Your practice dollars could be working better for you
By Glenn C. Breslauer, Michael Engler and Michael Steigerwalt,
As a small business owner in the Aesthetic medical market, you are undoubtedly faced with crucial financial decisions every single day, some obvious and others tucked away and out of sight. There is great impact in everything you do…every new service you provide, and in every modality you invest in. So, when it comes down to maximizing your efforts, where do you look first to make sure you are getting the greatest ROI for your efforts?
Take time to examine the following areas that could have a positive effect your bottom line.
Protection strategies have a lot of cost saving potential.
When looking at the various insurance policies that your practice currently has in place, do you notice any areas of opportunity to recover costs? An often overlooked space is Malpractice insurance. It’s perfectly fine to acknowledge that medical malpractice insurance can be confusing, even for the most highly educated person. Because it can seem daunting to know where to begin looking for cost savings, many physicians simply do not. This is a huge mistake, because you can save by simply updating your coverage or changing your current carrier.
“One physician I worked for in the past, hadn’t taken a look at his malpractice policy for years, and with just a few quotes from competing carriers I was able to save him thousands of dollars per year for similar coverage.” said Glenn C. Breslauer, Financial Professional with WealthScope Financial. “You never know how much you will save until you take a few minutes to go through your current coverages, and carriers are always competing for the business of physicians with a healthy track record”, he added.
Mr. Breslauer advises that the same process can be applied to all insurance coverages, from Business Liability to Property and Casualty, and even Key Person Insurance which is an often overlooked strategy that can have a positive effect on your practices bottom line.
Reexamine your investing strategy.
If you are currently working with a Financial Advisor (hint: you should be), perhaps it’s time to revisit your current strategy. Michael Steigerwalt, a Financial Professional who specializes in working with physicians suggests “Many physicians will realize a great benefit by revisiting their investment strategies to include: Setting up a safety net, Diversifying your portfolio, and Focusing on preservation.” He adds, “this isn’t as daunting as it might seem, and a discussion with a financial specialist who works with medical practices, should be able to steer you in the right direction.”
Set up a safety net. The ideal situation is that your business invests a fixed amount of cash (at least three to six months’ worth of your gross income) in a liquid account such as a money market fund or even a savings account at a bank or credit union, you establish a cushion that can safeguard your business should your other investments or your business experience a period of underperformance.
Diversifying your portfolio. Ask your financial professional to help create a portfolio that is out of your particular industry sector. Too many small companies invest in the same industry sector they are in. Investment diversification can go beyond industry—you should also avoid concentrating your portfolio on any one geographical region. By investing in securities outside of your region or even your country, you can avoid letting the economic troubles of one area ruin your entire portfolio.
Focus on preservation. Instead of limiting your portfolio to just your business, try to think of your business as simply one part of your overall investment portfolio. General best practice for small business investors is to base the structure of their portfolio on preservation rather than large-scale growth. By focusing on a more conservative investment strategy, you can have a better chance of being able to rely on your portfolio during an economic downturn. If you focus mainly on growth and a riskier investment strategy, both your portfolio and business are at risk when there is a dip in the market.
Offering financial wellness can improve the financial health of your practice.
Are your employees experiencing financial stress? With money still an off-limit topic for many, the people who work for you may be suffering in silence, bringing unspoken financial stress to their jobs. A survey by the American Psychological Association in 2020 found that nearly 2 out of 3 adults say money is now a “significant source of stress.”1 How can you help them? To answer this question, companies are increasingly offering financial wellness training to employees.
What is financial wellness?
A financial wellness program is a workplace benefit where companies provide employees training and support for managing their financial lives. The support can come in a variety of forms. Some companies choose to help through in-person or online financial workshops. Alternatively, some companies facilitate one-on-one meetings between an employee and a financial representative.
Financial wellness training is increasingly seen as a standard component of a competitive employee benefits package, with the percentage of employers offering financial wellness programs rising from only 20% in 2015 to over 80% by 2018.2 These programs address common money issues, such as helping people get a handle on debt.
“Financial Wellness programs can also support employees in setting up financial safety nets through tools like income protection insurance." says Michael Engler, a Financial Advisor with WealthScope Financial. Engler added, “In other cases, employees may want guidance in creating a savings plan or an investment strategy. Financial wellness programs can cover a range of issues and be tailored to an employee’s specific needs.”
Financial Wellness can boost your bottom line.
Employees who worry about money are often distracted and less productive. In fact, one study found a financially stressed employee may spend up to three hours a week dealing with money issues. When someone is in this situation, they have a 7.5 percent decrease in productivity.3
Through financial wellness support, employers give people tools to help make sense of their financial lives and make a plan moving forward. As a result, workers feel less stressed and become more engaged on the job. Happier employees tend to stay on the job longer, reducing turnover rates and the expense of finding new talent.4
Any size business can offer a financial wellness program.
A financial professional can help you survey the available options and show you how they can meet the specific needs of your employees. When people are worried about money, whether it’s debt today or a big purchase tomorrow, they carry that worry into the workplace.
Financial wellness training can support your employees in managing the stress today as well as finding a path to greater clarity and confidence for the future. If you’re interested in bringing greater financial and emotional confidence to your employees, a financial professional can help you find the right program for you and your team.
Contact us to discuss an effective strategy for your practice
1 It’s a Scary Time Financially. How to Avoid Panic, CNBC, October 23, 2020
2 Benefits and Beyond: Employer Perspectives on Financial Wellness, Prudential, May 2018
3 Financial Wellness is Now a Requirement, Not a Perk, Entrepreneur, November 27, 2020
4 Happy Employees and Their Impact on Firm Performance, London School of Economics, July 15, 2019
About Glenn C. Breslauer
Glenn C. Breslauer is a founding partner of WealthScope Financial, a Financial Strategizing group that specializes in working with medical professionals.
Before forming WealthScope Financial, Glenn spent years in Dermatology and Aesthetic Medicine building dynamic organizations and helping them reach new levels of success through tested, actionable strategies. Glenn is the author of “There are no life lessons” which is available on Amazon and Apple iBooks1.
About Michael Steigerwalt
Michael Steigerwalt, founding partner of WealthScope Financial.
Michael works with residency programs and helps medical professionals create personalized financial strategies. His comprehensive approach delves into several key areas, including, but not limited to: developing investment strategies; creating tax-efficient means of wealth accumulation, distribution and transfer; and protection management. Michael holds Series 6 & 63 FINRA securities registrations, as well as, life and health insurance licenses.
About Michael Engler
Michael Engler, founding partner of WealthScope Financial. Michael specializes in helping medical professionals prepare personalized financial strategies. His comprehensive approach delves into several key areas, including, but not limited to: developing investment strategies; creating tax-efficient means of wealth accumulation, distribution and transfer; and protection management. Michael holds Series 7, 65 & 63 FINRA securities registrations, as well as, life and health insurance licenses.
Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Penn Mutual and its subsidiaries do not issue or advise with regard to student loans. Registered Representative of Horner, Townsend & Kent (HTK). 161 Washington Street, Suite 700, Conshohocken, PA 19428. 610-771-0800. Securities products offered through HTK, member FINRA, SIPC. Financial Professional of Penn Mutual Life Insurance Company. HTK is a wholly owned subsidiary of Penn Mutual. WealthScope Financial is not an affiliate or subsidiary of HTK or Penn Mutual. 2021-123105 Exp 06/23