Chapter 21 introduced you the consideration and process of expanding services. We discussed the benefits of expanding services. We discussed the risks and benefits of reinvesting back into the business. We then discussed the benefits of expanding administrative staff. We explored some of the advanced equipment that can enhance services offered to customers. We explored the advantages of expanding the specialty adjunctive services offered in the business. Lastly, we explored the different ancillary services that can be added to the business. The following exercises will help reinforce the concepts presented in the textbook.
Key Terms
DOT Physicals
Department of Transportation physical is a medical
exam required to operate a commercial vehicle.It establishes “medical fitness for duty”.
Profit Margin
The amount of money earned on a sale or service that
exceeds the cost of that item’s or service’s inventory and operational costs.
Volume Rendering
a technique used to provide 3D volume to a 2D image
Return On Investment
Is the gains or losses generated from the
investment of a product or service expressed as a percentage.It provides a guide in financial decision making.
Concierge Medicine
a broad term in which a customer pays a monthly or annual fee for a set of services which may include anything from calling in prescriptions to home visitations.
DME: Durable Medical Equipment
Equipment and devices that provide medical and other therapeutic benefits to customers.
Expected Outcomes
Understand the benefits of expanding services
Understand the risks and benefits of reinvesting back into the business
Understand the benefits of expanding administrative staff
Recognize some of the advanced services that can be offered to customers
Recognize the advantages of expanding the specialty services offered in the business
Recognize the different ancillary services that can be added to the business
Key Concepts
Expanding services has numerous benefits including attracting new customers, increased customer satisfaction, increased marketability, and increased revenue, among others.
Expanding requires the same patience, research, and planning as starting your initial business. Expanding too much too soon can cause disaster.
Profit margins are how much you can make after equipment and operational costs.
Reinvesting is the most effective method of expanding your business and increasing revenue.
Reinvesting helps minimize taxes to your business
Expanding administration can provide greater benefits behind the scene than additional services
Advanced equipment is expensive. Be sure the demand and profit margin are sufficient to justify the expense.
Expanding specialties within the business can attract new customers and provide more services to established customers
Adjunctive expansion is the process of adding services that support your primary service.
Ancillary services refer to services provided which are unrelated to the core service of the business.
Ancillary services provide customer enhancements to already established specialties.
The keys to always keep in mind when expanding services are whether the service enhances customers’ needs and whether it will in increase revenue to the business.
Chapter Slogans
What do you want?
The money will come.
Consult an attorney!
POUND THE PAVEMENT
When visiting other clinics, observe what services seem
commonly and frequently used. Consider what services are
convenient for customers and would be of high demand.
