Grow Your Therapy Business

At the weekend I went to a conference that had a presentation by Mike Harris. He has made huge leaps in three major businesses in his career… he introduced the first telephone banking that would be available 24/7. We take it for granted now but at the time the attitude was, ” why would anyone want to do banking in the middle of the night and not through their branches?” The Independent newspaper were very scathing initially, stating in it’s headline “First Direct, the Bank for Insomniacs”.
Having had one incredibly successful launch of First Direct Mike then went on to set up the first proper internet bank, Egg and subsequently at Mercury Communications. In each case he has had a bold vision of the seemingly impossible.

His book “find your lightbulb” is a great support for coaching where you have a specific idea. he says start with the final chapter…as though it had already been achieved and work backwards. he should know he has implemented something completely new.. or at least a completely different way of doing something a number of times very successfully. As you know if you have been following these blogs that is the approach suggested in an earlier question.

For your business, taking into account the answers you have had from your previous questions about the threats and opportunities in the market, who your ideal client is and your unique selling point ( why people should buy from you).. ask yourself this question..

“If money were no object and it could make life so easy what would my ideal client really like in relation to my market?”

So Mike Harris knew that there was a market of stressed office workers who couldn’t get to a bank when it was shut but needed to sort out their finances. He also knew that he needed to recruit and retain intelligent and enthusiastic employees on the end of a line to deal with the customers. Not surprisingly First Direct has been a real success story and still exists today.

If you are a therapist, what would your ideal customer really like? Maybe a shorter massage after work on a Friday before going out ( could you do a chair massage?) or they don’t really want to drive to and from your premises.. could you do a deal with the local ( luxury) private hire company who can pick the client up and drop them back home again ( which you would charge a premium for of course!)? Don’t make the mistake of thinking that there are no people with money out there – there are but they may be more cautious now.

So be as creative as you like, brainstorm some ideas, without passing judgment… you could of course go to where a group of your potential clients hang out and treat them like a focus group, to find out what needs are unmet…. although in my experience it is often the “off the wall suggestions” that people don’t think about.

What services/ benefits of other businesses could you translate to your business… taking the banking example… what about having 24 hour holistic massage for local stressed out business people ( of course you would have to be careful how you market that one!!!!) especially if they have just come off a transatlantic flight and are jet lagged and can’t sleep a relaxing holistic massage maybe ideal!

Look at the most successful companies in any business area and ask
” What can I learn from them/ adapt from that?”

This week I make no apologies for taking this from my book “Set Up a Therapy Business: a step by step guide” . It does what is says on the tin…if you are just setting up in business it covers all the steps you need to set up in business with lots of links to other resources… but don’t just take my word for it.
Check on the reviews on Amazon.

You can get a copy of the book here.

When do you last check the market place and find out what your competitors are up to?
Have new competitors emerged since you last looked?
This is focused on the therapy business, but if your business is in a different market the same principle applies and can be adapted easily.

Step 1: who else is out there?
The first step to finding out about your competitors is to:

1. look on the Internet
2. read alternative magazines
3. look in local newspapers and magazines
4. check the Yellow Pages
5. ask friends who they go to, who they would recommend, and why.

Step 2: compare and contrast
Set up a database of competitors (either on the computer or manually if
you hate computers) and include the following information:

1. the range of services they offer
2. a cost per session
3. the ease of booking
4. their qualifications
5. their location
6. what is their pricing policy?
7. do they give concessions or block discounts?
8. particular specialisms they offer
9. how do they promote themselves?
10. how long have they been established?
11. who are their customers?
12. what are their values and business strategy (how do you think will they respond to a given set of circumstances)?
13. their strengths and weaknesses (this can be started now but is often completed after step 4—see below)
14. any further notes (for example, one person may be a well known therapist)
15. What is their unique selling proposition do you think ( why would people buy from them?).

Step 3: gather your information while you may!
As an unknown individual, now is the time to glean as much information
as possible. Therefore, for your five key competitors (those who
are the most popular and successful):

1. look at their website, brochures and marketing material (it can give you ideas if nothing else!)
2. visit as many therapy rooms as you can
3. phone up and organise having a treatment.

Step 4: into the lion’s den…
When you visit this is the perfect opportunity to be nosy! Some of the
questions you can think about:

1. How are they set up and organised?
2. Are they close to where you intend to practise?
3. Have they positioned themselves in a similar niche to the one you have chosen?
4. Is it easy to find?
5. Is there parking/is it on a bus route?
6. What is the area like and is it appropriate for the way it is marketed (e.g. high end)?
7. Do they have a receptionist?
8. Does it seem professional?
9. Do they seem very busy?
10. How many different sorts of therapy are available?
11. What are the rooms like?
12. Is the clinic easily accessible?
13. How was the treatment/therapy?
14. What did you like/didn’t like about the session?
15. Was it value for money?
16. Did they offer further sessions/additional services?
17. Would you recommend them, and if so, why?

