Pyramid Blog

Stages of Physio Business Ownership

There are four growth stages in which most private practice physiotherapy business owners find themselves. We identify these in the Physio Business Growth Pyramid. Based on your position it allows us to identify the key growth strategies required for your business to grow to the next level and towards the apex.

The ideal position is a business that produces significant income and has a lifestyle free of stress due to the operational aspects of the business.

Level 1: The Hobbyist

The first level of the pyramid is “The Hobbyist”.

Physios in this position are struggling to grow and realistically could earn more money if they were working for somebody else based on the hours that they are putting in.

  • Their personal income is often less than AUD $100,000, (£50k) and they work more than 50-plus hours per week.
  • Typically, they find themselves overwhelmed with doing everything needed to keep operational.
  • They are unsure of the business steps and processes needed to grow their business.
  • They are often working just so they keep employing others.
  • This type of enterprise would be considered a High RISK – LOW REWARD business operation.

Level 2: Owns a Job

The second stage is someone who basically “owns a job”.

  • Their personal income is less than AUD $150k (£75k) and they are typically working in excess of 40hrs/wk.
  • All their true profit comes from actively working and treating patients and if they are not treating then their income drops dramatically.
  • They often have a full caseload and are considered the predominant clinician in the practice.
  • The business has a stagnant phase of growth
  • They have some structured programs to deliver the numbers and are employing a team to deliver the services.
  • They often monitor their numbers but do not have a structured program to performance coach and raise the service deliverables
  • If they take time away from their business their income drops dramatically, proving they own a job rather than a business that produces a profitable outcome, whether they are present or not.

Level 3: Business Owner

The third level is the “Business Owner” who has operations in place that do not rely solely on the owner.

  • They typically have a personal income more than AUD $250k (£125)
  • They work less than 16 hours a week clinically. With their work week divided into working 2-days in-the-business, 2-days on-the-business and taking 3-days out-of-the-business each week.
  • The business has some efficient systems & processes in place with a focus on every patient at every patient touch point receiving an outstanding service regardless of the treating clinician
  • There are effective monitoring and performance coaching structures in place
  • There is an annual marketing plan that can drive predictable numbers on demand
  • The business makes a profit regardless of the business owner being present or not and they can take 6-weeks in a row off a year, without their being any drop in profitability or internal performance
  • From an investor’s perspective, this would be considered a MEDIUM RISK – MEDIUM REWARD investment and the business value would reflect this.

Level 4: Scale and Leverage  

At the Scale and Leverage Level the business operates with high-quality deliverables at every stage (clinical and customer service) producing an optimized profitability with or without your presence.

  • The owner’s personal income is greater than AUD $300 K (£150k)
  • The business owner has the ability to work when they choose to, as they have a lifestyle free of business constraints because they have engaged others to manage aspects of the business. Often these employees have a greater skill set than the owner in their particular area of expertise do due recruitment strategies.
  • The business is structured with multiple profit centers, with growth strategies in place for each. Each are measured through KPIs so that optimal performance levels are obtained.
  • The business is at a stage that can scale and leverage off the owner’s business expertise
  • This type of operation would be considered a LOW RISK – HIGH REWARD business enterprise from an investor’s perspective and the asset value of the business is significant.

This is a brief overview on a very important topic. For a more in-depth understanding take advantage of our free video training.
Pyramid – Video Training