Everyone wants to make money right?
Most financial analysts would agree that the best way to do that is by maximizing your income. Worldwide, clinicians are finding new ways to diversify their income in order to make the most money possible and find other ways to share their talents with others.
The five main reasons why people diversify their income include:
- Unsteady markets
- Preparation for economic surprises
- Disability/Retirement/Unemployment cushion
- Avoidance of burnout with variety
- Attraction of clients with diverse services
We took a look at what other clinicians are doing to successfully diversify their revenue stream and create this list so you can do the same!
1. Keep Investing in New Sales
It is easy to get comfortable with a specific revenue stream that has been consistently providing you with the sales you need, but do not allow one revenue stream to drain you. Markets are flexible and constantly changing, meaning, you too need to be flexible with your sources. This will provide you with the stability necessary for maintaining a strong practice.
Authors of Peter Frumkin and Elizabeth K. Keating would agree with this pro tip. In Diversification Reconsidered they wrote: “Business and non-profit researchers have long argued that by establishing and maintaining multiple streams of funding… organizations are able to avoid excessive dependence on any single revenue source, stabilize their financial positions, and thereby reduce the risk of financial crises.”
Ideally, you should dedicate one hour daily to investing in new sales. Since the markets are always changing, so will the revenue streams. Allowing for new options adds a layer of protection, should there be an ebb and flow in your clinical practice.
2. Utilize Resources
Part of the beauty of diversification is that it gives room for your practice to grow without requiring added costs such as human capital. Technology increases the speed it takes to process data and therefore can reduce operation costs.
Digital data is a great example of technology that can help maximize your income, as it is a great tool for noticing gaps in the market. Digital data can pick up information that average human capital can miss and also provides an analysis on areas in which your practice can develop further improvements.
If you are tech savvy—or know someone who is, consider collaborating on developing a software for your practice such as Mindbody. You could create the new sought after billing software, a platform for finding a clinician in your field, insurance submission platform, etc. Just look for the hole in the market and fill it.
Identify your strengths
What are your strengths as a business? Whatever they are, those are what you should be focusing on to ensure success. Knowing your strengths allows for full realization of potential in your business. It may also help you realize that maybe you do not know your strengths and therefore, are not using them.
Conducting a SWOT analysis is a great way to evaluating the strengths, weaknesses, opportunities, and threats to your business. Here are a few questions you should be asking yourself when completing this evaluation:
- Strengths: What advantages does your practice have? What sets you apart and what do those in the market believe sets you apart?
- Weaknesses: Where is there room for improvement and what should you avoid? What makes you lose patients/sales? What does your market view as your weakness?
- Opportunities: What opportunities do you see? What interesting trends do you know of? Pay attention to changes in technology, population, and the economy.
- Threats: What obstacles do you face? What are your competitors doing? Could your weakness count as threats? Any debt or cash-flow problems?
Being honest with yourself about your practice will allow for the best growth and ultimately the most successful income maximization.
3. Prepare and Think About Your Process
This simply requires thinking before you act. The decisions you make about your business are key factors in how it grows and changes. It is important to do this step after identifying your resources because the process needs to be one that includes them.
Deliberating with other professionals within and outside your business should also be a part of the preparation process. Getting multiple outlooks and opinions can help give you a broader idea of what it is that would promote the best environment for improvement. Including your targeted market in this process as well can help you best cater to those who are enjoying your services.
Some believe that meditation before execution is essential when running a business. This is true especially when you are trying to diversify your revenue stream. You can also try some other reflective activity like making lists, creating art, or taking a quiet walk to clear your mind and refocus. Bottom line: Utilize all sources of insight when making these important decisions.
4. Reach Your Clients
Who are your clients and what do they want? What are they looking for when they come to you and who else is looking for the same thing?
Analyzing market trends is the first step in understanding how to reach your clients. Mordor Intelligence conducted a market study of the Pain Management Market- Growth, Trends, and Forecasts, which covered the next five years (2019-2024) using 2018 as a baseline. Globally, the largest market for pain management is North America, but the Asia Pacific is catching up.
Since North America is the largest market for pain management, it is an important market for clinicians. It is not surprising that the United States is the largest contributor to this revenue and is predicted to keep this title which means reaching your clients should entail appealing to this market.
The research conducted categorizes various forms of pain management: drugs, topicals, and devices. An important component of topicals included musculoskeletal pain, which is the most demanded good of the “By application” section of the 2018 analysis. Musculoskeletal pain stands at almost 50% of the revenue share of topicals globally from 2018.
Being aware of market trends is how clinicians can know what it is they need to supply to their clients.
Reaching your clients also means providing them with proof that the good or service works well through testimonials. Seeing that others succeed will make them want to succeed as well. This also provides credibility that goes beyond simply saying that the product works.
Incorporating target products in the office has been proven to raise sales. It demonstrates consistency and professional trust in a product. When you choose the right product, patients fall in love with it and will refuse to seek it elsewhere. Clinicians who have used CBD CLINIC™ products have expressed that their clients love the products and keep coming back for more, therefore increasing sales and gaining more loyal clients.
