Wednesday, April 24, 2019

Is Cash or Accrual Accounting Best for Small Businesses?

accrual accounting cash flow

Customers owe your business money. Your business owes its vendors money. Would you rather keep track with records in your books, or just in your head? That, in a nutshell, is the difference between cash-basis and accrual accounting.  

That is what’s at stake as you choose between cash-basis or accrual accounting. It turns out that all business bookkeeping is going to be either cash basis or accrual. Those are the rules—just ask your small business accountant or take a look in your accounting software. It’s one of the first decisions you’ll need to make when you set up your business’s books.

And there is some good news in this area. Accrual may sound off-putting but it’s better, and it’s also easy to understand, once you get over the sound of it. Give me just five minutes to read this blog post, and you’ll get it.

Cash basis sounds simple—but it isn’t

Unfortunately, the phrase “cash basis” sounds much better than the buzzword “accrual.” Right? Doesn’t cash basis sound much more hands-on, intuitive, and practical than accrual?

Cash basis hides information

But cash basis isn’t simpler, or more intuitive, or better than accrual accounting. Cash basis means that until the money actually changes hands, you don’t keep track of it—the transaction doesn’t go on the books.

In cash basis accounting, if you sell goods and don’t get paid immediately, the sale doesn’t show up on the books. Sure, there was a sale, and now somebody owes you money. But cash basis bookkeeping ignores it. That sale gets into your books only later, when you get paid. The money your customer owes you doesn’t show up. You keep track of it in a shoebox, or maybe in your head.

Also, in cash basis accounting, when you order some goods, nothing happens. Sure, you now have an obligation to pay; you’ve agreed to spend some money. But it’s not in your books. When the goods come, if you don’t pay for them in cash when they arrive, nothing happens. Yes, you have a debt at that point, but it doesn’t go into your books until you pay it. You keep track of it in a shoebox, or maybe in your head.

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Cash basis is suitable for extremely simple, cash-only businesses

Cash basis bookkeeping, as it turns out, is better for only the very simple hands-on businesses that manage everything in cash.

What kind of business is that simple? It’s hard to think of examples. Even the handicrafts vendor at the local flea market has to buy materials in advance. Even food carts want to pay their vendors regularly, but not immediately.

During the decades that I lived off a consulting practice, even though inventory was irrelevant and I had no vendors willing to extend me credit, I was still better off with accrual accounting. Why? Because my client companies never paid immediately; they paid me only after receiving an invoice and taking weeks to process.

Accrual accounting is better

In accrual accounting, when you make a business-to-business sale on account, you record the accrued amount as accounts receivable, so you keep track of the amount, the date, and the customer who owes it to you. Unless you never sell without immediate payment, accrual basis is better. Otherwise, you’re just in the dark about your cash flow.

In accrual accounting, when you receive the goods you ordered, but you don’t pay for them immediately, you still owe that money. You have an invoice to pay. You record the accrued amount as accounts payable, along with the date, a record of what you bought, and who and when you are supposed to pay.

And with that, in accrual accounting, your bookkeeping software keeps track of these important amounts and reports on them as often as you want.

Keeping track of balances

The illustration here below, from a sample business plan, demonstrates the huge advantage of accrual accounting: it keeps track of money owed to the business (accounts receivable), the value of inventory, and money the business owes (accounts payable).

That gives a business owner an instant accounting of the true financial position, with no surprises, no forgetting what’s still coming and still needing to be paid.

accrual cash flow

When in doubt, go for accrual basis

I’m so sorry that the accounting standards that were set a few generations ago chose to call it “cash basis” when you don’t record money owed into your books until it’s paid, or money you owe until you pay it. It’s a terrible idea to keep that information in your head instead of in your bookkeeping.

Furthermore, as your business gets going, banks and financial analysts tend to mistrust cash-based bookkeeping because it can hide—whether intended or not—financial realities. For example, as a loan manager looks at a potential business loan, they want to know what the company really owes (accounts payable), its inventory performance, and how much it’s owed (accounts receivable) too.

Frankly, cash basis bookkeeping can too easily cause many mistakes as we business owners fail to keep track and remind ourselves of these outstanding obligations. And yet, ironically, they call that “cash basis” accounting. I do wish that the right way to do it, which is accrual accounting, didn’t have such an off-putting name.



from Bplans Articles http://bit.ly/2DxSAP9

Tuesday, April 23, 2019

PXG Announces GEN2 Putter Lineup with Improved Fitting System

Given that PXG released GEN2 Irons and then GEN2 Metalwoods, logically it was only a matter of time before the company released GEN2 putters. And so here you go.

