What Has to Be True to Offer Bonuses

Before you offer bonuses in your practice, three things have to be true.

This is the part most practice owners skip.

They start with the question:

“How much should the bonus be?”

But that’s not the first question.

The first question is whether the practice is ready for bonuses at all.

Here’s the order I walk through with clients.

First: KPIs.

Success has to be clearly defined.

You need to know what performance actually looks like in each role.

Otherwise you’re rewarding feelings instead of results.

Second: profitability.

Not a busy month.

Not a waitlist.

Actual profit.

Meaning the practice consistently spends less than it brings in.

Third: cash.

Because bonuses are not paid with a P&L.

They’re paid with money in the bank.

That means:

You’re paying yourself consistently.

Taxes are accounted for.

Cash flow is stable.

If one of these isn’t true, the answer isn’t “never.”

It’s just “not yet.”

Bonuses should come from stability.

Not pressure.

Not guilt.

And definitely not one good month.