PAEDS BIZ ... HOW TO IMPROVE YOUR PRIVATE PRACTICE MAY 2016
EOFY
It is that time of year again Are you ready? p.4
BUSINESS PLANS YOU CAN AND YOU SHOULD
Regardless of the size of your business a business plan isn’t hard to write and it will help p.6
MONEY MANAGEMENT 101 Is your financial team in place and working together? p.9
AN INTRODUCTION TO
CATHY LOVE Occupational Therapist Coach Speaker Author
For first time readers a quick intro, I am Cathy Love an Occupational Therapist, Coach, Author and Speaker. I am the founding director of Nacre Consulting and I work with parents and disability service providers to achieve brilliant outcomes for children with special needs. I provide a range of services: • Family Service Coaching for parents to help them manage their child’s team and services • Clinical supervision to individuals and allied health professional teams • Service delivery consultation to disability service providers • Private practice coaching to business owners More to be read about all that over on my website www.nacre.com.au Each month I write up news, useful information and pearls of wisdom for those working with children and families in the disability sector. Given that it is a rapidly changing landscape and one that is increasingly privatised there is typically lots of news to be shared.
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Welcome. Here we go with May, term two, football, last quarter of the financial year and for those providing mobile services the challenge of darting in and out of the car between windy cloud bursts. April pretty much disappeared on me in a marvellous flurry of business development activities, new business coaching clients, partnership conversations and speaking opportunities. All lovely. The May Paeds Biz edition includes a new contributor LegalVision who have written about Business Structures. Other topics include Business Plans, Money Management and general End of Financial Year planning. The Bookshelf is loaded as is my diary for upcoming events. During past weeks I have crossed off and added many and varied To Do’s. The website facelift has turned into a rebuild, my social media followers and engagement have increased, I have blogged for other providers, delivered a third Private Practice webinar for Speech Pathology Australia, loved presenting the April Pow Wow Group Coaching program, been invited to speak at future events / webinars / podcasts / radio and finalised (well nearly) the details for the Paeds Biz 2016 Forum. Save the date June 25th Melbourne. My To Do List is actually an A5 notebook that never leaves my side. Busy and exciting times. Big thanks for the lovely feedback about Paeds Biz. Truth be told we are feeling a wee bit chuffed. Please keep forwarding the email and link to colleagues, we are super keen to boost our readership. The next round of database invitations will be extended to paediatric private music therapists, dietitians, optometrists and audiologists. Our mission is to support private practitioners to run powerful and profitable businesses that sustain them in every way and deliver positive outcomes to children and families. Your feedback and suggestions are welcome, I am always one click away cathy@nacre.com.au
Cathy Cathy Love Director of Nacre Consulting
CONTENTS 02 Introduction Meet Cathy Love 04 End of Financial Year Paeds Biz Forum 05 Pow Wow May - Private Practice Group Coaching 06 COVER FEATURE: Business Plans You can and you should 07 Guest Writer - Anthony Lieu, LegalVision What you should know before setting up a small business 08 Bookshelf 09 COVER FEATURE: Money Management 101 Managing your private practice finances the right way 10 The Wrap
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END OF FINANCIAL YEAR A cheeky reminder that it’s nearly End of Financial Year and that it’s a perfect time to check in with your accountant regarding effective tax management strategies. Another reason to meet with your accountant is to review progress against your 2015 -2016 budget. Time to face the music about your financial progress, reflect and forward plan with optimism. This review enables you to set big and bright new revenue and profit targets for the 2016 - 2017 financial year. It’s also good to check over your financial systems, reports and how you and the team are using them. An annual review is always a good thing. There is so much more to EOFY than dashing to Officeworks and stocking up. Get in touch with your accountant and make a date, make a plan and then….do it.
PAEDS BIZ FORUM Its back. On Saturday June 25th Melbourne CBD, join us for some niche paediatric private practice management content and conversation. Last year 45 energetic practitioners from all over the east coast of Australia attended. We all loved it. You are welcome to join us if you’re in private practice and fully focused on delivering profitable and powerful services to children with special needs and their families Occupational Therapist, Speech Pathologist, Psychologist, Optometrist, Audiologist, Dietitican, Music Therapist, Physiotherapist, Podiatrist or similar.
