Class 111 - Whew - the good news is I found all the lost comments! Google added a new feature with a "spam" folder. I am not sure why some go into that dark hole, but I have found it and have published the 89 comments found there. :) I will check it daily so as so keep the confusion level low!
Financial Analysis - We discussed the four catagories: liquidity, activity, leverage and profitability. When calculating these ratios you need to use data found on your balance sheet as well as your income statement. The ratios alone are not very meaningful except when compared to industry averages as well as comparision within time frames. Month to Month, Quarter to Quarter, Year to Year. These ratios help you determine the profitabilty and stability of your company. I encourage you to apply these ratios to your business plan after completion for a benchmark or starting point for future comparisons.
This week's comments are for "Odd"teams are due January 24th. I have emailed all teams with outstanding comments. Please check your emails. Please make delinquent posting as soon as possible.
Please discuss how you plan to incorporate the financial analysis in your business. Where might you find benchmarks to compare yourself to other chiropractic practices. What are your field docs doing in this regard?
Another topic in class was being an independent contractor. Please share what you know in regard to what makes a good offer.
Lastly, I would love to hear some success stories with getting approved for loans to open new and any of you who have secured associateships/independent contractor positions.
Have a great week. Alexis
This comment has been removed by the author.
ReplyDelete1.how you plan to incorporate the financial analysis in your business
ReplyDeleteMy banker told me when you are just starting out, you need to construct a financial plan by taking some premises and assumptions on board. The data I have at hand I need to estimates the costs and investments necessary at starting and the sales, revenue and expenses forecasts made on the basis of the market analysis components and business statistics. If you are able to translate your ideas into figures, you will demonstrate both your practical planning skills and the potential profitability of your business. He felt this is the most important practical aspect of my plan because it will catch the bankers eye to consider my plan and possibly a loan. Therefore it holds extreme importance to incorporate a financial analysis in your business plan prior to talking to a bank.
2/3. Where might you find benchmarks to compare yourself to other chiropractic and what my field doc is doing.
Currently the office I am working in has five doctors. Our clinic director created a program called Compliance. Which tracts each doctor on a variety of things, some of those are how many new patients each bring in, and retention of those patients. Once a month and the a running total at the end of the year these stats are shared in the meetings on who has brought in the most patients and which of them have the best compliance with patients staying on their schedule and maintaining their scheduled appointments. Furthermore on the slide shows in the office it shows the top three doctors and their percentage with who has the best patients that keep their scheduled appointments. This is how we benchmark to compare the chiropractors in our office.
Externally being associated with groups such as GMI. At the Gonstead Methodology Institution these doctors meet every 3 - 4 months and many every month. They discuss a broad range of topics to help each other and from that information it is easy to compare yourself to the other doctors.
4. Pros of Independent Contractor:
I am not planning on doing an independent contract nor is anyone in my group. However from my knowledge of independent contracting if whoever you are planning on working with is going to interfere with any of the pros listed below, I would not work there.
• you are your own boss
• Schedule your own hours
• usually make more money than employees
• You can "withhold" your own federal, state and local taxes, unlike employees. This gives you the option of "working the float" on your gross pay, until taxes are due. For example, you might bank it to earn interest.
5. What Group 11 is up to:
Two individuals in our Group have secured associateships positions. The others are currently researching and deciding which direction they want to go with and one is debating between two docs they want to work with. =)
~M
I found a helpful website called firstresearch.com which for a yearly fee of 129.00 you can have quarterly updates of the chiropractic industry sent to you. Another way I know of how to compare yourself to the chiropractic industry is through state associations. Usually they send out yearly reports on how chiropractors in your area did so that you can compare your stats to them. In my own practice I plan to figure out my quarterly ratios to compare to my previous years reports, and at the end of the year to other chiropractors.
ReplyDeleteAs far as Independent contracting contracts, I have heard of new practitioners getting 60/40 net, for existing patients, new practitioner to existing practitioner and 70/30 for bringing in new patients. On top of the percentage the new practitioner usually needs to pay a monthly fee for using the facilities and equipment. Some aspects that may cause a shift in these ratios for me are whether the existing chiropractor is willing to pay for my malpractice insurance or health insurance.
