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3 / 11 / 11

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Cash Only Family Practice Pros and Cons

In a world where plastic reigns, the idea of a cash only Family Practice sounds almost antiquated. The truth is that more physicians and health care providers are taking a serious look at the cash only business model.

Cash Payment Methods

The phrase “cash only” means that all services are paid for at the time of treatment. The Family Practice adopting this payment method usually accepts payments of cash, debit card, check or credit card. Why are some Family Practices giving serious thought to cancelling health care contracts and adopting cash policies?

With the cash only method, the Family Practice does not file insurance claims or other such paperwork. Avoiding insurance paperwork, filing, and billing means there is no need to pay a staff member to process insurance claims and forms. There’s no need to invest in software to track collections and insurance claims. Overhead is greatly reduced.
Potential Problems with Cash Only

Some health care plans prohibit physicians from serving members of the health plan if that physician has recently terminated the contract between the insurance company and the physician.

State insurance regulations must be taken into consideration. Medicaid rules regarding the cash only Family Practice should be carefully reviewed. Most Family Practice physicians who choose to go “cash only” opt out of Medicare. Doing so involves completing several steps of Medicare rules and regulations.

Questions to Consider with Cash Only

Family Practice physicians and health care providers considering the cash only basis should first decide if doing so would put the practice at severe financial risk or even end it. If the practice is operating in an area with large numbers of patients who are uninsured, the cash only system may work quite well.

How do current patients feel about the switch to a cash only method? If too many of the current patients are not willing to stay with the Family Practice, more thought and consideration should be given to the idea.

Consider services and fees. What services will the Family Practice offer? What will be charged for each service? It’s also important to take the hospital into consideration. Will patients in the hospital be seen by the Family Practice physician(s) or will in-hospital care be managed by the referred medical professional?

Meeting Financial Responsibilities and Setting Up Fees

How will switching to a cash only basis affect the Family Practice bottom line? How hard will it be to pay bills and maintain cash flow during the transition? Calculate all overhead and expenses. How many patients will the Family Practice need to see in order to cover current overhead?

How much money will be saved by switching to the cash only method? How much time and staff expense can be cut by making the change? It isn’t unusual for a Family Practice to make the switch to cash only to find more patients can be seen, quality of patient care does not suffer, and the bottom line improves.

The cash only management method of Family Practice is worth considering. It isn’t for every practice but when it does work, it tends to work very well.

3 / 11 / 11

Andrew Traub

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Pop Culture and the Coffee Franchise

Coffee is more than a drink these days it is a cultural phenomenon that seems to have taken the world by storm. While we aren’t quite sure it exactly how it began or when it got so big, one thing is for certain: coffee is a drink that is definitely here to stay. If you are interested in beginning a business of your own, you might want to cash in on this big business (in excess of 5 billion United States Dollars per year) and the popular culture it represents.

For whatever reason the idea of a coffee franchise has grown, expanded, and evolved over the last two decades making it one of the most sought after franchise types available on the market today. Why is it so popular? The possibility of high profit for a low investment is one reason though certainly not the only reason. Investors tend to go with a product they believe in and since many Americans begin their day with a cup of coffee and drink another cup or two at some point during the day coffee promises some degree of demand on behalf of consumers.

For those planning to go into business that have done their homework it is understandable that a business like this, that has constant demand, is certainly appealing. The reason it is appealing is because all markets revolve around a system we know as supply and demand. There is typically a certain amount of demand for a product that has a limited amount of supply. The shortage of supply sets the price and the fills the demand (to some degree).

With the coffee franchise there is obviously enough demand to warrant fairly hefty prices on the cups of coffee that are served. This means that the market is not yet saturated beyond the capacity to entertain a few more contenders in most location (though some are arguably pretty well saturated with coffee franchises you’ll have to decide for yourself whether the area you are considering can handle an additional coffee franchise store).

