Trying to manage a company’s working capital isn't easy and is very technical. If you operate a medical practice it's really hard to know how well your company is doing financially in comparison to your counterparts.
Working capital doesn't appear on income statements and it doesn't affect directly earnings or operating profit which are the measures most often influence how you are compensated. Even though managing working capital has been the main staple business schools use to measure this metric, research shows that company performance that determines the amount of working capital needed is varied, even with companies that are in the same industry such as chiropractic.
Working capital can amount to up to several months of revenue, which isn't a small amount. One way to free up cash for your practice may be to simply improve the way you manage your practice.
Many businesses and practices and generate thousands and hundreds of thousand dollars of cash within 60 to 90 days, without increasing sales or cutting costs. There are many hardworking chiropractors who are rewarded for hard work and continuing to improve their business management to make their business more and more profitable.
In the process of a chiropractor improving their working capital status, the main focus that always can be worked on to improve will include operations, management, medical practice sales and and financing.
If your chiropractic practice is growing alternative funding sources such as Small Business Loans Depot offers working capital loan programs that can give you the additional cash flow you need to extend the success of your business. This type of program is ideal for chiropractors looking for sustained growth, relocation funding or money that may be used for any purpose. Many banks and local lenders only lend to what they consider credit-worth practices.
It is in the best interest for a chiropractor to work with an alternative funding source that has relationships with national lenders and can give you the working capital you need for your practice. Contact Ed Rogers at Small Business Loans Depot for details on the many cash flow and working capital programs that have a simple 1 page mini application.
