A number of my private mentor clients are heavily into expansion mode.
They are currently looking for new locations as well as seeking practices to acquire and re-brand using their own tried and tested business systems and protocols.
During our research my clients and I get to look closely at the financials of the practices wanting to sell – as well as evaluate their current marketing and business systems.
What becomes painfully clear is that many health business owners fail to capitalize on their most important and valuable business asset.
Their patient database.
I have seen practice after practice which have failed to collect emails addresses from all new clients, don’t stay in regular contact with past clients, with some failing to even get mobile phone numbers.
Some of the first things I ask any business owner wanting to value and eventually sell their health business are:
– How many names and physical mailing addresses do you have on your database?
– How many of these people do you have email addresses for?
– How many of these people do you have a mobile phone number for?
There is no question – the amount of money a potential buyer is willing to pay for your business is a direct reflection of the future value of your database – ie how likely is it past clients will come back and spend money with you in the future.
Now collecting names, physical mailing addresses, email addresses and mobile numbers is just one part of the valuation process.
The next part, and the most often neglected part – is how frequently and successfully do you keep in contact with these past patients and clients.
In the marketing world we speak in terms of “recency” and “frequency“.
Recency – refers to how recently the clients on the database have been contacted.
As you can image – if the past client has not been to your practice for 7 years and you have not contacted them during this time – then they can hardly be considered to be an active contributor to your business valuation.
Frequency – refers to how frequently you are in contact with your database.
if you only contact your past clients once a year via a generic “Merry Christmas” email ( which receives an open rate of 10%) – again this database does not contribute much to your overall business valuation.
So the lessons from today’s message are pretty simple.
If you want to maximize the value of your business and get a higher sale price you need to do the following:
– get as much information as possible from all clients – including mailing address, email address and mobile phone number
– stay in regular contact with your database
– use as many contact methods as possible to stay in regular contact with your clients – including phone, direct mail, sms, email, Facebook and LinkedIn
I hope this helps you in your health business.
If you are interested in finding out more about my one on one mentor program and how I can personally assist you to build a great health business – then click on the link below and enter your details – I will then get in touch to arrange a FREE pre- mentor interview.