Where do you want your company to be in one year? … In three years? … In five years?
A casual answer to this question is insufficient. Most of the people I ask this question of can rattle off where they would like to be, but very few have made plans to arrive at these goals.
It is important that you plan now for the future. Sit down and write your one-year, three-year and five-year goals. These will be your targets. Then work with your accountant to prepare a spreadsheet that will allow you to study every facet of your business.
List all of your company's assets, inventory, furniture and fixtures, accounts receivable (AR) and cash on hand. Include as assets your customer list, your employees and their responsibilities. List the various disciplines that you service and the dollar volume of each, as well as the gross profit they produce. You must know how much business your company obtains from third-party payers (Medicare, Medicaid and other insurers) as well as the percentage of over the counter (OTC) cash sales you receive.
Armed with all this knowledge (I've listed only the basics), you can now prepare a business plan for the future. Along with the information you have gathered, add the demographics of your community. Prior to writing your plan, research the potential for new opportunities in your market. As you sit and think, doors will open for you to identify new ways to grow your business and increase your revenue.
Remember that as you start to compose your new business plan, you must take into consideration any new costs that may develop. Be sure you have made arrangements to finance your growth — and then do it!
I am not sure how many DME/HME providers I have consulted with on this topic, but I know that when a businessman does his homework correctly, prepares a reasonable plan of action and carries it out effectively, success is waiting. I know it's a very large effort and also time-consuming, but your business plan represents the future for you, your family, your employees and your customers.
As our industry goes through some dramatic changes, so must you.
Tomorrow
What does the future hold for our industry? This was the one subject that was on everyone's tongue at Medtrade last October. There is a great deal of trepidation on the part of every provider I spoke with about “tomorrow.”
But here is an interesting thought. I have been active in our profession since 1950. I have participated in every one of the 25 Medtrade shows, from the very first held in the basement of the old Marriott Hotel in Atlanta. The one constant at each of these exhibitions has been concern about the future.
Along with devising a solid business plan, you can ensure your future by taking a few other positive steps. You know what I am going to say here: First and foremost, join both your state and national associations. These organizations are working to protect your company from laws and regulations that can hurt your development and, of course, lower your profits.
Become active in politics. You can influence your customers to vote for legislators who support our profession in your local community and at the state and national levels. Visit your state capitol or travel to Washington. There, too, you can make your voice heard. I can assure you this is a rewarding experience, as well as a vital one.
Look into accreditation. There are several excellent programs available to HME providers. Following the accreditation agenda will enable you to improve the operation of your company and assist you in increasing profits.
Yes, we have to face problems again this year from any of the “swords of Damocles” that hang over our heads. But if you are informed about what is happening, you can correctly respond to assure your future.
Thelma joins me in wishing a Happy New Year to all of HomeCare's readers.
Sheldon “Shelly” Prial is based in Melbourne, Fla., with Prial Consulting and also serves as the director of government relations for Atlanta-based Graham-Field Health Products. In 1987, he founded the Homecare Providers Co-Op, now part of The VGM Group. He can be reached by e-mail at shelly.prial@worldnet.att.net or by phone at 321/255-3885.
