How to Take Your Practice to the Next Level

QUESTION: Mike, I have been stuck between $125,000 and $150,000 in the last 3 years in what has been a pretty healthy economy in my niche.  My goal has been $300,000.  It is amazing how consistently I end up in the same range, plus or minus $25,000.  How do I take my practice to $300,000?  What would you recommend?  Anonymous

ANSWER: What I would say is that you do not have a compelling reason to be at $300,000 because at some level, and I am not even saying it is conscious, you are happy and content between $125,000 and $150,000.  Now usually when I say that to someone they respond, “I am not”.

You have been in that range for 3 years, and if you are a solo operator working out of your house which means you probably do not have a lot of overhead.  There is no shame there.  You are in the top 5%, 7%, or 8% probably of income earners in the country, so there is not a judgment here, but you are telling me you want $300,000.  Those are the words, but your actions are showing me you want about $135,000.

So to break out of that, you have got to find a compelling reason.  If we were on a one-to-one call, my question to you would be “What is that extra $150,000, the delta between $150,000 and $300,000 which is $150,000, let us say that is $100,000 or $110,000 after taxes, what will that allow for you that you do not have now, exactly, specifically, and precisely?”

You have got to really lock in.  What you need to know is that kind of a “nice to have” which is probably my gut feeling is what it is for you and that is why you have not gotten it, or is it like you bite down on your lip and you are bleeding, blood flowing down your chin, I have got to have this?  Until you get to somewhere close to that second state that I talked about, it is not going to happen.