Business Talk: Expenses are expensive
Stay healthy and take on only what you can
By Anthony Lombardi
Toys “R” Us (USA), Sears Canada, and Target Canada. All of these companies had expenses that grossly overshadowed their revenue. As the losses mounted, they did nothing to stop the financial bleeding. When these businesses finally tried to do something, they were in too deep.
Target spent $1.8 billion on leasing two years before they even opened stores in Canada. Sears Canada rung up over $727 million in debt from 2014 through 2016 – but never considered closing the stores that were responsible for the losses. And it turns out, near the end, Toys “R” Us was paying $400 million per year in interest on a $5 billion debt, which had grown over the last 15 years.
This is why we must steer clear of a big enemy: unnecessary expenses.
Salaries – We need support staff to help our clinic maximize its viability. However between the lines there may be times where existing therapists can get along without them. For instance, our massage therapists work until 9 p.m. and the support staff goes home two to three hours before that. The independent contract workers like the RMT’s do all of their own patient reminder calls and text messages so that front staff doesn’t have to. And, with the automation of everything, billing workers compensation, auto accidents, and extended insurance has become a breeze – I do that myself so there’s no need to pay someone extra to do it.
Operating expenses – This is a tough topic because so there are so many elements to this category. You need to determine what are necessary expenses versus optional expenses. Utilities, phones, POS machines and supplies are all necessary expenses. A $20,000 modality machine, a hyperbaric chamber, or your $90,000 car are typically unnecessary expenses. Choose wisely.
Insurance – Malpractice, business liability, business fire/theft, car, life, disability, and critical illness insurance are expenses: some you will need to have and some you choose to have.
Taxes – This one is easy. We all dislike paying taxes but that’s life. A trusted accountant may help you minimize them but regardless you must pay your taxes.
Charity and donations – Instead of money, donate goods in kind. Support the community through food and winter coat drives so you can be visible in giving back to the community without it being an expense.
Keys to making money
- Keep healthy and stay healthy.
- Buy as much life insurance and critical illness insurance as you can while you are young.
- Go to work, set your goals and then work hard to meet them.
The stock market, mutual funds and even real estate require you to rely too much on time and change. My formula is not flashy but it’s effective because it guarantees your financial prosperity whether you are dead, sick, or alive and well.
Here is why this formula works: If you are young and healthy, you can qualify for life and critical illness insurance at lower premiums. Many people cannot even qualify for critical illness insurance, so if you are healthy do everything to stay that way. If you are healthy and well-insured, you can work hard to earn lots of money. If you die, your family gets life insurance. If you get a critical illness you get a lump some payout. If you do not die, or get a critical illness you have many years to work hard to make lots of money, and after 15 years most insurance companies will return 100 per cent of your critical illness premiums. Staying healthy pays dividends for your loved ones – that is the truth.
ANTHONY LOMBARDI, DC, is a private consultant to athletes in the NFL, CFL and NHL, and founder of the Hamilton Back Clinic, a multidisciplinary clinic. He teaches his fundamental EXSTORE Assessment System and practice building workshops to various health professionals. For more info, visit exstore.ca.