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PID Exam 3 > Business Plans > Flashcards

Business Plans Flashcards

1
Q

What is a business plan?

A

A document describing every aspect of the business
A road map providing directions so a business can plan its future and minimize disruptions
Illustrates potential for success
Is a guide to help define and meet your business goals - provides focus and supports decision making

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2
Q

Why is a business plan necessary? Reduces risk by

A

Forcing evaluation of:
Market, demand, competition
Strategies (structure, marketing, distribution)
Finance

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3
Q

Why is a business plan necessary? Identifies….

A

resource conflicts - strategies that can be afforded with available resources

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4
Q

Why is a business plan necessary? Evaluate business from perspective of

A

business owner, entrepreneur, risk taker

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5
Q

Why is a business plan necessary? Loans

A

What needs to be financed and at what amount
When and for how long need the finances
How will business generate enough money to repay the loan and cover expenses

Also for financial projections and analysis
Can also assist with strategic planning - evaluating future opportunities, adding new service or business expansion

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6
Q

Why is a business plan necessary? Others

A

Creates a regular business review and course correction process
Agreement of parties
Established a value on a business for sale or legal purposes

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7
Q

A business plan is what type of document

A

A living document! - Can change throughout the life of a business

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8
Q

Audience of the business plan

A

Partners - all components
Bank - financial, cash flow to pay loans
Venture capitalist - people, experience (outside investor)

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9
Q

When is a business plan prepared?

A

After the market assessment!
As early as possible when deciding to start a business
During life of business to evaluate new service, expansions

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10
Q

What makes a business plan successful

A 
Illustrates managements ability to make business successful
Shows profitability 
Presents well thought out idea
Clear and concise
Logical structure to it
Presentation is important
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11
Q

Key elements - what is something that is at the beginning, but is written last? and what does it include?

A

Executive summary

Business description
Mission, values, vision
Objectives
Future
Keys to success (what sets you apart)
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12
Q

Key elements - Company summary

A

Ownership
Start up summary –> expenses, assets starting with, cash
Location and description of facility

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13
Q

Key elements - Services and size

A

Description - will you be general? or any specialties?
Size and projection (2, 5, 10 year)
Future services

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14
Q

Key elements - Operations

A

Modalities
Equipment
Tx rooms, tables
Technology, software

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15
Q

Key elements - Marketing plan

A

Plan within the plan

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16
Q

Key elements - Organizational structure

A

Management
Owner’s responsibilities and % management
Professional staff (DPT - PT - PTA…)
Administrative staff

17
Q

Key elements - Strategy and Implementation Summary

A 
Pricing strategy (charges - esp. for those not covered by insurance) 
Sales strategy (how services will be divided up, like what will be fee for service vs. CMS)
Milestones with table (charting out a timeline - for when you will do things)
18
Q

Key elements - Financial plan

A

Cash flow - most important! Like a checkbook
Projected profit/loss, balance sheet, sales forecast
Purpose of loan (if you are seeking one)
Method of payment

19
Q

Debt service coverage calculation

A

Used by lenders to determine repayment ability
For every dollar of debt, how much do you have available to pay that debt?
1.15 to 1 is good
1.2 to 1 is even better

20
Q

PT business within another organization

A

What is their expectation of how your business fits with theirs - legally and financially
How does it include or exclude your business
What are their business goals and plan? mission?
What risks are you assuming
Pt volume goals they have
Marketing - include or exclude you
Is your PT business name separate
Organizational structure

21
Q

The bid process can be a path to

A

obtaining a contract

22
Q

What does RFP stand for

A

Request for proposal

23
Q

Bids and RFPs - what are they

A

Very detailed and specific

They are requesting you to submit a proposal to meet their needs

24
Q

Bids and RFPs - what will they include

A

Items to submit
Q and A
References, testimonials, curriculum vitae
Deadlines - questions, response
Delivery method
READ THEM CAREFULLY - you should have questions

25
Q

What should you so as you read through the RFP

A

Assemble questions to submit - you need to find out info ahead of time to prepare the best proposal you can

26
Q

RFP - sources for answers to your questions

A

Prospect - might be given a deadline to submit written questions
Network of your own contacts (use judgment)
Call prospect (use judgment)
Public records or request a copy of prior quotes

27
Q

RFP - what you want to know

A 
Why out to bid
What is important to them in a provider
Who is current PT provider
Unhappy or happy with current?
Volume by CPT code, injury rate, re-injury rate
Types of injuries
Lost work days, hours, 
Cost of a lost work day
28
Q

RFP - more questions you could ask

A 
Current compensation
# PT visits by diagnosis past X years
Ergonomic analysis, workshops
Safety program
Work comp carrier, case manager
Any physicians involved
Company info, contacts 
Hours requested
Which services provided? What equip they have
Contract term they want - renewals
29
Q

RFP - the decision to bid

A

Do we want to do it? Consider financial and non financial

Can we do it? If so, how?

30
Q

What does a proposal look like

A

Brief cover letter - who you are, brand, ask for the business, contact person

31
Q

What does a proposal include

A

Answers to all questions
Who you are, benefits the prospect will receive, value you bring
Effective and termination dates, renewals
Services provided, excluded
Charges
Promotional material
Analysis of current PT provider stats vs. best practice or benchmarks
Summary should be compelling
Caution - it can become public info!

32
Q

Next steps - after building proposal

A

You could be chosen as finalist - need to make finalist presentation
Award of contract
Kickoff meetings
Contract negotiation

33
Q

Importance of contracts

A

Key pieces of relationships in writing
Refer to during relationship
Both parties agree
Exists after agreeing individuals are gone
Basis of doing business
Establishes parameters of each party’s obligations and establishes remedies
Use attorney

34
Q

Contract processes

A

Varies depending
Standard contract may be offered, revised
Ensure key components are covered, dates
If contract is result of bid, refer to bid specs
Use attorney
Might be negotiated
Sign and date (both parties)

35
Q

Typical contract components (stickiest parts)

A

Indemnification - if they won’t remove, make it mutual
Services provided, services excluded
Duties of the other party
Your duties

36
Q

Typical contract components - Compensation

A 
Include time period the charges are in effect
By CPT? by hour?
Special services (ergonomic analysis?)
37
Q

Typical contract components - Term of agreement and renewal

A

One year
Advanced written notice of rate change
Mutual agreement

38
Q

Typical contract components - others

A

Payment

Termination with cause, without cause

39
Q

4 keys to successful negotitation

A

Preparation
You never know until you ask
Consider your bargaining power
Resolution, agreement

PID Exam 3 (4 decks)

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