I was interested to follow a thread last week, discussing the virtues of the £1m practice.
There seemed to be a consensus that there were benefits to being a million-pound practice: not least, the notion that you would have a ready source of funding for your pension pot when you retire.
However, although there was a running commentary on how to get from start up to a larger firm, there was very little said about profitability.
The oft quoted adage “turnover is vanity, profit sanity and cash is king” springs to mind.
British business owners do seem to be driven by the notion that big is better, at least when considering the top line: sales. This is likely due to most entrepreneurs being sales persons rather than financially savvy business persons. They have a top-line rather than bottom-line mentality.
Still, it is good to know that optimism is still alive and kicking; at least we are not being encouraged to reign back on investment, close our doors to expansion, and wait for the bad weather to pass by.
I like to think that our business, Informanagement, is doing its bit providing the information to keep the wheels of progress turning. After all, it would be difficult to build a £1m practice if all you had to sell was last year’s news.
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