One of the scariest aspects of going into pratice, for me, is the fact that we will be under a great deal of pressure to not only financially perform at a high level but we must constantly monitor our progress. One of the ways in which we can accomplish this is by meeting with an accountant, preferrably a CPA, as soon as possible. This will allow the CPA and the practice director to get on the same page and to create a financial game plan. To start with, my practice will be financially managed using "quickbooks" software, this will allow me to track every cent that travels in and out of my practice and, more importantly, it will itemize cash in and out which will serve as a financial analytical tool to track what may be working to grow the practice and what may not be working. Using quickbooks will also allow me generate detailed financial reports and charts to be used during quarterly meetings with my CPA; this will allow an easy insight as to where my practice stands financially and what the next plan of attack should be whether current reports are positive or negative.
ReplyDeleteAs far as becoming an independant contractor, the first bit of research I would engage myself in would be asking about contract details from any and every doctor willing to listen. I would be aware of all pros and cons and make sure all of the details are made aware of and lastly, have and contract reviewed by an experienced lawyer before you sign.
Leno,Olson, Sazama, Sazama and Noblet
Group 23b
ReplyDeleteAny risks associated with business must be identified through strategic-planning methods. Such methods may iclude idenitfying the products and services by looking at ads in local publications, or simply by talking with colleagues and patients. Also, another way may include creating the business model that will discuss the internal marketing techniques. And after certain period of time evaluate such business model with accountant. The chiropractor that i am planning to work for has been using pay per click as internet advertsing model where he only pays the host of website when his ad has been clicked.
With becoming associate, the first thing i did was evaluating my contract with my finacial advisor,my lawyer and any other chiropractors that i know.
Group 7
ReplyDeleteThere are many ways to incorporate some sort of financial analysis into our practice. To start we will be using a computer software program to track our income and business expenses which is easy and cost effective. Also other sources could be a financial advisor or working with an accountant to ensure we are on the same page with our financial goals and to make sure they are able to be met. Most state associations allow you to see how other practices are doing so you can compare how your practice stacks up to the other doctors in the area.
Independent contractor: As far as working in an already established clinic as an independent contractor we must review the contract carefully with a lawyer. Talking to previous doctors that we know about the our possible independent contracting to make sure we dont get in a bad situation that would not financially benefit us before signing a contract.
Group 13
ReplyDeleteAs a chiropractor who tries to offer a different service (technique, rehab, supplements) that defines their unique selling point, I find it difficult to compare financial benchmarks to that of other chiropractic practices. Do you want to work towards other peoples benchmarks, or would you like to set your own goals that define the practice of your dreams. One practice might use the percentage of reimbursement from insurance claims to define their ultimate success, while another might use new patients per month. To determine which stats are of significant importance to you, you need to distinguish your brand. If you are determined to have a high volume practice, stats such as new patients per month, patient visit average, or patients per week will be your primary focus. With a high volume practice, you would definitely want to track stats like marketing budgets and conversion rates to new patients. From that point you can then build your financial portfolio around those key stats which will lead toward your ultimate goals.
A benchmark that is being used in the practice Jeff is precepting at is the fact that the doctor has not accepted a new patient in 14 years. He states that it is an indication that he is educating his patients on the importance of wellness care for everyone in the family. In turn, parents bring in their children and raise them under the chiropractic paradigm. Those children then grow into adults and realize the benefits they saw while under care so, they bring their children in for care as well.
To sum up the use of financial benchmarks in your practice, you need to determine the stats that are truly significant to you and build your financial portfolio around them. You cannot let yourself get overrun by the numerous stats that are said to define YOUR success. You need to be constantly reviewing those stats, and innovating ways to achieve your ultimate goals.
