The Power Of One (%)

Is it possible that a small change (1%) can make a dramatic improvement in your cash flow and more importantly in your profitability?  Making a small change (1%) in price increases, expense decreases, and productivity improvements can have a significant impact on your profit.

Having available cash in your business is much like having oxygen for life. Having sufficient, or abundant, cash will allow for growth and success.

The skill to “read” your business’ cash flow is an important skill.  Is your cash sufficient?  Is it lagging?  Do you have sufficient cash flow to meet payroll, pay your vendors, to grow to the next level?

If you answered “no” to any, or all, of these questions do you know why?

The Power of One is a simple, yet significant, tool to provide a positive impact on your cash flow.  In your practice, there are five influential and impactful financial variables to the Power of One.  What would a 1% change of the following key aspects of your practice do for your cash flow?

  1. Price increase of 1%
  2. Volume increase of 1%
  3. Cost of Care decrease 1%
  4. Accounts Receivable Increase of 1%
  5. Accounts Payable decrease of 1%

Using the information above, let’s assume your cost of care of $80 per treatment, your reimbursement is $90 per treatment and you are treating 100 visits per month.  With the Power of One you could potentially increase your cash flow (and resultant profit) by 18%.  What could these improvements do for your business over the coming 12 months?

The Power of One is an amazing tool that when used properly, can have an amazing impact on your business cash flow and your profit!  Do you want to learn more?

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Andrew Vertson, PT, DPT, ATC
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