Revenue Growth in 2020: Industry VS Masters

What’s up everybody, it Steve “The Hurricane”, on today’s episode of A Drink With the Hurricane, I’m going to continue to go through some of the graphics of the Home Care pulse reports, specifically talking about revenue growth year over year and comparing the industry average to the masters. And then to what I know is actually possible through what I’m doing with my clients and how to be able to replicate those kinds of results, so cheers.

All right, so again, with the Home Care Pulse and this year’s report is very different from other years. And as a result of it, I’m actually when I’m studying this and I’m putting together this information and content to make these Drink With The Hurricane episodes for you, I am comparing year over year figures because last year is an anomaly because of what happened with COVID.

But what really jumps out to me as I’m looking at these anomalies and I’m looking at these five-year look backs are, while there are some anomalies because of COVID, it’s still the same old, same old stuff that’s happening. And let’s just take a look right now. Let me share my computer screen with you. And so you see, this right now I’m showing you the five-year historical revenue jump.

Now, this is something that just like, I’m not really sure how exciting this is, all right. So if you look at this, this is in 2019, hey, good news, good news. Here’s the good news. COVID put one in five small businesses out of business, all around the world. Restaurant industry, decimated, hotels, hospitality, travel industry, decimated, anybody relying on those industries, decimated. So I’m gonna say that our industry, home care, thank God that we are in healthcare and we were able to still have an industry revenue increase.

Now this number right here to calculate that increase, what you do is you take this number and you divide it by this number. And so when you do that and I’ll do it real quick with you. That’s gonna give you a 7.8% increase, 7.8% increase, which means that the revenue that the average home care agency did in 2019 to 2020, grew in 2020, by 7.8%. But the reason why I say that this isn’t really all that exciting is because when you think about the cost of living, when you think about the cost of doing business, because this is just the total revenue, this is not the profit. I’m gonna do a whole other episode on the profit margins on what people did last year because the profit margins are down.

Even though the revenue is up, we now have PPE. We now have to deal with unemployment and rising costs of paying caregivers and all these other challenges that we’re facing. So yeah, it’s great that we’re generating more revenue but what good is having an almost, when you look at this figure here, the average person’s surveyed with the Home Care Pulse, what good is having a $2 million a year business, if you spend $1.95 million, right? That leaves you with $50,000 left over as profit. That’s not very healthy. That’s not very good, right?

But more importantly than the great rate of growth from the one year is really look at the five years. So, five years ago in 2016, the average agency surveyed did about $1.6 million. And you can see from 1.6 million to almost 2 million in 2020, over the course of five years, it literally has a 20% revenue growth but it took you five years to generate 20% more revenue.

So year over year that literally is an average of 4% per year. Now, think about your office staff, they all want raises, right? And they’re asking you for raises and deserving of those raises. I mean, like I’m an employer myself, I employ 13 people, right? So I know my staff, I want to give my staff a raise every single year. You should give your staff a raise. These are people who are loyal to you, loyal to your organization, loyal to your company. And they provide a great benefit to your customers and your patients.

They support your caregivers. They work hard, they should get a raise but when you’re only growing 4%, even 7%. And then again, we grew 7%, but we had to pay for PPE. Now we didn’t have to pay for all this PPE before that ate a big chunk of that 7% revenue. So now I wanna show you the masters, right? Because the masters represent the people who are doing the best of the best. This is straight the actual Home Care Pulse report itself. And so these are the best of us, the average masters, as a matter of fact right here, the average, median, middle of the pack master had $7,650,000 in revenue.

As you see I’m move in a mouse over that right now. So the year before, the median number was $6,600,000. So this right here, if you take this number and divide it out, this gives you a little bit over 15% we’ll say 15.5%, 15.5%, something like that. That’s the revenue growth for the masters. Now that’s more than double what the industry average did. Now what are the masters doing that allows them to grow at a rate twice that of the industry? Well, I can tell you right now, because I work with many masters, masters being people who have eight figure businesses, they’re doing 10 million, 15 million, $20 million in total annual revenue year after year, right? Some of my clients are fall into this category up here, this top 90 percentile, 95 percentile.