Times are changing (Stroke Lab, anyone), but traditionally putter stories are almost entirely about the heads themselves. One could argue that the PXG GEN2 putter story is every bit as much a fitting story.

As PXG Founder and CEO, Bob Parsons points out, “Putts account for roughly 40 percent of shots taken, yet only a small percentage of golfers make an effort to be properly fitted.” I suppose you can chalk a good bit of that up to the mythology that the look and feel characteristics of a putter somehow supersede real-world performance considerations. Via the new fitting platform, which is basically a fitting cart for putters, Parsons says, “we’re working to change that stat.  With the release of our exceptional new PXG GEN2 Putters, we are committed to helping golfers dial-in their preferred putter to help shave strokes off their score.”

8 Models

That fitting kit pairs eight 100% milled GEN2 putters with three hosel options, and an adjustable fitting shaft to dial-in the perfect length. It’s important to note that the adjustable shaft is a fitting tool only, and isn’t included in the final/take home product.

As you’d expect from a lineup with eight heads, the GEN2 putter lineup features everything from high MOI mallets down to reasonably small blades. The fitting kit allows each of the eight models (Closer, Lucky “D,” Brandon, Mustang, Bat Attack, Mini Gunboat, Gunboat, and Operator) to be mixed and matched with any of PXG’s three hosel styles – double bend, plumbers neck, or heel shaft. The heel shaft option is basically a slant neck. All eight models are available in both black and chrome finish options.

Performance can be further dialed-in by way of interchangeable 5g, 10g, 15g, and 20g titanium and tungsten weights. In the interest of simplifying things for fitters and cleaning things up visually, PXG has moved to larger weights (fewer moving parts) and has positioned them on the sole, which clears the nuts and bolts look at address.

Pyramid Milling

There’s a growing body of evidence to suggest that face technology matters in a putter. While there are still some that swear by a no-tech milled face, the reality is that nearly every major putter manufacturer has integrated some sort of roll-enhancing, speed-maintaining technology into its putter faces. PXG is no different. The GEN 2 putter lineup features what PXG calls a Variable-sized, Pyramid Milling pattern. According to PXG, the pyramid structures provide more consistent launch and roll characteristics, while at the same time softening feel. As with similar technology from EVNROLL and PING, the objective is to maintain speed, and with it, distance control, on off-center hits.

And yes, no matter how good you think you are – you do miss the center of the putter face every now and again.

Availability and Pricing

PXG GEN2 Putters are available now. Retail price is $425.

For more information, visit PXG.com.

GET FIT FOR YOUR GAME WITH TRUEGOLFFIT™

Unbiased. No Guesswork. All Major Brands. Matched To Your Swing. Advanced Golf Analytics matches the perfect clubs to your exact swing using connected data and machine learning.

SEE MY RESULTS


from MyGolfSpy http://bit.ly/2XBKPPM

MyGolfSpy Community Case Study: SuperSpeed Golf

What would you say if I told you that you could gain a good 15 to 20 yards by the 4th of July?

I’m guessing some of you would say sign me up. Others, I’m guessing, would wonder if I was out of my mother-blogging mind.

Do you remember our article last summer on SuperSpeed Golf? It’s a unique swing speed training system designed to help you swing faster – a lot faster – almost right away. A SuperSpeed Golf set consists of three weighted shafts – one 20% lighter than your driver, one 10% lighter and one 5% heavier. Following SuperSpeed Golf’s recommended protocols (available on its website), the company says you can gain 3 to 4 MPH in swing speed after just one session, with more significant – and permanent – gains with a longer-term commitment.

Since last fall, seven MyGolfSpy Forum members have been involved in a case study on the long-term effects of using SuperSpeed Golf and the results may stun even the most hardened World Wide Web cynic.

Turbo Neurons

SuperSpeed Golf is neurological in nature – it rewires how quickly your body can respond when you pull the trigger on the golf swing. Technically, it’s known as Overspeed Training.

“A big percentage of our training has nothing to do with changing muscles, changing swing mechanics or anything,” says SuperSpeed co-owner Michael Napoleon. “Those are minor pieces compared to the fact that Overspeed Training, in its essence, just resets the normal reaction speed to a motor pattern.”

Translation: your neurons are turbo-charged into a new normal, and you can swing the club faster. A lot faster.

