How to Increase your Business’ Profit Margin in Under One Year
But first – A MikedUp Blog Original:
How we almost became broke business owners
At first, it was finding a price that was agreeable to both sides. Which is not normally a difficult thing to do in the dental field. There are variables, sure, but most sale prices are within an industry-standard range that’s based on how much money the practice generates.
Moving a dental practice is incredibly expensive
And (I’m laughing as I type this) with 2 days remaining the negotiations came to a stand-still.
If things didn’t change quickly, we were on a course to run out of money
There was certainty in what expenses we would have when those 8 months were up, but the one major variable in this equation – was income.
This is that plan:
Step 1- Keep or hire the right people
We started with the employees that we inherited and evaluated each and every one for whether or not they showed the potential to buy-in.
We needed to hire and avoid anyone jumping ship and delivering their 2-weeks notice
Our hiring process consisted of a minimum of 3 different interviews
Step 2- Institute extreme ownership with our Team
As I finished reading through Extreme Ownership the first time – I decided the book would be our business’ onboarding program
From that point on our days were spent growing the business and at night I’d cycle through 1-on-1 phone meetings with the Team. Discussing one chapter at a time with each employee individually.
What is Extreme Ownership?
Step 3- Design every aspect of the customer experience
I don’t care who you are, you can’t fake that
Step 4- Get the customer in the door
With some “big guns” in our ranks, we first took a look around to see what our competitors were doing
Because we had focused so hard on Steps 1-3 above, generating referrals wasn’t too difficult
To get people in the door ASAP we attacked with an aggressive online presence
With all of these tactics (and a few more) working toward a common goal, success was bound to follow soon – right?
Step 5- Perform better than any competitor your customer has used
Step 6- Say thank you and get the customer excited to come back
We thanked our patients just like you’d want a business to say thank you – we gave them free stuff!
This approach was great for so many reasons
The patients got free stuff
We had some awesome pictures of sweet giveaway items to promote across our online presences
We made videos and theatre of the drawings to choose the winners
As the thrilled winner came in to claim the prize, we’d have more pictures to promote of happy smiling patients…
Step 7- Ask for an honest review
In month 7 we started deploying some tech as backup
There’s one in every crowd, am I right?
Time to get on the phone and argue, beg, and bribe the patient to remove the review?
So – Did the plan to increase profit margin and earn reviews work?
(Fast forward to 3 weeks ago – the day our final round of payments were due…)
Back to reality
Thanks for reading!