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home care – Partners31: Specializing in Health and Human Services http://partners31.com We're Really Good At What We Do! Wed, 13 Apr 2016 23:07:11 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.3 http://partners31.com/wp-content/uploads/2011/09/cropped-Janet-FINAL-LOGO-no-bar-32x32.jpg home care – Partners31: Specializing in Health and Human Services http://partners31.com 32 32 Business Senses, USE Them for Systemizing http://partners31.com/consultant-intellectual-disabilities/business-senses-use-systemizing/ http://partners31.com/consultant-intellectual-disabilities/business-senses-use-systemizing/#respond Tue, 22 Apr 2014 01:58:13 +0000 http://partners31.com/?p=1753   As a business owner, would you like to eliminate some stress from your life?  Consider having systems in place.  Documenting what really works can make you, your employees, and your processes more efficient and effective.   People want to work with companies that treat them well and they want to know what their job responsibilities […]

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little executiveAs a business owner, would you like to eliminate some stress from your life?  Consider having systems in place.  Documenting what really works can make you, your employees, and your processes more efficient and effective.   People want to work with companies that treat them well and they want to know what their job responsibilities are.  Having systems in place will help satisfy these needs.

So how do you go about getting these systems identified and defined?  One way to start is to use your senses.  You may think I am talking about “common” sense.  But I’m not.  I mean use your senses, literally—sight, smell, sound, taste, and touch. Get in the practice of exercising one of your senses each day when you are in your office.

Today let’s focus on sound.  Take 3-4 minutes somewhere inconspicuous in your office and close your eyes and listen.  What do you hear?  How do you feel about the environment, the voices, the phones ringing, the conversations, the words, the tones?  Do you hear any annoying sounds, distractions, alarms, music?

Now open your eyes and jot down your thoughts on what you heard.

How do you feel about what you heard?  Did you hear an office purring like a cat or screeching like fingernails across a chalkboard?

Listening to what you hear can be a big clue as to what environment you have in your office.  If what you heard made you feel awesome, let your team know.  If there is room for improvement, be clear, identify the problems and create a solution.  Communicate with your team and make changes when needed.

Please try this with some of your other senses.  It’s a great exercise to Get Your Business FIT, and ready to go when you are!

 

 

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Incident Management http://partners31.com/consultant-intellectual-disabilities/incident-management-4/ http://partners31.com/consultant-intellectual-disabilities/incident-management-4/#respond Fri, 18 Apr 2014 14:41:33 +0000 http://partners31.com/?p=1679 The post Incident Management appeared first on Partners31: Specializing in Health and Human Services.

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Building Home Care Value with Tactical Planning http://partners31.com/business-planning/building-home-care-value-with-tactical-planning/ http://partners31.com/business-planning/building-home-care-value-with-tactical-planning/#respond Thu, 13 Dec 2012 15:10:15 +0000 http://partners31.com/?p=915 Building 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 […]

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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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8 Ways to Exit Your Home Health Care Business http://partners31.com/home-care/8-ways-to-exit-your-home-health-care-business/ http://partners31.com/home-care/8-ways-to-exit-your-home-health-care-business/#comments Tue, 04 Sep 2012 20:04:53 +0000 http://partners31.com/?p=1242 According to Paul Simon, there are fifty ways to leave a lover. We may not be as resourceful as Mr. Simon when it comes to saying goodbye, but we were able to come up with eight ways for owners to leave their home health care business. 1. Transfer to a family member 2. Sale to […]

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8 Ways to Exit Your Business

8 Ways to Exit Your Business

According to Paul Simon, there are fifty ways to leave a lover. We may not be as resourceful as Mr. Simon when it comes to saying goodbye, but we were able to come up with eight ways for owners to leave their home health care business.

1. Transfer to a family member
2. Sale to key employee(s)
3. Sale to key employee(s) using Employee Stock Ownership Plan (ESOP)
4. Sale to co-owner(s)
5. Sale to outside third party (including home care business brokers)
6. Initial Public Offering (IPO)
7. Retain ownership but become passive
8. Liquidation

Depending on your unique circumstances, any one of these paths may be appropriate. During the three-step process outlined below, you will harmonize your exit objectives with the unique strengths of your company and the evolving realities of the marketplace. Establishing thoughtful objectives is the first step of you Exit Plan, and doing so well in advance of your departure gives you and your advisors the time necessary to make your goals a reality. Many owners choose to avoid this sometimes difficult process. But if you wish to “leave your business in style”, choosing the correct path is key.

Step One–

First, you and your advisors must identify your most important objectives–see Issue 2 for more about identifying and prioritizing objectives. These objectives are both financial–“how much money will I need to meet my and my family’s needs?”–and non-financial–“I want my company to stay in my family” or “I want to remain involved in the business.”

