Tips for cutting medical bills

With the burgeoning cost of pharmaceuticals, doctor visits, and hospital stays, staying healthy has become an increasingly expensive proposition. In addition, health insurers are passing along more and more of their costs in the form of higher deductibles, increased premiums, and larger co-payments. Out-of-pocket costs for even one hospital stay can break a household budget, and it may take years to recover.
That's the bad news. The good news? You can control some of these ever-increasing health care costs by following a few simple strategies:

• Negotiate, negotiate, negotiate. You haggle when buying an automobile. Why not use a similar tactic when discussing items on your hospital bill? In fact, out-of-pocket costs for a surgery may even exceed the cost of that shiny vehicle sitting in the driveway. Fortunately, health care providers are often amenable to reducing invoiced amounts, and some may offer discounts for upfront payment. You might also research the cost of similar services in your area and use those figures as a starting point for negotiation. One place to start is healthcarebluebook.com.

• Scrutinize the bill. Hospitals are notorious for double billing and mischarges. When you receive the itemized bill, pore over it — line by line. Look for charges that don't make sense ($50 charges for hospital supplies that are available for a dollar at the local department store); charges for services you didn't receive (physical therapy that never happened); or more than one charge for the same item (separate charges for the hospital room and standard amenities like bed sheets). Examine the rates for these items as well. Your insurer may have negotiated lower rates, but you may have been charged more-expensive uninsured rates. And make sure all eligible out-of-pocket expenses are credited toward your deductible.

• Comparison shop before you buy. Unless you're being treated for an emergency, you may have time to locate more cost-effective health care alternatives. For example, using a stand-alone MRI imaging center may cost significantly less than the same test if offered by a hospital. A walk-in clinic or urgent care facility is generally cheaper than a visit to the local emergency room. Switching to generic drugs, when available, can save you up to 60% over name-brand equivalents.

If in doubt, call your insurer's hotline to ask for help. Remember: insurance companies have a vested interest in your good health.

aconner@atconnercpa.com

Estimate start-up costs for your new business

Building a business from scratch involves hard work, long hours, and, statistically speaking, a high probability of failure. Yet as researchers Stanley and Danko noted in their landmark book, The Millionaire Next Door, "self-employed people make up less than 20% of the workers in America but account for two-thirds of the millionaires." For those businesses that survive, the rewards can be substantial.
Unfortunately, many businesses die before they get started. That's because entrepreneurs often fail to estimate start-up costs with reasonable accuracy. As a result, the company cash account dwindles to zero before sales catch up.
If you're preparing to launch a new business, take a hard look at the following:

• Assets. Your company's requirements will vary depending on the industry and market for your goods and services. But you should be able to construct a list of assets necessary to keep the business up and running for at least a year. If you're establishing a company in a brick-and-mortar location, you'll need to factor in equipment, furniture, point-of-sale cash registers, incorporation fees, licenses, signage, rental and utility deposits, and remodeling costs. A service-oriented firm may not carry substantial inventory, but a product-based company should estimate initial inventory costs as well. Equipment and furniture vendors should be able to provide reasonable cost estimates for such items.

• Expenses. Costs to launch a company will also include items not found on the balance sheet — outlays to keep the company running from day to day. These might include legal fees, website development costs, expenditures for office supplies, marketing materials, and rent and utility deposits. If you hire folks to help get the company off the ground, their salaries should be included in the expense estimate as well.

• Cash. Once you know how much your company will need for assets and expenses, it's time to develop a budget. Estimate revenue and collections for at least three months. Be conservative. Add up the cost of assets and expected expenses, then deduct cash in the bank and projected revenue. The difference will be your cash shortfall. This is the amount you'll need to garner from other sources, including bank and personal funds.

The more accurately you estimate the above items, the more likely your company will survive long enough to become profitable.

aconner@atconnercpa.com

Business Plans: Every Entrepreneur Needs One!

Many people decide to start a business but neglect mapping out their plan.  Some figure they’ve had years of experience in the industry they’re going into.  Others think they have enough money.  While both these things are important to have when starting a business, a business plan is the most essential tools for any aspiring Entrepreneur.  If you fail to plan, you plan to fail’ but once you have your plan mapped out, you have a better chance of achieving your business goal(s).

Your business plan is your map to a successful business venture.  It is always a good idea to put your thoughts on paper and that’s just what a business plan does.  It doesn’t need to be anything formal at first. Just getting your ideas down on paper is a good start.  Once you have a concept, you will need to research the industry and decide how you will structure your business or service.  It’s also a good idea to conduct a SWOT analysis of yourself as an individual, your operation and management teams  and your business as a whole.

Next you should focus on marketing.  What is the demographic of your target customer base?  Who is your competition?  What sets you apart from your competitors?  How will you position your company to stand out from the rest?

Once you get these points mapped out you will want to get to the meat of the plan:  The Financials.  When seeking funding, this is the most important component of your business plan.   Investors want to see the financial forecast for their investment.    It also helps you understand how you project your business growth.  BE REALISTIC!  Formulate your expense budget then your sales forecast.  Then create your cash flow statement and income projections.  Then compile an Income Statement (also called a Profit and Loss Statement).

We hope this helps get you motivated to start on your business plan.   If you need further assistance, we are at your service.     We can help you formulate your road map to success with a beginner Business Plan or we can help you take your business to the next level with an advanced Business Plan. Our President has extensive experience in teaching business plan writing in groups settings as well as one-on-one coaching. Contact us for a free consultation!  267-593-7604

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