Episode 143: The Best Indicator of The Health of Your Business: The Rule of 40

Recap

Ask any CEO: “How’s it going?” and you’ll typically get an answer like: “Great!” But what does that mean?

This question ultimately boils down to the company’s financial position – whether or not you are growing revenue and making a profit. But does this really tell the whole story?

While there are layers of complexity when determining the financial health of your business, we like to use The Rule of 40 as our “measurement” of the health of a chiropractic business. The Rule of 40 gets to the heart of the question… ”How’s it going?”

Finally, Chiropractic CEO’s will have a Remarkable Standard to tell the whole story.

Listen in and find out how it’s really going…

Episode Highlights

02:42 – One of the qualities of remarkable businesses is that it is data-driven.

06:09 – An introduction to the Rule of 40, a way to audit and assess the health of the business

09:56 – The Rule of 40 will help you make informed financial decisions that fuel and drive the decisions that you’re able to make as a business owner

14:32 – Your profit margin may not actually be what you think it is. Discover some key components you need to consider.

23:12 – Why the rule of 40 is a healthy way to measure your business

26:59 – Having multiple years of data allows you to look at the overall health. There are going to be runway years as you invest and others where you reap the rewards.

32:32 – Stay tuned for Dr. Pete’s interview with Success Partner, Dr. Nick Silveri of LVRG Media. Learn more about how LVRG Media helps chiropractors get their message out into their community, expand the four walls of their practice outside of the office and into the community, and generate qualified new leads utilizing done-for-you content marketing. With a background in and a sole focus on chiropractors, they have a proven track record in the chiropractic field.