Profit Isn’t Just About Increasing Revenue
Profit = Revenue - Expenses. Right?
So, why is the business world only focused on increasing revenue? Revenue growth sounds glamorous—it’s the metric everyone talks about when boasting about their success: the number of clients they serve and the money they bring in each month. But what’s the hidden cost of more revenue? More clients mean more sessions, more marketing, and ultimately, more burnout. In this blog post I’m not trying to say revenue isn’t important—it absolutely is. However, decreasing expenses, both in terms of time and money, is just as crucial, if not more so.
Here’s why.
The Allure of Increasing Revenue
Increasing revenue is the sexy part of business. More clients equate to more sessions, which translates to more money in your pocket. Everyone loves to share impressive figures—after all, who doesn’t want to be the one with a full client load and the highest income?
But let’s ask the tough question: When you’re already maxed out on time, why add more to your workload?
Sure, scaling is great, but what if that growth comes at the expense of your time and sanity?
The Hidden Cost of Increasing Revenue
Burnout is real, especially in demanding fields like mental health. When you increase your client load or ramp up marketing efforts, you may find yourself overwhelmed with work and mental load. The truth is, more revenue doesn’t necessarily equal more freedom. In fact, it can lead to less free time for yourself.
When your focus is on revenue, you may encounter diminishing returns; you might feel so exhausted that you can’t function at your best, which means your health will suffer but your clients may also be affected as well. If you’re too overwhelmed, especially for a long period of time, your brain won’t be working at full capacity which can look like: not doing notes, forgetting to send a client resource, missing an important client cue in session, etc. In these scenarios, the benefits of increased income can quickly evaporate under the weight of stress and fatigue.
Why Decreasing Expenses Can Be More Effective
Consider the saying, “Defense wins championships”.
In business, minimizing expenses is akin to building a strong defense. By streamlining your practice and reducing costs, you can increase profits without overloading your schedule.
It’s important to remember that expenses aren’t just monetary. Time is a legitimate expense that can affect your overall well-being. No matter how high your profit margins are, if you’re burned out, it’s simply not worth it. Efficiently managing your time is essential because, ultimately, time is money. Delegating tasks and honing your time management skills can free you up to focus on what truly matters, all while reducing those pesky hidden “time costs.”
Practical Ways to Decrease Expenses
Software Audits
Regularly auditing your software can help you identify redundancies and optimize your costs. Many businesses subscribe to tools they rarely use. Cutting these can save money without sacrificing productivity. We’re not just talking about Google Workspace and Microsoft Office. Are your referral website subscriptions actually bringing clients in? Why pay $300-500 a year for Psychology Today or MyWellbeing or Zencare when you’re not seeing a positive ROI?
Delegation
Empower your team to work in their zones of genius. Delegating tasks not only frees up your time but also allows others to shine in their roles. This leads to a more efficient and happier workplace. As the CEO, you should be focusing on the “CEO tasks” aka the money makers - the ones that need your specific brain and the ones that will lead to growth. Everything else should be delegated. (Hint: you can’t do it all.)
Time Management
Mastering time management techniques can decrease both stress and financial expenditures. Prioritize tasks, set boundaries, and find a rhythm that works with you, not against you. As a therapist, you know that executive function is important to being effective. Put those skills to the test.
Ex: On your to do list today is: 5 telehealth client sessions, notes for yesterday’s 4 clients, 2 treatment plan updates, and writing a social media post. Being in the zone for client sessions uses a totally different part of the brain than a social post and also for writing notes so blocking your tasks based on the type of task can be super helpful. If you only have 30 minutes before your first session, utilize that block to write your social post. Mark it on your calendar to keep you accountable and so you don’t waste the whole 30 minutes trying to figure out what to do! When you have a solid 1-2 hour block, knock out all your notes in one fell swoop. Your brain is already in the zone once you start so you might as well stay there. Our favorite way to time block and knock out to do lists is the pomodoro technique: 25 minutes of focus work, 5 minute break, repeat. We LOVE this tool for both individual and team co-working sessions!
If you’re worn down and your EF skills just aren’t cutting it, here’s a helpful trick: Write out your to do list the night before and then create time blocks on your calendar (yes, literally write out the tasks in your calendar like each is an appointment) for each block of tasks. So when you wake up and the decision fatigue and analysis paralysis hit, you don’t have to sweat it. Your day is already laid out and you can just get to it. (Hint: this also helps to teach you how much time a task actually takes which can snowball your productivity as you continue to do this!)
A Better Way to Scale
Let’s recap the myth: Revenue growth alone isn’t the best path to scaling your business. Yeah, we said it. It isn’t the best.
Instead, promoting efficiency and reducing both time and monetary expenses will lead to a healthier, more sustainable business.
When your business is lean and optimized, you can scale without adding to your workload. This approach not only prevents burnout, but also positions you for long-term success and profitability.
Growing revenue is important, but managing expenses—both time and money—is equally critical.
Take a moment to reflect: Where could you streamline or delegate in your practice to improve efficiency and reduce costs? Remember, it’s not just about making more money; it’s about working smarter, not harder!
Are you ready to take the first step towards a healthier work-life balance?
Let us help you prioritize efficiency alongside your revenue growth for sustained success without sacrificing your well-being!
If you’re ready to jump in with both feet and want to start scaling fast, we’ve got you.
Apply for PEAK, our 6-month intensive program designed for group practice owners who are ready to fully immerse themselves in their CEO seat so that they can create the practice and life they’ve been dreaming of.
