October 8, 2015
Continuing from the last installment.
Lesson No. 2: Working capital loans and credit lines
Some practices are more cyclical than others. This is largely related to practice location and the “snowbird effect.” If you don’t have a reserve account, a “treasury,” built up yet to buffer the highs and lows of the practice, you critically need to arrange credit facilities. Lines of credit are important to negotiate and have in place, even if you are not expanding and already have reserves on hand. Again, it’s reasonable to have 3 to 6 months of practice overhead at your ready disposal.