Some major concerns to look out for when discussing a contract for an IC position are: is the facility equipped, is there a non-compete clause with duration, variable price to rent space. Does the IC start out paying less, but increase as the practice grows? Will the current staff be working with you , or do you have to hire additional staff? Startingintopractice.com gives 5 warning signs that indicate to the IRS that you are really an associate rather than an IC on it’s blog.
These include:
Hours of Service. Workers that you set when and how they work are more likely to be employees than independent contractors.
Training. The more training your workers receive from you, the more likely it is that they're employees.
Payment method. Workers whom you pay by the hour, week, or month are more likely to be employees.
Reimbursable Expenses. Workers whose business and travel expenses you pay are more likely employees.
Services available to general public. Workers who offer their services to the general public (for example, through business cards, advertisements, and other promotional items) are more likely to be independent contractors.
*The most important thing is to hire an attorney to review any contract you will be signing!
Kyle, Brad, Joe, Jeremy, Andy ...group 9
ReplyDeletePaper, pencil and a spread sheet we is the easiest way to take real hard look at what you are going to need when you start into setting up financials. It usually doesn't take a genius to add what you have and subtract what you may be spending. When in doubt over estimate. We think a lot of newbies even now try to justify getting the more expensive software to manage their money. There are many cheap options, even free ones, to pinch your pennies. Some of our group talked to docs out in the world to get an idea of the items one would need to start. It may be prudent to start small and slowly work your way up to a larger office. Also get in with a good accountant one that doesn't charge for phone calls or emailed questions.
Really trimming down your needs to keep your under head low is a smart way to start. Also one should be aware that life will have a few mysteries along the way so over budget by rounding up and always add 10% on the big number at the end.
As a former professional athlete, you'll want to know what your competition is doing, but never set your goals based on their performance. Also remember that when you set a goal set little ones to achieve the big one. Then when you don't succeed set that goal again. Some things to track are cash over/under, patient vs new patient visits, recurring visits, etc.. We don't expect to know everything that we may need to track but we agree if you want to know start tracking it.
Good luck out there!!!
In our group we have for associating and one setting up his own.
Being able to properly identify where your money is coming in and where it is going out is extremely important to anyone in business. This type of analysis is even more important for someone who is just getting into practice and learning how to do this for the first time. Many times what people are actually spending in an area and what they think they are spending are different. Strong financial analysis in your business therefore is key. Being able to sit down with an accountant and have them review your plan is a necessity. In initial conversations with my field doc it appears that he has not done a complete itemized list of his entire inventory in awhile. He does track how much he makes on items other than simply adjustments i.e. supplements, but has not completely analyzed everything in some time. As far as being an independent contractor, which I will not be trying, it seems to me that there are a number of obvious pros and cons. The main pro is that you simply have the freedom to do what you what. A lot of people would prefer to not have to work for someone else and be able to make 100% of the choices in the office. For others this is not as much of a concern. A huge con is that it can initially be much harder on you financially than being an associate. In many cases you will not get any possible overflow from the other doctor and also will not be guaranteed much of an income at all. One must be able to balance the risk/reward of being in control versus possibly being more financially secure when first starting to practice out of school.
ReplyDeleteGroup 25 Josh, Brady, Carrie, Tom, Ryan P.
Galen Stolp, James Leipold, Ty Cruse, Kelly Douglas, Brett Barber.
ReplyDeleteIncorporating financial analysis is a very important aspect of your business plan. Whether you choose to use a financial advisor, CPA, or computer program to track your financial success, liabilities, etc... it is very key to have a good understanding of your investments and costs for starting up along with your revenue and sales. Formulating figures for these aspects of your business will help when you try and calculate the profitability and success that your business will have potentially. Some benchmarks that you might come across when comparing yourself to other chiropractors are comparing your goals you wish to reach along with techniques that you are willing to provide and figuring out a new plan of service if need be depending on what you wish to accomplish with your business. However, like most people have already commented, many states already have associations set up that allows you to compare your business compared to other chiropractors in your area. Regarding an independent contractor, you first have to get a good understanding about the details of the contract from other chiropractors that are self employed. Make sure that you cover every aspect of the contract with someone who can explain in detail what you are about to sign. Lastly, make sure you have a good lawyer and/or financial advisor that can review the contract with you before you make your decision to sign or not. I don't know any specific success stories at the time that I can share about getting approved for a loan, but I am sure that if you are looking to get approved for one that you should know your credit score and clean up your credit report before doing so. Along with this, you should understand your overall assets and know where they are. For example you should take into account stocks, all bank accounts, mutual funds and so forth. Documentation is also important to have for proof of how much you have in total assets.