Each one of our testers was equipped with a SuperSpeed set and a companion swing speed radar to capture their results. Each tester saw a swing speed gain almost immediately, and after the first 6-week session increases ranged from a low of 3% to a high of 11%.

“These are your average weekend warriors,” says Napoleon. “From a physical fitness standpoint, we had a lot of variation. Some of them weren’t going to the gym and weren’t in an active fitness program.”

“The ones that were doing a regular fitness routine kept doing it. The ones that weren’t, weren’t,” adds SuperSpeed co-owner Kyle Shay. “They kept doing what they were doing before. The only variance was the weather.”

Through its research, SuperSpeed has charted out what golfers should see as they go through the program. It starts with an almost immediate jump that continues through what’s called the first Normalization period, which usually lasts about six to eight weeks as players go through the SuperSpeed protocols. After a month-and-a-half to two months, that first jump becomes more or less permanent, and progress hits the first Plateau.

During that first Plateau, swing speeds stay relatively consistent as players continue to work through the protocols. Then somewhere between weeks 15 and 26, players experience a secondary jump in swing speed.

“That second jump – there are a lot more complicated pieces as to why that happens,” says Napoleon. “Some of it’s neurological, some of it can be improvements in ground reaction force sequencing, wrist mechanics, increased stability throughout the swing.”

“It’s a wild thing. People may be in that plateau phase for two months, two-and-a-half months. Every day it’s the same thing and then one day it’s like BOOM, there’s a jump.” – Michael Napoleon, SuperSpeed Golf

Due to weather, work, health, and life in general, four of our testers took the winter off, but three continued with their protocols and, with the help of some coaching from SuperSpeed, each hit their second jump.

“We were really excited to see the second jump happen for the three testers,” says Shay. “We know it’s going to happen for these other guys; they just got stalled out. But again, these are regular Joe golfers with a range of handicaps.”

Kevin, Mike, and Jason

Of the three golfers who stayed with the program all winter, Mike Mock from Wisconsin and Kevin Loughren of Florida experienced the biggest jumps, and are both seeing results where it matters: on the golf course.

“I’m in the high 240’s now, that’s close to 30 yards longer than I used to be,” says Loughren, a 62-year-old minister from Tampa who went from 91 MPH up to 104 on the SuperSpeed radar, and from 88 to the high 90’s on his club’s TrackMan. “There was a big jump in distance early on, and then another one right around the first of the year. I’m a club-and-a-half longer, at least, with my irons now, too.”

Mock, who’s speed jumped from 104 to 115 on the SuperSpeed Radar, is just now getting back on the course after a long, cold winter.

“I went through a club-fitting over the winter and was seeing increased speeds with all my clubs,” he says. “My last seven rounds before starting SuperSpeed I hit 56% of my greens and missed 3% deep. Through my first two rounds this spring I’m hitting 58% of my greens with 16% of my shots missing deep. It’s going to take some time to get used to my new distance gains.”

Unlike Mock, Loughren played throughout the winter, but like Mock, had to make some on-course adjustments.

“There have been a few times where timing was an issue, and my sequencing seemed a bit off,” he says. “And I’ve actually moved back a set of tees because I was hitting it into the trees on the same line as I was hitting it for the last five or six years.”

Jason Bentley of Tennessee – the third tester who used SuperSpeed Golf all winter, saw more modest gains, but did experience the same two-stage jump in speed.

“I’ve seen noticeable distance gains,” says Jason. “Hit my longest drive on Arccos (261 yards) and have seen a few in the 240 to 250 range.”

While not as dramatic as the increases Kevin and Mike experienced, Jason’s swing speed jumped from 89 to 96 MPH. Based on an estimated 2.5 yards per mile-an-hour increase, that’s a potential of 17.5 more yards.

GET FIT FOR YOUR GAME WITH TRUEGOLFFIT™

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Napoleon says it’s not uncommon for golfers to experience some wildness as they go through the normalization phases.

“If I change a variable and increase how fast you’re rotating, what you used to do to square the face is now going to leave the face open because the body is moving a lot faster,” he says.

“Generally speaking, if people are going to have an issue, it’s leaving the face open a little bit more. It doesn’t have to do with swinging from the top down or anything like that. It really just has to do with the timing of the release of the club with something that’s moving faster.” – Michael Napoleon, SuperSpeed Golf

“There are definitely ups and downs with the program, but you will get out of it what you put into it,” says Mock. “Having the MyGolfSpy Forum double as a support group definitely helped get me through the stagnant periods where I wasn’t seeing any gains.”

