Fatal Associate Errors – No Business Plan
Speaking of scary: 80% of new businesses fail in the first five years and the mortality of the surviving 20% is just about as deadly over the next five years.
One reason for this near mass extinction is lack of planning. Too many inexperienced and naive business owners find their business ventures wheels up in the ditch and on fire because of the lack of a business plan.
How does this apply to associates? In my experience, most associate programs crash and burn for the same reason – lack of a solid business plan. When hiring an associate, you need to think of the associate as a separate business AND create a business plan. If you fail to plan, you plan to fail.
Example: New businesses budget for monthly operations costs then work like crazy to sell enough products or services to make a profit. No profit, no business. Your associate business plan needs to include a list of what the associate needs to do to make more than they cost you. THEN you train the associate on whatever skills needed to be in profit. AND you need to hold the associate accountable to use that training in producing new patients, patient services AND PROFIT!
It goes without saying that quality chiropractor care is at the top of that short list, but most clinic directors do not include marketing for new business in their training and that can be deadly.
You should be able to pencil out for both you and your associate a direct path to break-even and then to profit. IF the business plan is done correctly, it’s win-win for doctor and associate with fast growth. If not, it could be fatal. Not sure what should go into your associate business plan? Join us for the Win-Win Associate Development Seminar. We cover that in detail.