Higher profit potential for hard work and effort is appealing to those considering opening a franchise store of any sort. Coffee often offers this allure. As far as pop culture goes, you will find coffee kiosks, vending machines, and cafes almost anywhere these days. Even hospitals are beginning to offer gourmet coffee centers for visitors. In other words coffee is becoming more and more a way of life in the United States than yet another example of popular culture.

The joys of a great cup of gourmet coffee are no longer reserved for the rich and famous. In addition to that, we are seeing a much younger generation experiencing the thrill of the caffeine and chocolate buzz that is often the result of a perfect cup of coffee. The popularity of coffee is fueling growth in an industry that shows no signs of slowing down, much less stopping. Are you ready to take your coffee franchise on that ride?

3 / 11 / 11

Andrew Traub

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What is Venture Capital Fund?

Having your own business is one of the dreams and goal of the average person. Most of us would rather be their own boss than become someone else’s employee. Unfortunately having your own business is not easy. Money is difficult to earn and more difficult to find, well unless you are already well off.

Starting your own business may take a lot of thinking, guts and money. Fortunately new entrepreneurs have other options in finding funds for their business. A venture capital fund is a private equity from outside investors.

People who provide these funds are called venture capitalists. These are a group of wealthy investors, financial institutions and investment banks that can gather investments. They invest in new businesses that are still starting in the industry. In return they get a portion of the equity and have a say in the company’s decisions.

Business ventures

We often hear business ventures from rich people. Most investors who have enough money will embark on a limited partnership with a new company. This may sound good for aspiring entrepreneurs but it is not easy. Venture capitalists have now become more conscious and careful since the dotcom bust. They may not mind taking the risk but they have become more selective on where to invest their money.

Venture capitalists are usually executives from a firm. These investment professionals are referred to as limited partners. These are a group of people who have access to large sums of money for capital. These funds usually come from private and state pension funds, foundations, financial endowments, investment companies and other institutions.

Investors are usually grouped according to their interest. Most venture capitalists invest on starting companies. These companies are usually high-technology businesses such as electronics, computers, research and development. These funds usually last for ten years. The general partners or VCs receive a 2% management fee every year and require 20% of the net profits. They invest in more than one starting company for more returns in the long run.

Venture capitalists are very selective and most of the time has strict requirements. Apart from that they also have a say in the company’s decisions which may not be good for the company. Venture capitalists are known to invest a lot of money in a short amount of time.

They may invest in advertising your company for magazines but are not exactly suited for your type of customers. Companies end up spending money at a faster rate before they can learn how to do it and earn positive returns in the process.

For other entrepreneurs who have a hard time getting their business plans approved they may turn to angel investors. Angel investors are individuals who also have access to large amount of capital and are willing to invest money on highly speculative start up companies. These businesses usually don’t have a solid proof for their technology or have a great potential for its product or services at the start.

If you really need a venture capitalist fund make sure that you will pick a general partner that will work with you not just for the money. Venture capitalists can kick out the founders out of the way and bring in their trained CEOs. At the end of the day it is still a business that you can either work for or have it taken from you.

3 / 10 / 11

Andrew Traub

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Designing & Furnishing the Family Practice

Starting a family practice is a lot of work. When it comes to office layout and design, taking a little time in the beginning can save both time and work later.

When leasing a new building that is still under construction, it’s possible to design the entire interior layout of the clinic. This will involve total design including plumbing, electrical, walls, flooring and everything involved in building and furnishing the interior.

While this is a good way to design the family practice clinic of your dreams, it’s also a good way to empty your wallet and take on a large debt. Whether residential or commercial, building is costly. Depending upon the area and current prices, it could cost anywhere from $65 to $95 per square foot to complete the family practice building.

Many physicians starting a new family practice start by renting an already completed (and usually already used) building. Setting up the clinic in this case usually involves remodeling, a little or a lot. New paint, flooring and possible fixtures are typical remodeling expenses and much less costly than the building and furnishing process.