“Do I feel younger? I do,” laughs Loughren. “Our league just started on courses I’ve played a ton of times over the past 12 years, and I already have four career drives.”

A Third Jump?

According to SuperSpeed Golf, the process of Plateau, Jump, and Normalization will continue as long as a golfer continues the protocols.

“In theory, the pattern will continue perpetually, with the jump size getting smaller each time,” says Napoleon. The first jump is around 5%, the second is 3 to 3.5%. The third jump, which may happen in year two of the training, is going to be much smaller, maybe 1.5 to 2%.”

And depending on the timing, the increase can be permanent, even if a golfer stops the training for a while.

“We’ve had players solidly into that first plateau phase for a couple of months – they can stop and maintain their speeds,” says Napoleon. “If you stop right at the edge of the Normalization phase, a lot of times you’ll see regression, so it all depends on where they are when they stop.”

As of now, the MyGolfSpy testers are in a 72-week program, going through protocols designed by SuperSpeed Golf to continue the Jump-Normalization-Plateau process.

“I’ve just finished the 27th week, so I don’t know what comes at the end of the 72 weeks,” says Loughren. “They’ve changed their protocols since last summer, so we’re just starting Level Four, and we’re doing five swings with the current drills. I’m just really happy I’m done with the kneeling swings. I hated those.”

“Realistically I won’t be up to training three times a week during the warm weather,” admits Mock. “Summer is short in Wisconsin, and I know I’ll have other priorities. I’ll probably train one to two times a week during the summer to make sure I maintain my increases.”

“When I started the training, I was working 11-hour days with a 30-minute commute each way,” adds Bentley. “I still didn’t have any problems getting the training in. I estimate I’ve swung that heavy stick 4,000 to 5,000 times!”

Unintended Consequences

There are drawbacks to newfound swing speed and length, not the least of which is your equipment.

“It definitely changes how you play the game and how you see the golf course,” says Shay. “The only negative we hear from people is they need to get their clubs re-fit for their new game – because if you’re swinging 10 miles an hour faster, your old driver may not fit anymore.”

Case in point is Bentley, who will sport a stiff shaft in his new Callaway Epic Flash driver after years of playing a regular flex.

“My current swing speed (96.5 MPH) is right at the point where I can fit into either a regular or stiff,” he says. “My fitter recommended stiff because it tightened up my dispersion.”

“It’s like when you lose 40 pounds and have to buy new pants,” adds Napoleon. “It doesn’t feel all that bad. You feel better about yourself, and you get to buy a new wardrobe. It’s the same thing with your golf clubs.”

As mentioned earlier, it shouldn’t be a surprise to deal with a bit of wildness as you go through the protocols as the skill part of the golf swing will need time to catch up to the new found speed. All three of our testers experienced periodic wildness to varying degrees.

“Depending on where you start and the way you were sequencing and using the ground, it’ll change,” says Napoleon. “It’ll change in a positive way: we get more vertical force, and we get better peaking orders and rotational elements in the kinematic sequence. But if you’re a player who’s learned to play with deficiencies in those areas, you may have never learned how to swing more efficiently or more athletically, so the skill side has to catch up.”

“We find with high-level players it doesn’t take that long for them to figure out the skill piece to line up the face again to a little faster body rotation. That happens during the Normalization phases when things are adjusting. Once you plateau all of that tends to stabilize.” – Michael Napoleon

What Does This Mean For You?

According to SuperSpeed Golf, the first jump in swing speed happens almost immediately and takes about six weeks or so to become the new normal. And anywhere from 9 to 20 weeks later, a second jump takes hold. Our three testers who worked with SuperSpeed Golf over the winter bear that out, with each seeing a measurable jump immediately and a second jump roughly 21 weeks into the program.

So if you were to start today, you could, in theory, improve your swing speed by 10% or more by Labor Day. That could turn a 100 MPH swing into 110 MPH, and that could mean another 25 yards off the tee and maybe a club to a club-and-half with your irons.

That, my friends, is a real-world game-changer.

Yes, I know we’re all supposed to be super-cynical about everything, and we all know there’s a wee bit of voodoo in every OEMs claims about hotter-faster-longer, but data doesn’t lie. The testers in MyGolfSpy’s case study are regular guys, just like you and me. None of them are internet marvels who smack it 300 down the middle every time, and none of them are what you’d call ath-a-letes.

But every one of them is swinging the club appreciably faster now than they were last fall.

“These guys are regular people, they weren’t working on stuff in the gym and weren’t like really active and physically fit,” says Napoleon. “But our goal for this is that anyone could pick this up, regardless of where they are in terms of skill level, fitness level – it really doesn’t matter where you’re starting, you’re going to get better with this.”

