Tracker Tip Of The Day - Archives

Tracker Tip of the Day - Archives

April 13, 2021
Benefit #1 of Value Drivers - Practice Transitions

1. Perspective. Identifying and enhancing Value Drivers can help you view your business through the eyes of a prospective buyer. This helps you overcome sentimental attachments to your practice and decisions that only benefit you personally.

corona, woman, girl

April 12, 2021
Why Value Drivers Matter - Practice Transitions

Growing practice value and cash flow can help you add to what your practice is currently worth. Potential buyers will look at:

• Value Drivers: historical cash-flow, sales growth, growth opportunities, market share, profitability, unique services, key employees, transferable, good systems, leadership, good financials so buyer can obtain financing.

• Value Killers: inconsistent profit, bad financials, poor management, no growth opportunity, and owner skills and patients who are not transferable.

masks, persona, duality

April 9-11, 2021
Client & Staff Interactions - General Business

There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self.

― Ernest Hemingway

April 8, 2021
Transitions & Practice Management - Value Drivers

What happens if your practice isn’t worth enough to allow you to exit with financial security? How can you increase your practice’s value if everything that’s made it successful thus far isn’t enough? The answer lies in managing to the Value Drivers.

Value Drivers are specific characteristics that drive growth.

April 7, 2021
Transitions - Be Prepared, NOW!

Don’t wait until you have to sell; start preparing now. You will need a map before you go into the woods. Start looking NOW at what you need to know and how to prepare that map so you are ready. – AT ANY TIME!

forward, road, away

April 6, 2021
Transitions - Exit Plans Evolve

“Written down” does not translate to “chiseled in stone.” Like I indicated previously about how Business Plans should be reworked as time passes, written Exit Plans can, and often do, change. As your practice and goals evolve, updating an Exit Plan gives your planning strategies credibility as time passes.

evolution, twilight, caricature

April 5, 2021
Transitions - The Exit Planning Road Map

The exit planning road map should include being prepared to exit from Day 1, just in case the practitioner experiences a catastrophic reason to leave practice whether that reason occurs shortly after starting the practice or after forty years of practice or anytime in between.

The plan also should include how to value the practice at any time in the Business Life Cycle or when an exit is being anticipated.

April 2-4, 2021
Thoughts to Consider (General Business Principles)

We cannot discover new oceans until we have the courage to lose sight of the shore.

– Gide

Paul’s Pics. Taken off the coast of Maine.

April 1, 2021
Transition Planning

I found that other healthcare professionals, regardless of their chosen professions and number of years in practice, were experiencing transition dilemmas with having very little, if any, knowledge of exit planning. These doctors had been deluded into thinking that they could practice as long as they wanted and then, when they were ready to exit, someone would automatically appear ready to buy their practices at the price the exiting doctor expected. On top of that, many of them continued to slow down as they got older with subsequent decreases in annual revenues and therefore, decreases in the practice values. Those exiting doctors had misunderstood that buyers don’t want to pay for a practice the way it was ten years ago; they pay for today’s value.

March 31, 2021
Advantages of Forecasting

Forecasting allows you to combine insights with facts to make better decisions and stops you from making emotional or gut decisions that may feel right at the time but don’t hold water after seeing the anticipated results after forecasting.

March 30, 2021
What Are The Differences Between Budgets and Forecasts

While Budgeting should be the basis for your most important planning decisions, you need Forecasting to be able to predict how to plan for changes in scheduling, facility costs, labor requirements, inventory, production, purchasing, etc. as the year progresses.

March 29, 2021
What is a Forecast

To Forecast is to estimate, predict, or calculate, in advance, based on understanding historical information and planning for trends.

Forecasting should be the basis for your most important planning decisions. For example, you need to be able to predict how to plan for changes in scheduling, facility costs, labor requirements, inventory, production, purchasing, etc.

cup, notebook, work

March 26-28, 2021
Goodness

Do all the good you can, by all the means you can, in all the ways you can, in all the places you can, at all the times you can, to all the people you can, for as long as you can.

different nationalities, children, human

March 25, 2021
Chance Favors the Prepared Mind

Preparing annual budgets are necessary for laying the groundwork for all aspects of sound business planning.

Although budgeting is essential, it can be likened to looking in the rear view mirror, i.e., learning from what has occurred in the past. Forecasting, on the other hand, is like looking out the windshield to what is really happening in front of you in real time.

Obviously, you need both.

March 24, 2021
Determining Profitability With Your Budget

Once you have determined your production, revenue and expenses, it becomes a simple matter of mathematics. Subtract the anticipated expenses from the revenue to determine your profitability. If the outcome is negative, you need to make adjustments to increase production and revenue to offset expenses, or you need to decrease expenses, or a combination of both.

March 23, 2021
Why Some Practices Avoid Budgeting

It is common for healthcare professionals to not do budgeting at all. Reasons include:

– Many doctors are comfortable with past profits and status quo, so they see no value in spending the time or costs involved in preparing budgets.

– Owners accept fate and hope for the best, usually because the practice has been somewhat successful in the past in spite of its lack of financial organization.

– Owners lack the expertise necessary to prepare a budget.