Internal and external considerations will impact your choice of exit path. For example, you may wish to transfer the business for cash but are unwilling to put your company and valued employees’ fates to an unknown third party. In that case, you may decide that an ESOP or carefully-designed sale to key employees is the best exit path. Exterior considerations may include business, market, or financial conditions.

Step Two–

You must accurately value your company and determine its marketability. This analysis will provide you with further direction and help eliminate unnecessary exit paths. For example, if your company’s value is high but its marketability low–perhaps due to an anemic home health care market–you may decide that an outside party sale is impractical and instead choose to sell to an insider (co-owner, family member, or key employee).

Step Three–

The final step involves evaluating the various tax consequences of your exit options. This evaluation will include factors such as business entity and any changes that must be made. To use a third party sale example, if it would involve a sale of assets and your company is a “C” corporation, the adverse tax consequences might indicate an ESOP sale as a more appropriate choice.

Using this three-step process will help you narrow your list of exit options. And if more than one route remains, you and your advisors must conduct open and frank discussions about the pros and cons of each path.

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Time: Too Much or Too Little? Exit Planning for Home Care Agency Owners http://partners31.com/business-ownership/time-too-much-or-too-little-exit-planning-for-home-care-agency-owners/ http://partners31.com/business-ownership/time-too-much-or-too-little-exit-planning-for-home-care-agency-owners/#respond Tue, 07 Aug 2012 17:35:07 +0000 http://partners31.com/?p=965 Exit Planning?  Oh, I’ll have plenty of time for that later! Exit Planning?  I’m too busy to think about that now! Sound familiar?  The problem is that active, successful business owners like you seldom slow down, and despite your best intentions, you often bite off more than you can chew.  We can’t cram any more […]

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Exit planning image

Finding Time for Exit Planning

Exit Planning?  Oh, I’ll have plenty of time for that later!

Exit Planning?  I’m too busy to think about that now!

Sound familiar?  The problem is that active, successful business owners like you seldom slow down, and despite your best intentions, you often bite off more than you can chew.  We can’t cram any more hours into your day, but we can help you use your time more wisely.

Rudolfo LeMond owned a growing hospitality services company.  As his business grew, he learned to delegate, but no matter how much Rudolfo delegated, he never had enough time for planning.  And even if he could find time, he didn’t know how to create a plan founded on a clear vision, with clearly-defined and accountable steps along the way.

This was Rudolfo’s situation when he was approached by a buyer.  Though he had not actively pursued a sale, at 49 he was beginning to consider life after work.  So he found an hour to meet with the buyer.  In those 60 minutes, Rudolfo’s blinders were removed and his priorities turned upside down.

A large national company looking to establish a community presence, the buyer was interested in Rudolfo’s company because of its reputation and broad, diversified customer base. The buyer was looking to acquire a business that could grow with little other than financial support.

Naturally it sought a business with a good management structure because, like most buyers, it did not have its own management team to place in the business. Rudolfo, however, had not attracted or retained solid management (nor had he created a plan to do so). His business lacked this most basic Value Driver.  Like many buyers and mergers and acquisitions brokers, they were also looking for two additional Value Drivers: increasing cash flow and sustainable systems throughout the organization (from Human Resources to marketing and sales to work flow). Rudolfo quickly realized that his business was a hodgepodge of separate systems each created to patch a particular problem. Finally, they asked Rudolfo to describe his plans for growing the business. Rudolfo had none. What this buyer and Rudolfo now understood was that this business revolved around Rudolfo. As Rudolfo left the meeting, he expected that, given his company’s deficiencies, he would receive a low offer from the buyer. He waited weeks but no low offer was forthcoming. In fact, the buyer simply disappeared. The message to all of us is clear: Unless a business is ready to be sold, many buyers, especially financial buyers, are not interested. They have neither the time nor the in-house talent to correct deficiencies. The look for (and pay top dollar for) businesses that are poised for ownership transition. It is a fact of life for owners that unless you work on your business, rather than in your business, you will never find time to plan for the future of your business.

Is there a way to find the time for exit planning before your 60 minutes with a prospective buyer?  Of course.  But exit planning requires time– time not only to create the plan but also time to implement it and to achieve measurable results. That timeline may be considerably longer than you anticipate because, in creating an Exit Plan, you need to rely on others who are also busy (minimally an attorney, CPA, and financial planning professional). Additionally, you can not anticipate all of the issues that might arise, and it is unlikely that everyone you work with is as motivated or experienced as you are. Finally, and inevitably, not everything will go as planned.

