3 proven recurring revenue options to add to your business

I’ve spent the last few days with my business partners planning out what we want to accomplish in 2022.

Part of this is what we want to accomplish on the business/personal level.

The majority of our time has been spent going over what we want our clients to accomplish.

We strongly believe that the better our clients do, the better PT Biz will do.

One of the areas that came up is how to help increase recurring revenue in our client’s businesses.

This is a huge area that most people completely overlook…me included for years.

If I could go back in time to my shitty little office I had in a CrossFit gym when I started, I would say “Hey dummy, things are going to work out but try to sleep a little bit more, take your wife on more dates and start offering people something that keeps them working with you long term.”

Now we don’t want to just offer people products/services they don’t need. That is a violation of your integrity and you should never do that.

If you have something of value that helps them achieve their goal or helps them continue to participate in something they love, that’s valuable.

We see recurring revenue mixed into cash and hybrid practices in 3 ways.

The first option is an ongoing in person session. This could be once a month, twice a month or once every other month. The volume really is dependent on how often you need to see that person to achieve their long term goal.

This is typically for the people that love manual therapy. They value that hands on part of the visits and will continue to come back for that exclusively in many cases long term.

These types of visits are usually between $150 and $250 per visit depending on the provider and location.

The next option is remote coaching. This is where you can manage someone’s plan of care or exercise program remotely. This could be a hybrid of in person and digital touch points as well.

This is a great option if you love building programs for people. If you fall into more of an exercise based approach, this is usually a great fit for you.

The other element you can throw in here is nutrition coaching if you have that skill and enjoy it.

The best part about this type of service is it can be done anywhere. This gives you location independence for the hours you are working on this service. You can also easily hire a coach to fulfill the programming and coaching. This would allow you to just sell it and have someone else fulfill.

The average cost for a service like this is between $200 and $500 a month depending on the provider and complexity of the programming.

The last option is in person fitness training.

This can be done in a one on one approach either by the provider or a coach. The approach we prefer over one on one fitness is actually small group fitness.

This is where you get 4-6 people that train together at the same time. The group is still small enough to coach people and make individual modifications but big enough where they start to create a culture with each other.

The main restriction for this is space and equipment. If you’re in a subleased office, this will be tough to pull off.

If you have a stand alone space, this can be a game changer.

We are seeing an average per person, per class between $40 and $85. This depends on the size of the class and location.

Real numbers for our practice in Atlanta are $65 a class and we cap it at 5 people. That’s a solid $325 hour in revenue to run s small group class.

The first step to gaining some recurring revenue is figuring out which option or options make the most sense for you.

Let’s say it’s remote coaching as an example.

Let’s say you have a subleased office that costs $1000 a month and a virtual assistant that costs $2000 a month. Throw in $500 a month of supplies and other costs and that brings us to about $3500 in overhead a month.

The first milestone with recurring revenue is to meet your overhead. Once you do this, you know you start the month off with all of your overhead met. That’s a pretty great spot to be.

Let’s assume you’re charging $350 to coach someone remotely. You build them a workout program, message with them weekly to provide accountability and make modifications.

You would need to get 10 clients to hit your $3500 overhead.

Now you can start setting some goals. Let’s say your goal is to get your 10 clients in the next 3 months. That means you need to add a little over 3 people per month to your remote coaching service.

When you break it down, it doesn’t look as daunting.

The other cool thing we have seen is a stick rate of about 12 months for remote coaching with our coach.

It’s $350 a month but that person is actual worth $3800 in value over the course of that year.

These services start to snowball and can make up a large percentage of your revenue over time.

Make 2022 the year of adding some much needed recurring revenue to your business.

It will make running a business much more predictable and less stressful.

If you’d like to get some help figuring out how to add recurring revenue services to your cash or hybrid practice, we should chat.

I recommend jumping on a totally free, quick 20 minute call with our team.

You’ll talk to a real person and they will give you customized guidance on your next skills or steps to take to gain momentum in your business.

We don’t sell anything on this call and you literally couldn’t buy something from us if you wanted to in this call.

We just know we can help and we want to prove it to you for free.

Click here to pick a time that works for you

It’s time to start making some serious progress in your business/life.

Danny
Physical Therapy BIZ

P.S. If you have a practice, check out our friends at PtEverywhere. We switched to their software to run our cash practice and it’s been a game changer!

3 Major Predictions For 2022

Make sure you’re providing the patient care your clients deserve with the right tools by your side.

Well, 2021 went by quick, and I hope you had a great year.

I’ll be doing a podcast on my lessons learned from 2021 but for now, I want to go over what I see happening in 2022.

Obviously, I don’t have a crystal ball but I do feel pretty confident about a few things that will happen next year.

I hope you can use these to your advantage and they help you find success in 2022.

1. Inflation isn’t going anywhere.

physical therapy practice management
Most people have heard of inflation but very few people have actually paid attention to it until recently. The average inflation in the US in my lifetime has been about 2%.

