Sustaining Your Practice

The action items below are intended to provide you with guidance regarding the acquisition of working capital and evaluation of your current and future cash position. It may be best to work closely with your financial advisor, legal counsel, and/or a consultant on determining what is best for your individual situation.

Actions for Sustaining Your Practice

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1
Assembling Your Core Team
  • Develop selection criteria and guiding principles
  • Develop action plan
  • Determine frequency of team communication
  • Strategize on how best to communicate with other stakeholders
2
Applying for an SBA Loan to Acquire Working Capital
3
Forecasting Cash Inflows for 13 Weeks
  • You may not have all of the information; however, don’t let that keep you from conducting this exercise. Use your best estimates, evaluate your forecast real-time (daily), and adjust the forecast as you go.
  • It may be easiest to start with the prior year’s weekly revenue and adjust accordingly. 
  • When determining cash inflows, consider any ongoing operations, accounts receivable, retained earnings, owner loans, and/or financial support from lenders (such as lines of credit or SBA above).
4
Forecasting Cash Obligations for 13 Weeks
  • Determine where obligations may need to be reduced
  • Negotiate with Vendors and seek extensions* 
    - If this seems daunting, start with those you spend the most money. 
  • Negotiate with Credit Card Companies
    - Can you reduce your minimum payment or increase your line of credit?
  • Negotiate rent with Landlords 
    - Consider evaluating any lease agreements that include Force Majeure clauses and work with your legal counsel to evaluate options and/or circumstances that may invoke this provision.
    - If you own the building, contact your lender to evaluate term extensions, etc.
  • Develop Staffing Plan with the Assistance of Legal Counsel
    - What can you afford based on your forecast? 
    - Do you need to reduce hours, reduce staff through lay-offs or furloughs? 
    - Consider job sharing options (1 staff member M, W, 2nd staff member works T, Th)
  • Considerations for Furlough/Layoff
    - If you are to keep staff, identify specific job responsibilities. 
    - If your staffing plan includes remote employment, you may need to determine how to utilize your staff in a remote capacity. For example, can they work on updating your practice’s website and/or before & after galleries, build out social media marketing calendars, mine your practice management system, etc.
  • Marketing
    - Determine ROI on current efforts. What’s working/what’s not/what’s the plan moving forward?

*Allergan has proactively extended payment terms by 60 days on all open invoices and will increase payment terms by 60 days on all future purchases until June 30, 2020. Learn more here.