Step 5 Assess your competitors strengths and weaknesses
Complete your assessment of the competition. Take the top 5 competitors.
What are their strengths
and weaknesses?
If they did not exist what would be lost to the world?
What do they excel in?
Where are they missing a trick?
What would you do to improve on what they do already if you were in their position

If you are tempted to copy what everyone else is doing because they are successful,forget it. In the industrial age fortunes were made by churning out identical products as cheaply as possible using repeatable processes, hence Ford and the first assembly line.

If you are producing products with mass manufacture you need to produce as cheaply as possible. This work has migrated East to places such as China and India where costs of labour are lower and there are lower regulations ( not to mention use of child labour, and I’m not even going to get started on that).

We have moved into the information age. Yes there are still mass produced goods but we have shifted to demand for individual markets and niches and items and services that are different.

Of course the challenge is to still have a business that is “scalable” that can be repeated. For products that is easier to do as the example of Innocent smoothies shows. If you have never seen them the packaging is stuffed full of personality and silly jokes that appeal to children and adults alike. Any company that can get my teenage daughter to drink something that is good for her is a success as far as I am concerned!

Although even she said that they needed to change the packaging as it has been the same for many years now, so I hope they have not lost their touch now that the company has been bought out.

Ok what about services? Well the prime example of that is Richard Branson’s Virgin group… it is portrayed as being all about him….and giving people what they want ( I loved it when you could get ice-cream to go with your movie on the long boring transatlantic flights and you could get up and go to a bar… I would have loved a gym on board too!)

So the Question for this week is:
What can you do to bring your personality into your business?

You may say that people won’t like that and you are right some people won’t but there will be people who will relate. Those are the people you need to talk to.
Interestingly, I feel slightly hypocritical saying this this week as I have been struggling to find my own unique voice in my second book that I am writing. However I am working on it! Wish me luck!

Ok this is one where I have to be 100% honest.. my pitch has never been a brilliant as it could be… I went to 4N networking meetings and would stumble and be incoherent and have a not very clear or consistent message… did I want to mention my book, or my coaching business, my specialisation in therapy businesses or my ideal day app or just talk about what is going on for me in my business, or maybe even my life generally?

So why do you need a pitch and what is it?

Great pitches have changed the world ( from ” I have a dream” to “we will put a computer into every home”). A great pitch empowers, enlivens and inspires us. So when you are asked ‘What do you do?” do you reply ” We” or worse ” My company/ business” ” sells xyz product” or ” provides abc service”. Sorry, but how boring….. people need to know why you are doing what you are doing, what your vision is for the future and really engage with what you are saying.

It needs to be specific.. so instead of saying ” I help small businesses grow their business through business coaching” ( which I confess I have done in the past)… I now say something along the lines of ” My name is Gill Warren, I’m a chartered accountant, business coach and businesswoman, and I work with women who are starting their therapy business, who have done their qualifications but who may be scared of numbers and who don’t know where to start with the whole business side of business. Research has shown that 52% of therapists are not in business 3 years after qualification and I hate to see people who have given their passion, time and money to an enterprise that doesn’t go anywhere. So to save them fret, sweat and debt I have written a book and guide them step by step through all the steps they need to take to set up and run a successful therapy business, in an accessible friendly way. The book has been adopted by 15 of the top twenty therapy schools around the South West and has been awarded 5 stars on Amazon. Copies are available on Amazon and at a special price at the back of the room” This has got me many more enquiries, because it is clearer who I am speaking to, what their issue is and how I can solve their problem.

What is the “perfect pitch”?

In Daniel Priestley’s great book, “Become a Key Person of Influence” ( definitely worth investing in if you haven’t done so far) he talks about the six “P’s” of pitching:

Position – it is clear to your audience who you are and why you should be listened to.

Problem – you have seen a clear problem and are drawing attention to it.

ProjectIon – you specify the impacts this can have if the problems are not resolved.

Proposal – You suggest a way of solving the problem.

Proof – you want to back up your claim with proof or testimonials

Project – Finally you share what you are working on to take the idea forward. For example if you are looking for joint venture partners this is a good time to state that is what you are seeking. It is then clear what action someone listening to the pitch can do with that information. They may not be able to be in that position to do something about it themselves, but they may know someone who does.

So your task for this week is to hone up your pitch and practice it so that it sounds natural and say it with passion!

