One of the first questions we ask every practice we work with is, “Why can’t we 10x this practice?”
We have been amazed by how few responses we get. Many clients simply say, “No reason.” This revelation is surprising and indicates that many have not explored their potential for scaling.
When the question catches them off guard, we offer a menu of constraints to prompt reflection.
IDENTIFYING PRACTICE CONSTRAINTS: A MENU TO CONSIDER
Does Your Practice Need More Patients?
If so, we should implement proven methods, increase availability, and focus on attracting your ideal clients. Additionally, we must build a value ladder to guide patients through your services.
Is Your Advertising Budget Reducing Profits?
If so, it may be time to raise your prices and refine your targeting. Use data, not guesses, to make advertising work harder than ever.
Has Your Practice Reached Capacity?
If so, it may be time to scale. Automate, delegate, and eliminate anything that slows you down. Prepare your team for growth—not business as usual.
Are Your Systems Overwhelmed?
If this is the case, it is time to upgrade. Do not let outdated technology limit growth. Invest in systems that can scale with your practice.
TRANSFORMING CONSTRAINTS INTO GROWTH OPPORTUNITIES
Turning obstacles into must-solve challenges is key to surpassing competitors and scaling your practice. The answer to the question, “Why can’t we 10x this practice?” reveals precisely what must be done to achieve that growth.
APPLYING THE THEORY OF CONSTRAINTS TO PRACTICE GROWTH
The theory of constraints is a management philosophy that helps businesses identify the primary obstacle to achieving their goals. When applied to practice growth, the philosophy involves five steps.
Step No. 1: Identify the Constraint
In a refractive or cataract surgery practice, the constraint could involve acquiring patients, maximizing referrals, converting leads into appointments and surgeries, or maintaining patient satisfaction.
Step No. 2: Exploit the Constraint
Maximize the efficiency of the constraint once it has been identified. For example, if surgical capacity is the issue, streamline pre- and postoperative processes to ensure the surgeon spends more time operating and less time waiting. If patient acquisition is the bottleneck, enhance marketing strategies to attract higher-quality leads.
Step No. 3: Subordinate Everything Else
Align all processes and resources to support the constraint. This might mean adjusting schedules, redistributing tasks, or reallocating budgets to ensure the constraint operates at peak efficiency.
Step No. 4: Elevate the Constraint
Once the constraint has been optimized, expand its capacity. This could involve hiring additional surgeons, investing in advanced surgical tools, or increasing your practice’s marketing efforts.
Step No. 5: Repeat the Process
As one constraint is resolved, another will surface. This iterative process promotes continuous growth and scalability.
REAL-LIFE EXAMPLE
We work with a surgeon who operates a refractive surgery practice. Every 90 days, we review his constraints. Recently, his availability was the primary bottleneck. By implementing process changes, launching new projects, and adding staff, we increased his availability.
In 90 days, the practice’s volume increased by 39%. For a practice generating US$4 million annually, that increase equates to an additional US$1.56 million in revenue. With a 20% profit margin, this translated to US$312,000 in additional net profit, calculated as earnings before interest, taxes, depreciation, and amortization. If sold at a 10x multiple, this would increase the practice’s value by US$3.12 million.
This example illustrates how addressing constraints can drive significant growth and profitability—vital for any surgeon looking to scale their practice or prepare for a future sale.
