Updated: Jun 12
There’s an old business adage, you have to spend money to make money. There’s some truth to the statement, but not all expenses are created equal. by Josh Kaufman.
Fixed costs are incurred no matter how much value you create.
Your Overhead is a fixed cost: no matter what you do in a given month, you still have to pay your salaried employees and the lease in your office space.
Valuable Costs are directly related to how much value you create. If you own a therapy private practice, the more clients you want to see, the more marketing you will have to do to get high-qualified clients for what you offer. marketing strategies, advertising campaigns, and hourly workers are variable costs.
Reductions in fixed costs Accumulator, reduction in variable costs are Amplified by volume. If you can save $75 per month on your office rent, that servings accumulate to $900 per year, if you can save $75 on each session, you will save $36000 on every 480 cases/sessions.
The better you understand your costs, the more likely you are to find ways of producing as much value as possible without spending everything you make.
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