– Someone in the practice (e.g., an office manager) takes on the responsibility of establishing internal accounting reports and tells the owner/doctor that budgets will not be necessary.
angry, businesswoman, conflict.

angry, businesswoman, conflict

March 22, 2021
Creating a Budget - Additional Advantages

  1. It forces you to do better estimating by compelling you to re-evaluate past performance to identify changes,
  2. It provides tools for evaluating your and your team’s performance, and
  3. It incentivizes everyone to shoot for goals.
man, suit, arrow

March 20-21, 2021
If You Want to learn, empty your cup

A learned man once went to a Zen master to inquire about Zen. As the master talked, the learned man frequently interrupted him with remarks like, “Oh, yes, we have that too”, or “Yes, I already know that.” Finally, the Zen master stopped talking and began to serve tea to the learned man; however, he kept pouring and pouring, and the tea cup overflowed and poured all over the learned man. “Enough! No more can go into the cup!” the learned man interrupted. “Indeed, I see,” answered the Zen master. “If you do not first empty your cup, how can you taste my cup of tea?”

tea set, teapot, still life photography

March 19, 2021
What is a Budget

A Budget is a plan that outlines an organization’s financial and operational goals.

Planning a budget helps a business allocate resources, evaluate performance, and formulate plans. Its main use is to predict your practice’s ability to take in more cash than it pays out.

Are you preparing a Budget for your practice each and every year?

savings, budget, investment

March 18, 2021
Preparing a Budget

Take the first steps to knowing exactly where your practice is going financially. Prepare a budget.

A Budget is one of the most important core planning tools used by every successful business.

Are you preparing a Budget for your practice each and every year?

office, business, businessmen

March 17, 2021
The 3 Ws Needed For Successful Practice Planning

Your financial planning and practice management tools need to show you where you’ve been, where you are, and most importantly, where you’re going.

If your current system does not provide this information, you need a program that does.

Are you monitoring and measuring these 3 Ws at least once per month?

March 16, 2021
Key Performance Indicators (KPIs) For Your Practice - Part 2

A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively your practice is achieving key business objectives.

Organizations use KPIs at multiple levels to evaluate their success at reaching targets. Yesterday, we discussed how high-level KPIs focus on the overall performance of the business. Today, the chart shows how more in-depth, low-level KPIs focus on processes in departments such as sales, marketing, HR, support and others. Here is an example of lower-level KPIs.

Are you monitoring and measuring these KPIs at least once per month?

March 15, 2021
Key Performance Indicators (KPIs) For Your Practice

A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively your practice is achieving key business objectives.

Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the business, while low-level KPIs may focus on processes in departments such as sales, marketing, HR, support and others.

Here is an example of high-level KPIs.

March 13-14, 2021
Goodness

Do all the good you can, by all the means you can, in all the ways you can, in all the places you can, at all the times you can, to all the people you can, for as long as you can.

affirmations, appreciations, positivity

March 12, 2021
The Ingredients to Optimal Operational Management


• Ensuring that business operations are designed in terms of meeting customer (i.e., patient) requirements.

• Acquiring skills and understanding of the financial and other operational information required for success.

• Managing the process that converts inputs into outputs.  Inputs are the production, revenue, expenses, customers, staff, and statistics or key performance indicators (KPIs).  Outputs are the products, services, customers, and goals.  Making improvements along the way.

March 11, 2021
Optimal Operational Management - Definition

Successful non-healthcare businesses use Operational Management routinely; healthcare professionals should do the same. Optimal Operational Management is the process of taking actual, real-time financial numbers and re-forecasting them into a format that is made up of all the different parameters and components of production, revenue and expenses in order to demonstrate past, present and future income and expenses.

mark, marker, hand

March 10, 2021
Know Where You are Going - Part 2

When Alice reached a fork in the road, she asked the Cheshire cat which way she should go. He asked her where she was going. Alice replied that she didn’t know. The cat concluded matter-of-factly, “Then it doesn’t matter which way you go.”

– Lewis Carroll

March 8-9, 2021
Know Where You are Going - Part 1

Those who are unaware that they are walking in darkness
will never seek the light – Bruce Lee
secret, forest, darkness

March 6-7, 2021
Success

The distance between insanity and genius

is only measured by success.

team, silhouettes, teamwork

March 5, 2021
Question Everything

Knowledge is having the right answer.

Intelligence is asking the right question.

March 4, 2021
Goal Setting Process

Start thinking about the content in this flow chart. It will help guide you in preparing up a goal setting process that should remain throughout your career.

March 3, 2021
Financial Statements

To add to what was said yesterday about the importance of understanding your financial statements, it is recommended you have your financials prepared on a monthly basis whether by your accountant, bookkeeper, office manager, etc. Then, meet with your accountant quarterly to review and update your tax situation so that there are no surprises when taxes are due.
taxes, tax office, tax return

March 2, 2021
Financial Statements

As a doctor, you don’t need to memorize or understand all of the intricacies of financial statements but, as an owner, the worst thing you can do, when presented with your practice’s reports, is to not ask questions, or even worse, not pay any attention to the information provided. You must understand what stories the financials are telling you.

March 1, 2021
Pleasing Coworkers

People pleasing is inherently dishonest because you are telling others what they want to hear, instead of what you need to say. Because somebody doesn’t want to hear the truth doesn’t negate your responsibility to speak it. When something doesn’t feel right, speak up. When somebody’s reaction threatens to stop you from doing what you know is right, it’s time to shake it off and move on.