The pandemic of 2020 is now four years behind us, but we’ve learned a great deal from that devastating experience. Use what you’ve learned, and build upon that knowledge as you put together a plan to prepare for the unexpected.
- Exercise fiscal sanity and live within your means. When you continually spend more than you make and save nothing, you put the safety and security of your family (and business) at risk.
- Have your personal affairs in order. Make certain that your will, living will, and power of attorney are up to date to protect your family and loved ones in the event of your untimely death.
- Understand your business and your cash flow. Your stage of business (survival, growth, maximum productivity, decline) determines your level of investment in it. Know your break-even point, monitor it daily, and recognize that your cash flow must be positive to survive any uncertainty.
- Invest in your team year-round to enhance professional growth and practice loyalty, and to avoid the loss of key team members.
- Write a contingency plan for the unexpected. Back up your practice data daily on a remote server, keep your equipment inventory up to date, ensure that your spouse or significant other understands the basics of your business, identify a broker to transition your practice, and list available resources.
Planning now for the unexpected will help you, your family, and your practice survive any future disruption. Get to work…