Renee Matlock, the owner of The Private Practice Coach, shares with clients her wealth of experience, gained over 30 years of building a profitable, multi-disciplinary private practice.
BLOG: Four Business Relationships You Need
Four Business Relationships You Need
When starting a new private practice or running an existing practice, we often need to seek expert business advice. The most important thing you can do when it comes to your business is recognizing when you need to enlist the help of a professional. As business owners, we often neglect to seek professional advice due to the costs involved. Don’t be short-sighted. It is so important to establish on-going business relationships with these four professionals: an accountant, an attorney, a banker and an insurance broker.
1. Accountant–This relationship is one of the most important to the successful running of your business. My accountant understands my business and my goals and I frequently turn to him for advice and counsel, making him an invaluable, long-term partner. He functions as my business and financial consultant–so much more than just filing my corporate tax return. Over the years, my accountant has advised me regarding setting up a 401K and profit-sharing plan for my employees, financial planning, determining areas for growth, depreciation and amortization of business assets, payroll matters, bookkeeping, tax planning, and the list goes on. We meet quarterly to review the financial status of the practice. Using this knowledge, I no longer run my practice “by the seat of my pants”, but make informed decisions as I plan the future direction of the practice.
2. Attorney–I look at a relationship with an attorney as one of those things that you don’t need often, but when you do need one, you are relieved to know that it is someone who has your back. An attorney is particularly important when you are starting your business. He/she can assist you in determining the best legal structure for your new venture–maybe a sole proprietorship or partnership is the best for you, or a corporation (and there are many types) may be a better route. An attorney, in consultation with your accountant, can guide you in making the right startup decisions. I have used my attorney to develop contracts, review contracts and leases, assist with the sale and purchase of business-related real estate and for advice on employment law. I can’t begin to tell you how comforting it is to know that I can just send a short email or pick up the phone and ask my attorney a question.
3. Banking Professional–As a business owner, you often need the advice and services of a banker. Perhaps it is to secure a short-term loan to cover business expansion or a cash flow shortfall. As my practice grew over the years, I decided it was time to consider purchasing an office condo unit, rather than continuing to rent. Because I had invested time in building a relationship with my banker, he was familiar with me and my practice and was able to advise me on mortgage options and I was able to secure financing with ease. He even referred me to a quality contractor to complete the buildout of the unit.
4. Insurance Broker– Over my years as a private practitioner, I have developed an ongoing relationship with an independent insurance broker. This group is able to compare policies with several companies and secure the best policies as it pertains to coverage and cost. By establishing this relationship, when I needed help and fast, due to a flooded lower level of my office space, I was able to get immediate assistance from my insurance agent and was up and running again in no time.
So take time to not only secure the professional assistance and services you need for your practice but also to develop ongoing business relationships with these professionals–they will contribute to your success!
P.S. When my insurance agent recently needed speech-language therapy for his two-year-old grandson, guess who he called? It’s all about relationship building!
