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Business Owner, Prepare Yourself…

This morning’s headline “Medicare pay for doctors to be cut 21%” will have major repercussions if it becomes the law of the land. We are now at a time when the “baby boomers” are reaching retirement age. Like most American, they are waiting to qualify for medicare, as regular health insurance rates are climbing and with advanced age so do medical problems.

I visited with a doctor to get his view on this subject. With facts and figures he demonstrated that he cannot afford to continue seeing medicare patients if this law is enacted. Like most small businesses, operating at a loss does not make for a healthy business. The reduced rate will not cover office expenses, (overhead, staff, medical equipment, insurance, lease costs, etc).

So what does that have to do with our business? To me, it means taking a closer look at your budget and allocating funds, for yourself and possibly your staff, for direct pay health care costs. If doctors will not take new medicare patients, the few that will may not have enough time to treat everyone. We may be going back to paying our health care bills out of pocket.

Cash is king is so many ways and this is just one more example of what can happen in the future to necessitate a need for cash.  The small business budget is the basis for survival. In the small business, the owner’s budget and the business budget are intertwined. I have spoken about the importance of budgeting, both at home and in the business, now it is more important then ever.

You can’t work you way out of debt by assuming more debt. To often the business owner who has a budget for his business (and that is only a small minority) does not have a personal home budget. The home budget should be the basis for the business budget. When I am asked to help with a business budget I always start with the owners personal , family budget. As I write in my Budget book, a budget is a family affair.

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Before everything else, getting ready is the key to success.       Henry Ford

Have a great day!

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