Maximize Efficiency in the Family Practice Floor plan

No matter what type of rental situation is in use, it is recommended that the interior be set up in a way that maximizes efficiency. Exam rooms should be huddled together. This makes it easy to go from room to room when seeing patients. A small workstation within the area will make it possible to review charts and manage telephone calls. Most experts suggest a minimum of three exam rooms per physician.

The best laid layouts move patients from waiting area to reception to exam rooms in a streamlined fashion. The receptionist should be able to see the entire waiting area. All hallways, doorways and pathways should be wide enough to accommodate wheelchairs.

Waiting areas should be comfortable and relaxing. An aquarium can be an excellent addition to the furnishings. The waiting area is the new patient’s first impression of the family practice. Make it a good one.

Stocking the Family Practice

Furnishing and stocking a new family practice can get costly if attention isn’t paid to details. The first step is to find out what discounts are available from professional organizations. Ask other physicians where they shop.

Consider buying used furniture and furnishings. Used furniture stores and office supply stores are good places to start looking. Often banks and hospitals redecorate and sell used furnishings at a good price.

When it comes to purchasing equipment and clinical supplies, many vendors have checklists. Consider creating a list and asking for bids from several vendors. Chart materials and office supplies can be found online and at local supply stores.
Setting up a new family practice is an involved process. If starting from scratch with a new building that must be designed, there’s even more work (and money!) involved. No matter which method of renting or purchasing is being used, do make checklists of the tasks that need to be done and the supplies that must be acquired.

Carefully consider layout and use a floor plan that saves time and money. When your family practice becomes a successful, busy one, you’ll be glad you did.

3 / 10 / 11

Andrew Traub

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Pros and Cons of the Coffee Franchise

In the world of business and investing there are always pros and cons. The same holds true when it comes to investing in a coffee franchise or any other franchise for that matter. The problem is that far too few people sit down and discuss the pros and cons before jumping in with both feet. Before you make the final decision regarding your coffee franchise future it is a wise plan to take a step back and analyze the benefits and potential pitfalls of your business. The following information should help with overall pros and cons and you can add to your list with details that are specific personal preferences.

Pros of a Coffee Franchise

Excellent potential for low investment and high profits. Most coffee franchise stores have fewer overhead expenses than many retail establishments or even establishments that require a huge amount of money for cooking and storing cold and/or frozen foods. You are also looking at lower costs related to actually operating a coffee franchise with less staff than many other business ventures require.

Having a good reputation for quality, service, and consistency. Building a business is tough period. Building a business and a reputation for quality and service at the same time are tougher still. A coffee franchise eliminates the need to build a reputation if you choose wisely and will bring in profits much more quickly as a result.

Building on a solid business plan. This is invaluable to most business owners just starting out and struggling to find a foothold in the market and in the world of business. A franchise offers the benefit of their experience to new business owners and that is something that a franchise fee just doesn’t cover when it comes to value.

Cons of a Coffee Franchise

Having the potential for market saturation. The coffee market is a tough business to break into. Even with an excellent name there is a great deal of competition in this particular field because of the reasons mentioned above. This means you are going to need to be aggressive in your marketing and work hard to be better than the alternatives in the area. This means you need to have a cleaner store, friendlier staff, better music, and other incentives to get more people in the door than other coffee franchise businesses in the area or seek areas that aren’t already saturated with coffee cafes, houses, and stores.

You must follow the directives of the parent company. For many who have dreamed of owning their own business and being their own boss a coffee franchise, or any other franchise, is definitely not the way to go. You must follow the corporate directives in order to maintain your status as a franchise store and build upon the capital of the good name of the franchise.

This is only a small sample of potential pros and cons for franchises. You must decide which things you can live with and those you’d feel better leaving behind. Your coffee franchise, if you choose to go that route, will be a long-term commitment. Do not take that commitment lightly.

3 / 10 / 11

Andrew Traub

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What do Venture Capitalists Want?

