People often ask me for my “Revenue Formula.” This is either the number of clients you need to see each week or the amount you need to collect each week in order to have a financially viable practice.
Here is Casey’s Revenue Formula:
1) Identify your annual expenses. This means your monthly expenses x 12 plus those irregular expenses such as continuing education, license fees, and insurance.
2) Add to that your personal expenses that you want to pay out of your business income – your mortgage, your child’s tuition, vacation expenses, etc.
3) Divide that total by 44 and that is the amount of income you want to earn each week – your monthly revenue goal.
Why 44? It doesn’t mean you take off 8 weeks a year. It means you take off 2 weeks a year, have some sick time and are out for CEU classes. Plus there are weeks of the year when your entire caseload will seem to dry up. In order to prepare (and save) for these times, you must earn more in the other weeks than you actually will be spending.
4) Now look at that monthly revenue goal you just created. Divide that by your average hourly rate and that will tell you how many clients you need.
How “on-target” toward that goal are you?
If you aren’t there, then I recommend you figure out how to either get more clients or begin to raise your average hourly rate.
When you do that, you will happily pay your bills, enjoy your vacation and just maybe buy a new designer purse or take sailing lessons!
If you could use some support with attracting more clients, please let me know.
If you already have the Build Your Therapy Practice Self Study Course, please don’t forget that your purchase comes with a free 40-minute consultation with me.
If you haven’t yet purchased your copy of our Self Study Course, Bob’s sale will be ending at midnight on July 31st. You can get in on the deal until then at:
http://attractmoreclientsnow.com
As always, I’d love to hear your comments on this or anything else that is on your mind! You can leave your comments here.
Happy practice-building!
To your success!
Casey
