I’m going to talk a bit about threats to your business today because it’s been on my mind lately. Actually, I’m going to talk about threats to my business so you can get a feel for what one looks like.
SWOT – Strengths Weaknesses Opportunities Threats
Every year, you should do a SWOT analysis on your business. Your end of year review and planning is a good time to do this because you can then plan around it.
Sometimes, though, new threats pop up in the middle of the year.
I take insurance and one of my largest revenue streams is from one particular insurance company. In fact, about 30% of my income is from this particular insurance company.
On August 2nd, they announced that they are terminating all of the provider contracts as of December 31st and a new company will administer the plan.
I understand why they are doing so; it will save money. The problem is the new insurance company is closed to new providers in my area and has been for over 5 years.
I’m about to lose 30% of my revenues in 3.5 months
That, people, is a THREAT to a business. Not a new competitor down the street, not an increase in your rent but something that could impact revenues on a large scale.
I knew that this insurance company was a risk. They tried to change administrators last year. It would have been a great move for massage therapists, but lousy for mental health therapists. The contract process wasn’t done properly and that meant a new bid. And that meant a loss of the business for me.
I have 3.5 months to replace 30% of my revenue
Can it be done? I doubt it, but I’ve got to try. If nothing else, it will make for some interesting blog posts in the future. I might as well document the process so you can learn from my mistakes and, hopefully, successes.
If I make plans and put things into motion now, I’m hoping to be able to replace most of this lost income by the end of the year and all of it by early 2011. I’ll need to be aggressive, creative, and tenacious to pull this off.
I’m also open to ideas and moral support. If you’ve ever been through this sort of thing, I’d like to hear from you. Advice, encouragement, warnings – I’ll take anything you can offer.
Well, first off, I’d panic
Second, I’d “look for the opportunities in the disaster” — does the change itself represent an opportunity? Might the new insurance company need to get new providers to handle their new business? If they do get new providers, how will they do it? Is there a way to position yourself so you’d be first in line?
And third, there’s always resources freed up by business slowing down, time and space at least, and I’d do exactly what you’re doing — use the free time to think and research new revenue ideas. One thing that pops into my head — it’s an idea I’ve had for ages, but I bet you’d be far better at it than I — is that I’ve often wondered if one could sell workshops on self-massage to tech companies, or directly to their workers. How much supposed “carpal tunnel” could be resolved if programmers knew how to work the trigger points in their wrist extensors? How many migraines and lesser headaches could be averted by a little judicious lacrosse-ball-against-the-wall work on the traps or lev scaps?
Software developers are by nature self-starters and do-it-yourself-ers, and they see coworkers drop out of the workforce all the time because of these issues. Surely there’s a market?
@dale:
1) did that. Spent most of a day saying “crap crap crap” over and over in my head.
2) I’m looking for those opportunities. I’m on the waiting list for the insurance company in case they decide to open their provider list. They are a BIG company, so it would be nice to be a provider for them.
3) I’m working on this too, but you have some great ideas.
[...] This post was mentioned on Twitter by Kelli Wise, Allissa Haines. Allissa Haines said: Throw kelli a bone. and some ideas. Threats to the business http://bit.ly/9rfa7Z [...]
Kelli – I did hear from a friend of mine who is a MT who does have a friend who works for ‘the other company” (R) who said that they will be taking people from the waiting list. They actually don’t pay as well as some of the other companies. Get on Aetna if you aren’t already and just try to get more of those clients. They pay way more.
Other than that – yes you can actually build your cash business in a short amount of time.
I would also check with amta-wa if you are a member and see if the two attorneys that work for them are on this…they are usually up on this stuff.
I personally am trying to get out of doing so much insurance because it makes me crazy too but it can be good money. I stopped taking insurance from the one who paid the least…you know who.(like in Harry Potter- I don’t want to say their names!) Cash is good money too! There are plenty in this area who have it.
Start taking a look at who you want as clients anyways and create a vision for your “Ideal Client”. Mine pays cash, values massage and their health.
Do you have a good website that gets found for the keywords you want? Do you have lots of info explaining what massage does and what you do? Use your website to build trust with potential clients.
Julie
@Julie – It’s good to hear they are thinking of taking people from the waiting list. There is at least one big insurer I don’t take because their reimbursement rate is so low. I could have a bunch of clients, but I’d rather not take a pay cut.
Cash only is always tempting!
My site ranks really well and I’m working on boosting it higher. I’ve gotten 2 positions since the beginning of the year. My goal is #1. Can you tell I’m competitive?
whats your office website? Maybe I can help?
julie
Julie and Kelli, I am in the process of creating a website for my new business in ohio. I’d love to see both of your websites for inspiration, if you feel comfortable…
My massage practice website is http://www.mountainshadowmassage.com
I do web design as well, so if you need help or advice, let me know. I’ve also got some posts on here on web sites, so have a look around and let me know what your questions are and I’ll put up a post on them.
My clinic site is http://www.massageseattle.net
Kelli – your metatags could be better.
Your main keyword should be massage, your city- not massage because that is too big of a word to get found for and because you want to get local people coming.
In the description metatag – that should also be your main keyword not mountain shadow as people won’t be searching for that.
Julie
The description metatag definitely needs editing. Thanks for the second pair of eyes.
thanks!
the keyword tag too should be massage your city (no comma)