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Medical Practice Business And Marketing Articles

Article #20 - Feb. 2011

“How A Business System Prevents You From Being Incarcerated At The Poor Farm”

Ultimate  efficiency of your medical business
is dependent on using business systems.

Health care professionals, from doctors to physical therapists, who have their own businesses, often look for help in the wrong places.  They go through their careers constantly battling the outside forces, which incessantly trying to control their businesses. 

Almost all medical business owners, because of their ignorance of the existence of what a business system is or even that they exist, the value it has for their business functions, and the power a business system brings to productivity and profitability, rarely reach a level of business success and profitability they expected.

There’s a reason.  They either weren’t taught, were never educated in business principles, or never understood that business "chaos" is a curable disease.  Business chaos managed in a learn-as-you-go philosophy provides for a slow start and fast failure in most cases. 

You’ll discover that all the remarkably effective marketing strategies in the world of business never alone solve your problem with creating a sustainable profitable business.  It’s then, that your attention is drawn to the necessity of having some organizational structure and foundation that will enable marketing efforts to create the results they are designed to accomplish... business systems. 

Successful and profitable businesses require both a business system and a marketing plan with management.

Successful business is composed of a series of coordinated, synergized, and compatible systems working in unison towards a specific objective. 

Business System Overview

The definition of a business system for a medical business is defined as a dynamic balance of the six major foundational components of your business:

  • Financial Logistics

  • Internal Processes

  • Innovation

  • Learning

  • Growth

  • Patient Management

Our resource for learning business systems is readily available to you.
My articles related to this issue are...

The supreme business guru known throughout the world as the father of business management, Peter Drucker, whose books  about business management continue to be read and used almost a century later, says it all:

Peter Drucker states that a business has only two functions: marketing and innovation.  He meant that the functional components of a business have these two objectives.  In the process of obtaining these objectives, it’s necessary to create business systems and processes that support those objectives.  What spins off from that effort are what we superficially know as business revenue, profitability, productiveness, and business stability.

Business systems should be written down and kept in a 3-ring binder.  Anyone in your medical business office then has immediate access to the pages of information defining in detail how your office will function under most all circumstances.  Don’t you think that this sounds incredibly like having an Employee Policy and Procedures Manual? You bet. 

Chris Anderson’s business,, of providing you with various business manuals, starter information, and a newsletter with excellent information articles, is one of the best resources on the topic.

Business systems need to be created, or at least modified from a template, to mesh with the ultimate objective the business owner has established, because the system will be unique to each medical practice setup.  No one has the same ideas, desires, goals, and plans for their business system.  Does it take time and concentration to create the system?  Absolutely.  Anything worthwhile requires work and time to complete. 

The good part is that once it’s completed, any revisions later are done in a matter of minutes over the next 40 years in practice.  Judging from the present trends in the medical profession, most physicians and other doctors may not be in private practice over 15 to 20 years, if that.

Business System Components  

First, you define the ultimate goal or mission for your medical practice.  For example, is your aim to make money fast and retire early?  Or, is it your desire to have a medical practice that is stable and provides the income to live a simple life?  It's any goal you choose for your career and profession.  Once that is determined, a business system compatible with creating that
goal can be constructed. 

The critical aspect is to insure that every element of that system is pulling in the same direction.  The elements of the business system dealing with employees have to accomplish the integration of their efforts with a focus on the ultimate growth and expansion to meet the objectives of your business.  Alignment and compatibility of every aspect of the components has to be clearly planned and expedited. 

Breaking the business system down to its roots is the next step. 

In a simplified way, it looks like this...

Business System red arrow pointing right Business Functions red arrow pointing right Each Business Function red arrow pointing right Business Processes red arrow pointing right Process Mapping red arrow pointing right Education

    Business System
--system of goals established.
-- reasons for the system.
--understanding the system value to the business.

Business Functions
-- management.
--patient flow and recruitment.
-- supplies and inventory.
-- planning and administration.
-- marketing.
--growth and opportunity.
--competition factors.
-- education.
-- communications and interactions.

     Each Business Function
--list of processes needed to perform that function.
--list of projects that function can perform.
--establish compatible interactions among processes.
--ways to improve the process.
--ways to save time.

     Business Processes (how you actually do the job)
--take each process and break it down to steps.
--list of steps in the order of performance.
--define the value of each step.
--how to make each step more efficient.
--use of deadlines for work efforts.

Process Mapping (mind impact is greater)
-- diagrams, flow charts, graphs, images.
-- value it provides for learning and efficiency.
--simplifies any complex system by presentation models.