When you look at the time and money invested and the return these people received, if you can go from 91 to 104, you’re a different golfer, and you’re playing a different game.

And you’re telling Father time to take a hike.



from MyGolfSpy http://bit.ly/2PrmxoP

PING ANNOUNCES AGREEMENT WITH ARCCOS GOLF

In 1976, Karsten Solheim – founder of PING Golf – patented the first PING Man, a robot used primarily for R&D purposes. As to the value of this mechanical teammate, “They answer a lot of questions without saying a word,” said Solheim. Forty-three years later, I’d imagine Solheim would have similar thoughts on PING’s partnership with Arccos.

Through the use of sensors installed in the butt-end of each grip, Arccos captures thousands of data points during each round and when used in conjunction with Arccos Caddie, leverages artificial intelligence to make data-driven club and course strategy recommendations. “We are honored to join forces with PING in furthering the promise of data for the everyday golfer,” says Arccos CEO and Co-Founder Sal Syed. With Arccos, mainstream golfers have access to the same level of stat tracking, and performance analysis as tour pros do via technologies like Shotlink – and for better (or worse) Arccos’ data collection means you’ll know exactly how far your 7-iron carries on average – even if it won’t impress your buddies. “In addition to providing exact distances plus club recommendations, the app collects thousands of data points that can be analyzed to uncover opportunities for further improvement through set makeup or other equipment refinements,” notes PING President John K. Solheim. To take that a step further, given sufficient on-course data, Arccos could tell you when it might be beneficial to drop that 5-iron and add a 5-hybrid.

GET FIT FOR YOUR GAME WITH TRUEGOLFFIT™

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SEE MY RESULTS

The agreement allows PING customers to access the benefits of Arccos technology through its custom-order program, which offers both the Smart Grip (sensor embedded in the grip) and Smart Sensor (sensor screws into the butt end of an existing) technologies. The MSRP for each sensor is $10.50, and the Smart Grip version is available exclusively in the Golf Pride 360 Tour Velvet in white (standard) and aqua (-1/64”) sizes.

Arccos is engineered as a full-bag concept and therefore to access PING’s version of the Arccos Caddie app, golfers will need to equip every club (including putter) with a sensor. Additionally, new customers get a 90-day free Arccos Caddie app trial. After the initial period, an annual subscription to the app runs $99.99.

Three years ago, Cobra Golf was the first major OEM to venture into an agreement with a tech-forward company by incorporating Arccos sensors on each of its three King series drivers (LTD, F6, and F6+). At the time, the primary question wasn’t whether or not it could benefit golfers, but rather what would be the next logical extensions of such a platform. Now, with the PING-Arccos agreement, perhaps it’s a step toward more OEMs formalizing strategic partnerships with tech brands, though ShotScope is likely the currently the only worthy competitor in the space.

Taking a minute to consider the possible applications of Arccos and similar technologies, it’s easy to get lost in a list of hypothetical “What if’s” – What if AI could adjust for geographic factors like elevation, wind, and temperature? What if Arccos could scan and read a green to produce a suggested line? What if Arccos Caddie became legal for tournament play?

The Luddites might not be thrilled with such advancements, but big data is here to stay. If anything, it’s only going to get bigger.

In MyGolfSpy’s One Word Brand Survey, PING was most strongly associated with the terms engineering, trustworthy, integrity, quality and humble. What this seems to indicate is consumers believe PING’s discerning, yet targeted approach to growth is made in a manner which adheres to its Play Your Best mantra and by partnering with Arccos, PING is continuing to make good on that edict.

Is this type of partnership something you believe other brands should offer?

For more information, visit PING.com.



from MyGolfSpy http://bit.ly/2IXYUTN

How a Medical Private Practice Business Can Overcome Obstacles to Success

As I traverse the medical private practice landscape across the U.S. through consultations and speaking engagements, I’ve observed that private practices suffer from a very high failure rate.

According to Dave Chase, author of CEO’s Guide to Restoring the American Dream, 43 percent of healthcare-related businesses fail within their first five years. The only industry that appears to have a higher failure rate is the restaurant industry.  

The main reasons “private practice-preneurs” fail in today’s environment is that they’re simply not identifying their risk factors. Too many health practitioners underestimate the resources that are needed for a successful practice.

Most healthcare practitioners aren’t trained to develop a business as a successful entrepreneur. They’ve built their careers around their passion for health and wellness—not analyzing financial statements and maximizing profits.

