How Long Before a Practice Becomes Successful and Profitable? (2024)

Creating a profit with a small niche side practice should be the number one goal when you start your own practice. It is vital to generate this profit as fast as possible because once the expenses start piling up and you are still paying for them through your personal money, it will become very demoralizing. When this occurs, your business will lose the necessary steam it needs to push past the inevitable slow times during the startup phase.

How long should you keep going before calling it quits witha new business?

How long does it take for expenses to be covered (autopilot mode)?

How long does it take to start generating a profit?

How long does it take to start making big profits?

The answers to these questions vary from business to business, but they can be estimated with fair accuracy.

How much time should you give a new business beforeshutting it down?

In my opinion you should give it at least 6 months. In general, a medical practice will not gain much momentum for 3-4 months. Sometimes it can take a little longer though. The first month will be painfully slow unless you market the living hell out of it prior to launch. Most of you will have a limited budget though, so we are estimating these time periods based off that. Remember, marketing should be the number one function of your business.

The second month is when you will start seeing a few morepatients trickle in the door. It will still be slow! It won’t be until the thirdand fourth months when the business starts gaining the traction that willbrighten your spirits.

Word of mouth will begin. You will start seeing referrals from other patients. These referrals then start telling other people and a cycle begins. You should continue to be marketing your practice during this time. The money you will be spending on marketing will begin to pay off by the fourth month.

Some businesses/practices can take a little longer on the other hand. One of my telemedicine practices did not really start gaining momentum until the fifth month and it continues to be hot and cold 8 months later. I was going to shut it down by the sixth month if it did not pick up. But it did! I eventually sold this…

Therefore, if you are still spending personal money keepinga business open by the sixth month. I would advise to either:

1. Increase your marketing dollars and give it 3 more months.
2. Shut it down.

If nothing is happening by month 6, it likely won’t unlessyou have the capital to dump a lot of money into advertising.

How long does it take for expenses to begin beingcovered by the business and not personally?

In general, the business will enter “autopilot status” by the third or fourth month. Autopilot in business means when the business expenses are being 100% covered by the business’s revenue. This is an awesome milestone for your practice! It is a true breath of fresh air.

When you see your numbers go from negative to neutral or slightlypositive while all expenses have been paid for by the end of the month, youwill do your happy dance! You will no longer be shelling out your hard-earnedpersonal money keeping the doors open.

How long does it take to start generating a profit?

From the experience of others and myself, the business shouldbegin generating a small profit by the fifth to sixth month.

How much of a profit? Well this depends on your practices niche and its expenses, but it should be in the $1000-$3000 range by month 5. Remember, all expenses are being paid for now!

Month by month that profit should increase slow and steady. If it is not, then you need to market more to bring in new patients. This costs money which will actually lower your profit for 1-2 months, but this is short lived and will result in larger profits down the road!

Remember, generating a profit is the number one goal of your business. Marketing is the way to get to that goal, therefore it should be your biggest expense!

How long does it take to start making big profits?

Unless you discovered a gold mine of an idea, typically you will not begin making big money for 12-18 months. What is big money? $10,000 a month in my opinion. Remember, this is a part time practice if you are following The Elite Nurse Practitioner Model. A full-time practice on the other hand? $40,000 a month. My men’s health practice is consistently generating $45,000 a month in revenue after 3 years!

If you are operating 2-3 small side businesses and working a part time job as the model advocates for, you could easily be bringing in $30,000-$40,000 a month within 2-3 years.

So, give your new practice at least 6 months before throwing in the towel. Closing a business down before you start dumping significant amounts of money into it is a WIN in my book. A cheaply started business that can be cheaply closed is the business you want to start. REMEMBER THAT!

If the practice is steadily getting busier, then it should go on autopilot by the fourth month. If it does, you know you are onto something. KEEP GOING!

When the sixth month comes along and you see that you havegenerated a profit, then you know you have created a business with long termpotential. Market that baby with all those profits and see the BIG money startrolling in!

• JustinAllan
• December 1, 2019
• 9:25 pm
• 16 Comments