Group 15: Kristal, Curtis, Joe, Kristen, Jasmine
ReplyDeleteThe financial analysis prepared prior to practicing will be used to help estimate and control finances throughout the first 12 to 18 months. Quickbooks is an easily accessible an inexpensive software system that enables an entrepreneur keep in check with their finances and set goals for the first year in the practice. An accountant would be utilized to guide and carefully track the first year of progress. My preceptor has an annual meeting to keep in check with other chiropractors throughout the area, checks states associations and abides by his marketing consultant to determine whether he is charging too much or too little for his services. With this, speaking with other successful chiropractors throughout the nation could give advice what would or wouldn’t work. Before becoming an independent contractor, first be certain of all the details of the contract and have the contract reviewed by another professional or mentor. Then compare this to other contracts within the area to be certain that it is an agreeable contract. All members of our group plan on associated after graduation.
As a chiropractor who tries to offer a different service (technique, rehab, supplements) that defines their unique selling point, I find it difficult to compare financial benchmarks to that of other chiropractic practices. Do you want to work towards other peoples benchmarks, or would you like to set your own goals that define the practice of your dreams. One practice might use the percentage of reimbursement from insurance claims to define their ultimate success, while another might use new patients per month. To determine which stats are of significant importance to you, you need to distinguish your brand. If you are determined to have a high volume practice, stats such as new patients per month, patient visit average, or patients per week will be your primary focus. With a high volume practice, you would definitely want to track stats like marketing budgets and conversion rates to new patients. From that point you can then build your financial portfolio around those key stats which will lead toward your ultimate goals.
ReplyDeleteA benchmark that is being used in the practice Jeff is precepting at is the fact that the doctor has not accepted a new patient in 14 years. He states that it is an indication that he is educating his patients on the importance of wellness care for everyone in the family. In turn, parents bring in their children and raise them under the chiropractic paradigm. Those children then grow into adults and realize the benefits they saw while under care so, they bring their children in for care as well.
To sum up the use of financial benchmarks in your practice, you need to determine the stats that are truly significant to you and build your financial portfolio around them. You cannot let yourself get overrun by the numerous stats that are said to define YOUR success. You need to be constantly reviewing those stats, and innovating ways to achieve your ultimate goals.
Some major concerns to look out for when discussing a contract for an IC position are: is the facility equipped, is there a non-compete clause with duration, variable price to rent space. Does the IC start out paying less, but increase as the practice grows? Will the current staff be working with you , or do you have to hire additional staff? Startingintopractice.com gives 5 warning signs that indicate to the IRS that you are really an associate rather than an IC on it’s blog.
These include:
1. Hours of Service. Workers that you set when and how they work are more likely to be employees than independent contractors.
2. Training. The more training your workers receive from you, the more likely it is that they're employees.
3. Payment method. Workers whom you pay by the hour, week, or month are more likely to be employees.
4. Reimbursable Expenses. Workers whose business and travel expenses you pay are more likely employees.
5. Services available to general public. Workers who offer their services to the general public (for example, through business cards, advertisements, and other promotional items) are more likely to be independent contractors.
*The most important thing is to hire an attorney to review any contract you will be signing!
Above was posted by Group 13 [Adam Van Gessel, Dan Synowicki, Eric Carpenter, Rachel Berent, Jeff Elmore]
ReplyDeleteGroup 1
ReplyDeleteAfter being in an office that is highly efficient and seamless, everything has to have its t's crossed and i's dotted. While you see everything working without effort, you also have to know how everything goes behind the scenes.