And I know some of the things that they’re doing that you can emulate are they have the best systems in place. So write that down. The masters have the best systems. What do I mean by systems? I mean, inquiry management systems in their organization on nurturing. Recruitment systems in place to continually 24 hours a day have an on-boarding process to bring new caregivers in. They have 24 hour coverage, not outsourced, many people who are smaller. And I understand if you’re a smaller in mom and pop, you may wanna outsource the on-call, that’s fine. But if you outsource then makes sure that your on-call service understands how to manage an inquiry for services and an inquiry for recruitment because this is what the master is doing with their 24/7 employee base that they have. I actually work with clients who are doing this kind of revenue right here this $30 million in revenue and beyond, right.

They literally have 24 hour staff in their office. They shifted out the way they warehouse 7 to 3, 3 to 11 and 11 to 7. It’s less people overnight. But again, the kind of revenue that are doing, the amount of increase, the amount of people looking for work. And remember, caregivers that work overnight are looking for work overnight. So just putting it into perspective and that’s the massive businesses there. Other things that they’re doing, they have layers in their development. They don’t have employees that are doing multiple job functions, not usually. They don’t have a recruiter who also does HR, who also does scheduling, who also does billing and payroll and everything else. No, they have everything siloed. And again, if you’re a small company you’re not gonna have that yet, but this is what I’m teaching you how to scale your business to grow it from where you are to where you wanna be.

Because getting 5% average growth, 4% average growth year over year isn’t exciting. 20% or higher, even 30% growth year over year, that is very exciting, all right. And that’s what it takes to be able to do it as we’re talking about these systems. Another thing that the masters are constantly doing, they have full time effort in marketing. They didn’t slow down their effort on marketing even during the pandemic, even during the lockout and you couldn’t go into referral sources, they still found a way to develop relationships and keep the referrals coming in. So, a last thing I will share with you is they are charging more money for their services and they’re making it up in the volume. When you have the best reputation, it’s going to allow you to recruit caregivers.

It’s going to allow you to continue to get the referrals. And then, yeah, there’s a difference between, and I want you to write this down for yourself folks too, ’cause again, I’m educating you I’m training you here, right? What are the masters doing to get this kind of revenue growth that I’m not doing, right? That’s what I’m teaching you right now. Beside that reputation and all those referrals coming in, there’s a big difference, and this is where I want you to write down, there’s a difference between needing a patient and wanting a patient. The masters, they don’t need new patients to come on services.

They’re already generating five, on average, $7,500,000. They don’t need more patients, but they want to help and they want to scale and they want to grow. So when they sit down with the patient, yeah, they’re gonna be charging more than your mom and pop small agency that’s desperate for the business, desperate for the work and they actually need the patients. So undercharging because I need it, charging what I need to charge because of what it costs to get caregivers. But this is working smarter, not harder. and the results are clear, cut and dry literally double the revenue growth from 2019 to 2020.

And so now in closing, I wanna show you a comparison to what my clients do because obviously this is why you’re here. You’re follow me, right? So, the industry average was 7.8% as I told you before, I just showed you the masters and what the masters are doing to get a 15.4% which is double the industry average rate of growth. My clients last year grew their revenue on average by 36.3% because they have mastered all of those processes. And yeah, that also includes people who are doing 4 and $5 million.

They grew by 1.5, $2 million over that 4, 5 million did the year before, putting them at $7 million, $8 million and so on, the system works. What I’m telling you week in and week out works. So if you wanna have results like my clients, or even assaults like what the masters of our industry are doing, What do you have to do? Invest in training. And now if you’re thinking about coming to one of my boot camps, I will tell you that the Hurricane millionaire’s boot camp, how to scale your business to multiple seven figures and beyond you want to get to $10 million in revenue?

You need to be at this event, even if you’re brand new, do you wanna take five years to break a million dollars? Or do you wanna do it in your first year out? This is why you come to the millionaire’s boot camp. And I got some cool things for you. See it right here, November 17th and through the 19, 17, 18, 19, Philadelphia, Pennsylvania, you can book your flights and everything.

You go to my website, it’s homecaremarketing.net/bootcamp, and you can get early bird tickets. It’s a $1,000 ticket. Early bird is on sale right now for just 599. Save money, commit now. I actually have two different courses, sales and marketing and systems that’s gonna help you to be able to get the referrals you need and caregiver recruitment and retention so that you can meet the demand. And I’m gonna throw a bonus in there, we’re also going to talk about operational support all things that you need to scale your business to eight figures a year and beyond. So I’ll see you at the Hurricane bootcamp, where you know, I’m gonna give you everything you need to blow away the competition.

Register Here!

Steve
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