That basically means the cost of things typically goes up by 2% per year and the buying power of a dollar goes down by 2% per year.

They called this the Cost of Living Adjustment ( COLA ) when I was in the Army. Every year I would get a 2.2% raise because things just get more expensive.

I definitely don’t have time to go into the history of our monetary system and why inflation actually exists but it is very important for you to realize that it’s happening.

The current estimate is that inflation in 2021 has been closer to 6-7%.

That’s a really big jump and I’m sure many of you see it in goods/services you use on a regular basis.

We have mainly seen this large jump due to additional money that has been added as a response to COVID. This happened both under the Trump and Biden administration. Affinity to adding to our nation debt is one of the few areas both the Democrats and the Republicans seem to agree on.

I can tell you as well, owing a cash practice throughout 2020 and 2021, the PPP loan/grant was incredibly helpful. That’s obviously not the only money that was added. In fact, we have seen our national debt go from a whopping 20 Trillion at the end of 2017 to almost 30 Trillion at the end of this year.

When we add more dollars to circulation, we see each dollar decrease in buying power.

I’m telling you this at the risk of you either you falling asleep or getting bored and not reading the rest of this because I think it’s very important for you to know this.

There are a few ways to not let inflation continue to erode your savings and financial stability.

The first is to have hard assets. I know not everyone can afford to do this but if you can, it’s a great strategy.

The primary vehicle for most people is real estate.

In fact, many of you that own homes have noticed massive increases in your home value over the past 2 years.

A lot of this can also be attributed to inflation. A dollar has less buying power now than 2 years ago so it will take more dollars to buy that house you own.

If you don’t own a house, I think it’s definitely good long term decision to buy one. That’s assuming you plan on staying where you live for a while.

The other thing you can look to do is refinance your debt as lower rates.

Rates are still incredibly low and locking up cheap, fixed debt over a long period of time can help you win against inflation.

The last thing you can do is start your own business. This allows you to set your own prices and make corresponding adjustments to keep up with or outpace inflation.

Speaking of starting your own business….

2. More clinicians will start their own cash or hybrid practice in 2022 than any year before.

I know this is a bit of a bold statement but I honestly believe this will happen.

Here’s why I think this will happen.

-Insurance continues to decrease reimbursement even as everything around us becomes more expensive.

-People are becoming more informed consumers out of necessity. Currently there are an estimated 31 Million HSA accounts. This has increased by 5x since 2011. This is a great sign for cash practices.

-Clinicians routinely are able to replace full time income with 2-3 days of work by having their own cash practice. In particular, this is very appealing to new moms that are clinicians.

-The scalability of cash practices has been proven. Growing multi-clinician practices in a cash model is happening all over the country. People thought this was impossible but it’s not.

-Student debt continues to be a massive burden and is forcing clinicians to figure out how to make more money or potentially change careers to do so.

Take all that into account and you can see why so many people have made the transition to the cash model or are about to in 2022.

I also think there will be many more consumers looking for the services we provide, which brings me to my last prediction.

3. The number of people looking to invest in their health will increase.

The data is pretty clear when it comes to COVID. If you have been hard on your body, COVID will be harder for you to handle. There are obviously outlier and it’s much more complex than this but this is a pretty fair statement.

There’s no doubt this is a nasty virus but if you’re sedentary, obese and have metabolic diseases, I think these past 2 years were a wake up call.

More and more people have realized just how important taking care of their mind and body is. We obviously know this as medical professionals but the vast majority of the population puts no emphasis on proactive care.

This has changed in a significant way since March of 2020.

More and more people are eating better, moving more and prioritizing sleep.

People have switched careers so they can decrease there stress and take better care of themselves.

Insane amounts of investment money is moving into the health/wellness space.More and more people are looking for people like you and me.

PT practice management

People that can educate them, have a relationship with them and help quarterback their health and wellness.

This really has been a great awakening for people to take better care of their health and I think demand for our services will increase significantly in 2022.

The real question is, are you going to be ready for this increase in demand?

If you’d like to get some help either getting started or scaling a cash or hybrid practice, we should chat.

I recommend jumping on a totally free, quick 20 minute call with our team.

You’ll talk to a real person and they will give you customized guidance on your next skills or steps to take to gain momentum in your business.

We don’t sell anything on this call and you literally couldn’t buy something from us if you wanted to in this call.

We just know we can help and we want to prove it to you for free.

Click here to pick a time that works for you

It’s time to start making some serious progress in your business/life.

Danny
Physical Therapy BIZ

P.S. If you have a practice, check out our friends at PtEverywhere. We switched to their software to run our cash practice and it’s been a game changer!

The important business skill that you already know

I was once told that sales is just a transference of trust.

I always thought this was really accurate.

We think of sales predominately as getting people to buy things, but it’s actually much more than that, and I’m guessing you’re already pretty good at it. Think about this for a second.

If you do dry needling, blood flow restriction training, soft tissue release techniques, weird corrective exercises or any other common treatment tool we use…..you’re selling to people daily.