After speaking with our office manager and then finance manager they said that the four categories of the financial analysis is and should be completed once a month but can be done quarterly. Now that is the overall analysis completed by the individuals in the office and then sent to an accountant who then reviews everything as well. In the office, the computer system that is used throughout allows us to keep track of each individual person, adjustments, insurance, finances, etc. This then is transfered to quickbooks, and various other financial sheets.
It is amazing to see all of the steps that are needed to keep this office running. The encouraging part is if it is kept organized and up-to-date from the beginning it is easy to keep up with.
As for my own practice, being meticulous about finances including current assests and current liablities is vital. Knowing what is coming in and what is going out will be vital when being a business owner.
As for comparing with various other chiropractors, the finance manager said to search SIC Chiropractic codes or NAICS Chiropractic codes. He mentioned you could also search Dunn and Brad St. for more information.
As for Independent Contractors, I don't know a lot of information about them myself, since I have never really searched out this option. I know it is beneficial for many when seraching out options upon graduation. You are essentially growing your practice within someone elses practice. If it was me when searching out a position, I would want to make sure that it was a fair contract. One where I would be able to be an independent while still having a roof above my head.
We are all getting so close to that next step in this journey and I am excited for everyone! For my team, I know that we have 2 that are opening theor own business (including myself) and 3 that are associating. We are going to have some pretty amazing Chiropractors coming into the field...LOOK OUT WORLD! :)
Jenelle Bourgeois and Jenny Li
ReplyDeleteI am planning to start a small referral-based business from home. Fortunately, this limits overhead and risk with the responsibilities of signing a lease. Furthermore, the added cost of supplying utilities to a home-business is a small percentage of what would normally be paid. Aside from start-up costs and the general supplies needed to run a home-based business, it can be a rather inexpensive venture. The most important financial analysis I plan to consider (in addition to the general statements) is by tracking 1) patient retention; 2) patient compliance 3) patient referrals. Part 1 is a relatively inexpensive problem to rectify with a few hundred dollars and a powerpoint presentation of sorts to appropriately and effectively teach patients about their health and chiropractic care. This leads to Part 2 of patient compliance: an educated patient is more likely to understand and therefore comply with recommended care schedules. When a patient complies, they are more likely to get better results, leading to more referrals. As my major form of marketing, this entire progression is essential. Not being in the USA, it is appropriate for me to provide discounts to seniors, children, students and even provide family plans. I also have the ability to thank referring patients with free adjustments cards, or waive the examination fees for referred patients. It is, however, ESSENTIAL, to track how much you are "loosing" and "gaining" from this process. If only 10% of the patients you give a free exam to decided to continue with care, you may need to re-assess the value, consider the loss, and especially re-assess the patient education component of your clinic.
Group 5
ReplyDeleteThe financial analysis is helpful in not only determining loans for an initial start up of a practice, but also for simply determining one's budget and, consequentially, how much income one needs to be receiving if working as an associate or independent contractor. Further, it provides a much more accurate benchmark when it comes to comparing one's own office to those of others in the area which can often be found through membership in state chiropractic associations.
As for independent contractors, I've only really heard of two different common payment plans. One is to receive a percentage of income from patients seen, sometimes a higher percentage on new patients brought in, and the other is to give the contractor all income up to a certain amount and then going on to a percentage. Both have advantages in disadvantages, of course, especially because most who offer the latter option give smaller percentages once the set amount is reached than those who begin at a percentage, so one not only needs to look at that, but also how high the set amount is. In either event, one needs to worry about just how much liability they are responsible for as well as other potentially detrimental aspects of the contract such as an overly long contractual period or a wide area of prohibited practice once the contract ends.
