ptpn insights: why you should know your cost of doing business, part 1
This is another piece where I was more an editor than a writer. PTPN’s CEO and President, Michael Weinper, has more than 40 years of experience as a practice owner and business manager. We talked for about an hour about financial management and best practices for understanding your clinic’s bottom line. Along with my boss, Stephen, we edited the conversation into two separate blog posts. The first, excerpted below, focuses on why business owners should understand the finances of their company. The second, which will be posted in a couple of weeks, will look more at how this can be achieved.
Why you should know your cost of doing business: A Q&A with Michael Weinper, PTPN CEO and President, part 1
With personal taxes having been filed and spring around the corner, it’s a good time to take a look at whether your business is fiscally healthy. We recently sat down with PTPN CEO and President Michael Weinper, PT, DPT, M.P.H., to discuss calculating the cost of doing business. Michael is also the owner of Progressive Physical Therapy, a private practice with four locations in Southern California. He gave us so much information that it will be published in two posts: today’s discussing why you should know the cost of doing business in your clinic, and our next post on how to calculate your cost of doing business.
Why is it important for a practice owner to know the cost of doing business?
Every business has a necessary primary goal: To make a profit. If a business doesn’t make a profit, it can’t stay in existence for very long. Furthermore, most small businesses spend all the money they make every year, so they don’t have any reserves to fall back on. It’s keenly important to know what your cost of doing business is, as you make multiple decisions in your practice that have an impact on profit.