Marcus Lemonis, star of CNBC's hit series The Profit and CEO of Camping World, is optimistic about Pediatric Therapy Center, a seven-year-old occupational and physical therapy center for disabled children in Papillion, Nebraska.
The Pediatric Therapy Center is the subject of the most recent episode of Inc.'s Ask Marcus Lemonis video series, which spotlights one entrepreneur each week, and gives him or her the opportunity to ask Lemonis a question about a pressing business challenge. "What a good business," says Lemonis, after meeting co-owner and co-founder Candice Mullendore.
Mullendore says the center is already making $2 million in annual revenue, but she would like to keep growing it. Mullendore explains: "One of our biggest challenges is actually marketing, and finding the time to get out there and get in physicians' offices and get to the kids that we serve."
She asks Lemonis: "I wondered if you had any other ideas about effective ways to get out there and do that kind of marketing?"
Before he answers her question, Lemonis asks for more details about the business. Mullendore discloses that Pediatric Therapy Center has 23 total employees, 16 of whom are certified therapists. Each of those employees earns an hourly wage, even when cancellations occur.
Lemonis explains the importance of monitoring "unapplied labor" to understand the center's performance: "It's a business term where you are paying the staff member and you have nowhere to apply their wage, [like] an insurance claim, patient pay. One way to improve your margins is to figure out how to lower the unapplied labor."
When Mullendore says that her company has no inventory to speak of, Lemonis is quick to disagree: "Wrong answer. You do. It's them [the employees]. And their hours are your inventory." Collecting on that "inventory," advises Lemonis, is what will determine the "true profitability" of the business.
Where marketing is concerned, Lemonis is similarly direct: "I want you to make marketing everybody's responsibility, and give them a goal and incentivize them." He even points out how such a goal can improve employee unapplied labor.
When Mullendore says she already tried such an initiative but it wasn't effective, Lemonis clarifies exactly how Mullendore needs to tweak it to make a real difference for the company.
For more on how to empower your whole team to market your business--and how to create a profitable, socially-conscious company--watch the episode in its entirety above.