Exit Planning encompasses all sorts of planning: growth, strategic, succession planning, as well as your personal financial, and estate planning. By wrapping business, estate, and personal planning into one process, Exit Planning is all-encompassing rather than a subset of the planning. In short, there is much to do, and the time to start doing it is now.

It’s important to recognize that planning, properly undertaken, can help enrich your business as well as your personal life. According to Brian Tracy (http://www.briantracy.com/), “A clear vision, backed by definite plans, gives you a tremendous feeling of confidence and personal power.” And, in the case of Exit Planning, it works, too.

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Estate Planning for Home Care Business Owners and Their Families http://partners31.com/business-planning/estate-planning-for-home-care-business-owners-and-their-families/ http://partners31.com/business-planning/estate-planning-for-home-care-business-owners-and-their-families/#respond Wed, 23 May 2012 18:25:50 +0000 http://partners31.com/?p=867 To avoid unnecessary taxes when transferring your home care business and estate to your beneficiaries, it’s important to understand tax laws and how to use them to your advantage.  But before we jump into this discussion, we need to define “estate” first. For federal tax purposes, an estate is everything you control at the time […]

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estate planning

Remember, estate planning is a lifetime process!

To avoid unnecessary taxes when transferring your home care business and estate to your beneficiaries, it’s important to understand tax laws and how to use them to your advantage.  But before we jump into this discussion, we need to define “estate” first.

For federal tax purposes, an estate is everything you control at the time of your death–including life insurance proceeds and jointly-owned property.  Federal and most state governments impose a tax if your estate exceeds the exempt amount during the year of your death (between one and three million currently).  Obviously, you don’t want to pay more than necessary.  Let’s see how.

First, make full use of the exemption amount.  This exemption is also available to your spouse, and with proper planning, an estate between two and seven million may pass to your children without tax consequences, depending on current estate tax laws.

Second, the marital deduction can reduce or eliminate estate taxes.  Provided your spouse is a U.S. citizen, you may in most cases pass your entire estate to your spouse without tax, as gifts or upon death, even if your estate is worth $50 billion!  Sounds great, right?  But there’s a trap here.  When the surviving spouse dies, the only available deduction is the exemption amount.  This means that the entire tax burden will normally fall upon the surviving children.

Let’s take the hypothetical example of Wayne and Connie Smith, a couple in their late thirties with two young children.  They have personal property and investments totaling $700 thousand, $1.3 million equity in their house, twin life insurance policies for $1 million, and a home care business worth $5 million.  Their total estate is valued at $9 million.

As explained above, there would be no tax when the first spouse died, as their initial estate plan was structured, but the estate would incur between one and three million after the second spouse passed on.  The Smith’s exit planning advisor explained this but the couple was comfortable with the taxes as long as the surviving spouse was provided for.  Imagine their surprise when their advisor explained they could do both!

First, their exit planning advisor recommended the joint asset tenancy be severed and each spouse acquire approximately $3.5 million in assets.  The life insurance would be put in an irrevocable trust to keep the proceeds from being subject to estate taxes.  Under current tax law, if death occurs within three years of this transfer, the proceeds would revert back to the decedent’s estate.  This carries an important caveat:  you MUST consult an experienced estate planning professional to avoid the “Reciprocal Trust Doctrine” trap.

After equalizing their estates, the Smiths created wills with trust provisions–living trusts work equally well for this.  The result of their exit planning was to transfer, tax-free, as much of the estate as possible to their surviving children.  Regardless of who passed first–a crucial planning point–the estate exemption amount prevailing would go into a trust for the survivor.  The survivor would receive income for the rest of their life and have significant control over the trust.  But for estate tax purposes, only the amount owned by the surviving spouse would be included in the estate upon their passing.  Additionally, if the decedent owned assets over the exempt amount, the balance would go to the survivor via a provision in the will or trust that would qualify for the marital deduction.

As you can see, proper exit planning reduced or eliminated estate taxes for the Smiths–again, it depends on the year of death–because the surviving spouse’s estate consisted of well less than half the original estate.  Their trusts also benefitted the surviving children, with the remaining amounts being distributed at predetermined ages.

Estate planning is a lifetime process that changes as your lifestyle and exit planning objectives change.  And your degree of planning will determine the price your family will pay long after you are gone.  Thorough estate planning will help you accomplish these goals:

*providing family income after your death

*minimizing or eliminating estate taxes

*fueling estate growth outside your home care business interests

*providing a fair, if not necessarily equal distribution of your estate before and after death

*protecting your assets from creditors

*establishing control and transfer of ownership of your home health business

At Partners31, our experienced and knowledgeable mergers and acquisitions home care advisors can help guide you through the estate planning and exit planning process.  You cannot afford to wait.

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