” Adapt or die” is a phrase that comes from the world of natural selection, but could apply equally to business.

When operating your business, major events will occur that will put you off course: a new competitor opens up in your marketplace with a much more powerful promise than yours; you cannot get the funding that you anticipated; you cannot enter the new market you had hoped; your product is delayed to market or you have a major challenge to your reputation.

How you deal with these “game changers” will determine whether your business survives and thrives, or dies. In both my accountancy and coaching work I have unfortunately seen examples where businesses have continued doing exactly the same activities when the world has changed around them and expected to survive. It is only by being able to adapt and change that they have been able to progress. In flying if you get blown off course ( which happens a lot, especially in a small plane) you must take correcting action, or even work out a completely new route to get around a large obstacle.

In the same way in business, you need to have the destination fixed in your mind ( the three year plan broken into annual goals) but be able to be flexible about how you achieve that.

One way to do that is to “take stock” on a regular basis – depending on the size of your business either monthly or quarterly….in fact, now would be a good time :0)

Look at your final destination and your annual goals and ask yourself:

• What happened ( be as factual as possible) with this game changer? What did we except versus what happened in reality?
• Given this ( insert your own goal here) is what we have committed to achieve by the end of the year, what innovations do we need to do now , with the new circumstances, in order to achieve that?
• Which actions will have the most impact?
• Which actions will have the quickest results?
• What beliefs and assumptions did you make that you now need to alter to the changed environment?
• In order to meet the annual goals what resources do we need to meet those goals?

If you are in a team it is important that there is someone who is accountable for the delivery of that. If you are not in a team you may need to consider buying in resources from elsewhere to meet those goals.

Good luck

What are your sales trends in comparison to last year? An obvious question you might think , but it is surprising when I ask people how many of them do not know how the business is doing in comparison to prior years and against budget.

Having said that my previous business partner always complained that she hated numbers, but when I quizzed her about what was going on she would be able to explain how we were doing and more importantly, where there was a potential shortfall and what we needed to do about it. I do not advocate measuring by a gut feel but it does help not just to have a few key figures at your finger tips, but also have a feel of where the business is at, what risks there are and how you are going to fill the gap, between where you are and where you need to be.

If you do not have a clear idea of how you can fill the gap it is worth brainstorming how you can fill the gap. The key with brainstorming is not to challenge, analyse or criticise as you go through, but just to scribble down the various ideas as you go through. I is usually helpful to do this with others as you can often build on ideas that others have. One thing that is important is to pose the question as being clear about the end result… this is what we have committed to in this particular area and then force the subconscious how we are going to get there ( as opposed to asking our mind ” What can we do”. if you start with the certainty that you will achieve the goal and then trigger the subconscious to come up a solution it is much more productive at being more creative in its solutions. It also helps to trigger the creativity by challenging yourself on something everyday. It also helps to train your brain by challenging it at the same time every day.

Going Gaga for Farmville?

I see that Lady Gaga is going to appear on Farmville ( a game available on Facebook)….a great example of joint venturing with two really popular phenomena. As part of the game, fans can download her latest videos a week before anyone else. If you were ( or maybe you are?) a fan of Lady Gaga would you sign up for this to get exclusive content just a few days earlier? Of course you would! Why? You feel special part of an elite and basically if you are fanatical about something or someone you will want to get access to anything and everything.

I can’t honestly say I am a fan of Lady Gaga, but I do love Adele’s CD “21” the fastest downloaded album this year. Although when I bought it I realised that some of my favourite tracks were not on that album, so I went and downloaded those separately. Haven’t we all done the same, we want more and more of what we enjoy and like?

How does that help you?

Well,

What are you doing to build a series of products and services that your fans can buy into?

Ideally the first product or service your customers buy for you will be followed by more expensive purchases as they realise the value you are providing.

Thus the entry level product may be a free or cheap report that will attract lots of potential customers, some will be prepared for an additional product that is higher value ( for example a CD or DVd, or seminar series) , then like a funnel that you pour in from the top there will be smaller number of people who will pay for a your premium end products. It is critical then that you have a second and third product ( or service to offer to people.

As a general rule we seem to spend too much time on effort on our initial low end product ( and I know I am guilty of this too… I spent a lot of time and sort on my first book that retails through Amazon and makes around £6 a copy….. I would need to sell an awful lot of books to pay my mortgage each month!).

The aim of the initial offering is to entice people in so they can try it and see… like the samples you see displayed in supermarkets ( or as a friend of mine who is a fisherman said… like the bait on the hook). I’m not sure I like that metaphor though as I think there needs to be more respect for your customers than thinking you are going to eat them!. though I know some internet marketers in particular who seem to think this is an acceptable way of doing business… but that’s a different story :0).

