Creating a Reference Point for the Growth of Your Practice
By AHAA Staff

In order to help a practice move forward in achieving future growth, one needs to have, at the very least, a basic understanding of where they are today - a reference point. A major source of information in this regard is the Profit and Loss statement you receive from your accountant or your bookkeeping software. Part of the value adding service that an AHAA Regional Manager provides is a comprehensive evaluation of the contents of this statement in defining the overall health of the practice and in reasonably establishing the potential for future growth that exists in each individual practice. With the implementation of a few simple changes, seizing opportunity coupled with the integration of AHAA’s tried and proven value adding programs, many have very quickly experienced immediate results (financial impact).

Some of the information that can be gleaned from the P&L:
· The break even point of your practice
· Are your cost of goods in line / what is your pricing based on?
· Diagnostic vs. HA revenue
· How much is spent on advertising vs. what you should be spending?
· Binaural ratio
· Closure rate
· Initial gross revenue vs. expenses

Because of time constraints or having a feeling of intimidation, many practices leave this information to the accountant to decipher and analyze after the fact. The problem with this method is that it only shows you what you have already done so that at best you can only react to the situation. The analysis provided through AHAA allows you to take a proactive approach with the growth of your practice by identifying areas of change, creating efficiencies, and creating new opportunities, thus giving you more control in changing your practice. On top of this, your Regional Manager will be there every step of the way. From breaking down the information, showing you how this will impact your practice, and putting together a plan of action, to the actual execution of that plan so that the desired outcome is met.

This can only be done with the blessing of each associate. All information that is provided to AHAA Regional Managers is held in the strictest confidence. The profit and loss analysis is done in preparation for the MBA (Managing Business Activities) program, which is a two-day interactive seminar designed to give you an in-depth look into your practice and what AHAA can do for you.

Written by the staff of the American Hearing Aid Associates