This year’s program and line up is taking shape. Cathy Love from Nacre Consulting, James Crook from Choc Chip Digital, Cate Schreck from Lightbulb Training Solutions, Kerrie Canning from HR Advice Online and Noam Greenberg from LegalVision will all deliver their A-game. Stay Tuned. REGISTER TODAY TO BOOK YOUR SPOT
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POW WOW: PAEDIATRIC PRIVATE PRACTICE GROUP COACHING Need a bit of help running your business? Keen to talk with some like-minded private practice owners? Seeking niche paediatric private practice information and advice? Read on… Cathy Love is running a six week virtual small group coaching program. With a long history of managing a private practice Cathy understands the frustration of not being able to find specific paediatric and small business information. She also get the loneliness and overwhelm of having to ‘do it all’. All calls are after hours so no client time is lost, no travel, no accommodation.
Here’s what’s inside the Pow Wow box: Three fortnightly 60 minute group teleconference coaching calls. Coaching Call One – Define your product and match it with great customer service. Get clear on what you do, why you do it, how to price it and how to exceed your client’s expectations. Coaching Call Two – Recruit, retain, reward and release your people Better understand employee v’s contractors, position descriptions, recruitment, on boarding, performance development and releasing staff. If you are flying solo now, you may well need to know all this in the NDIA future. Coaching Call Three – Boost your profile to attract your ideal clients Easy ways to spread your personal fabulousness and that of your team and services: Website, Facebook, blogging, newsletters, partnerships & more. But wait there’s more… Three fortnightly 30 minute one on one coaching calls with Cathy Love Discuss the specifics of your current business challenges in order to generate solutions and actions.
The May dates for the Pow Wow private practice coaching calls are: Tuesday May 10th 7.30 – 8.30 pm Melbourne AEST Tuesday May 24th 7.30 – 8.30 pm Melbourne AEST Tuesday June 7th 7.30 – 8.30 pm Melbourne AEST Your tax deductable investment is $540 including GST Or you can convince me that you really need the expired early bird rate of $490! REGISTER HERE TODAY. Contact Cathy directly for additional information cathy@nacre.com.au
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BUSINESS PLANS
YOU CAN AND YOU SHOULD
Many of the Paediatric Private Practice owners that I speak with don’t have a business plan and those that do, don’t use it. I am curious about this, I sense fear, worry, time, insufficient know how and confidence sitting at the bottom of this thinking? Am I hitting the mark? I have always found it incredibly useful to write down all I wanted to achieve across the financial year. I am forgetful, busy, constantly dreaming up new ideas and easily distracted, having it written down helped keep me focused. Regardless of the size of your business a business plan isn’t hard to write and it will help. Think of your business as your favourite client. For clients we confidently research, collaborate, set goals, list objectives, problem solve, develop and implement strategies, measure and celebrate progress. Now we have to do the exactly the same thing for our business. Just like your therapy plans a business plan provides a starting point, a destination and the best route to get there. It’s a document that summarises where your business is at, what the market looks like, current financial snapshot and forecast and an overall understanding of where you want your private practice to be in the future. Rather than worry about the future, plan for it and work towards it. It will bring a quiet sense of calm, confidence and control over your future and control to your management role. There are lots of business plan formats available online, search and find the one that suits you best. One of my favourites is on www.business.gov.au but your coach or accountant may have other suggestions. A typical structure includes:
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• A Business Plan Summary (write this last) • The Business - structure, people, products, services, operations • The Market - competitors, customers, advertising • The Future - vision statement, goals and objectives and the action plan • The Finances - current position, budget, balance sheet, profit and loss, cash flow, break even analysis. Next step is to do your research. Use the business plan structure to gather the required data from your practice management systems and your accountant. Market research may be finding out who your competitors are, their services, products and fees. Profile your team, services, prices and systems. Review your marketing materials and online presence. Report on your new referrals, waitlist management, average spend per client, referral sources and funding systems. Best of all consider future opportunities. Uninterrupted thinking and planning time will be required, complete with big bits of paper and coloured pens. The question is, what do you want your business to look like in 12 months’ time? Finally diarise a series of two hour blocks to write it up. It is then very cool to hit print and dash out to get your business plan covered and spiral bound. A business plan is a living working document. How will you and your team use it? Weekly referencing and monthly reviews are ideal. Your private practice coach is the ideal person to develop and action your business plan with, they will also help keep you accountable. Is it time to start, and finish, your business plan and use it as a roadmap to move forward with clarity and control?
