STP 14 | Every bank account tells a story - Knowing your numbers with Rocky Lalvani
Mar 17, 2023
In this episode of the Scaling Therapy Practice podcast, host James Marland welcomes Rocky Lalvani, a certified Profit First professional who teaches business owners how to prioritize profit in their financial management. Rocky shares insights on the Profit First formula, knowing your numbers, and why every therapy office deserves to be profitable.
Tools Tips and Resources for Scaling Therapy Offices
- Profit Answer Man Podcast
- Profit Come First Website
- Rocky on Linkedin
- Rocky's tip of the week: The Road Less Stupid by Keith Cunningham
- Level Up Week with Practice of the Practice March 20-23, 2023
- 6 Steps of Launching a Profitable Online Course - download and webinar
- PsychMaven - Find more resources here
- Builder Type Assessment - grow without the grind
- 9 Tasks AI can help you with right now
Every Therapy Office Needs to Know Your Numbers:
Rocky explains that understanding financial documents is crucial to making informed business decisions. However, he cautions that these documents, such as profit and loss statements, were not made for business owners, but for tax authorities and other parties. Rocky emphasizes the importance of using the Profit First system, which helps practice owners look at their business's real numbers to make daily business decisions.
The Profit First Formula
Rocky's mission is to change the traditional accounting formula of "sales minus expenses equal profit" to "sales minus profit equals expenses." He believes that prioritizing profit is essential for any business to thrive. Rocky advises therapists to set up separate bank accounts for profit, owner's pay, and operating expenses to ensure that profit comes first in their financial management.
Your Numbers Tell a Story:
Rocky stresses the importance of knowing your numbers and how they tell a story. Just as a therapist can identify a patient's problems and behavior, Rocky can look at financial numbers and see what story they tell about a business's bottlenecks and issues. Understanding your numbers and using them to make informed decisions can help your therapy office become more profitable.
Every Therapy Office Deserves to Be Profitable
Rocky believes that every business, including therapy offices, deserves to be profitable. He emphasizes that making a profit is not about prioritizing money at all costs but about putting people first. Profitable businesses can better serve their clients and employees, and creating a profitable therapy office can improve the quality of care you provide.
Wrap-Up:
In this episode, Rocky Lalvani shared valuable insights on knowing your numbers, using the Profit First formula, and making your therapy office profitable. By prioritizing profit, understanding your numbers, and using them to make informed decisions, you can create a successful therapy practice that benefits both you and your clients.
Quotes from the Show
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"If you know anything about financial documents, those financial documents, uh, he says they, they were not made for you. They were made for, you know, um, the tax man or other people. Your profit and loss statement, your revenue, your income statement, and those other things, uh, they might not be your best source of information for making day-to-day business decisions."
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"The profit First system helps the practice owner, uh, look at the real numbers of their business to make business decisions for themselves."
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"The numbers tell a story. Just how you can look at somebody's symptoms and behavior and problems and some of their, you know, the things they check off on their list and what they come in for, and you can kind of fill in the gaps about the story of their life and how they get there and how you can help them."
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"When you look at your numbers when you understand your numbers, then you have clarity, and that clarity can allow you to make decisions."
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"Profit is not an event. Profit is a habit. It's a habit that you create, and it's a habit that you make sure you're always doing."
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"The way to make more money is to have more profit. So, the more profit you have, the more money you make, and it's not just about cutting expenses. It's about growing your revenue."
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"Every therapy office deserves to be profitable. You are running a business. You are providing a valuable service to your clients, and you should be compensated fairly for it."
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"If you don't understand your numbers, if you don't understand your financials, then you're not running a business. You're just playing a very expensive hobby."
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