Raymond Cooner, owner of ChiroFirst of Washington, shares his journey from one chiropractic clinic to six locations in Seattle. He discusses effective marketing strategies, highlighting the superiority of Google Ads for patient acquisition. Raymond also dives into operational challenges, emphasizing the importance of maintaining high-quality service while expanding. He reveals financial tips for managing multi-location revenue and stresses the significance of streamlined sales processes, particularly in insurance verification, to enhance patient experiences.
Raymond's chiropractic clinics differentiate themselves through tailored treatment plans focusing on specialized spinal decompression therapy for disc-related injuries.
To scale effectively, refining marketing strategies for consistent lead flow and streamlining insurance verification processes are essential operational improvements.
Deep dives
Business Overview and Financials
Raymond operates six chiropractic clinics under the brand ChiroFirst of Washington in the Greater Seattle area, generating approximately $5.2 million in revenue annually, with a net profit margin of around 23%. His target demographic includes employed men and women aged 35 to 65 who experience pain, discomfort, or mobility issues. The clinics provide tailored treatment plans, often spanning 60 to 90 days, which include chiropractic care, rehabilitation, and specialized spinal decompression therapy. This unique service offers significant differentiation from competitors, focusing on patients with disc-related injuries.
Marketing Strategies and Lead Generation
Raymond primarily employs Facebook and Google ads to generate patient leads, spending about $1,000 on Facebook and up to $1,000 on Google for each clinic monthly. The average lead flow is approximately 35 leads per month, with a strong show rate of around 80% and a closing rate of about 71%. However, he recognizes that the lead flow is inconsistent, which poses challenges as his business scales, making it essential to refine marketing strategies for better consistency and effectiveness. To enhance performance, increasing ad spend and optimizing the sales funnel are also seen as necessary steps.
Sales Process and Patient Management
The initial sales process involves a two-day approach where prospective patients receive consultations, examinations, and follow-up appointments for x-ray results. This includes a detailed verification of their insurance coverage to create a precise treatment plan, which can be complicated due to the variability in insurance policies and coverage. Enhancements to the process could involve pre-verifying patients' insurance details and utilizing a more structured approach to streamline the sales conversation when presenting plans. Additionally, introducing measures like having a patient coordinator manage the sale could alleviate pressure on doctors and improve close rates.
Operational Challenges and Future Goals
As Raymond aims to achieve $5 million in EBITDA and potentially attract institutional buyers, he acknowledges several operational constraints. Streamlining the insurance verification process and decentralizing marketing efforts are primary concerns, especially as growth leads to inconsistent marketing outcomes. He also faces challenges related to staff recruitment and maintaining operational standards across multiple locations, complicating quality control as the business scales. Addressing these operational hurdles is crucial for future expansion and to uphold the clinics' performance and patient satisfaction.
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