30, 40, 50, 60+ % overhead.
Which % is best?
Bad question.
What’s more important is this…
Are you making money and is the price that you are paying to make it, worth it?
Some businesses have 10% margins, 90% expenses, and are wildly successful.
There’s also many businesses with extremely low overhead… 30% and less, and are dead broke or barely making it.
In the context of Chiropractic, certainly a practice with 90% expenses would have a hard time doing enough gross to make a respectable net.
If your overhead is 60% and you are collecting $100K a month, then you’re doing pretty well. But at 60% overhead, you’d be barely making it if you were collecting $10k.
I will say this… If your overhead is 60% or more, then you need to really look at what you are doing, where your money is going, and what you should keep, cut, do more of, or add… all while doing everything you can to eliminate complexities.
