Building Home Care Value with Tactical Planning

Tactical PlanningBuilding value in your home care business and setting goals for exit planning does not happen by accident.  Partners 31 helps you develop your overall strategy as well as the specific tactics, the means by which you execute that strategy, necessary to achieve your goals.

Let’s take the example of “Stuart,” a typical home care business owner who needed help building business value but wasn’t sure where to begin.  We started by asking a deceptively simple question:  what specific business activities do you LEAST enjoy?  Stuart’s list included placing collection calls, balancing the books, paying bills, and hiring and firing employees.  Obviously, these tasks are business critical, and your own list may include other activities no less crucial.

It might seem counterintuitive, but we suggested that Stuart STOP doing these tasks.  Instead, we asked whether he could identify employees who could handle the activities at least as well as Stuart or develop systems and procedures to ensure the tasks received the proper focus.  His alternative was to do everything himself, working longer and harder on the tasks he least enjoyed.

All home health care owners have specific strengths, aptitudes, and interests they bring to their home health business.  Naturally, they also have areas where they are weaker, have less aptitude, and interests on which they’d rather focus.  Stuart found that he could become MORE efficient by doing LESS.

Now let’s examine several areas we must consider and questions we must answer when developing your strategy and tactics:

*Diversifying your Customer Base

*Expanding Sales

*Defining and Measuring Success

*Developing Consistent Sales and Marketing Messages

*Planning your Taxes

Diversifying your Customer Base–What percentage of you sales or income are attributable to each customer?  Does one client account for a disproportionate amount of sales over the past year?  If you lack diversity in your customer base, it will be difficult to convince potential home care mergers and acquisitions brokers and buyers of your proper business value and future prospects.

Expanding Sales — Are you doing everything possible to build home care valuations through existing customers?  Have you recently explored different options to increase market penetration?

Defining and Measuring Success– How do you measure home health company success?

How do you achieve accountability?  Is it through the consistent achievement of annual sales targets or by successfully penetrating especially difficult markets? To build home care business valuations and meet your exit planning goals, to set appropriate base incentives for compensation, to establish growth targets you must first be able to define and measure success.  This is particularly important when working with home care business brokers and mergers and acquisitions home care entities.

Developing Consistent Sales and Marketing Messages–Have you effectively communicated your home care company’s purpose and goals to your employees?  Can all, or even most, employees accurately describe your competitive advantage?  Many home health owners mistakenly believe they have!  Crafting a consistent sales and marketing message ensures all employees are focused on company goals.

Planning your Taxes–No tactical planning discussion would be complete without mentioning taxes.  Wise home care business owners do everything possible to legally build value by avoiding unnecessary taxation and minimizing existing tax obligations.  Your tax advisors can recommend appropriate entity structures, how to use multiple structures to minimize taxes, or how to choose the proper location to take advantage of state and local tax codes.

These five examples are by no means comprehensive; they are just a few examples of the many ways Partners 31 can help you plan your business strategy and execute effective tactics.  Our advisors can assist you in organizing and focusing your efforts to achieve all your exit planning goals

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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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