Tracking KPIs is VITAL to the health of your business! This week, we're here to breakdown some of the most common KPIs found in private practice, give you some examples of how the numbers work, and explain how to understand them.
If you're interested in learning more about what KPIs to track in your business, click HERE to check out our blog post all about KPIs!
Episode Highlights:
- KPIs - What are they?
- KPI stands for Key Performance Indicator
- They help you track different facets in your business, such as finances, capacity, profitability and so much more
- There are no right or wrong numbers
- Every business's KPIs look different based on what metrics the owner is focused on, so don't feel pressured to track the same KPIs as someone else! Focus on the goals of your business and decide what KPIs to track from there.
- KPIs will ebb and flow with your business - not everything will be stagnant and that's okay!
- Keep your focus specific
- In order to make effect changes in your business, focus on tracking 2-3 KPIs at a time - any more than that can get overwhelming and pull you in too many directions
- It is important to change the KPIs you're tracking as the needs of your business changes - trying to track everything at once will lose it's overall value to your business because you will be unable to make changes effectively
- Lagging vs. Leading
- Lagging indicators help you take a look back and evaluate what you can do differently in the future
- Leading indicators happen in advance of something else and give you a realistic look at what you can anticipate will happen within a certain amount of time
- Common KPIs to track in private practice
- Average fee per session
- Average profit per session
- Income per therapist
- Profit per therapist
- Cash on hand/cash reserves (in months)
- Capacity utilization (space vs. schedule)
- Marketing inquiries & conversion
Links & Resources
GreenOak Accounting
Therapy For Your Money Podcast
Private Practice Budgets (Solo & Group)