Unified Practice

When running an acupuncture clinic, the thought of diving into numbers can feel overwhelming – especially if it’s new territory. Nevertheless, learning how to budget and forecast for your business is necessary for keeping your practice stable and well-positioned for growth.

In this guide, we’ll break down budgeting and forecasting into simple, manageable steps that make the process less overwhelming. Get ready to navigate business finances with confidence so you can focus your energy where it matters most – on your patients.

Assess Your Practice’s Current Financial Landscape

When learning how to budget and forecast for your business, the first step is to conduct an annual business review. Begin by looking at your “Money In” (revenue from treatments, services, product sales, etc.) compared to “Money Out” (business expenses, including rent, supplies, payroll, education/training, etc.) for the previous year.

This overview is called a “Profit and Loss” (P&L) statement, which tells you exactly how profitable your practice is.

Look for any patterns in your income and expenses. Did income surge during certain months because of seasonal trends or marketing efforts? Were there periods of time that were slower than expected? By identifying these patterns, you’ll be able to prepare for business peaks and dips in the future.

Once you understand how profitable your business is and realize income/spending patterns, you can use that information to make informed predictions (forecasts) for next year.

Set Income Goals for Next Year

When setting income goals for next year, look at what you earned this year from acupuncture treatments, wellness sessions, and supplement sales. Use that number as a reference point, then consider potential growth and impact factors.

If you’re hoping to see more patients next year, that’s fantastic – but try to be realistic about how many new faces you can bring in and how often your current patients will return. Steady and sustainable growth will keep your clinic thriving in the long term.

Then, think about what could negatively impact your income. New competition in the area, fluctuations in the economy, changes in consumer habits or preferences – anything that might decrease the number of patients coming to your clinic. Although it can be tough to consider the possibilities, you’ll be able to get ahead of less-than-ideal scenarios before they hurt your business.

​​Finally, set an income goal for the entire year and break it down by month. Remember your seasonal patterns when setting monthly income goals so you can financially prepare for a dip in business.

Consider Staffing and Payroll

Assess your current team and consider anticipated growth. If next year looks busier, you may need to hire extra staff to keep everything running smoothly. Estimate what you expect to send on salaries, bonuses, and additional training that will help your team continue delivering excellent care.

You can make the most of your payroll budget by optimizing your staff and their time throughout the year. Here are a few suggestions for doing so:

• Use scheduling software that allows you to adjust shifts based on patient demand.
• Assign tasks that play to individual strengths to keep everyone focused on their responsibilities without overlap or confusion.
• Establish a consistent routine for daily and weekly tasks that your team should complete during downtime so they remain productive throughout the day.
• Cross-train your staff so team members can cover for each other if someone is away or is overwhelmed with their responsibilities.
• Hold regular meetings with your staff to review schedules, share updates, and ask if they have any ideas for making things more efficient. 
  

Budget for Marketing

Evaluate which marketing efforts worked well for you last year. Did you find that your social media campaigns, email newsletters, or local advertisements brought in the most new patients? Allocate more of your budget to what has proven effective so you can get even more out of your investment next year.

Don’t just stick to the status quo here! Think about any new marketing methods you might want to try and set some money aside for those. Maybe you’ll host a few local events with other businesses, run paid ads on social media, or film a commercial. Experimenting with new approaches can be a great way to bring in new patients and have some fun with your community.

How much should you spend on marketing? It’s different for every business, but 5-10% of your anticipated earnings is a good place to start.

Plan for Big Purchases

Consider any significant expenses you want or need to make next year. Will you invest in some new, innovative equipment that requires training? Do you need to make any upgrades or renovations to your space? Are you planning to add additional services, like massage therapy or skincare? Take time to estimate how much these changes will cost and incorporate them into your budget.

Monitor and Adjust Throughout the Year

Make it a habit to check in on your finances at least once every quarter so you can see how your actual income and expenses stack up against your budget. Identify any discrepancies early on and make adjustments before they become bigger issues.

Lastly, don’t hesitate to cut back if your spending is getting higher than anticipated. This might mean reevaluating suppliers, finding more cost-effective marketing strategies, or no longer offering products that don’t sell well.

Learn How to Budget and Forecast for Your Business

If you want to know how to budget and forecast for your business like a pro, give Unified Practice a try! With acupuncture software that has robust financial reporting features, you can easily access the data you need to run a profitable business. Sign up for a free trial today.