How To Figure Out Your Clinic’s Break Even Point

How do you get more new patients or hire more clinicians at your clinic and yet still remain profitable? This is the question, and I'm on a journey to get you the answer. I'm going to interview the best marketers and clinic owners across the world to give you access to their winning strategies from recruitment, marketing, operations, finance, and more. So you can easily take action on the secrets to grow your clinic. I'm Rick Lau. Welcome to Clinic Boss Secrets. Hey, everybody, it's Rick Lau here. You're going to love this episode. We're going to talk about break even. How do you figure out what your break even point at your clinic is? You're going to love this episode. Rohan, our cfo, actually teaches you how. Check it out.

It's never going to be perfect. It's never one of those numbers that is going to be a perfect bullseye on the target. What we're really thinking about here is if you think of a target, it's really the outer rings. Over time, you can refine it to bring it to the center and get that bullseye. But initially, when you're starting off, it's really just going to be a target of which you're just trying to get a bit of a range that you can help track on your scoreboard. So how we do this is that we end up picking up our total operating expenses. So if you look at it from my ABC clinic, month over month is fairly consistent. I mean, it did move up by $5,000, but month over month, we're really hovering around the 74 to $70,000. I'm going to pick up my gross margin percentage, which is consistent month over quarter over quarter again. It's not perfect, but it's still consistent. And then what I'm going to do is I'm just going to work backwards and I'm just going to divide my break even by my gross margin and you're going to see right away that my revenue break even revenue is about $133,000 and $140,000. Another way to think of this is If I got $140,000 total revenue and my gross margin was 53% times it by 53%. And I spent all that same money on the operating expenses, I would break even and I would get $0. So as you can tell, this is just quickly my check and you're noticing that I'm going to have $0. So that's really all it is. I'm just gonna make this red so you can see it. That's all we're really doing here is we're just calculating roughly what our target of our break even is.

If you found this helpful and want some free resources to help you be an even better clinic owner, head over to clinicbosstools.com we've got tons of free stuff on getting new patients, bone strips, selling your clinic, managing clinical teams, and much more. Head over to clinicbosstools.com.