What Subway Sandwiches and Your Profits Have in Common
Hey everyone, this is Dr. George Birnbach. And I don’t know if you’ve been watching the news lately, but it’s a very interesting lawsuit came through the other day and I want to talk about it. Because this morning I was talking to a chiropractor and we were talking about money. We were talking about spending. And we were talking about, you know, I’m running out of money and I need more profits and all of that’s good. We know in chiropractic, we do some of the best work that is possible for the health of our patients. And it is good to have a certain level of income, a certain level of freedom, a certain level of pride that goes along with that.
Well, there was a lawsuit that came out the other day, which was with the Subway sandwich shops. Now, many of us know that in the United Kingdom and in Europe, they use something called a VAT, a value added tax. And the value added tax is a tax on consumer goods that you choose to buy. And often things that they consider staples, sometimes certain pieces of clothing, sometimes certain food items like bread or water, they’re considered staples. So they’re not subjected to a value added tax. So you don’t pay taxes on those things. They’re considered necessary for life. And in Ireland, bread is in that category. Bread is considered a staple. There’s no tax on bread.
Well, you all know the Subway sandwich shops. Subway just lost a case where the Irish government said there is so much sugar in Subway’s sandwiches, in the rolls that they produce, that it’s not actually considered bread. It’s more of a dessert. It’s more of a pastry. So you have to pay a value added tax. Subway just lost this case because the Irish government said there is so much sugar in the bread that you’re delivering the public, that it doesn’t even qualify as bread under our definitions of what food is. It’s more of a dessert. And what looked like bread and what was promoted as bread just isn’t bread. What does that mean to us in our chiropractic offices? Well, I was speaking to a chiropractor today who was saying, I need a budget. I need to know where my money’s going. I really have to look back on what I’m spending because I almost lost money this month. Well, look, you do indeed need to know where your money’s going. That’s a fact. And it’s often said that you rarely have control over your profits when you don’t have a budget. But thinking like this is usually a weaker way to look at your money. You see in practice, we have lag statistics. What did happen? What was done? And we have the leading statistics. What will we be doing?
Now let’s apply the same concept to budgeting. At the beginning of the month, we can look at our accounts. We can look at our savings account, our checking account, our investment account. We can look at our cashflow accounts. At the beginning of the month, you should know what you have in these accounts. Now let’s plan out how we’re gonna spend this money over the next few weeks or the next month. You see, planning forward allows you to test strategies, ideas for daily spending amounts, for spending in different departments of your practice, for avoiding the pitfalls of I can’t believe I spent this much money on that last month. I didn’t know that bill was gonna be that high.
When you look back at the end of the month and you start seeing things that you’re shocked by, you know you’re planning and budgeting your money in the wrong direction. So there you have it. Just because it looks like bread, doesn’t mean it’s not bread. Doesn’t mean it’s bread. Okay. Just because it looks like food doesn’t mean it’s food. Just because it seems like, right. Just because it seems like you have a budget that is telling you what you’ve been spending, that doesn’t mean it’s an effective budget to plan your financial future. Start with a known position. What we know we have and then plan your strategy for the next 30 days. You will be amazed at the profits you can enjoy. All right. My name’s Dr. George Birnbach. Take this information, use it, make your profits better, make your practice better. I’ll talk to you all real soon. Bye bye.