GUEST WRITER - ANTHONY LIEU
WHAT YOU SHOULD KNOW BEFORE SETTING UP A SMALL BUSINESS When setting up your small business, it’s important to familiarise yourself with the necessary checkpoints including choosing a business structure, registering your business name, and developing your business plan. We set out what questions you should first ask to ensure your chances of your business running smoothly.
Have you chosen a Business Structure?
What business structure you choose, whether it’s a sole trader, partnership or company, largely depends on your business goals. It’s important that you understand the legal and tax obligations involved with each before making a decision. Each structure is briefly explained below. Sole trader: This structure is the simplest and easiest to set up. It doesn’t create a separate legal entity through which to run your business, so you as an individual are liable for the business’ debts. However, this exposes your personal assets to creditors and any income you earn is taxed as personal income. Partnership: If you a starting a business with one or more other people as a partnership, you will first need to arrange a partnership agreement. This legal document sets how you will share the profits, risks and losses of the business, according to terms contained in the agreement. It’s then critical you seek legal advice before entering into a partnership to draft and review your contract. Importantly, partners are not taxed as a whole and each partner is taxed on their profits at the same rate as personal income and liable for the partnership’s debts. Company: If you anticipate rapid growth and expansion of your business, it may be preferable to incorporate your business at the outset. Establishing a company creates a separate legal entity meaning the company’s directors are not personally liable for any debts incurred and the business is taxed at a flat rate. The company tax rate is currently 30%. Trust: You can also run a business through a trust, which
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involves a third party being in control of the assets and business operations, and transfers the profits to a beneficiary. This structure is most common for family businesses.
Have you Registered your Business?
The types of business registration required will depend on which structure you choose. Every new business needs to apply for an ABN (Australian Business Name) and register their business name. If you’re a sole trader, you can use your personal, existing Tax File Number for your business activities. If you’re running a business as a partnership, company or a trust, you will need to apply for a new TFN. If your business has an annual turnover of over $75,000, you must register for GST (Goods and Services Tax). Depending on what structure your choose, the types of business registration you will be required to do will differ. Generally every new business will need to apply for an ABN and register their business name. *** Familiarising yourself with these fundamentals will help with setting up your business, however, you should seek legal advice to understand what structure best suits your business needs. If you have any questions, LegalVision’s business structuring specialists can assist you and help draft the legal documents you’ll need to set up a partnership, company or trust. Anthony is a lawyer and Marketing Director at LegalVision. He has a keen interest in startup law, IT law and scaling fast-growing businesses. He has a strong understanding in how startups operate at all stages and navigating the myriad of legal issues surrounding online businesses. He has worked in the public and private legal sector, specialising in disputes and litigation, corporate advisory and tax controversy.
BOOKSHELF “Me Time, The Professional Woman’s Guide to finding 30 guilt free hours per month” Author: Kate Christie This fantastic book outlines the value of reclaiming your time and practical ways to do it. It’s written for super busy professional mothers and follows a five step process. The book connects with great online information and additional support is always at hand. Kate is a terrific presenter and is frequently found at small business and corporate events. “Me Time” comes with the reminder that we need to look after ourselves in order to serve our families, work team and clients. Great read.
“Digitally Enhanced. How to enhance your web presence to attract more of your ideal clients” Author: James Crook Digitally Enhanced gives a powerful framework for establishing your reputation online and building web presence that quickly connects you with your ideal clients. James is a regular writer for Paeds Biz and has presented at events I run. He has offered two of his books as Paeds Biz reader prizes. Woo Hoo. Complete this sentence and email it to cathy@nacre.com.au “My website is effective because…………….. Entries close Friday 13th May.
Podcast: “The Customer – Centric Show with Mel Telecican” Yes, I’ve written about this podcast before, but I have revisited and am back into it. Mel speaks with a diverse range of business owners and experts across all industries on topics such as marketing, getting and keeping customers, profitability and business growth. I continue to seek and learn a lot from others outside the private disability service provider sector. For me it’s important to connect with mainstream business and soak up their suggestions.
