7 Steps to Guiding Your Business by the Numbers

In a recent episode of The Profitability Podcast, we welcomed special guest, Kristie Kapp, a renowned dental practice consultant with over three decades of experience in the industry. Starting as a dental assistant and working her way up to becoming a multi-practice owner and national speaker, Kristie has helped hundreds of dental practices across 48 states improve their performance through data-driven strategies. She thrives on helping practices increase production without resorting to pushy sales tactics or compromising patient care.

Kristie shared invaluable insights about running a business by the numbers while maintaining authenticity and ethical practices. Their discussion helped us see that profitability isn't about becoming corporate or sacrificing values - it's about using metrics as tools to serve clients better and grow sustainably. Let's get into the seven essential steps outlined for guiding your business by the numbers.

1. The Triple Win Philosophy

Before diving into metrics and numbers, it's crucial to establish the right mindset. Successful businesses must achieve a triple win: a win for the customer, a win for the business, and a win for the team. This philosophy ensures that pursuing profitability never comes at the expense of ethical practices or quality service.

This creates a foundation of trust and long-term sustainability. When businesses focus solely on profits, they often fall into the trap of pushing unnecessary services or products, leading to burnout and damaged relationships. By prioritizing all three aspects - customer needs, business health, and team satisfaction - you can lead naturally and increase profitability as you increase your coworkers' drive to do the best they can.

For service-based businesses, this mindset shift is particularly important where trust is essential. Whether you're running a dental practice or a consulting firm, your success depends on building lasting relationships with clients who believe in your commitment to their best interests.

2. Identify Your Key Performance Indicators (KPIs)

The key to running your business by the numbers is knowing which numbers actually matter. Many business owners get overwhelmed by tracking too many metrics or focusing on the wrong ones. When you keep it simple and identify the core KPIs that directly impact your business's health and growth, you can find where you can make a bigger impact.

For service-based businesses, these metrics might include production per hour, case acceptance rates, or customer retention rates. The specific KPIs will vary by industry, but the principle remains the same: choose metrics that help you understand how well you're serving your clients and how effectively your team is performing.

Making these metrics visible and accessible to your team is crucial. Just as a basketball player needs to see the basket to score, your team needs to see their targets to achieve them. This creates accountability and motivation, leading to improved performance across the board.

3. The Benefits and Risks Framework

One of the most powerful insights shared in the episode was the simple yet effective framework for presenting services to clients. Instead of overwhelming them with technical details or industry jargon, keep it simple for the client and focus on two key elements: the benefits of doing business with you and the risks of not taking action.

This addresses their fundamental concerns. For example, in dentistry, the benefits might be better oral health and a confident smile, while the risks include worsening conditions and higher costs down the line. This same framework can be applied to any business - from financial services to marketing consulting. When you are giving information to a client, the simpler and clearer the better.

When presenting to clients, resist the urge to "firehose" them with information. Let your client know why they want to do business with you. Keep the message simple and focused on what matters most to them: how your service will improve their situation and what they stand to lose by not addressing their needs now.

4. Feel, Felt, Found

When handling objections from potential clients, Kristie introduced the powerful "Feel, Felt, Found" method learned from sales legend Zig Ziglar. This approach helps address client concerns with empathy and authenticity.

Starting with “I know how you feel,” choose to acknowledge the client's current feelings and concerns. What are their concerns and worries? What is keeping them from understanding why they need your services?

Then let the client know that they are not the only people to have felt that way. Others have had similar concerns, so they are not alone. Everyone wants their thoughts and feelings to be validated. The same thing goes when talking to a client or patient.

And then present to them your solution. What solutions to their concerns does your business have that others don't? How have other people responded to or experienced these solutions and options? This makes your client feel heard, understood, and taken care of.

This validates the client's concerns while offering hope and practical solutions. It creates a connection and shows that you understand their perspective, making them more receptive to your proposed solutions. People will always find a way to pay for what they want.

5. Distinguish Between Objections and Conditions

Understanding the difference between objections and conditions is crucial for ethical sales and service delivery. Objections are concerns that can be addressed through discussion and problem-solving, such as concerns about time, money, or value. Conditions are external circumstances beyond your control, such as serious illness or job loss.

Recognizing this helps you focus your energy where it matters most. While objections can be overcome through careful discussion and flexible solutions, conditions require empathy and patience. This approach maintains your integrity while ensuring you don't waste time trying to push services on clients who truly aren't in a position to move forward.

Remain supportive and available when clients face conditions, while being prepared to help them find solutions when they're dealing with objections. This balanced approach builds trust and often leads to stronger long-term relationships.

6. Create Systems for Continuous Improvement

Success in business requires ongoing refinement of your approach. Kristie shared the powerful example of keeping a "glass jar" where team members would document failed client interactions and objections they couldn't overcome. During team meetings, they would review these scenarios and brainstorm better responses for future situations.

This approach to learning from failures creates a culture of growth and resilience. It transforms potentially discouraging experiences into opportunities for improvement and helps team members develop their skills in a supportive environment.

Regular team meetings focused on reviewing metrics and sharing experiences help maintain momentum and keep everyone aligned with the company's goals. This focus on improvement ensures that your business continues to evolve and better serve your clients.

7. Embrace Failure as a Learning Tool

At the end of the day, viewing failure as a crucial part of the journey to success is really important. Business gives us valuable lessons about trusting data over emotion and how to learn from our failures. It is an opportunity to face a possibility of self improvement and make the most of it.

These experiences, though painful, often provide the most valuable lessons that create the ability to truly understand and connect with others facing similar challenges. This perspective helps transform failures from sources of shame into valuable assets that enhance your ability to serve clients and lead teams.

The key is to remember that failure doesn't define your legacy - it's how you learn and grow from these experiences that matters. Even a decade-long struggle doesn't have to become your defining story if you use it as a stepping stone to greater wisdom and success.

Your Turn to Guide by the Numbers

As you consider implementing these steps in your own business, start by asking what are the 3-5 key metrics that would give you the clearest picture of your business's health? How can you make these metrics visible and meaningful to your team? What systems can you put in place to regularly review and act on this data?

Running your business by the numbers isn't about becoming cold or corporate - it's about having the right information to make better decisions and serve your clients more effectively. Start small, focus on what matters most, and use these metrics as tools to help you achieve that triple win: happy clients, thriving team members, and a profitable business.

Your journey to data-driven success doesn't have to be perfect from the start. Like brushing your teeth, it's about developing consistent habits and learning from each day's experiences. Begin implementing these steps today, and watch how clarity and confidence follow when you remove the blindfold and truly see your business through the lens of meaningful metrics.