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

2. 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

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

4. 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

5. 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

6. 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

7. Addressing Borrowing Concerns
Business Skills for Private Medical Practices

8. 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

9. 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

10. 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

11. 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

12. Assessing Financing Options
Business Skills for Private Medical Practices

13. 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

14. 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

15. Considering Financing Options
Business Skills for Private Medical Practices

16. 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

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

18. 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

19. Selecting Financing Options
Business Skills for Private Medical Practices

20. 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

21. Summary and Evaluation
Business Skills for Private Medical Practices

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

23. 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

24. 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

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