Venture capitalists come across a lot of companies that need funding everyday. Harsh as it may seem only 10% of the applicants will receive funding for their business. Each firm has their standards to uphold to be able to diversify their portfolio.

To be able to stay ahead of the competition you must be able to communicate what your company is all about and at the same sell it by giving what they want. There are many private equity firms in the market but even those that are willing support small business what to know that you are worth what they are paying for.

To be able to have a competitive edge against other applicants, ask yourself this: “what do venture capitalists want? By putting yourself in the shoes of an investor you will have an idea of what convinces them to provide funding for an emerging company. Apart from a topnotch and comprehensive business plan you also need to make a good impression to your investors.

Search for information on private equity firms and venture capitalists that might be interested in your business. There is a wide selection of venture capitalists that invest in different types of business.

What do investors want?

Any investor would want to know who they are dealing with. You and your management team’s background will be one of their focuses. A highly successful business is made up of a competent and ambitious management. After all, these are the people who will be spending their money. Your and your management should be able to cope up with the changes and demands of your business. You must understand the nature of your business very well, including the challenges you will face in the future.

Investors want to know that the business they are going to invest in has an innovative idea with a great potential for growth. The target market of your business must be substantial and the same time rapidly growing. Your business must have a valuable product that has the potential for positive returns in the long run. Apart from that you must also provide them credible figures. This includes the changes that may occur when the economy shifts.

They want to know how you will spend the money and how will they earn. As an investor, you want to be sure that you’re investing in the right place. They want to know how you are going to use the funds provided for growth and positive returns. They want to know when the pay day is and how long it’s going to take. You have to convince them that they will earn money as soon as possible. They also want to know how long you’re going to need the funds and how much your business is going to need.

These are things that you have to consider when presenting your business. In reality you are actually selling your product like a sale pitch. In normal cases there will always be more rejects than approvals. Even Angel investors have their own standards to keep. Your idea must not be just be brilliant but also profitable.

In the end the investor will always want to know what they are going to get with a good exit strategy for them. The gift of gab along with good business plan is the key in getting your investor’s attention.

3 / 9 / 11

Andrew Traub

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Goodwill in Family Practice Success

Goodwill is not just the name of a well known charity. Goodwill, in terms of valuing a medical facility or other business, is an important, intangible asset that can play a huge part in the success of a family practice.

We’ve all seen them. They’re the person at the business that everyone enjoys seeing. The one person patients at a family practice may stop by to chat with even when they aren’t ill. They are well liked, well respected and well known in the community. Sometimes they have enough personality and charisma to make up for the office crankpot or employees who tend to be rude. Often they are the principle force in the business as well as the driving force in the success of the business.

What is goodwill? Some professional appraisers define it as an overall talent, attitude or condition. It includes the ability to interact very well with people, to attract and hold clients and is usually part of the makeup of respected, well known members of a community.

Family practices can have practice goodwill attached to them. Practice goodwill is a term used to describe a professional entity that bears the same characteristics as someone with professional goodwill.

Practice goodwill is defined by several family practice characteristics including excellent location, a respected reputation, and often is applied to a business that has been operating for some time. Practice goodwill isn’t created overnight. It takes time to build a relationship with the community, with patients and with other professionals. Once developed, practice goodwill is an excellent characteristic for a family practice to have and one that directly affects the bottom line.

If the family practice is one of goodwill, patients are more likely to tell others about the clinic in a good way, other physicians are more likely to refer patients and to speak well of the practice, as are general professionals. The location of the practice is good if not ideal.

Professional goodwill is a characteristic demonstrated by one or more family practice staff members. Many different talents and skills and circumstances can affect professional goodwill. Most staff members who possess goodwill in a way that actually increases the value of the family practice get along well with everyone inside and outside the clinic. They have a good reputation and are considered trustworthy and reliable in the practice and in the community.