But to succeed at building a financially sustainable business, you need a strong organizational foundation. To protect your private practice from failure, take these essential steps upfront.

1. Define your vision of success

Take a moment to consider your true intentions. It’s essential that you define your professional and personal goals and your ideal vision for success.

Begin the vision process by naming your net financial goals so that they’ll lead you to the follow-up step of identifying the how and the when. Determine whether your private practice vision involves using other practitioners in your service delivery method, or if you intend to be a sole proprietor.

2. Set out to run a profitable business

If I could change one thing about our society’s view on service-based business models related to healthcare, it would be the notion that private healthcare practices operating as successful and profitable businesses runs contrary to their mission.

Still, clinicians and healthcare providers are often so invested in their own passion for their work that they overlook the profitability side of the business.

Borrowing a page from investment legend Warren Buffet: Priority #1 is to never lose money, priority #2 is to never lose money, and priority #3 is to never lose money.

3. Invest the time in a solid business plan

There’s enormous value in articulating your vision of the path forward. Writing a business plan—even a Lean Business Plan that’s short and easy to update—will help. It’s proven that companies that do business planning grow 30% faster. Doing so will help you better determine your specific objectives for the business, as well as give you an understanding of how to support sustained growth.

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Some might be tempted to just launch into action and figure out the process of building a business along the way as they go—what we might call “building the airplane while flying it.” Simply put, this is not the most effective or efficient approach.

Start by clearly understanding why you wish to open your own practice.

Part of defining your why is identifying its relationship to other key questions, including:

  • Who is the target demographic?
  • What is your core service or product?
  • When are you looking to start?
  • And how are you going to execute your vision?

Be as specific as possible with your goals and milestones. A well-constructed business plan helps to ensure that you aren’t just spinning your wheels, but are executing against a clearly drawn strategic roadmap that aligns with specific, measurable goals for your business.

If you’re not sure what a medical practice business plan should look like, check out some examples in Bplans’ sample business plan gallery.

4. Create accountability through metrics

It’s one thing to create a plan, but it’s another to execute it and achieve your goals. The secret to executing your private practice strategy is through metrics. Besides thinking through your who, what, where, when, why, and which questions, define what will be the measurable metrics that will tell you when you’ve arrived at your goal.

They should include a time limit—when are you going to achieve that goal? I recommend that you develop weekly, monthly, and quarterly metrics. Key financial metrics include your balance sheet, income statement, and net income. Others include cash flow statement analysis, payer mix, cancellation report, and marketing/referral effectiveness.

You can set up your financial statements in Excel, and a business management tool like LivePlan that connects to your online accounting system and offers a business dashboard can make it quicker and easier.

The added benefit of using metrics is that they help empower your team to be accountable without having to micromanage their every move. Adding incentives for staff to reach their goals can be a helpful motivator.

5. Understand the funding model of health insurance

A fundamental reality that all private practice entrepreneurs must realize is that there’s never a guarantee of coverage.

Do this: Call the phone number on the back of your health insurance card and verify your own benefits for whatever service you’re offering (occupational therapy, speech therapy, chiropractic, and so on).

The bottom line is that you must understand the limiting factors and trends related to medical billing depending on your patient demographics, diagnosis, service offering, and so on. The rule of thumb is 60 percent of your funding should be cash flow positive in 30 days or less from the date of service. This will keep your private practice financially moving in the right direction.

6. Prepare for worst-case scenarios

As you build your strategy, you must be prepared for conditions that could impact your survival. Ask yourself a variety of questions, spanning from what would happen if your best therapist left to go into competition with you, to what if your funding source stopped making payments (Medicaid, etc.)?

Formulate a strategy to overcome these obstacles before they happen. For example, get out ahead of clinical and personnel issues by clearly communicating your expectations with your staff, and articulate policies in both your employee and client packets on everything from HIPAA to expected response times to inquiries.

7. Hire the best staff you can find

A unified team can transform your practice. Hire the best staff you can find—it will pay off. If you have staff members who aren’t fully behind the mission of the practice and are simply clocking in and clocking out each day, they aren’t contributing to the success of the organization.

In particular, I’ve seen this happen when practitioners recruit their friends to work for them. Employees who have a passion for their work, who always act with the company’s best interests in mind, who look for ways to contribute, and who bring new ideas will be vital team members for ensuring the success of the practice.

8. Build a support team to help with essential decisions

Surround yourself with people who can give moral or professional support. They can be employees, friends, consultants and more. As you build your strategy, you need a team who can watch over your shoulder.

