135 - The Importance of Understanding Your Numbers


It's important to know your numbers because numbers never lie; only people lie. But, before discussing the numbers of your business and which ones you need to measure, I think it is important to understand the difference between KPI's (Key Performance Indicators) and Statistics. 

In simple terms, statistics measure what happened in the past and give you a hint of what may happen in the future; however, they do not influence what happens next week or the actions you do need to take.

Whereas KPI's measure what is happening right now, today, these numbers can be used to make significant changes that will influence next weeks results. 

Are Numbers Important?

I'm often asked if knowing all the numbers of your business is really that important. The answer is YES. However, they're not important if you're not reviewing them regularly and using this information for business improvement and team coaching.

Information gathered and not used is a waste of time.

If you don't look at your numbers, you're only making assumptions about your business and each team member's productivity. If you only rely on total revenue figures and verbal feedback from your team, you may only realise problems exist within the business when it's too late. 

Your Revenue

Your total revenue for a particular week or month is a number you should know; however, it's not as important as knowing what services were delivered and by which team member. 

You need to be able to answer the following questions:

  • What was the patient breakdown?
  • How many new patients were seen?
  • How many were biomechanical patients, and how many were general patients?
  • What additional services provided?
  • How many patients reappointed after their initial consultation?
  • How many did not reappoint, and why? 

Think About This

If your total revenue this month was $100,000, and your total revenue last year for the same period was $90,000,  would you be excited? 

If you only looked at your total monthly revenue, you may think your business had some steady growth because you had a $10,000 increase over last year, but this is where the problem lies, and why looking deeper into your figures and measuring the numbers is so important.

What if I told you that your business saw twice as many patients this month as it did for the same period last year, would you still be excited about a $10,000 increase in revenue? I don't think you would be excited, and you shouldn't be.  

Double the patient numbers for only a 10K increase is poor. This is why it is important to look at individual team member numbers and the overall business numbers. 

I've had team members that thrive when they're busy, whereas others go-to pieces if they see too many patients. 

Knowing specific numbers for each Team Member can help you move patients to where you think the best outcome will occur. Some team members work better with younger patients, whereas others are better with elderly patients or maybe with sports patients. 

What other services did you and your team provide for your patients, and is it consistent from one team member to another?

Knowing your numbers will shed light on individual performance, and your super-stars will shine the brightest.

Using Numbers Removes Emotion

Never feel obliged that you must evenly split patients between team members when the numbers are clearly telling you that they are not performing equally.

This may annoy some team members that have been with you for several years, especially if a new graduate is kicking their arse, but it's not you making the decision; you are letting the numbers guide you and not your emotions. 

If a podiatrist on your team ever complains about a decision you make, show them the numbers and say nothing else. 

So, What to Measure

The are no limits on the numbers you can measure in your business; however, if you've never done this before, it may seem like an epic task, and to be honest, it can be, so I would suggest you start with gathering basic numbers first and then dig deeper at a later date.

If you're too busy to look at your own numbers, delegate it to someone else in your team and have them do it for you. Have them create a dashboard for you so you can quickly see what is happening.   

Here Are The Top Four Numbers You Should Know

  1. Total New Patients: Break them down to general, biomechanical, etc. (Laser, Nail Surgery)
  2. How many reappointed for an additional visit?
  3. How many biomechanical patients got orthotics?  
  4. The total number of other services provided (Shockwave, Foot Mobilisation, etc.)

If you sell retail products, this would also be another number you should pay attention to on a regular basis. 

You will learn so much about your business when you start to look at and understand the numbers in your business, and this is one of the topics I discuss in detail in the 12-Week Podiatry Business Reboot. 

If you need some guidance with your numbers or other aspects of your business, please send me an email and let's see if I can help. 

If you're considering one-on-one coaching, thinking about my upcoming marketing workshops or joining the next 12-Week Podiatry Business Reboot group coaching program, send me an email at email/tf)(tysonfranklin.com, and we can organise a quick Zoom call, and I can answer all of your questions.  

Competitive Advantage

If you're looking for a Competitive Advantage over other podiatrists in your area, please visit my EVENTS PAGE, and consider joining my next group coaching program, the 12-Week Podiatry Business Reboot or join the Podiatry Business Owners Club on Facebook.        



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