E583 | A Simple Recurring Revenue Option

Dr. Danny introduces a simple way of maintaining and building a continuity offer in a successful physical therapy practice. He explains how getting new patients is a very challenging game, and that one must continuously find new people to sustain their practice.

However, if one can provide value to people for a longer period of time, then fewer people need to be found. Continuity or recurring services are, therefore, an important factor in creating a successful practice.

Recurring revenue, as opposed to package sales, is a great way to grow a business. Although the revenue is not immediate, the lifetime value of a customer is significantly higher than a one-time purchase. This is something that Danny has seen in their own business and has been working hard to implement in their own business.

With recurring revenue, customers come back month after month, creating sustainable growth and reliable income. This income snowballs over time and is much more lucrative than one-time purchases or services. Danny advises giving customers a reason to come back as this is a great way to generate recurring revenue and grow a business.

This conversation is about how physical therapists can use the concepts outlined in the book Built to Move to provide continuity of care to their patients. The book focuses on four main areas of health and wellness - movement, nutrition, stress management, and sleep.

The idea is to provide education and accountability so that patients can make better decisions about their health and wellness.

Physical therapists can use this opportunity to become a consultant to their patients, helping them to curate the right decisions for their bodies and to be accountable for changes. This type of continuity of care is invaluable, as it helps to build trust between patient and therapist and provides a more comprehensive approach to health.

Kelly and Juliet Starrett have written a book called Built to Move which is due to be released in April. The book aims to help people become more active and healthy and provides practical tips and strategies to help them do so. It also provides information on how to be an advocate for one's own health and wellness. The author suggests that healthcare professionals can use the strategies and information provided in the book to create a continuity offer for their patients, to help them make healthier decisions, stay accountable, and become more informed about their health. This, in turn, will benefit both the patients and the healthcare professionals, providing a win-win situation for both.

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Podcast Transcript

Danny: Hey, real quick before we start the podcast episode, I want you guys to check out our new YouTube channel for PT Biz. We are putting out a weekly video on the most common questions that we get, and we are breaking those down in a way that's more engaging. Where you can learn better and really focus on one thing at a time.

So if you're interested in really learning more skills to upgrade your cash and hybrid practice, head over to YouTube. Subscribe to the PT Biz Channel and check out the weekly videos that we're coming out with to help you win in the cash-based practice game. So here's the question. How do physical therapists like us who don't wanna see 30 patients a day, who don't want to work home health and have real student loans create a career and life for ourselves that we've always dreamed about?

This is the question, and this podcast is the answer. My name's Danny Matte, and welcome to the PT Entrepreneur Podcast.

What's going on guys? Doc Danny here with the PT Entrepreneur Podcast, and today we're talking about a really simple way of maintaining and building out a continuity offer. So for us continuity or recurring services, it is really probably one of the most important factors when we look at building a.

Successful practice. The reason why is if you are only playing the game of just getting new people in the door, it's a very challenging game to win. It's very possible, but it's also exhausting. You get on this sort of hamster wheel of new patients and you gotta find more new people, and and it's not like that really ever goes away completely.

You always need new business to some degree, but if you can help. People for a longer period of time and legitimately add value to what they're doing or trying to do then you have to find far fewer people and the lifetime value or the actual amount of revenue that one person is worth to your business goes up substantially and it snowballs over time.

When we look at recurring revenue is not something that is gonna spike immediately. If you look at something like a package sale is gonna go up fast because you're gonna get that money up front, but then you have to work that revenue off those services off.

But if you look at something like a recurring service, somebody that's coming in once a month, let's say for. 12 months, 24 months extended periods of time, it's actually worth quite a lot. But it's slower because it's getting paid over a longer period of time, but the lifetime value is still really high.

So as that builds and compounds and snowballs it actually. It turns into a significant sum of money each month that comes in without you having to go out and find it. And this is something that, we've actually worked really hard on with the mastermind businesses that we work with to really start to engineer and em implement early on recurring revenue services into their business.

And that's something that I, if I can go back and tell myself anything back. When I started my business, it would be, dude, give people a reason to come back because I was just seeing them a couple times and then discharging them, seeing 'em a couple times, discharging them, and I would have to have 25 new patients a month by myself in order for my schedule to be relatively busy because.

I just was discharging everybody so fast. And that's a, that, that is not a a very sustainable way to run to run a business to run a, to a practice in particular. So when I look at recurring revenue and ongoing services we're trying to make it as simple as possible, and there's plenty of things you can do with people coming back in for I guess maintenance kind of work is a good way of putting it, or ongoing proactive work.

You could do training, you could do digital things. There's a lot of stuff you can do, but I'm reading through. The book that that my friends are releasing in April the Tourettes it's built To Move is the name of the book. And, and as I'm reading through the book, I'm like, this is basically just the blueprint that clinicians should follow to have ongoing discussions and education with their patients.

If you could, if you can take the concepts of this book, which basically are wrapped up around the idea of being. Pretty good in, movement, nutrition, stress management and sleep. And if you can take those four sort of main core areas and help educate people and hold people accountable on those four areas and do it in a very simple way, like a very straightforward, simple way, which is what basically this book outlines.

You basically have a built-in continuity offer right there. Because the goal for you should be to, be this consultant for these people, to help them with their own bodies, to educate them, to be able to use your hands I if need be. And if that's something that you're good at and that's what they like and you can help improve, movement or decrease pain and things like that.

And people obviously see a lot of value in that. They go and see. Massage therapists, chiropractors, acupuncturists any, chi any number of other clin clinical skill sets outside of physical therapy on a regular basis? Very common. But most people aren't going back to see their physical therapist unless they have to, because that's basically how we've marketed the profession.

