Entrepreneurship Flashcards
Because small businesses don’t have deep pockets what 3 things do they have to do to succeed?
- Do things that large companies overlook
- Do things that larger companies are not interested in doing
- Be more responsive, contemporary, and react with speed that larger corporations cannot match
The innovation that is required for small businesses to succeed stems from what 4 things?
- Demographic changes
- Gaps between what is and what could or should be
- Market and industry changes
- New knowledge/new concepts
What are a few character traits of small business owners who are entrepreneurs?
- independent thinkers
- dare to be different
- assume the risks of creating new services and products
- take responsibility to achieve desired results through their own efforts
What are 3 desirable characteristics of PT entrepreneurs?
- Commitment to adhering to professional ethical precepts and laws
- Flexibility in order to be able to adapt to rapidly and ever changing health care delivery issues
- Ability to manage multiple life roles
Somewhere between _-__% of APTA members have some level of private practice.
8-14
Business wise, the private practice owner requires knowledge of what 5 things?
- Strategic planning
- Marketing
- Hiring
- Managing people
- Fiscal management
Financially small business owners have the potential to earn ___ as much than non-business owners
twice
What are the 5 things a budget should consider?
- income
- labor
- taxes
- operational expenses
- allocation
What does allocation mean?
The process of distributing the resources to meet expenses using the estimated income
Why do income budgets tend to be frustrating?
The service provider may not know what the actual reimbursement will be until payment is received from a third-party payer
What is required in order to keep a steady cash flow?
frequent billing
Billing services can add a practice expense of _% or more of the amount collected by the biller
6
What are a few difficulties women may experience when attempting to start their own business?
- Limited mentoring opportunities/few female role models
- Limited networking opportunities
- Little business knowledge
- Making contacts with referral sources
- Securing financing
- Family related career interruptions
What are _ benefits a large organization has over a small private practice?
- Easier access to financial resources and support services such as legal staff, training, and development personnel, marketing and technical expertise
- they can offer employees competitive salaries, continuing ed resources, low cost health insurance, legal services, mortgage assistance, and other unique benfits
Referral for _____ is an issue concerning non-PT owned practices
profit
What is the problem with referral for profit?
It creates a potential conflict of interest, pitting referrers’ financial benefit against what is in the best interest of stakeholders.
Before beginning your own privte practice it is important to get some private practice and business experience by doing what?
- Working in a private practice first
- Discussing private practice with owners of private practices and consultants
- Reading professional journals and books from many fields
- Consulting community business organizations
- Fellowships
- Attending meetings of national associations
- Seeking advice from government sources
- Taking continuing education courses or for-credit courses
- Exploring Internet business resources
What is the benefit of business planning before starting a practice?
It reduces tje risk of complications in the business start-up and operation stages
What are the 3 key elements of a business plan?
- market plan
- operations plan
- financial plan
Describe the market plan
It is a clear definition of the opportunity under consideration.
What is the opportunity we are considering?
How can we get our idea out to the public so we can sell our idea?
Describe the operations plan
It details who and how the business will be run.
Where, with whom, and with what equipment and space are we considering for our business?
Describe the financial plan
It estimates financial need and revenue projections.
How in the world are we going to pay for this idea?
What are the 7 major headings of a business plan?
- Transmittal letter
- Cover page
- Executive summary
- Table of contents
- Business description
- Financial information
- Supporting documents
What is the transmittal letter?
It explains why the plan is being sent (a loan) and what the recipient is expected to do with the plan (review and set up a meeting)