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MONEY MANAGEMENT 101 I didn’t learn how to manage the finances of my private practice overnight. But I got there eventually, it honestly took me years to understand the financial side of my business. I felt embarrassed to ask the accountant to explain it again, and the internet wasn’t what it is today. So I bumbled along, hoping that there would always be enough in the bank. I recognised that my ‘fingers crossed’ approach was amateurish. To run the private practice I dreamed of, I need expert help and advice so I changed accountant, got a book keeper and engaged a business coach. I already had great but underutilised Practice Management Software (PMS). So began the climb up the vertical learning curve.
Are you using PMS that makes invoicing, receipting and reporting easy? I built a finance team. The team consisting of accountant, book keeper and practice administrator, we had weekly and monthly meetings to discuss procedures, challenges and solutions. The book keeper worked on site one day per week, liaised with my practice manager and relied on reports from our PMS for MYOB data entry. It was critical that clean and correct money data was being entered into the PMS otherwise every single report would be wrong. Believe me, we got it wrong, but we put cross checks in place which helped. I met with my accountant monthly to discuss all things Profit and Loss. Whilst it wasn’t always a happy occasion (think January and school holiday months), it was necessary. I was financially responsible for other people I had to understand my business and run it effectively.
Is your financial team in place and working together?
We built systems one by one. A written policy and procedure for therapy invoicing, receipting, stock purchases and sales (we had a huge online toy store) salaries, paying contractors, groups, workshops…..in fact every single aspect of the business that required money transfer was figured out and documented. Like eating the elephant we took one bite at a time and steadily they all got recorded, reviewed and adjusted over time as required. If I was telling somebody what they had to do, then I wrote it down for next time. I am the private practice systems queen. I had a budget and I used it. Whilst largely prepared by my accountant based on previous year’s figures and agreed growth percentages I learnt to understand it. It became an invaluable tool, I referred to it monthly and it was a reference for when the numbers were spot on, or suspiciously good or bad.
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When I sold my private practice it was a highly efficient and profitable business. There was a system for everything, the vast majority were written down and frequently reviewed. The practice management system software was core to every single business task. On reflection it probably saved me at least one full time salaried position in ROI (Return on Investment). I fast tracked my financial knowledge. I attended business management programmes, read books and worked tirelessly with my business coach. With the belief that there is no such thing as a stupid question I started to ask more and more people more and more questions. As my knowledge improved, so too did my systems and business confidence.
Are your financial management systems NDIS and growth ready? It is one thing to be a excellent clinician but quite another to be a strong manager. Now more than ever private practice owners need to be great at both. Hence the relevance of the expression working IN the business v’s working ON the business. The NDIA roll out is accelerating the need for private practitioners to step up their management and leadership skills. Financial management is high on the task list and may well be the make or break factor for many. Financial questions arise with every coaching client I work with as its mission critical to a less stressful more successful private practice.
How would it feel if you completely understood and assertively managed all aspects of your private practice finances?
Next month’s edition will include: Position Descriptions Team Leadership Performance Management Paeds Biz Forum
Epic thanks to Emma my Virtual Assistant and expert task wrangler for formatting Paeds Biz and the twenty million other things she does to make me look good. Thanks also to LegalVision for their content and commitment to servicing small business. Just quietly… I am hoping they can present at the upcoming Paeds Biz Forum. We are having lots of professional fun on social media at the moment. Come on over and join us on Nacre Consulting Facebook page, Twitter and Pinterest. I share loads of people’s lovely content, you are welcome to share my materials any old time if you feel it will help your likers in any way. LinkedIn is where you will find my personal profile. I adore LinkedIn and find most of the content terrific, I am always keen for new connections so click me up with your invitations.
As many of you know I am the founding director of Nacre Consulting. A cool business with an unusual name. Nacre is the natural process of a little seed, held in an oyster shell whist it grows, layer by layer, into a brilliant unique pearl. This process takes time, special conditions and forces of nature. And so it is true for ourselves and for the children and families we serve. More about my clinical supervision, parent coaching, teaching and private practicing coaching services on my (soon to be facelifted) website: www.nacre.com.au
In June’s Paed Biz I will be writing about position descriptions and team leadership. Leadership and management are different so let’s explore this together. Kerrie Canning from HR Advice Online has written for us regarding staff performance management. No doubt other snippets will weave their way into the pixels as well. Until we read together again stay safe and warm.
If you are curious about my specialist private practice coaching services you are most welcome to get in touch, find out more and experience a 30 minute complimentary session: cathy@nacre.com.au
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