And it's also what insurance pays for or doesn't. But when you're not involved with insurance, you can do whatever you want. And if you can teach somebody how to improve, Sleep, nutrition, stress management, and move better. You've added so much value to that person's life. It, let's say that is over a 12 month period that you're just checking in with them.

Once a month. That's it. They're coming in and you're basically helping build this sort of knowledge-based skillset, curate the right things for them, help them be accountable for changes they're trying to make, and you become like the quarterback of their health and wellness. That is incredibly valuable and that's something that whe whether I knew I was doing it or not.

Like I, I started doing, a couple years into being in practice and I had people that I worked with for years and years just doing the same. Thing, checking in with them and they saw so much value from it. It was so interesting when I stopped seeing patients, I probably had, I don't know, two dozen people that I was working with like this.

And when I told 'em I wasn't seeing, I wasn't gonna be seeing patients anymore. It was like the response I got was not what I expected. Like emotionally res emotional responses as if. You know this trusted partner, which is what I became for them, was now no longer gonna be there, and that.

But for me, they already, they knew so much. It wasn't that they couldn't take care of themself, it's just that they valued that accountability. They valued that person that was a subject matter expert in a certain area that they could actually trust. And in such a, I think you have to keep in mind like it's such a convoluted healthcare system.

People don't know what to believe. People don't know what they should trust or not. And if you can, Be that person that is actually helping somebody make healthcare decisions, not sick decisions. They're not coming to us because they have, something systemic going on. These are health decisions.

This is helping them be healthy long term. Health and wellness, very different. If someone's sick, they need to go see a. Their doctor. If somebody is dealing with health problems, then we're a perfect fit for that and help just helping them deal with the, the things that are out there and help curate the right decisions for them and narrow that down and educate them on what they need to work on.

That in its own right is a powerful, simple continuity option. And you can make long-term benefits with people in their health just by doing that. And don't discount how valuable accountability is. Accountability is probably more valuable than all the other stuff that you do and that I do this just because we know.

It's significantly more likely that somebody's gonna actually achieve a goal when they have someone they trust that is holding them accountable and well, making changes can be really hard. So that in its own right is worth a lot. So as I'm, reading through this book and. I've really enjoyed it.

Obviously like these are buddies of mine but it's a great book and and it just makes me like, my brain doesn't go on the clinical side anymore. I'm not like, oh man, I can do this with my patient or not. I saw my first patient in two years today and it was like a family member that had shoulder problem and I had to dust off my clinical education to be able to, show her what was going on and what she needed to do.

But but when I read this, Just from a health standpoint. I think about the business applications of how people that we work with, people like yourself can utilize this type of information if you don't already know it. And if you do even better, just package it up in a way where you can share that with people on an ongoing basis.

Cuz you have way more information and knowledge and expertise than you probably even think that you do. Most people. Undervalue what they're worth. But I can tell you people really value this approach, this ability to be that sort of like quarterback of their health and wellness and help them. Be accountable, make decisions, educate them on the right thing, share relevant information with them in a curated way.

And and just be an advocate for them, as far as that goes. And people will stick around and it's great for your business. It's great for them. It's a win-win. So anyway really enjoying this book. It comes out. In April, I believe you can go check it out on Amazon. It's I think it's, there's like a pre-sale wait list thing or whatever, but built to Move is the name of the book, Kelly and Juliet Tourette.

I've really enjoyed it, taken a couple business lessons from it that I've shared on here and but as far as the information, it's great. And it's something that I think if you can apply it with your patients, you got a built-in continuity offer that will make you a lot more money and help these people live a much healthier life.

Hey, Pete, entrepreneurs. We have big, exciting news, a new program that we just came out with That is our PT Biz part-time to full-time, five day challenge. Over the course of five days, we get you crystal clear on exactly how much money you need to replace by getting you. Ultra clear on how much you're actually spending.

We get you crystal clear on the number of people you're getting to see, and the average visit rate you're going to need to have in order to replace your income to be able to go full-time. We go through three different strategies that you can take to go from part-time to full-time, and you can pick the one that's the best for you based on your current situation.

Then we share with you the sales and marketing systems that we use within our mastermind that you need to have as well. If you wanna go full-time in your own practice. And then finally we help you create a one. Page business plan. That's right. Not these 15 day business plans. You wanna take the Small Business Association, a one day business plan that's gonna help you get very clear on exactly what you need to do and when you're gonna do it.

To take action if you're interested and sign up for this challenge is totally free. Head to physical therapy biz.com/challenge. Get signed up there. Please enjoy. We put a lot of energy into this. It's totally free. It's something I think is gonna help you tremendously, as long as you're willing to do the work.

If you're doing the work and you're getting. Information put down and getting yourself ready to take action in a very organized way, you will have success, which is what we want. So head to physical therapy biz.com/challenge and get signed up today. Hey, real quick before you go, I just wanna say thank you so much for listening to this podcast, and I would love it if you got involved in the conversation.

So this is a one way channel. I'd love to hear back from you. I'd love to get you. Into the group that we have formed on Facebook. Our PT Entrepreneurs Facebook group has about 4,000 clinicians in there that are literally changing the face of our profession. I'd love for you to join the conversation, get connect with other clinicians all over the country.

I do live trainings in there with Yves Gege every single week, and we share resources that we don't share anywhere else outside of that group. So if you're serious about being a PT entrepreneur, a clinical rainmaker, head to that group. Get signed up. Go to facebook.com/groups/ptentrepreneur, or go to Facebook and just search for PT Entrepreneur. And we're gonna be the only group that pops up under that.