Psychologist Rick Workman invested many years and a great deal of money in specialized training before going into private practice. His education, however, did not provide him with the expertise he would need to optimize profits as his business grew and the number of staff members increased.
Business Success Story
Like many health care professionals, Psychologist Rick Workman invested many
years and a great deal of money in specialized training before going into private
practice. His education, however, did not provide him with the expertise he would needto optimize profits as his business grew and the number of staff members increased.During the ensuing 20 years, Workman's practice grew steadily, and he regularly turned to his accountant for business management advice. By 2001 he had a busy practice, employing four psychologists and two secretaries, but he wasn't realizing thelevel of income he had expected.
That's when Workman happened to catch a televised interview with a SCORE counselor. He wasted no time in contacting Charleston's SBA office and arranging for a session with local SCORE members John Samples and George Daniels. These business savvy SCORE professionals reviewed profit centers, measured debt ratios, analyzed compensation packages, and calculated profit margins. They alsocompared Workman's business practices to industry standards. In the end, they presented Workman with four detailed recommendations that would: (1) focus business development activities on consulting services, (2) reduce and eventually eliminate debt, (3) streamline his work force, and (4) reconfigure compensation packages.Workman embraced these recommendations and consulted periodically with his SCORE representatives as he implemented changes over time. Today, Workman feels more in control of his business. As a result of the restructuring, his gross revenues were reduced by almost a third, while his profits increased by an impressive 20%. He has eliminated his business debt and brought his staffing configuration more into line with his industry's norms.
Workman is happy to recommend SCORE's services to other healthcare professionals along with these pointers, "Don't hesitate to seek advice from professionals in a variety of fields: business administration, marketing, accounting, and legal. Don't rely on a single source, and be certain your local SBA's SCORE office is at the top of your resource list!"