Identifying Home Healthcare Business Fundamentals and Putting Them in Order

home care business fundamentals

Make sure all your business fundamentals are in order

As we continue discussing how to close the gap between what you have and what you need, let’s look at business fundamentals and how to address them to build business value.  Business fundamentals are those basic housekeeping tasks that reduce your risk.  We want to put into place mechanisms to protect business value.

Business fundamentals are divided into four key areas:

1.            Ownership rights and responsibilities

2.            Facilities management

3.            Competitors

4.            Employee errors

 Ownership Rights and Responsibilities

Are your corporate records in order? Is each share of stock documented? If there are co-owners, are the rights and responsibilities of each clearly documented, understood, and implemented? Do you know what will happen if one owner becomes ill or dies? Has the company paid for any perks for family members?

Minimize risk of loss from facilities management

To minimize risk through facilities management, you must know in which areas your company is vulnerable to loss in its activities. Vulnerable areas might be in: services, inventory, publishing, printing, duplication, records management and maintenance, or research and development. You may also need to take a look at your operating space – especially if it has grown on an as-needed basis.

Minimize risk of loss from competitors

Have you taken time lately to identify all of your direct and indirect home health care competitors? Have you evaluated them in terms of their ability to threaten your organization? Can you avoid future threats from competitors?

Minimize risk of loss from employee errors

In the past 12 months, has an employee made an error that cost your company significant money? How did that error occur? What measures can be put in place to prevent similar errors in the future?

Business fundamentals are all about reducing risk for you and for any future mergers and acquisitions brokers or buyers.  I hope you find this information helpful and motivating. To get started on your value-building plan, please contact me

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About Risa Baker

Risa is Managing Director of PARTNERS 31. Her natural enthusiasm and years of industry experience will successfully guide your business, whatever its size or specialty, through every aspect of exit planning, from strategy to sale.

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