Know when to hire help; there’s no need to tackle every challenge alone. Find those with expertise in the areas you know aren’t your strong points. If you’re not sure where to start, SCORE offers a great mentorship program that can help you build your medical practice with confidence.



from Bplans Articles http://bit.ly/2IW9aLU

Three Business Plan Critical Factors

What matters most for a business plan? When somebody asked on Quora what are the critical factors of a business plan, I came up with these three business plan critical factors:

  • Effectiveness. Does it achieve its business goal? Form follows function; does it achieve its business goal? Measure a business plan by its results, and nothing else. You can draw from that basic principle that plans ought not to be measured by academic criteria like perceived comprehension, quality of text, or format. If it’s about steering the business, then does it provide directions, pathways, and track able milestones and metrics? If it’s about raising money, does it help that goal? If it’s about backing up a loan application, does it work for that?
  • Realism. Can it be executed? Is it rooted in reality? A pie-in-the sky pipe dream business plan is a waste of time and effort. Is it realistic about resources? Time to execute?
  • Concrete specifics. Is it trackable? Does it include actual actions, tasks, responsibilities and responsibility assignments, trackable steps, trackable metrics? Budgets? Forecasts? Built-in accountability?

However…

The business plan itself is far less important than what a business does with it. There’s that mantra:

The plan is useless; but planning is essential.

A business plan ought to be the first step towards a planning process that includes regular review and revision. The goal of business planning is steering the business. If it were navigation, the plan includes the destination as goal and the route as steps toward the goal; but actual navigation includes the GPS positioning and real-time information to fine tune the route along the way, in response to actual traffic, weather, and so forth.

 

The post Three Business Plan Critical Factors appeared first on Planning, Startups, Stories.



from Bplans Articles http://bit.ly/2GDkIlR

Monday, April 22, 2019

Win an Awesome Tiger Woods Prize Package from Bridgestone Golf

Hey Tiger Woods fans (I guess that’s pretty much everyone), have we got something cool happening with Bridgestone Golf.

Under normal circumstances, a one-year supply of Tiger’s golf balls from the #1 Ball Fitter in Golf would be a pretty sweet prize, but if you’re going to offer a Tiger Woods prize package barely a week after the GOAT wins the freakin’ Masters (again), you gotta go big.

And so, we’re going big. Big Cat big.

We’re giving you a chance to win a one-year supply of Special Edition Bridgestone Tour B XS ‘TIGER’ Balls. For the sake of clarity, that’s 12-dozen of the exact same ball Tiger plays.

TIGER stamp on the side? All number 1s?

Yup and yup.

Exciting stuff, for sure, but like I said, we’re going bigger.

In addition to 144 TIGER balls, the winner will receive a Tiger Woods autographed flag from the 2017 Masters. And yes – before someone says it – we’re aware that Tiger missed the 2017 Master. We looked into it, and it turns out there’s no rule against signing a flag from a tournament in which you didn’t play.

Do you want to win or not?

Hell yes, you do. The Tour B XS fits Tiger and it could fit you too.

HOW TO ENTER

To enter, leave a comment below and tell us if you’ve ever been fit for a golf ball – and if so – the ball model you were fit for. If you haven’t been fit, tell us what ball you currently play.

For a bonus entry, hit the retweet button below and follow BridgestoneGolf on Twitter.

RULES

  • Contest ends at midnight Eastern time on 4/26/2019 at 5 PM Eastern Daylight Time
  • Winners will be selected at random from all valid entries
  • The contest is open to US residents only (Sorry, we don’t make the rules)
  • As always, Void Where Prohibited

Good luck, everyone.



from MyGolfSpy http://bit.ly/2Ut76NO

SaaS 101: Starting a Software as a Service Business

starting a SaaS business software as a service business

This article is part of our SaaS Business Startup Guide—expert resources to help you plan, start, and grow your SaaS business!

If you’re interested in starting a software as a service (SaaS) business, you’ll want to start with the basics. Here’s a quick overview of the details, benefits, and risks.

SaaS defined

SaaS (software as a service) means that users access software through their internet browser or a web-based app. The software maker hosts their product on their own servers, which is why SaaS products are sometimes referred to as a “hosted solution” or “web-based solution.”

It’s also common to hear SaaS products talked about as “cloud-based” solutions. In contrast, a desktop-based model is where an individual or company would install software on their computers and run it on their own servers.

