How Do Traditional Medical Practices and Small Businesses Compare?

Let’s compare and contrast the conventional medical practice and a conventional small business.

Here are some qualities you share with small business owners:

You both generate revenue.

You both manage employees.

You both have expenses.

You both pay taxes.

You both use the revenue you generate to provide for your families.

The metrics by which you measure success separate you from a small business owner.

Small businesses win by optimizing profits.

It’s fundamentally about financial outcomes.

Medical practices win by optimizing the quality of medical care.

It’s fundamentally about clinical outcomes.

However, these different paths leads to the same destination generating revenue by delivering products or services or a transformation that people value.

Patients are willing to exchange money for that value.

The formal training and skills that support success are different.

Small business owners generally have training in sales, marketing, and finance.

You have formal training to perform diagnostic and therapeutic interventions.

However, the most successful physicians and business owners master both sets of skills.

The relationship with the “stakeholders” – the people with a vested interest in the organization – is different.

In small businesses, the consumer/customer/client generally makes purchasing choices, uses the product or service and pays the bill.  Think about purchasing a car, booking a vacation, or hiring someone to do yard work.

In your practice, you manage complex triangulated relationships between yourself, the person who benefits from your care (the patient), the people and organizations that pay for the care, and the organizations that impose compliance standards.  Each party wants different and often conflicting things.

However, both physicians and small business owners succeed by identifying a buyer who is willing to exchange money for the value they deliver.