Measuring The Success Of Your IDD Service Business
Many people have been running their IDD (intellectual or developmental disability) or long-term services & supports (LTSS) business for years. The profits have been making payroll, keeping the lights on in the office and giving the owner some reward for effort. So it’s all good – right? The question is do you really know whether you and your business are a success? Vague feelings of being successful don’t really tell you anything – only data-based evidence counts!
For some people simply not having to work for a “boss” is success enough. For others being able to provide services for people with IDD/special needs is their definition of success. For most people though, there must be (and quite rightly so) an element of monetary prosperity (or even affluence) for a true definition of success. Exactly how much depends on you. In this blog we examine exactly how to measure your company’s success. After having read the article and done your research if you indeed consider yourself successful – congratulations! If not, then you just defined what your next annual, mid-term or long-term business goals are. So let’s examine 6 methods of measuring success for your IDD/LTSS business
1. Keep Accurate Financial Statements For Your Business
Profits are a prime concern of all businesses. This is true whether you run a not-for-profit, faith-based concern, family business or a multi-national corporation. Money doesn’t have to be the only goal but the doors of all businesses are kept open by an influx of cash. When measuring the success of your business, you need to see how much money it’s generating and how much is going out again.
The three main financial statements you should use are the income statement, balance sheet, and cash flow statement.
The income statement measures the profitability of your business during a certain time period by showing your business’s profits and losses. The balance sheet is a snap shot in time that shows your business’s financial health, measuring how much you owe and own. And, the cash flow statement shows how liquid cash flows through your business. Once you have these three statements you can use the data to determine all kinds of useful measures of profitability, efficiency, solvency etc.
If you need more information on financial statements organizations like the Small Business Association (SBA), Accounting Coach or your local library have free courses are a good place to start.
2. Check Customer Satisfaction
Measuring customer satisfaction doesn’t have to be complicated you could use short surveys, reviews, or even just asking, “How can we make things better?”At Focused Software we continually have our ears tuned to our clients needs as we know customers help us improve our service array.
3. Keep An Eye On New Client Numbers
Envision What Success Looks Like For Your IDD/LTSS Company
Then Make Active Plans To Achieve It!
Employees are essential — without them, you would have a hard time running and growing your business. Another reason you’ll want to keep up with how each employee is performing is because for most long term services and support businesses employees are your biggest cost item. One way to measure business success is through conducting performance reviews to see how your employees are doing in attaining critical business goals and their own career development. Bi-annual or even quarterly reviews enable managers to encourage appropriate staff behavior or address negative issues in a timely fashion. This is good for company morale, and for productivity.
For example, you might have an employee who has extra time on their hands. Through the performance review, you find out that the employee is unhappy because they want more responsibilities. You can then delegate more tasks to that employee to make them happier and increase workplace productivity without increasing the number of workers on payroll.
Staying current with what is happening in your industry and the market at large is critical. Why? To mention a few examples – changes in regulations, payment structure and client classification can have a huge impact on how your company runs and its profitability. The industry landscape is also where to get figures to determine how other providers in the field are doing – are you as profitable, growing as strongly, experiencing the same staffing challenges? You might find out you’re not the only one facing certain problems.
Don’t be down if your business’s profitability decreases. It might be a result of the national market and out of your control. If appropriate, decreased profitability could be a good time to diversify your offerings.
Now I know we started off by saying feelings of success don’t prove anything but that doesn’t mean they are of absolutely no importance at all. Your feelings do have their place they simply shouldn’t be all your only definition success. Why? Even if you only provide LTSS services simply to enrich the lives of people with IDD/special needs and profit is of no concern you have people depending on you to succeed. Your staff depend on the salaries you provide to take care of their families, your clients depend on you for consistent care and you may have family who depend on the profits you bring in to keep a roof over their heads, pay school tuition etc.
Having said all that, assessing your own happiness is important when measuring your business success. Your happiness maybe predicated on having flexible time for family or hobbies with company growth/profits coming in a solid second. For other providers their feelings of success are firmly entwined with profitability and growth and that’s ok too. So if profits are important and the numbers are good, are they where you want them to be? Make sure your company plans include elements that will bring you happiness – whatever that looks like.
No matter how hard you work keeping up with the increasingly complex regulatory demands in long term care cannot be efficiently achieved with archaic paper charts or rudimentary Excel sheet or Access-based desktop-bound documentation. The value proposition of an EHR or practice management software system is undeniable! They are cheaper than adding new personnel and never need benefits, sick time or rest! Implementing Focused EHR is much easier than you think and we’ll guide you every step of the way! Let your software do the heavy lifting for you – that’s what it’s designed to do! Automation helps you work smarter and is the most efficient and affordable answer! Call FOCUSED SOFTWARE TODAY!