Here are some customer testimonials that you too can receive from your clients.
Judie M. 12/09/2018 , MA – 5.0
Overall Satisfaction Rating
“Superb products. I’ve used both Level II and Level III for my massage clients. Outstanding results and client satisfaction. These products bring the massage experience to another level. Will continue to buy from this seller – quality products and great prices. Thank you CBD CLINIC!!”
12/06/2018 by AcQPoint, I. (CA)
“Our patients have been extremely happy with the pain relief achieved with the CBD Clinic Level 5 cream. It is difficult to keep it in stock!”
5. Adjust Prices
Providing different price levels and session lengths can be very beneficial in diversifying your income. By doing this, you can attract new customers by providing services that are more difficult to obtain elsewhere.
Here are three ways you can adjust your prices in ways that will not anger your current customers, but instead expand your clientele:
- Higher level services: Having different levels of services will intrigue your customers to try them. It will attract those who are willing to pay more for higher level services.
- Longer Sessions: Allows for more time with your clients who may need longer sessions. This can also attract other clients who cannot find longer sessions elsewhere.
- Increase Rates: You can make more money without having to increase the time you work.
You are not going to be the only one adjusting your prices. The medical field as of 2019 is changing immensely. People are living longer (by the year 2030 19% of the US population will be over 65) and having less offspring which is resulting in a larger population of elderly who need the most care (specifically musculoskeletal related). This also means that there is a shortage of medical professionals due to the amount of time and skill it takes to become one. You can surely capitalize on this.
Simply taking another job is another way to diversify your income and explore other passions. Many clinicians take this as an opportunity to pick up extra shifts at hospitals, hospice centers, nursing homes, or non-profit clinics.
Moonlighting is also a way to gain new experiences and skills that you can bring to your main occupation. This is a great way to discover new strengths and obtain new insights for how others are running their businesses. When you are not in charge of your business, but merely an employee, you can get a new outlook on the impact and components of a practice while also making some more money on the side.
7. Channel Your Expertise Into Another Form
There are so many ways to use your knowledge to help others and it doesn’t have to just be through your practice, or even through moonlighting. Diversifying can come in simpler ways, including ways that will somehow provide a personal satisfaction.
If you enjoy speaking and sharing stories to aspiring clinicians such as yourself, then this might be a great way for you to diversify your income. Talking to students or laypeople about your occupation, life struggles, and knowledge can not only make an impact on their lives, but also allows you to better clarify your personal values and vision. In this way, you can generate additional income from your public speaking job while also gaining new experiences that may expose more ways you can diversify your revenue stream at your practice.
Remember to take notes on your new experiences. You can easily turn your seminars and other side projects into an additional revenue stream—be it the next great American novel to how-to guides and other educational material. Remember to take advantage of this digital age. You can create a website and write blogs that can be used as sources of information for other people in your field. Sharing your research through blog posts can also raise your credibility and become a great way to bring in more clients.
Websites alone are able to bring in additional income if you choose to affiliate your practice with a specific brand or product. Advertisements on your website with potential discounts granted to those who purchase this product are a great way to make money. Similarly, affiliate marketing is a great way to use your expertise to recommend products on the market that you as a professional can deem safe and effective.
Remember, you do not have to be a one-person machine. Writing can be personal or it can be through the cooperation of other professionals. Collaborating with other professionals to create a website, write a book, or contribute to a magazine article can further your credibility while also developing a strong network that can provide you with new resources.
Teaching and Consulting
You can utilize your new network to create online teaching opportunities, teach workshops, or teach at your local university.
Online classes are becoming increasingly more popular and you don’t even need to be live! Recording and posting videos on your own time can be a great way to channel your expertise. You can you can post them for free on YouTube or sell them online through Teachable, Udemy, Coursera, LinkedIn, and/or other similar platforms. Additionally, you can create webinars to advance the learning of professionals like yourself or add value to your customers.
But just because digital communication has taken precedence in our lives, does not mean the traditional methods are outdated. You can still teach part-time at a university or lead workshops. If you don’t have a personal office equipped for teaching, you can rent spaces by the hour or block at coworking spaces like WeWork.
No matter what teaching method you prefer, you’ll spread your knowledge while also expanding your network. These networking opportunities can also lead to consulting services. If you are a seasoned professional, others just starting out will benefit from your knowledge on anything from tips on treating specific populations to how to set up a thriving practice.
Bottom line: Find a way to add value to your clients or colleagues and they will come to you for your expertise.
What are you waiting for?
No matter which additional revenue streams you add to your repertoire, your success is as good as your plan. You cannot build a house without a solid foundation. George Hojeige, CEO Vurtuzone, emphasizes the importance of planning ahead rather than undertaking ventures when you are under pressure. “By ensuring you think about diversification of your revenue streams ahead of time, when you’re not under such pressure and you can give it the proper deliberation it needs, you are more likely to find success– and safeguard the future of your business.” says Hojeige.
You can use these tools to help yourself plan the best method for you to expand your business.