You Need a Bigger Shovel: Construction Numbers vs. Crisis Numbers

I had a doctor stare at her net income line recently.

Minus $92,000.

She went quiet. You know that quiet. The one where the brain starts doing math it doesn't want to do.

Then she said, "That number is really scary."

Here's what I told her.

You're right. It's a big number. And every dollar of it came from decisions you made to build something: catching up on old debt, investing in systems, paying for the infrastructure to grow.

That's not a failure number. That's a construction number.

The real question isn't "How did I get here?" It's "Do I have a shovel big enough to dig out?"

And here's the thing about her. She did.

She'd been selling like crazy. Her revenue was up. Her collections were strong. She was on pace for a $500,000 year. The hole in her net income wasn't from bleeding out. It was from clearing out the old stuff that had been buried under the surface for years.

She'd built herself a bigger shovel without realizing it.

That's how it works. You don't fix a big number by shrinking your practice. You fix it by growing your revenue until the math tilts the other way.

The only thing worse than a scary number is a scary number with no plan.

If you know what yours means, great. Keep shoveling.

If you're staring at a number right now and you're not sure if it's a construction number or a crisis number, that's worth a conversation.

Stay Profitable, Dan

Want help with your own numbers? Schedule a free numbers review. One call, two or three of your real numbers, and a clear next step.

This post first appeared in The Profit Weekly, Dan's Friday email for private-pay and hybrid practice owners. Get The Profit Weekly every Friday.