Signs It’s Time to Grow Your Practice
Authored by: Frank Vinopal — Partner, CPA | Date Published: October 13, 2025
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In my previous blog, we explored two primary growth strategies for audiology practice owners: launching a cold start or buying an existing audiology practice for sale. Each approach has its own opportunities and challenges, but the decision doesn’t stop there.
Once you’ve identified the best path forward, the next big question arises: Is your practice truly ready to expand?
Expansion brings exciting opportunities, whether that’s opening a new audiology clinic, hiring more staff, or broadening your audiological services. It also requires significant investment and careful planning. The key is making data-driven decisions that ensure your practice is financially and operationally prepared for the leap.
Key Financial Questions to Ask Before Expanding
Is my practice financially healthy right now?
Expansion should be built on a solid foundation. Looking at your profitability over time, are you consistently earning strong margins, or just breaking even? Evaluate your cash flow to make sure you have the ability to fund upfront costs without putting your practice under stress.
What do I expect this expansion to cost?
Growth comes with expenses: new office space, buildouts, equipment, marketing, and more. Creating detailed projections helps you avoid surprises and ensures you know exactly what financial resources are needed.
Do I need to hire more people?
Adding a new location or expanding services almost always requires additional staff. Factor in the costs of hiring, onboarding, and training new providers and support staff.
Will I need a build-out?
Renovations, permits, technology, and furniture can add up quickly. Planning for these costs prevents unexpected financial strain. (For an estimate of typical build-out costs for a new audiology office, click here.)
Can I afford the early phase of expansion?
Even the most successful new ventures take time to become profitable. Ask yourself if your practice has enough reserves to cover expenses during this period without impacting your existing operations.
When evaluating readiness, it can be helpful to create a private practice checklist that includes both financial and operational benchmarks before moving forward.
Key Financial Metrics That Signal Expansion Readiness
Looking beyond the questions, here are the specific numbers that matter:
- Net Profit Margin: Consistently healthy margins indicate that your core business is strong and can support growth.
- Cash Reserves / Working Capital: Expansion requires upfront spending. Adequate reserves help cover both costs and potential delays in reaching profitability.
- Debt-to-Equity Ratio: Too much existing debt can make it challenging to secure financing for expansion. A balanced ratio gives you flexibility.
- Patient Growth Rate: If your current practice is steadily attracting new patients, that’s a good indication that demand exists for additional services or locations.
- Provider Utilization: When providers are operating at or near capacity, it may be time to consider bringing in additional staff or expanding space to meet patient demand.
Other Growth Factors
Finances are the foundation of growth, but they aren’t the whole story. Expansion also requires:
- Strong operational procedures that can be replicated across locations.
- A solid management team to oversee new operations.
- Thorough market research to confirm there’s patient demand in the area you’re considering.
- Creative audiology marketing ideas to attract new patients and establish your brand in a competitive landscape.
- Ability to recruit providers is very important in determining location of the expansion.
Final Thoughts
Expanding your audiology practice can be a rewarding journey, but it’s a decision that should never be rushed. By carefully reviewing your financial health, understanding the costs, and ensuring you have a strong operational foundation, you can move forward with confidence.
With the right preparation, expansion can set your practice on a path for long-term success.