The challenge here was that the Shareholder was amazing at providing the care and leading her teams to produce some pretty amazing patient outcomes and high revenue year over year however, lacked the knowledge and understanding of the financial health of the business and struggled to make a profit.
Improve profitability: Reviewed & explained the books for the past 3 years to determine areas of cash bleeds. Re-map the books to make it fully functional to make better business decisions.
Determine the return on investments made: Created a list of all areas the business was spending money and began to track the return the business was getting from those expenditures.
Identified critical areas that needed to be discontinued: The diagnostic determined the hidden stressors that affected profitability and where sucking cash out of the business.
The solution JR3 Consulting came up with was simply to train the Shareholder on how to manage business decisions based on the numbers of the business. We explained the importance of clean books and how managing your business financials closely leads to profitability.
This Shareholder is now more empowered and manages a far more efficient business;
The effort vastly improved the company’s profitability, created room for the Shareholder to pay herself a healthy salary and comfortably take distributions.
By the numbers, the effort:
Increased profitability by 20%
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