We are completely unaware of this, but it’s happening.

Just think about dry needling from the patient’s perspective.

“You wants to stick needles in me for what reason?” is what they’re most likely thinking.

It’s up to you to try and sell them on the fact that it will help.

What about your Postural Restoration Institute corrective exercises.

“You want me to get into this strange position and breath into a balloon?.”

Yep, that’s right and here’s why…

If you’re a PRI practitioner, you better a be a sales ninja because nobody wants to breath into a balloon unless they’re blowing them up for a little kid’s birthday party.

Here’s the overlap and why you’re probably already a sales ninja.

If you can convince someone to let you stick needles in them and to do balloon corrective exercises, you’re great at gaining trust.

In order to put a dollar amount on that, all you have to do is tweak your skillset just slightly.

A few minor adjustments in how you communicate and how you value yourself and you’re off the the races.

Sales is absolutely the biggest differentiator between people that can make the cash model work and those that can’t.

You already have the skills, we just have to help you get organized with some proven frameworks and you’ll be charging $200+ an hour just like the majority of people we work with.

If you’d like to get some help on taking these next steps to become the sales ninja you already are, we should chat.

I recommend jumping on a totally free, quick 20 minute call with our team.

You’ll talk to a real person, and they will give you customized guidance on your next skills or steps to take to gain momentum in your business.

We don’t sell anything on this call, and you literally couldn’t buy something from us if you wanted to in this call.

We just know we can help, and we want to prove it to you for free.

Click here to pick a time that works for you

It’s time to start making some serious progress in your business/life.

Danny
Physical Therapy BIZ

P.S. If you have a practice, check out our friends at PtEverywhere. We switched to their software to run our cash practice and it’s been a game changer!

The No Surprises Act: What You Need to Know

If you’re reading this sentence, you just won $1,000!

Wow, I bet that got your attention! Sorry, no, you didn’t win anything, but if you had, you’d feel incredible. In fact, even if you’d won $1, you’d still feel great, simply because the prize was unexpected.

An unexpected windfall is likely at the top of the list of good surprises. But do you know what is not at the top of the list of good surprises? Medical bills.

What’s no surprise, then, is that two-thirds of US adults worry about being able to afford these unanticipated medical bills. It’s a problem that concerns so many patients that it now has the attention and action of both state and federal governments. To help solve this problem, Congress signed the No Surprises Act into law.

As its name suggests, the No Surprises Act establishes patient protection against most surprise medical bills from out-of-network, emergency service, and air ambulance providers.  Two of the major provisions affecting providers – the good-faith estimate and balance billing requirements – became effective as of January 1, 2022.

The Good Faith Estimates (GFEs) or cost estimate provision likely concerns you the most, but don’t worry. This is where PtEverywhere can help. In fact, you can skip right to our toolkit and how-to video available in our Help Center. We’ve designed templates to automate the entire process and keep you compliant with the law!

If you’re still with me, let’s discuss GFEs a bit more.

Good-Faith Estimates

The good-faith estimate is just what it sounds like. This provision requires providers to provide uninsured and self-pay patients with a good-faith estimate of the expected charges prior to providing services. This lets patients know how much they can expect to pay for a service beforehand-thus eliminating surprise bills (i.e. bad surprises).

What must be included in the Good Faith Estimate?

You’ll see in our how-to video that PtEverywhere created forms that show editable GFE recommendations. This includes individual services that are provided in an encounter, line-item descriptions of services, procedure codes, diagnosis codes, and more.

The goal here is transparency. Estimates should be in writing and included in the patient’s record. You are not required to include in the estimate charges for unanticipated items or services that are not reasonably expected.

Once services are completed, if the actual cost exceeds the estimate by more than $400, the patient may dispute the medical bill.

If your clients’ needs differ from what you initially estimated, you can update the GFE to address this new information and recommendations.

How can PtEverywhere help you?

We’ve created an easy-to-use toolkit in our Help Center that includes our How-to video. The video details how to use the PtE app and forms to make sure you stay compliant with the No Surprises Act.

This includes:
• Templates and explanations
• Procedure and Diagnosis codes
• Easy-to-use patient portals
• Document automation
• Web and mobile app delivery
• Secure patient card payments
• Low payment processing rates

With PtEverywhere, our multi-functional software means no bad surprises for you or for your clients.

About PtEverywhere

PtEverywhere (think “Physical Therapist Everywhere” AND “Patient Everywhere”) was founded with an athlete’s mindset and a lofty objective: to create a new paradigm for physical therapists and patients, one with a modern approach to using technology to create a new level of interactive communication between physical therapists and their patients, while also accelerating therapist and patient successes, both inside and outside of the clinic.

PtEverywhere is the next wave of inpatient care. With the all-in-one physical therapy practice management software system, therapists can streamline their client communications, ensure patient compliance, and reduce overhead – all from one mobile cross-platform solution.