Business for Health Business Skills for Private Medical Practices Module 19: Fund Your Health Practice

Business Skills for Private Medical Practices A Quick Start Welcome! While you are waiting for the class to begin, please take the Pre-Test and make sure your name is on it before you hand it to the facilitator. Thank you!. Business Skills for Private Medical Practices

Agenda Welcome Addressing Borrowing Concerns Assessing Financing Options Considering Financing Options Selecting Financing Options Summary and Evaluation Close Business Skills for Private Medical Practices

Business Skills for Private Medical Practices Learning Objectives During this session, you will: address objections to borrowing money; define and distinguish internal and external financing options; discuss the pros and cons of different financing options; Business Skills for Private Medical Practices

Business Skills for Private Medical Practices Learning Objectives assess the best way to meet financing needs; select financing options; discuss the next step; and state your key take-away from this session. Business Skills for Private Medical Practices

Business Skills for Private Medical Practices Introduction You will have 1 minute to introduce yourself: 1. Your name 2. Your position 3. Your business 4. How long you have been in business Business Skills for Private Medical Practices

Addressing Borrowing Concerns Business Skills for Private Medical Practices

Borrowing Concerns Questionnaire Move to the right of the facilitator if you agree with a statement. Move to the left of the facilitator if you disagree. Confer with your group to explain your answer. 1. It is better to use your savings than to borrow to invest in your business. 2. Borrowing money is risky. Business Skills for Private Medical Practices

Borrowing Concerns Questionnaire It is always expensive to borrow money. Businesses should not borrow to cover short-term cash flow needs. You can lose control over your business if you borrow money. Banks don’t want to lend to small businesses. Business Skills for Private Medical Practices

Borrowing Concerns Questionnaire If the interest rate is high, you should never borrow. Investing your savings and getting a bank loan are not the only ways to obtain necessary funding. Savings from profit are usually not enough to grow a business. Business Skills for Private Medical Practices

Borrowing Concerns Questionnaire If you don’t want to grow your business, then you never have to worry about borrowing money. Borrowing money should never be the only option you consider when your practice needs additional funds. Business Skills for Private Medical Practices

Assessing Financing Options Business Skills for Private Medical Practices

Ranking Financing Options Rank A Rank B 1. Reinvest profits 2. Invest personal savings 3. Involve an outside investor 4. Use crowdfunding 5. Supplier Credit 6. Leasing 7. Get loan from family/friends 8. Get loan from bank Business Skills for Private Medical Practices

Which Financing Option is Better? Our preferred financial option: _____________ It is better than the other options for these reasons: Financial Option [name] [reasons] Business Skills for Private Medical Practices

Considering Financing Options Business Skills for Private Medical Practices

Factors to Consider in Selecting a Financing Option Accessibility Amount needed Purpose Repayment plan Interest Collateral Grace period Equity needed Pros and Cons Other Business Skills for Private Medical Practices

Financing Plan Considerations: Queen of Sheba Business Skills for Private Medical Practices

Analyzing the Queen of Sheba’s Financing Plan Financing Option An effective choice if owner considers: Equity: owner Equity: reinvestment Family loan Supplier credit: equipment Supplier credit: furnishing Bank loan Business Skills for Private Medical Practices

Selecting Financing Options Business Skills for Private Medical Practices

Proposing a Financing Plan Professor Arthur Diang’a needs Ksh.15,000,000 to establish a second practice. How should he finance it? Business Skills for Private Medical Practices

Summary and Evaluation Business Skills for Private Medical Practices

Business Skills for Private Medical Practices Evaluation Sheet Business Skills for Private Medical Practices

Business Skills for Private Medical Practices The Next Step When you need additional funds, carefully assess all options before creating your financing plan. Verify availability, terms and conditions of the sources in your financing plan. Shop around for the most favorable arrangements and best relationship. Business Skills for Private Medical Practices

Let’s See How Much You’ve Learned Please take the Post-Test. We will compare it to your Pre-Test to see how much you’ve learned in this session. Thank you. Business Skills for Private Medical Practices

Business Skills for Private Medical Practices My Key Take-Away Business Skills for Private Medical Practices