What’s the fastest route to get your refractive surgery practice to 1 million in revenue? By breaking down the math behind the process, I’ll reveal the key factors you need to consider. By understanding your pricing, metrics and availability, you can set precise targets and take strategic actions to maximise your income in the shortest possible time and least effort.
To make a million dollars (or pounds or euros, for that matter), you need to determine the number of eyes you need to treat.
The first choice is between making a million in revenue or take-home income.
If your business has a 40% net margin (which is good!), making a million in revenue would result in $400,000 in net profit, which is the take-home income.
As an aside, compare this to having a very high-paying consultant position. Typically, this is an underrated way to achieve a six-figure or multi-six-figure income quickly, as it often requires acquiring one super valuable skill (i.e. refractive surgery) compared to the challenges of starting and running a refractive surgery business. Having a job is 10X to 100X easier than starting a successful business that reaches $1,000,000. The chances of doing so in the UK are a mere four per cent.
But here’s the good news: While it’s hard, it’s not intellectually demanding. Once you are clear on what to focus on, implementing isn’t that difficult, but it does require some knowledge and skill. The challenge here is maintaining your focus and leveraging discipline to not chase the many shiny objects along the way.
Doing the math to get $1,000,000
The first step is to get crystal clear on the numbers. Focus begins with having ultra-specific goals. Let’s start by breaking down what $1,000,000 a year looks like. To make $1,000,000 a year, you will need:
- $83,333/month in revenue, or
- $20833/week in revenue (assuming 4 weeks holiday), or
- $4166/day (assuming you operate 5 days a week)
Let’s say you’re selling LASIK for $2500/eye or roughly $5000 per patient.
This means you must treat
- 400 eyes in 1 year, or
- 34 per month
- 8-9 per week, or
- 1.7 per day.
Easy math so far.
Relative to acquiring the patients, performing the surgery will be in your comfort zone. You must have the discipline to devote sufficient time to perform the 400 eyes. If you can be available for 1 surgery day a week, you can complete a list of 8-9 eyes per day.
What do you need to do to get those eyes?
Let’s look at marketing and sales metrics to generate that $1 million result. At a conversion rate of 50%, that means you’ll need:.
- 400 initial appointments in 1 year, or
- 34 initials per month
- 8-9 initials per week, or
- 1.7 initials per day
That will take more of your time because qualifying and counselling people for surgery takes longer than performing it. And, you won’t be able to batch these appointments like you can with surgery. Instead, you’ll need to make yourself broadly available to see patients when they want to be seen (or, you’ll need to ask someone else to see them for you).
Unless you’re blessed with non-stop referrals, you’ll need to generate these by making cold audiences (people who don’t yet know you) aware that you exist.
If you convert 25% of your leads (or inquiries) into first appointments, you’ll need (someone) to process:
- 1200 leads per year, or
- 100 leads per month, or
- 33-34 leads per week, or
- 6-7 leads per day
Importantly, if you charge less than $2500/eye – everything will be harder. If you charge more, everything will be easier.
It’s easier to set a high price point at the start because you have time and margin to over-deliver. You’ll also get more high-quality referrals this way because people will be happier with your service, and they’ll likely have similarly affluent friends and family members.