The key with building a relationship with your customers is that you are interest in the long term relationship not the one off… you are interested in a marriage not a one night stand!

So it is about having price differentiation for your products or services… and before you say that you have a service and give the best service to your clients irrespective of their ability to pay… often it is about coming up with additional services and products that people are prepared to pay extra for. For example charging more for the peak times ( although it usually helps to position it as a discount in the off peak times… hence the senior meals on a monday lunchtime that you may see advertised in restaurants).

One note on price differentiation. research has shown that if you offer only two bands of service ( say gold and silver) most people will opt for the silver ( not surprisingly), but if you offer three bands of service or product, say silver, gold and platinum almost the same number of people who previously opted for the silver will now opt for the gold as this is seen to be ” the standard” . Psychologically people tend to aim for the middle. So in your pricing offer three different prices rather than two.

So What can you do to build your “back end” of products that people can access and go gaga over?

In the service industry in particular most people say that they get most sales through recommendation and word of mouth. This is great because it means that you have ” fans” who will recommend you and it costs you nothing to acquire new customers.
But realistically how many new customers can you get this way?
When was the last time you went to the garage and recommended them to friends… or a hairdresser? The only time is if we receive exceptional service… either brilliant .. or exceptionally bad.

Ask yourself what would make it easier for people to recommend you to a friend… it is worth testing loyalty cards or referral schemes, or even using online discount schemes such as groupon. A referral scheme that I have seen work very well is that you ask your customers at the end of their treatment ( or buy a product from you) if they can think of three people who will benefit from your services and ask for their names… or if people are reluctant to do that ( and I know some people hate the idea of “selling” to their friends) give a voucher that offers a discount to the friends and when those friends take up a session the referrer gets a loyalty bonus and when they reach a certain number of “points” they get a free session or an additional product.

So how do your customers come to you?

You have “leads”, that is anyone who asks for a brochure, enquires about your product or services and you convert these to customers. Ideally those customers will become fans and will keep on coming back and become long term clients. We all know that it is much harder ( and more expensive) to acquire a new client than it is to sell again to a returning client.
Different leads will come from different places and will be motivated to buy from us for different reasons – I know some of my accountancy clients have bought from me because I do “home/office” visits and if they are of restricted mobility or don’t have access to transport that can be a real bonus for some of my clients and some of my coaching clients have come to me as a result of being an accountancy client and trusting what I do and say ( and because I already know their financial position can make more informed mentoring of them to improve their business).

What will motivate different ( categories) of leads to become customers?

If you can work this out you can discover the optimum way to acquire customers. Of course you should always be testing the market to see if that has changed. Ten years ago most people would look for a plumber via the yellow pages , hence the ridiculous names of 11111aardvark plumbing and somesuch…. now people look online or consult an app that tells them where to go… and the clever apps have something where it will automatically dial the number for you, to make it easy to contact them.

For each of the different categories of customers you ned to work out:

• Where are you going to find those customers? ( you will need to look at and test many different forms of marketing, to test which is best for which market)
• What do you need to do/ say/ be to motivate them to buy from you?
• What service /product/ package will you sell to them first and for what price?
• What will entice them to keep coming back?

The trouble is we tend to neglect our long standing clients and just take it for granted that they will keep coming back. So you also need to find out the following:

Why do your existing customers keep coming back… and why do those who drop off along the way no longer come back?

It maybe something as simple as acknowledging them by name… people like to know that they are known and have a place in a community. The US companies are much better than UK companies at doing this… but it is all about giving that extra personalised service. One successful massage therapist I interviewed said that one of her clients had a “thing” about cleanliness and always asked to have the whole table covered in paper, so she couldn’t touch somewhere where someone else had been ( she obviously didn’t seem to mind about the fact that the therapists hands had been elsewhere, but that’s another issue!). Now that obviously costs more – in terms of time and cost of couch roll, but was it worth it? Yes! because that customer became a client who not only stayed for years but also recommended a number of different people.

If you have a good relationship with those who no longer return you can phone them up and ask them for feedback, or maybe offer them something to come back… my old hairdresser happened to see me in the car park… I felt slightly embarrassed and said that I thought I wouldn’t be treated the same way as I had left it so long ( I had been going to a more trendy hair stylist in Bristol in the intervening period)… but in fact they were incredibly welcoming and were much more attentive to what I actually wanted ( rather than doing what they thought I needed!).

So what is the best way to get new customers? You will need to test your specific market and find out what works for you.

Good luck.