Tools and Tips

• By Daniel Ramer, Erin H. McKeon
• Nov 01, 2002

When dealing with the demands of each day, the following tips-while not new or necessarily innovative-may be overolooked. Increased profits and a more efficient, happier organization can be the result of incorporating any or all of these tips into your company's procedures.

1. Write A Business Plan

It has been said that if you do not map where you are going, you may not get there. The same could be true of your business. You should start by choosing your priorities for the year and scheduling them. What you schedule and write down is more likely to happen. Include specific goals to attain and the plan out how to reach your goals. When possible, include other people in your company in the planning process and welcome input from them. Ideally, this plan should be reviewed, at least at mid-year, to determine progress and make adjustments.

2. Goal Setting

Goals should be set for all employees including management and owners. These should be as specific as possible including timetables and expected results. For example, "to obtain new referral sources" is not as effective as a goal of "obtain four new referral sources by June 30." Be sure your written calendar provides for follow-up on progress toward these goals. Another thought is to provide rewards as goals are met. These do not necessarily have to be monetary rewards, but recognition of achievement can be very valuable.

3. Detail, Detail, Detail

Setting an atmosphere for accuracy in all aspects of the business is critical to increased success and profitability. Little errors may seem insignificant, but they add up and if not controlled, will lead to an increasing number of errors. All employees should understand the importance of this and it should be continually communicated by oversight as well as example. An area that is sometimes overlooked is related to shipping, receiving and invoicing. Both for products leaving your facility as well as incoming orders, there is always the possibility of error. Orders going out should be double checked and have a system in place to be sure that invoicing is occurring accurately. Pay special attention to incoming orders. Quantities should be checked against the packing list and purchase order. Invoices should be checked for accuracy. I have seen over-billing on invoices that has amounted to errors in excess of $1,000.

4. Training

Invest the time to train employees. More than once the statement is made, "We are too busy, there is no time for training." Training pays, not costs. Training time can be found, even for an hour before opening, once or twice a month. Most training can be done in groups in a specific division (billing, driver technicians, outside sales). Topics can include insurance updates, product information, customer service skills, and other topics appropriate for each division. One-on-one training for a new employee is critical.

5. Compliance

Whether there is a mistake in providing or invoicing a product or service, or there is intended incorrect billing, a plan for every company is essential to be sure that billing is correct and that proper service and products have been provided. Expect all employees to do the right thing and communicate that often. Plan and schedule your own internal audits, and be sure that a responsible party is carrying out this schedule and reporting regularly. These audits can be ongoing with a sampling of all transactions, or could be scheduled quarterly. When possible, someone other than the employee doing the billing should do the auditing. One area that can lead to continued errors is a new employee being trained incorrectly. Auditing can prevent one employee from teaching another employee wrong information. More profits result from fewer errors, and fines and penalties can be avoided saving costs to the bottom line.

6. Atmosphere

Creating the right atmosphere is an important step in developing a successful business. Efficiency, morale, reputation and employee retention all can be affected by a "good" or "less than good" atmosphere. This is something that develops from the head of the organization to all levels of management. It is an ongoing process and will reinforce itself, if nurtured. Respect the value of each employee. Value their input and contributions and reward achievement. Rewards do not always have to be financial. "Thank you" and "well done" and other forms of recognition can be effective as well.

7. Be Different

Are you the first to offer a new product? Do you provide any services that you instituted before your competitors? (Telemedicine for example). Loretta Lynn said, "You have to be first, best, or different." Why not be all? Be aware of new opportunities. Try to think outside the box. Network at national Medtrade conferences. Join the state and national associations and attend their functions. Read your trade journals with an open mind. Learn from the experiences of other providers who are not your competitors. While it is true that an HME provider may not be able to be everything to everybody, diversification should at least be considered.

8. Marketing

As good as you are, it is important for others to know that. You want to be known for the products and services that you provide as well as the good things you do for the community. You should be visible to the public as well as the professional community. Marketing and advertising, many times, is overlooked or forgotten because of daily demands, but it needs to be planned and scheduled for best results. Yearly, establish the marketing and advertising that you plan to do, have a monthly schedule written and distributed, and follow-up regularly to be sure the plan is being followed. What is written has the better chance to succeed.

9. Networking

As important as marketing is for the visibility of your company, in the HME field, networking is equally as important. Word of mouth spreads quickly within the professional community. It is important to be known in the general community positively and networking is a powerful tool to make this happen. A company that I am familiar with had a marvelous publicity and marketing campaign over a number of years. However, when a survey was taken in the general public, less than 20 percent were familiar with the company name or what they provided. The public, in general, will not think about what we provide until it is actually needed. When they do have those needs, you want your name to be foremost in their mind. Networking beyond the medical field can help achieve that. Join organizations. Attend public as well as professional events. Volunteer for fund raising activities. Serve on appropriate boards and committees. Encourage all staff members to represent your company and be able to also network for the company.

10. Delegate

"A candle loses nothing by lighting another candle," Father James Keller. Delegation can be a difficult thing to do. We all have our own way to do things, however, to grow and increase sales and profits, we need to take advantage of the talents of others. They may think and perform differently, but recognition should be made of what they can provide for the company. Not only does the involvement of others enable more to be accomplished, but also the ideas and input of others can add to the success of the company. There is skill involved in successful delegating, and it requires an investment in time and follow up, but the rewards can be immeasurable.

Probably a good deal of what you have read in this article is elementary, basic, and is already a part of your company. Perhaps you can review these tips and use them for reinforcement. Use them as a self-examination tool for your company or yourself. There may be some ideas you can incorporate or expand upon. Plan now to schedule them into your 2003 business plan and strategies. Maybe only one additional project is doable, so prioritize and select one from your list.

In Summary

Plan and write your goals

Value and make use of others

Invest in training

Let everyone know about all the good work you do

Find ways to differentiate yourself from your competition

Make more money!

This article originally appeared in the November 2002 issue of HME Business.