Setting Financial Goals for Your Private Practice

Running a private practice means balancing your commitment to excellent care with the realities of operating a business. Whether you're a physician, therapist, or other health professional, setting clear financial goals is essential for long-term success, stability, and growth.

Why Financial Goals Matter

Without defined financial goals, it’s easy to focus solely on patient care and overlook the business side of your practice. But having clear targets gives you a roadmap for growth. Financial goals help guide decisions about your services, fees, staffing, and long-term planning. They also provide structure, accountability, and measurable progress.

Start with Your Vision

Think about the lifestyle and outcomes you want your practice to support. Do you want to increase your personal income? Work fewer hours without sacrificing revenue? Hire additional staff or expand your services? Your goals should reflect both your professional mission and your personal aspirations.

Set SMART Financial Goals

Use the SMART framework—Specific, Measurable, Achievable, Relevant, and Time-bound—to create clear, actionable goals. For example:

• “Increase monthly revenue by $8,000 in the next six months.”

• “Reduce operating expenses by 15% this quarter.”

• “Save $20,000 for office renovation by year-end.”

These types of goals allow you to focus your energy and track your progress more effectively.

Track Key Financial Metrics

Setting goals is only part of the equation. Regularly monitoring your financial health ensures you're on the right path. Pay close attention to:

• Monthly revenue and net income

• Cash flow and collections

• Appointment volume and cancellations

• Overhead and payroll costs

• Profit margins

Using cloud-based accounting software or working with a bookkeeper who understands private practice can help keep your financial picture clear.

Adjust as You Grow

Your financial goals should evolve alongside your practice. In the early stages, your focus might be on covering basic expenses. Later, you might shift toward increasing profitability, investing in growth, or planning for retirement. Reassess your goals regularly—quarterly or annually—to stay aligned with your evolving vision.

Financial goal-setting isn’t just about the numbers—it’s about creating a practice that supports your values, your well-being, and your future. With a clear plan and consistent follow-through, you’ll build a stronger, more resilient business—and enjoy greater peace of mind along the way.

---

Setting Financial Goals for Your Private Practice

---

I'll continue Living & Practicing by Design in private health care as it was meant to be. How about you? Let's talk. To learn more, join me HERE