Pricing models and customer acquisition

SaaS products often use a subscription-based pricing model. So instead of paying once for a lifetime of use, your customer pays on an ongoing basis—usually monthly or annually. You can think of it as a software license.

It’s a popular model because of the increased potential lifetime value of each customer. Instead of a flat lifetime value—like $120 for the single sale opportunity you have with each customer or user, you might charge $10 a month per user for as long as your customer uses your service. The longer they stick around, the higher their lifetime value.

When you build out your SaaS company’s business plan, spend some time modeling different subscription-based sales forecast scenarios so you can see how reducing churn (the number of canceled subscribers) and other variables can affect your path to profitability.

Download your free subscription sales forecast template today!

Growing SaaS companies are always testing their pricing models. There are a lot of different ways to get customers in the door to kick the tires, from offering free trials, to freemium services with upgrade options. Check out the Bplans guide to SaaS pricing models for more on how to get started.

Security and reliability

One of the objections you’ll probably hear from some prospective customers is that they’re worried about data security with SaaS products, and with apps in general. This is especially true if you’re presenting a cloud-based solution for something that used to only be available as a desktop version.

The concern is that “the cloud” has security vulnerabilities. But in actuality, legacy systems are actually more vulnerable than cloud-based apps. That said, take the responsibility of protecting your customers’ data very seriously.

What if you’re a non-technical founder?

If you have an idea for a software as a service business, but you don’t have the technical expertise to build your app yourself, it’s still possible to run a successful business. In his book “Lost and Founder,” Rand Fishkin talks about his journey as a non-technical CEO of Moz, a service company he founded and transformed into a SaaS company.

He emphasizes how important it was for him to learn (and keep learning) enough about the technical aspects of his business so that he was able to make good hires and understand technical roadblocks when they surfaced. And it’s not completely impossible to learn to code yourself—but it does take time.

Be mindful of your intellectual property—the code—whether you bring on an employee or outsource the technical work. A good contract can go a long way.

Starting with an MVP

There’s a great article in Geekwire on a Seattle founder of an app that helps parents find childcare. One of the best things about it is that it gives a clear example of what an MVP (minimum viable product) might look like for an app. In this case, it was just an Airtable spreadsheet that the founder posted online for free, where it got a lot of traffic in just a few days.

The point is that if you have an idea for a SaaS business, don’t invest all of your time and resources into creating the very best, most perfect version of your app before you start testing it. You want to use a lighter version so you can validate that the solution you’re offering is something people will pay for. You’ll waste a lot of time and energy if you skip validating your idea before you build the full-scale version.

Reid Hoffman famously said, “If you’re not embarrassed by the first version of your product, you launched too late.” The point isn’t to put out a bad product—it’s to see how it does quickly, before you invest a ton into it.

Funding your SaaS startup

Building a successful SaaS business doesn’t happen overnight. More so than in other industries, it’s easy to get the impression that SaaS companies grow very quickly—they just blow up over the course of a year. In reality, Spotify is more than 10 years old. Netflix is over 20 years old. It takes time to scale and grow a business. Keep that in mind when you’re looking for funding.

If you just have a business idea, but you haven’t tested it yet with an MVP or convinced anyone to pay for it, it’s going to be tough to make the case to angel investors or venture capitalists. They’re looking for traction in the marketplace, and that means you’re going to have to demonstrate that you can sell your product.

One of the other things you’ll hear is that some companies that take on investment run huge deficits for years on end—think Uber’s billions of dollars in losses. It’s true that lots of software companies that take on investment aren’t profitable for a long time. But investors are in it to win in the long term. You’re going to need realistic financials in your business plan, and a strategy to eventually be acquired.

But also keep in mind that depending on your end goals, it’s possible to run a profitable, healthy business for a long time without ever seeking outside investment. It all depends on your goals. Tim Berry talks about it in this articlenot all good businesses are good investments. (Full disclosure, Tim founded Palo Alto Software and Bplans; Palo Alto Software makes a SaaS business planning tool called LivePlan, and a shared inbox tool for teams.)

In the meantime, you might be able to fund your business idea with your day job or your savings. Maybe you have personal collateral that you can use to get a loan or line of credit, or maybe crowdfunding is an option.

Just start

One of the best things you can do in the early stages of your SaaS business is to map out a quick business plan. We call this approach a Lean Plan. You can do it quickly, and just by doing the process you’ll have thought through a lot of the most important parts of your business. Also, check out our SaaS and subscription business startup guide for more expert how-tos. 



from Bplans Articles http://bit.ly/2Guawux