How is your practice doing? Are you happy with your results or really think that you are not maximising your potential? What is your practice worth, are you thinking of acquiring another practice? If you were what should you look for? How confident would you be in the numbers received by the other practice? Should you have a perfectly oiled practice beforehand?.
Pozitive Practice Management can help you! We have developped tools to help any practice stabilize, grow, systematize your practice and help you buy other practices or make your practice sellable. From practice assessment, managing by statistic, accounting restructuring, forensic review of your accounting and expenses, your systems, your staff, and your general health, we have tools to help you!
What encompasses “Practice Assesment”? this is normally a 2, 3, 4 days on-site evaluation of your practice, we look at everything, we start with a meeting with upper management to review goals, and get a situational representation of where the owners think that they are and where do they see their biggest opportunity and challenges. we then meet with middle management to review everyone’s responsibilities, strength, and weaknesses, then we meet with admin and nursing staff. The purpose is to formulate recommendations on corrections or modifications to the organizational charts where we maximize everyone’s strength.
Following this, we will look at all systems, starting with accounting so that we can review, analyze and benchmark key ratios necessary to make sound financial recommendations.
We will require key financial metrics so that we can prepare a financial benchmark analysis. We are partnered with one of the leading consulting company where North American matrix have been accumulated over the past 15 years. we will be able to give you financial benchmarks that will help you understand and manage your business.
With this at hand, we will make strategic implementation recommendations, and should you wish, we will be there to implement or lead the implementation with your staff.
Unfortunately, without knowing where we are there is no way to set objectives, So managing by statistic is crutial in business. Now what statistic should we monitor and what do they mean?
- Gross sales per day!
- Sales by injector or practitioner
- Income and expenses ratios
- Cost of goods fluctuation
- Income per hour
- Return on investment of our advertising
and much more, the purpose of this section is to review the minimum necessary stats that your team should supply you as a an owner and help you understand its meaning.
Sometimes the data is there, but it is so difficult to comprehend that we don’t bother. What we often do is to simplify the chart of account, re-write the chart of account, allowing you to have a meaningfull accounting. We input budgets, set reports to compare to previous years. We go to the point of putting in place bank and credit card reconciliation procedures, inventory costing, balance a/p with inventory, establish petty cash procedures, expense account reports. Etc.
We are not forensic accountants, but we will look at your finances for the past 3 years with a fine toothcomb. We have found insurance overcharged, misappropriated funds, overpayments to employees, tax liabilities, wrong tax remittance, unexpensed expenses, improper coding of expenses. unacceptable dividend payments, improper cash flow budgeting, proven mishandling of the books by the bookkeeper, unaccounted vacation reserves, unpaid overtime liability.
By correcting these foundings we were able to show profitability and plan systems to ensure that this does not happen again.
You are interested in growing, and buying other practices, Your first initial thought is to get the accountant to review the books. that is great it must be done, but what do they know about the business, where you could save money by economy of scale, what challenges do practices have, what employees are worth keeping, or who should we let go?
Let us help you in doing your due diligence, and compare your practice to what the norm should be and see what results you can expect by having a second, third or fourth satellite office.
We never think that one day we will want to sell, or just get out of the business we are in! Unfortunately, this is something that we should think of at the onset of starting a business. But now it is too late, we have been in business for years and now we are thinking of selling. What is our business worth, probably a lot, to our eyes, but what about the buyer.
As a buyer, I want a business that is in disarray, no systems, cost overruns, badly managed, poor accounting, no reporting, with losses, overstaffed, no spending controls, poor retention I want to pay the least amount of money for the practice in the hopes that by applying my own business model I can make it profitable.
We believe that in order to sell your business for the maximum valuation all of this must be corrected first, before even putting the business for sale.
By doing so you will get the maximum valuation for your business. Let Pozitive Practice Management help you prepare and negotiate the sale of your business.
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