Client: Cutting-Edge Medical Service Company
Client Type: Start-Up
Executive Summary: Helped a partnership launch a small company poised to expand internationally in a cutting-edge medical technology while protecting intellectual property and complying with regulatory guidelines. Richard Dana Associates brought in a team of specialists to help build critical infrastructure, including accounting and information systems. We also introduced many business methods, including marketing, financing and staff development.
Clear to the Bottom Line: The company grew at an annual rate of 40% with greater net profits. A sound infrastructure allowed the owners to transfer their attention on the firm's growth, rather than focus exclusively on day-to-day operations.
Services: Strategic Planning, Business Planning, Infrastructure Building, Marketing and Branding, Managing Work/Life Balance
Assignment: The client was an established partnership that provided innovative, high-tech medical services. Their goal was to develop the practice into a firm recognized internationally as a leader in an emerging, cutting-edge technology and service industry. The firm lacked infrastructure and required sales and marketing strategies.
Construct the Picture: Richard Dana Associates was brought in to help the client develop a business plan, and to help build the functions required to support growth. We began with a detailed process to understand the owners’ vision in three to six months, one year, and five years.
Convert the Picture to High Definition: Based on that vision, Richard Dana Associates assembled a team that included a medical billing specialist, an accountant and system implementer, and legal counsel to help our client to create an action plan. We also identified the immediate need for strategic business partners.
Execute the Action Plan:
- Found a business partner
- Deployed financial and accounting systems
- Re-assessed staffing needs, costs and impact on cash flow
- Introduced new banking relationships and obtained competitive bids
- Secured needed outside vendors and professional services
- Implemented marketing strategies for the first year
Results:
- 40% annual growth with greater net profit
- Obtained new space and negotiated a favorable lease
- Hired and expanded professional and technical staff, freeing the owners to maximize personal productivity
- Created an effective marketing plan and branding strategy by positioning the practice within the medical and psychological communities
- Established a Professional Corporation structure to balance the owners' personal financial and legal situation with the firm's needs
- Negotiated favorable interest rates; refinanced loans and expanded credit line
Next Steps: Richard Dana Associates continues to advise our client on an ongoing basis to help identify the ideal rate of sustainable growth that will not result in burnout for the owners. As their business progresses, we periodically help them to retool their business plan to match and incorporate the firm's growth to date with current market conditions. The owners' key objectives now are to continue to grow the firm without as much direct personal involvement, which will require adding more staff and developing an effective, broader management team.