Following on from this mornings post, one of my guys called me.
He was curious as to whether his targets were sufficient or not.
Yet that is not a question I can or even should be able to answer.
It is totally a matter for him to decide if the money he makes each year from his practice is enough to compensate him for the hassle and stress of running a private practice.
That is not me ducking the question. I’m not in a position to say the between £100,000 and £200,000 he makes each year is enough.
It would be for me. But I’m not him.
Conversely however, I hear statements said to some of my clients as:
“I know a consultant who only works three days a week and makes £500,000 a year”
That could well be true.
But not if you are just starting out it isn’t. And some of mine are only a year into private medicine
Think about the economics of it for a second.
Firstly, it won’t be over a year ie 12 months or £41,666 a month (£500,000 / 12 months) Unless the consultant never wants a holiday or to have Christmas off more likely it will be over 11 months.
And that makes the maths even worse.
Over 11 months the monthly billing would need to equate to: £45,400 a month.
But with the average private medical insurance company paying around £225 for an initial consultation and £175 for a follow up ie £200 per consultation, that means the consultant would have to see circa 225 patients a month. Each and every month.
However, before anybody emails me saying I’m ignoring surgery and the self funding market, may I point out even with those included the maths still don’t add up.
I’m not saying it isn’t possible to make £500,000 per year out of private medicine for it is. I have clients who ARE making those sort of amounts. But they work a darn more than 3 days a week.
The point I’m making is whilst I will ALWAYS say having a target is crucial so a practice performance can be measured, having an unrealistic target is plain silly.
You are NEVER going to reach it. Certainly not in the early years.
All you’ll end up doing is seeing how far away from it you are.
Its much better to have £100,00, reach that and they aim for £150,000. Then once you hit £150,000 aim for £200,000.