Goodwill can rarely be measured in dollars and cents. It is measurable in that if it were to disappear, the family practice would suffer. Family practice clinics that do their best to hire the type of employees who generate goodwill will go farther and last longer in the community.

Practice goodwill can be developed as can professional goodwill. Smart clinic administrators recognize the value of goodwill both in the practice and professionally in staff members. Hiring staff members who appear to be able to develop goodwill characteristics or who have already demonstrated them can be good for office morale and for the bottom line.

3 / 9 / 11

Andrew Traub

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Implementing Office Systems in the Family Practice

When setting up the family practice, some essential services, including telephone, mail, answering service and medical transcription will need to be addressed.

Family Practice Telephone Systems

The family practice telephone system is vital. When evaluating potential telephone systems, there are a few key considerations. What rooms will phones be required in? How much automation is preferred? Does the system need to send automated calls to patients reminding them of appointments or scheduling issues? Does the system need to play music or present health information while callers are on hold?

What about wireless systems? What about hands free systems? What about caller id, voice mail and long distance services? High speed Internet services will not require an extra dedicated telephone line. If high-speed services are not available, one telephone line will be required for Internet.

Once the requirements of the family practice telephone system are identified, it’s time to go shopping. Innovations in wireless technology have resulted in more and more practices using wireless products.

Choosing an Answering Service

Family practice personnel cannot be answering telephones 24/7. It’s important to choose the right answering service to represent the clinic. See what service other physicians are using. Check references and reputation. Some hospitals provide answering services.

It will be necessary to define answering service criteria. What constitutes an emergency? What about calls from family members? How much information should the answering service get in addition to a telephone number?

The more specific the details in what is required of the answering service, the easier it is for the answering service to meet those requirements.

Handling Mail

While email and faxes are often used for correspondence, standard mail is important. A small family practice may find it sufficient to simply purchase stamps in the beginning. As the practice grows, however, the mail volume will too.
Postage options include the United States Postal Service online mailing and shipping as do services including Stamps and Endicia. Various companies provide postage meters. Pitney Bowes is one of the best known.

For packages, large and small, the UPSP online mailing and shipping service is available. Independent carriers include DHL, UPS and FedEx. It is necessary to use a street address with independent carriers. They do not deliver to post office boxes.

Medical Transcription

Medical transcription was once an issue of sending dictation to be transcribed either in the clinic or outsourced to someone in the area. New developments in family practice computer software and electronic medical record software has eliminated the need for transcription in some clinics. Since family practice staff, including office, nurses and physicians, input all information directly into the computer at the time it’s done, patient records are always current.

If medical transcription will be required, decisions must be made about whether to employ someone to take care of it in the family practice clinic or outsource it. If using a medical transcription service, it’s important to check references and reputation. It doesn’t hurt to ask other physicians what service they are using.

Some services are vital to operating the family practice. Reliable telephone systems that handle all required tasks, a quality answering service, a convenient and affordable mail handling system and medical transcription are just a few of those services.

3 / 9 / 11

Andrew Traub

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The Appeal of the Kiosk Coffee Franchise

Many malls and shopping centers around the country have them, even some supermarkets in select areas have them as well. I’m talking about the coffee franchise kiosks. They are a great and inexpensive investment for many would be franchise owners and they provide very low overhead with a potentially high return on investment as there is almost always foot traffic in the malls and shopping centers they populate.

Why is the kiosk attractive to coffee franchise owners?

The primary reason that this particular coffee franchise is appealing is because of the extremely low start up and operational costs involved in operating a business such as this. Rather than renting a storefront or building a business in a physical location the kiosk coffee franchise has considerably lower costs involved in ownership and operational expenses.

In addition to low rent the kiosk is a small space that has low inventory. This keeps operational expenses quite low as well. This is a huge benefit for those looking to build a business with a minimal investment and relatively low capital available to invest in operational expenses.

