Operative Skalierung einer lokalen HRT-Arztpraxis

0:00Unternehmer/Gast owner medical practice with kind of closing in on 3 million revenue. We'd like to grow. I wrote down my question. Um and it's um what's the most overlooked operational system that adds the most leverage in scaling a service-based medical business like HRT and if you could uh only hire one person to help implement that system, who would it be and what would their role look like? It's a very targeted question. I think it'll depend on the business. So, what's um right now are you are you local or are you Yeah, are you local or you national?

0:41Alex Just local. You're local. Okay, so people come in person. Yes. Okay, got it. What's your primary lead source? Uh meta. Meta. So, ads? Yeah. Okay. >> revenue sorry, referrals. >> Referrals. Sure. What's the split? Probably 30 60 referrals 30 60 meta. Okay, heard. What's CAC? What's LTV? Um LTV would be probably 4K, I would say.

1:09That's LTV? Yeah. What's CAC? Um What do you spend for a on per month on ads? How many new customers do you get? We spend about 25K. Per month? >> Yeah. >> Okay. >> And >> AdWords? Excuse me? >> AdWords or or meta? Both. Both, okay. >> Yeah. And we get probably out of that we get roughly around 150 new patients.

1:38Okay, so like 225-ish per per patient-ish. Okay, so you're making like 20-ish to one. That's not bad. Um okay. So, 20-ish to one and I'm guessing margins are good. Yeah. Great. So, do you have from a capacity standpoint do you have more square footage that you can service more customers with? Yes, we have more square How many How many more customers can you take right now for a month sales velocity wise?

2:02100 to 200. Okay, so you can double right now. Okay. So then what breaks when you double? Nothing breaks. Well, then why don't you double? No, to answer your question. So like the thing that breaks first is going to be the operating constraint. And so then what stops you from doubling? I don't Can you spend twice as much money? Yeah. So why don't we spend twice as much money? We should do that. That sounds good.

2:31Um So if you had twice as many people, would they all be able to be serviced? Yeah. I love this for us. So I I don't I don't really know what the issue is. Yeah, I think um Are you doing this right now month over month? No, we're kind of stagnant right now. >> why are why? Yeah, that's what That's why I'm here. Why not So why don't we spend more money? Just cuz you It's like you got to mental barrier of a thousand bucks a day and you're like, I don't want to spend more than a thousand a day.

3:01I I mean, I think my personal observation or thinking was that we should be more efficient with the money we're spending. Like I was thinking like, okay, our conversion rate is not >> to one should be like 40 to one. Maybe. I mean, you can always get more efficient. I wouldn't say it's the number of the business. Okay. I mean, long term the only thing that's like if we're just zooming zooming out, the only thing that's really matter in the long term is that you keep people forever. Mhm.

3:28That's the only thing that matters. Do you Like what are your long term goals? Long term goals? >> Yeah. Ideally, I mean, we would like to grow, uh expand, you know, nationwide if possible. Would you expand to multiple locations locally first? Yeah. Okay. Yeah. We have two right now. Okay. So if you could have four or five in your local market, you'd be fine with that? >> Yeah. Okay. Um Yeah, the way I mean the way to do this is that you you basically want want to reverse engineer forever stick. Now, HRT is a product that tends to keep people pretty long time cuz it's hard to get off.

4:03Right? They might switch you to switch providers, but once you're on you kind of stay on. Um So, as long as your What's your turn? Do you know? Um Right now, probably 40. 40 per- 40% annually? Yeah. What? 40% annually? So, you keep 60% of your customers every year? >> Maybe less.

4:27Alex May- maybe we keep like 50%. Okay, so 50% leave, 50% stay. All right. So, that would be something that I'd be looking at. Um So, yeah, if I were to solve this in order, I hear where you're coming from from like because you're local, you need to make sure that you don't just burn through your reputation. Um which you might be at 50% of your customers leaving every year, especially on a product that's typically as as sticky as that. I mean, that's if you come from the gym world, um did you go through gym launch? Yeah.

4:54Alex Yeah, so you learned how to market and sell. You just didn't learn how to product. Um Yeah, so I think you I think your instincts are right. I think we have to fix churn, and we have to fix the sales motion. Part of it is going to be how the expectations are being set on both the marketing and the sales call and the offers that are that are that are that are top of funnel, um and kind of the handshake between kind of step one, two, and three, and what are the what are the kind of the key activation points, and um the conversations that have to be had. So, if if you did have a lot of profit, I would probably grab someone from from the software world and customer success, um to build out the customer success like pathway for you, so that you can fix the churn issue. So, to your point, I hear where you're saying where like, "Yeah, we could spend more, but you'd be churning out of people." So, I think your your instinct's right there.

5:40Um fix the hole in the back, and then number one, if you just do that, the business will probably double. Like, if you can cut your churn from, call it, 50% per year to 20% per year or less, then the business will just double on its own in 2 and 1/2 years. If you just did nothing, you just kept everything the same. But the thing is, it's disproportionately that will drop the bottom line. So, your profit would significantly more than double by doing that. I'll give you I'll give you guys a fun example. So, uh We Whiten is a is a teeth whitening chain that we own. Um and when we invest in the business, we two two point No, we doubled LTV.

6:19Or rather, doubled lifetime revenue per customer, which sounds like a small thing, but by doing that, we 2.4x'd revenue, and we 7 and 1/2 x'd profit per location. That's why I bought the company. I was like, "Oh, I can crush this." Uh And so, I I I say that as a good incentive for you in terms of uh making it worth it. Like you might be able to double or triple or maybe quadruple the profit of the business by simply keeping going from churn being half people leaving to only 20 or maybe 10% leaving every year. If you do that, the thing will just grow like crazy.

6:50Alex Um and you'll just feel good about it. So, you the who to solve that problem is there is a customer success person and then mapping the journey, and there's probably a little bit of tech stack that you need to automate it a good deal of it so that you don't have um as much operational drag. Awesome. Thank you so much. You bet. Thanks. If you're a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling roadmap, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through, and more importantly, where they got stuck and how they got past it.

7:22And so, we broke it in these 10 stages, and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at, and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so, no matter what you're struggling with, someone else has already struggled with it and solved it. And so, I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you deconstruct the business and you're trying to scale, we'd love to help you out. On the thank you page, you can just book a call with my team and we will look at the business, see if we can help, and if we can, we'll invite you out to Vegas and we'll do this in person live.