Group 17
ReplyDeleteFinancial analysis are not only helpful, but crucial to efficient business growth. As the goals of the financial analysis are four separate ideas, they are generally tracked in different ways. Profitability is commonly seen on an income statement generated by the office that is broken down into profit from separate services such as new patient consultations, exams, and visits, among others. This will help to track the number of services as well as income. Income statements should be generated daily, and reviewed weekly. If you know where your money is coming from, it will serve you and the business in return as far as developing marketing strategies. Solvency is the ability to pay creditors and third party payments long-term, which should be factored in to your monthly expenses. Liquidity is the businesses ability to maintain positive cash flow, and generate a true profit as tracked on a balance sheet. The final goal of a financial analysis is to determine stability of the business- a projection of whether the company can maintain long-term operation, and financially succeed.
I think the most important aspect of financial analysis is to be regular, and consistant with it. Things change rapidly sometimes, and it's up to the business owner to monition even the slightest fluctuations in both profit and loss. Then, they must determine the reasons behind them, and (no pun intended) adjust accordingly.
I don't know a ton about what makes a good financial offer for an Independent Contractor, but I believe my 1st intern at Palmer happened to find one. She pays a set amount per month to the owner of the practice (I don't know how much), which covers the use of her space, equipment, and office staff. All new patients go to her automatically because the established doc will be wanting to slow down and retire within the next few years. At that time, I believe that Melissa will have the option to buy out the practice and keep the building,with it's staff in operation.
First off, I will start with a success story from a friend that graduated last trimester. He is now practicing in Wisconsin. He utilized the templates provided by Alexis in his business plan and he said that the agent who approved the loan was impressed with what he had outlined in his plan and said that it was very thorough. In regards to incorporating financial analysis into a business, I have some good tips to keep track of the profit progression of a practice. I worked for a chiropractor in Michigan for 3 years before coming to Palmer. I saved all of the documentation he used to follow the progress of his practice. Every Wednesday, we had a 2 hour in-office lunch break in which he went over the weekly statistics of every employee. We were required to take notes in these meetings and in one of my old notebooks I wrote down the following - "Statistics refer to the quantity of work done or the value of it in money. Statistics are the only sound measure of any production or any job or any activity. They tell of production. They measure what is done...The CONDITION of any activity can be measured by statistics." When he began to incorporate these type of meetings into his practice, his practice BOOMED! Not only could we figure out where the office was lacking, but overall productivity of each employee increased dramatically because we were required to report the statistics corresponding to our individual positions and were expected to have an increase in productivity each week. If an increase was not reported, we had to say why and how we feel we can improve upon our individual productivity. This information from his staff gave him the information to use in decision making for betterment of the office. It may seem like a tidious task to some, but I know personally how much this positively impacted his practice. When he began doing these meetings he had also hired an outside biller. As a result of our input, he felt that if the office staff had more time to concentrate on productivity instead of billing during the time patients were in the office that his business could expand even more...He was right. Not only did his staff have the additional time to increase productivity, but it was easier to keep track of his profits from billing insurance companies. I also had an old memo from him that made a very good point - "If one knows what the conditions are and knows how to determine what condition an activity is in, how then does one succeed in improving production (and therefore survival) of that activity? It is done by applying condition formulas. A formula, by definition, is "a method of doing something." In order to improve the condition of an activity, one has to be able to ascertain what condition that activity is in and then actually do the steps of the formula for that condition, in the sequence the steps are given. Of course, if one doesn't do the steps to handle a condition then one has "no handling" for the condition!" He developed this formula for his office and it increased profits by assisting in increasing overall productivity of his staff. Group 17
ReplyDeleteGroup 27.
ReplyDeleteQuickbooks is the easiest way to track your company’s finances (i.e expenses, revenue). It also allows you to keep your financial goals. My precepting doctor is constantly checking is monthly averages and his goal is increase his practice by 20% every year, so far he has done this the past ten years. He checks in with his business accountant every month to make sure he is on the right path.
With regards to an independent contractor I would have an attorney that specializes in legal contracts look over the contract to make sure that everything seem equal. Independent contractor might be a way to go because you might not have an overhead if the head doc takes a percentage, but a bad thing is if there is no cap on how much he takes. On doc I know he take 50% of the first $5000, then 40% of the next $5000 and then 30% after that.