If these reasons aren’t enticing enough, there is very little equipment to buy for a coffee franchise as well. This means another lower expense. One reason is that there is limited space for additional equipment. Another reason is that there really is no need for additional equipment. These stations are great because they do a few things but do them exceptionally well. Rather than having a full storefront devoted to a wide variety of coffee flavors the kiosk offers a couple of coffee flavor options to customers. This keeps lines moving quickly and customers moving along happily.

Yet another great benefit is the fact that there is really only a need for one staff member at a time. This keeps overhead even lower and earmarks more of the income for profit. If you are going to have an active role in running your franchise business this minimizes the expenses even more. If not you still only have a real need for two or three staff members on alternating days and hours in most cases to turn a nice tidy profit.

Another expense that is eliminated with most kiosk coffee franchises are the expenses of utilities such as electricity, heat, and air conditioning that can be quite extensive in many businesses. Every penny that you can eliminate from leaving your business the better when it comes to expenses. A kiosk allows you to eliminate many of the expenses that often plague small businesses before the profits begin to take off.

If you are considering a coffee franchise as your business of choice you might want to carefully consider whether or not the idea of a kiosk coffee shop would be appealing for you. The benefits of a store such as this are great for new business owners and the pathway to profits, though slower, are ultimately greater over time with expansion and perseverance.

3 / 9 / 11

Andrew Traub

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Venture Capital – Things that You Should Know

“Venture capital” is a term that is often heard in business discussions. But more often than not, the more common belief is that this is rather complicated and difficult to understand, especially for those who are new in the game of business. For entrepreneurs and anyone who may be interested to get into business, it is important to understand what this is all about.

Venture capitalists and firms are composed of people and firms that have pooled in their resources in order to invest in businesses, whether to start-up financing or for company expansion, for the purpose of earning profits within a short period of 3-7 years. The goal is to increase the company’s value so as to yield more profit at its exit, which may be an initial public offering or what is commonly known as IPO. Other exits include an investor’s buyout, a merger, or an acquisition.

These firms concentrate on a certain field or area. It is therefore important that you know what these areas are. This is called investment criteria. If you have a specific area in mind which does not match that of the firm, there are many other firms that you can find. You just have to know where to look.

The web is one source of venture capital firms. Make a search on the internet. Some sites are helpful enough to provide listings of these firms as well as other tips such as how to draft your proposal, how to raise venture capital, among others.

When you’ve found the investor to match, it is then time to draft your proposal. It should be truthful, direct and thorough. You might want to ask a professional to check on your proposal before submitting it. Your proposal should leave a mark in the minds of the capitalists, since they have to go through tons of them. An estimate of 1 in every 400 proposals gets approved, so it is imperative that your proposal be impressive.

When we talk of profit and earnings, we’re not talking of a few thousand dollars in a year. These firms seek a return of up to five, even ten, times the initial investment, not to mention the management fees and other fees that they require.

This explains why these firms tend to take the reins of the company. That is why it is important that you organize a solid management team that knows what they’re doing and at the same time is able to handle the pressure from these capitalists. But while it helps if you appear to manage the company well, it is still important to listen and follow the strategies that these firms provide. Aside from being tried and tested policies, following their decisions will also benefit you in the long run should you need more capital.

Venture capital is a wise investment alternative for both entrepreneurs and capitalists. You and the investment firm have a common goal, and that is to receive as much profit as possible after a short period of time.

If this is not what you want or does not seem feasible to you, then there are other financing options that you can avail of. The important thing is to weigh all pros and cons before deciding anything.

Sell Your Business Tips

Cash Only Family Practice Pros and Cons

Pop Culture and the Coffee Franchise

What is Venture Capital Fund?

Designing & Furnishing the Family Practice

Pros and Cons of the Coffee Franchise

What do Venture Capitalists Want?

Goodwill in Family Practice Success

Implementing Office Systems in the Family Practice

The Appeal of the Kiosk Coffee Franchise

Venture Capital – Things that You Should Know

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