When Is The Money Made In Your Business?

When is the money made in your business?

I posted this question on my FaceBook page:

Do you know the answer to this business “Trick” Question?

What 1 activity do you do in your business, that makes you money?
(There is only one answer- and don’t google it!)

ALL of the answers people gave above are important to being a successful practitioner, and many of these responses are close — but they are not really WHEN is the money made in your business.

And, get this, some of the responses are actually wrong, (won’t mention names 🙂 ) b/c what you posted is actually when it COSTS you. (Some of this may be semantics, so hear me out as I clarify).

If your goal is to generate higher levels of income, once you understand this concept- I promise you, your business activities will NEVER be the same.

Barb Connell got it correct!

OK – so here is my answer, Let me explain.

–> The money in your business is made when you close the sale.
(This also refers to when you close the appointment.)

In our industry the example would be when a client says “Yes, I will come back in on Thursday.” or “Yes, I will buy that lotion.” That’s WHEN the money is “made” or “generated”.

Now, When Thursday rolls around and you provide the best, most brilliant service, you are actually losing revenue.

How Are You Losing Revenue When You Aren’t Closing Sales?
It costs you your personal time to provide the service, or if you pay another practitioner, it costs you to pay them to provide the service. Have you heard the phrase, “If you are not making money, it’s costing you money.”?

If you sell a product, the money is made when you collect the payment on the product, not on when you ordered it from the manufacturer, opened the box and stocked your shelf.

Don’t believe me?

I understand — it took me a while to wrap my head around the concept of when is the money made in your business.

Hopefully this will help you see how it applies:

Imagine if you had 10 therapists providing services for you and you paid them 50% of the revenue generated. Also imagine they could see as many clients as you brought them, never got tired, and wanted as many clients as you could feed them — wouldn’t you spend all your working time generating business and closing appointments for them?

If you booked $500 worth of business and paid them $250 — you would make $250.

If it was $5000 worth of biz- you would add a zero too!

Even if you only kept 20% of the revenue, hopefully you see how it is the actual booking of the appointment (sales) that makes you money. You could/would make sales calls all day long, right?

I’ll pick on People From The Comments To Illustrate This Point Even Further:

• Monica Hutchinson: raising your rates is great- but no appointments booked (sales) = no $$.
• Kimberly Rogers – all that is great for keeping you front of mind- but, again, no appointments booked (sales) = no $$.
• Windy Degrees- a business plan in my book, is pretty useless- simply focus on closing appointments (sales) = $$.
• Angela Stevenson Acmt – giving them the best session is only best (for both of you) when there is an actual client on your table! So, if no appointment booked = no chance to WOW them = no $.

Sales = Revenue:
So, hopefully you see how important it is to get really great at sales. It’s not a scary thing. It actually serves both you, your business AND the client when you get comfortable with selling so they can get confirmed for a session with you!

Closing the sale is the KEY to a brilliant, revenue generating business machine.

What Now?
Spend your time learning how to be good at and working on making sales. I can help you learn how. (Apply for a free gift session if you want my help.)

Learning how to sell as a practitioner is really pretty simple and serves your clients at the highest level!

OR, if you don’t like or want to get great at selling, and only want to do the service-providing part, you’ll want to consider hiring a sales person to get you your appointment bookings. Otherwise you’re sitting there with a great smile, willing hands, wonderful clinical skills BUT NO ONE TO WORK ON!

(Is your mind blown yet?)

The picture of Rich Dad, Poor Dad sums it up perfectly.

I’ll look forward to your feedback below.
(And if you want my help either learning how to sell with love and genuine concern for your clients or how to train a staff person to do it — reach out to me.)