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SERVICES Establishing a business model based on selling your therapy sessions as services is primarily based on your time. Because your time is valuable, and also finite, you need to establish a business model that is profitable and also effectively delivers solutions for your clients.
In the wellness industry, there is a strong focus on caring for the client whatever it takes. This is true of your attitude and approach, however, to ensure you can run your therapy business over the long term, it is important to develop a business model that can meet both financial goals and client goals.
PRODUCTS When running a service based business you can also sell products to supplement profits. This may be physical products such as art supplies, art kits, workbooks or physical books that you recommend. You can also sell digital products which may include writing your own e-book or digital workbooks.
TIME BASED It is important to calculate a profitable and competitive hourly rate. Your business model can be based on one to one client service and also group rate services which allow you to earn more per hour.
Your time is valuable so establishing a profitable business model that is service based is important to understand.
PASSIVE INCOME You can create your own digital products to sell which will generate income for as long as you choose. As there is no physical product to inventory, digital products represent an infinite inventory based product.
You can also generate more passive earning income such as affiliate sales from recommending books for your clients to purchase.
TRACKING Recording and analyzing your costs is an essential part of ensuring you run a profitable business. Tracking provides you with the evidence of exactly where your money is being spent, as opposed to where you think it’s being spent. You can take action based on this tracking your costs and not wonder why you aren’t making more money. Tracking your costs also provides you with information that you can use to negotiate better rates from other businesses that you purchase goods and services from.
OUTSOURCING The idea of outsourcing tasks, and the costs to perform those tasks, is difficult for many solo business owners to spend on because they often know they can do the task themselves. Over the past decade, outsourcing many administrative tasks has become easier because you can now outsource to a worker anywhere in the world. You can outsource to a virtual assistant to perform regular administrative duties for you, or you can outsource one-off tasks such as graphic design to bidding websites where you can choose from a variety of options.
SETTING GOALS Being able to predict your business profit provides you with a picture of your future business success and provides a secure view of your business direction.
Setting goals gives you essential information to enable you to make decisions on how to plan your client bookings, how to manage costs and how to account for fluctuations in income. One of the main predictors of success is in setting achievable goals at the start.
REVIEWING GOALS Once your goals are set and you are on an actionable path to achieving your goals, it is important to regularly review your goals to ensure they are both realistic for the time period, and also that the goals are still in alignment to what you want to achieve both professionally and personally.
You may be presented with different opportunities and challenges at times, so reviewing your goals allows you to remain flexible and realistic with where you are heading.
MONITORING CASHFLOW Cashflow is what keeps your business running day to day. Managing cashflow on a daily basis can be a quick and easy process if you have the correct systems in place.
When you are regularly monitoring your financial position, you can feel confident that you are prepared for any challenge coming your way.
IMPROVING CASHLOW Cashflow is often an overlooked financial term compared to profit, yet it is integral to the daily running of your business.
There are a number of tips and tricks that will enable you to improve your cashflow and ensure that you are in a solid financial position with quick access to cash every day.
FINANCIAL PROFIT DRIVERS Understanding your financial profit drivers gives you control over the details of your business. There are 4 main financial profit drivers for a service based business like an Art Therapy practice.
These include price, variable costs, fixed costs and sales. By managing these drivers, you can influence your ultimate profit and business success.
NON-FINANCIAL PROFIT DRIVERS In addition to financial drivers, there are also non-financial drivers that contribute to your business success and profitability.
These include productivity, client satisfaction, service quality, employee training and morale, business culture and values, and market share.
These drivers are not often expressed in dollar amounts, however, they do significantly impact your profit.