--teaching every employee the business system.
--refreshing sessions so don’t forget.
--employee cooperation is dependent on it.
--a system is useless without everyone participating.

This simplified outline should be a guide for starting your business system creation.  It means you must dig down into the areas of your business that you detest doing and have no desire to even know about.  A much higher level of business profitability and success is the reward for going the extra mile to set it up. 

Paying to have it done for you can be expensive, but there are fill-in-the-blanks templates for business systems online to use.  Be a smart business person.  Give yourself the tools to carve out your empire the fastest and easiest way... create your business system!

The author, Curt Graham, is a highly experienced business and marketing expert, copywriter, and entrepreneur who has been published in various media over 50 years while in medical practice and after.
Discover what it takes for you to reach the optimal limits of your potential in medical practice, and how to do it: Click The Link NOW!

© 2004-2011, Curt Graham M.D., All rights reserved.

       handwritten signature of Dr. Graham

Article #20A


photo Dan kenney riding on a bull

Why People Fail

 series of No B.S. Articles from Dan Kennedy

"The Price of Negligence"

In my relentless search for I don’t know what, I found an article in the December 1, 2008 edition of Nation’s Restaurant News, the trade journal of the restaurant industry,headlined: “Operators Bank On Profit And Loss Scrutiny To Stay Afloat.”   It made me laugh out loud. The article states that “maximizing the profit and loss statement has become a mantra for restaurant operators during the current economic downturn.”  


This is then presented as some sort of horrific torture imposed on the owners by a vicious economy.  What is not said, but should be, is that maximizing profit shouldn’t be paid attention to only after dire economic conditions occur, to be given temporary priority, only until ‘things get better.’ 


It’s supposed to be what anybody responsible for operating a business does everyday...

Including what’s then described in the article: ferreting out and cutting wasteful spending, controlling labor and administrative costs; creating products, offers and price propositions customers really want. Any business owner complaining about having to attend to these priorities because of a recession is a moron, and any trade-journal writer taking them seriously is dumber than a sandbox.


But this is why so many businesses fail. When you turn on the news to see insurance giants exposed as valueless houses of cards, venerable auto companies as manufacturers of nothing but debt, retail and restaurant chains announcing massive store closings, make no mistake: their managements can point their fingers at the recession all they like, but it’s a lie.


All the tough economy has done is expose the failures of the people at the helms. Businesses never fail. People fail to run them profitably. Much of that is pure and simple negligence. To be clear, negligence is, by definition, the failure to act with the care a prudent person would exercise.


So, when Mort Zuckerman loses 30-million or 300-million of his charity’s dollars by having it all invested with Bernie Madoff for three years, claiming he didn’t even know the money was invested there by somebody he delegated its management to, he is obviously negligent. If you leave a rake pointy side up on your front porch steps, with the lights burnt out, and the pizza delivery guy
steps on it and falls and breaks his leg, you are negligent, will be successfully sued, and see your insurance rates go up.

There is a price for negligence, and there’s supposed to be. In business, failure to closely and constantly monitor all the important numbers and benchmarks and predictive indicators (as detailed in Chapter 43 of my book ‘No B.S. Ruthless Management of People and Profits’) is negligence of the highest order.


Its bill may go unnoticed in boom times when money flows easily and everyone does well, but when the warm breezes change to bitter cold wind, and the accumulated tab for such negligence is presented and payment demanded, much pain occurs, much hand-wringing and whining and crying about the mean ‘n nasty recession is heard, and fools commiserate with each other, sharing the misery of their own sins of negligence.


If you own a business, by gum, run the darned thing. Maximize profits every way you can, and never stop trying to find new and better ways to do so, from every valid source of input, ideas and information you can get your hands on or get connected with. At day’s end, ask: what do I know now (about maximizing profits) that I didn’t know this morning? And: what am I going to do tomorrow as a result of what I’ve learned?


Anything less is negligence.



The WHY PEOPLE FAIL articles are provided by Dan S. Kennedy, serial entrepreneur, from-scratch multi-millionaire, speaker, consultant, coach, author of 13 books including the No B.S. series (, and editor of The No B.S. Marketing Letter. WE HAVE ARRANGED A SPECIAL FREE GIFT FROM DAN FOR YOU including a 2-Month Free Membership in Glazer-Kennedy Insider’s Circle, newsletters, audio CD’s and more: for information and to register, visit:


Articles © 2009/Glazer-Kennedy Insider’s Circle LLC. All rights reserved.

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