4 Ways to Grow Your Practice
Ansoff’s Matrix for Healthcare Professionals
You went to 8 years of medical school, and now you’re also running a business, too! Business theory says there are 4 major ways to grow your business, but how does that translate to your medical practice?
Today, we take a deep dive into these 4 strategies and how Adam Kae can help you implement them into your growth vision.
The Ansoff Matrix
But First, a History Lesson
Igor Ansoff was a Russian American strategist known as the father of strategic management. He first introduced the Ansoff Matrix in 1957 in the Harvard Business Review, and it quickly became a pillar of business strategy. The Ansoff Matrix is a visual representation of 4 different growth strategies according to changes in the market or product. The four strategies are: market penetration, market development, product development, and diversification.
The Ansoff Matrix
Market penetration strategy is the most conservative of all of the strategies, and it involves selling your current products to your current customers. So, if you’re an optometrist who offers family optometry, a market penetration goal might be to gain 10% more family clients by the end of the year. In the business environment, this is typically achieved by either reducing costs or by improving products to attract more of your target market. For your practice, market penetration would mean delivering the highest quality of care for your patients where quality > quantity.
Adam Kae & Associates can help you achieve market penetration in a mixture of different ways:
We can negotiate with insurance companies on your behalf to make sure you’re getting the best rates for your services!
We can develop money-saving strategies in other areas so you can allocate more funds to your marketing budget!
We can implement regular budget-to-actual reporting processes so you understand where your business is following every new initiative!
We can use your staff’s expertise to the fullest to improve processes and offer the best care to your patients!
Market development involves taking your current product and targeting a new market. So, if you’re a dietician, you may shift your focus to the children’s health market without any major changes to the services you offer! The key to market development is maintaining your current customer base while targeting a new one. You’ll need to know how you can scale and the amount you should scale! Market development involves moving parts that need to move in new ways. It’s important to check how you’ve allocated your resources and what changes need to be made to serve a new market. Do you need additional technicians? Do you need to introduce SKUs into your billing process for products sold in the practice?
Adam Kae & Associates can help you achieve market development in a mixture of different ways:
We can communicate with your stakeholders regarding important information about your goals.
We can analyze your financial statements to understand what markets your revenues derive from.
We can develop strategies to help you target different types of clients!
We can conduct a competitive analysis so you know how to best compete in a new market!
Product development entails introducing your current market to new products or services. So, if you're a physical therapist who works with sports injuries, maybe you learn a breakthrough technique or buy a new piece of technology that can help those clients in new ways.
From the marketing side of things, sometimes you don’t even need a drastic change! Take Crest toothpaste, for example. With over 100 varieties, many of them achieve nearly the same goals or do the same things, yet a new package on the current product can increase sales significantly! We can help you find tools to build these types of marketing strategies!
Adam Kae & Associates can help you achieve product development in a mixture of different ways:
We can help you understand the best revenue-generating services and products you offer!
We can help you make big decisions about leasing or buying new technology!
We can negotiate with vendors for new products to sell in-office!
We can guide you through new product experimentation!
We can look at your competition to see what types of augmented products they offer in their locations!
Diversification is the most extreme of business growth strategies. It involves taking a new customer base and offering them new products. So, diversification would be if you’re a chiropractor who sells your practice to become a fitness guru with a focus on workout form. Your offering may still be related to your original business, but it’s still significantly different and serves a completely different market. Understandably, there is the largest risk associated with this strategy. With the growth of telehealth in response to COVID-19, you may explore new ways to create a competitive edge with a new branch of your practice!
Adam Kae & Associates can help you achieve diversification in a mixture of different ways:
We can help you create and implement an exit strategy for your practice!
We can help you create and implement an entrance strategy into your new market!
We can help you create a business plan as you transition into your new venture!
Through our proven method, The Adam Kae Way, we can help you move toward financial health in your business according to your vision of growth. We believe every business owner has different goals, and we help you turn those goals into a reality. Through using organizational theories like the Ansoff Matrix, we can help you command your finances and grow your practice!
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Disclaimer: This article contains information and opinions from Adam Kae & Associates, and the information and opinions should not necessarily be seen as the best possible solutions for your business. Please contact us at firstname.lastname@example.org to help you find the best solutions for your business.